Disadvantages Of PESTLE In Business

What is PESTLE
What is PESTLE? PESTLE analysis, sometimes referred as PEST is a concept used to track the environment in which a company works in, or are planning to launch a new product or project. PESTLE is a mnemonic which expanded and stands for Political, Economic, Social, Technological, Legal and Environmental. The reasons why companies tend to use PESTLE is because it gives a birds-eye view of the environment of which the company works in from a number of different angles. Many companies would use PESTLE as it is a more comprehensive version of a SWOT analysis. PESTLE is really important to do because of a number of different things. Things such as getting an understanding of your market and to analyse every factor of your organization

This is because of the amount of factors that change over time duo to different laws or technology changing and becoming more advanced. Reasons why it is effective is because it is very easy to do and provides a simple and easy-to-use framework. It also encourages the development of strategic thinking and exploiting new opportunity’s when they appear. It also enables you to assess implications of entering a new market both nationally and globally. However there are some disadvantages of PESTLE. Things such as over simplifying information that is used for making decisions. Sometimes organizations often restrict who is involved duo to cost and time considerations. This also relates to not being able to have access to external quality

They mainly prioritise Social and technological duo to having a big competitor like Samsung who has recently kept up with apples products. Apple use social to gain an understanding of the customers behaviour and influences. They saw the rise in mobile phone usage over the past few years and mainly focused on creating phones and upgrading them every few months to make people known that they are the most advanced company in the phone market. With the new iPhone X they have facial recognition which no one has done before for a mobile device. Samsung a few months earlier prior to the iPhone X brought out the Samsung 8 which has eye scanning technology to unlock a person’s phone but apple had one up on them for their facial recognition. To do with APPLES technological factors, they got on the trend for cloud storage on phones and being able to have a backup of all your files and photos on a cloud which you can access from any APPLE product device. However there is a limited market to deal with.
One company who has mastered the PESTLE analysis is Google. Google do regular PESTLE analysis to keep up to date with trends and can see a lot of opportunities that they can use to grow their organization even more. Likewise with APPLE, Google takes a lot into consideration about their social because of how big social media has become that past five years. Google do regular PESTLE analysis to keep up with trends to do with social media. They