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PESTLE analysis 
Project Cycle Management 
----- 
A short training course in project cycle management for 
subdivisions of MFAR in Sri Lanka 
MFAR, ICEIDA and UNU-FTP 
Icelandic International 
Development Agency (ICEIDA) 
Iceland 
United Nations University Fisheries 
Training Programme (UNU-FTP) 
Iceland 
Ministry of Fisheries and 
Aquatic Resources (DFAR) 
Sri Lanka
Content 
• What is PESTLE analysis? 
• What does PESTLE analysis include? 
• Case study on post harvest losses.
Learning objectives 
• After this lecture participants will be able to 
identify and undertake PESTLE analysis
PESTLE analysis 
• PESTLE is an analytical tool which 
considers external factors and helps 
you to think about their impacts
PESTLE analysis 
• Is a useful tool for understanding the “big 
picture” of the environment in which you are 
operating 
• By understanding your environment, you can 
take advantage of the opportunities and 
minimize the threats. 
• This provides the context within which more 
detailed planning can take place to take full 
advantage of the opportunities that present 
themselves.
The factors in PESTLE analysis 
• P – Political 
– The current and potential influences from political pressures 
• E - Economic 
– The local, national and world economic impact 
• S - Sociological 
– The ways in which changes in society affect the project 
• T - Technological 
– How new and emerging technology affects our project / organization 
• L - Legal 
– How local, national and global legislation affects the project 
• E - Environmental 
– Local, national and global environmental issues
PESTLE vs. SWOT 
• In contrast to a SWOT, PESTLE encourages 
you to think about the wider environment and 
what might be happening now and in the future 
which will either benefit or be of disadvantage to 
the organization, individual etc 
– a kind of radar which picks up trends and 
developments in the external environment which 
can be used to inform longer term planning and 
strategy making
• Political: 
PESTLE 
– Government type and stability 
– Freedom of the press, rule of law and levels of bureaucracy and corruption 
– Regulation and de-regulation trends 
– Social and employment legislation 
– Tax policy, and trade and tariff controls 
– Environmental and consumer-protection legislation 
– Likely changes in the political environment 
• Economic: 
– Stage of a business cycle 
– Current and projected economic growth, inflation and interest rates 
– Unemployment and supply of labor 
– Labor costs 
– Levels of disposable income and income distribution 
– Impact of globalization 
– Likely impact of technological or other changes on the economy 
– Likely changes in the economic environment
PESTLE 
• Sociological: 
– Cultural aspects, health consciousness, population growth rate, age distribution, 
– Organizational culture, attitudes to work, management style, staff attitudes 
– Education, occupations, earning capacity, living standards 
– Ethical issues, diversity, immigration/emigration, ethnic/religious factors 
– Media views, law changes affecting social factors, trends, advertisements, 
publicity 
– Demographics: age, gender, race, family size 
• Technological: 
– Maturity of technology, competing technological developments, research funding, 
technology legislation, new discoveries 
– Information technology, internet, global and local communications 
– Technology access, licensing, patents, potential innovation, replacement 
technology/solutions, inventions, research, intellectual property issues, advances 
in manufacturing 
– Transportation, energy uses/sources/fuels, associated/dependent technologies, 
rates of obsolescence, waste removal/recycling
PESTLE 
• Legal: 
– current home market legislation, future legislation 
– European/international legislation 
– regulatory bodies and processes 
– environmental regulations, employment law, consumer protection 
– industry-specific regulations, competitive regulations 
• Environmental: 
– Ecological 
– environmental issues, environmental regulations 
– customer values, market values, stakeholder/ investor values 
– management style, staff attitudes, organizational culture, staff engagement
PESTLE analysis and projects 
• It is possible to use the PESTLE analysis on projects 
as well for organizations 
• It is not always needed, especially if the projects are 
small 
• If PESTLE analysis is used for a project, then the 
focus should be on solving the “focal problem” and 
analyze how the external environment is affecting the 
process of solving the “focal problem” 
– e.g. the guidelines from the European Commission do not 
include PESTLE in their logical framework approach
Issues of concern 
• The main problem with these external PESTLE factors is 
that they are continuously changing 
• Therefore PESTLE analysis should include a thorough 
analysis of what is affecting the organization or a project 
Now, and what is likely to affect it in the Future 
• The result of a PESTLE analysis is usually a list of 
positive and negative factors that are likely to affect a 
project 
– However, by themselves, theses factors they mean very little 
– It is important to bear in mind, that PESTLE analysis requires 
careful Application of results
Similar analysis 
• Other forms of PEST - PESTLE, PESTLIED, STEEPLE and 
SLEPT: 
Some people prefer to use different flavors of PEST analysis, using 
other factors for different situations. The variants are: 
• PESTLE/PESTEL: Political, Economic, Sociological, Technological, 
Legal, Environmental; 
• PESTLIED: Political, Economic, Social, Technological, Legal, 
International, Environmental, Demographic; 
• STEEPLE: Social/Demographic, Technological, Economic, 
Environmental, Political, Legal, Ethical; and 
• SLEPT: Social, Legal, Economic, Political, Technological
PESTLE analysis 
post harvest losses 
• Following is a case study of PESTLE analysis 
on post harvest losses (PHL)
PESTLE 
Political factors - PHL 
Importance 
Increasing > 
Unchanged = 
Decreasing < 
• Low political interest among the general public and therefore 
little or no pressure on government 
• Low political pressure from fishermen and boat owners 
• Low interest among politicians 
• High interest among government to improve the situation on 
post harvest losses 
• Frequent changes in policy due to rapid changes in politically 
elected authorities within the government affecting stability of 
practical resolutions 
• Possibilities for fishermen- and vessel owner associations to 
influence future policy making and contributing to political 
decisions 
• International agreements e.g. IOTC 
> 
> 
= 
> 
= 
> 
>
PESTLE 
Economical factors - PHL 
Importance 
Increasing > 
Unchanged = 
Decreasing < 
•Low average catches affect fishermen’s incomes and availability 
of capital to invest in improvements 
• Low purchasing power among a large group of customers in the 
domestic market 
• Limited knowledge in financial accounting affects operation of 
small and medium sized fishermen’s businesses 
• The ongoing conflict in Sri Lanka affects governmental 
expenditures and decreases the possible funding of development 
in the fisheries sector 
• The tsunami disaster had severe effect on the Sri Lankan 
fisheries sector e.g. on development and capacity 
> 
= 
> 
> 
<
Sociological factors - PHL 
Importance 
Increasing > 
Unchanged = 
Decreasing < 
• Acceptance of low quality fish 
• Lack of awareness 
• Food safety and health problems due to low fish quality 
• The attitude of fishermen 
• Lack of specialized education among fishermen 
• Religious sentiments affecting industrial practices 
. 
> 
> 
= 
> 
> 
< 
PESTLE
Technological factors - PHL 
Importance 
Increasing > 
Unchanged = 
Decreasing < 
• Lack of infrastructure (e.g. facility, machinery, tools, practices) 
• Inferior boat design 
• Inferior harbor design 
• Insufficient availability of freezing facilities 
• Inadequate processing facilities 
• Selectivity of fishing gear (i.e. gillnets) 
• Lack of technological improvements (e.g. freezers, insulating 
boxes etc.) 
• Lack of proper hygienic practices 
• Inadequate transport facilities 
> 
> 
> 
> 
> 
= 
> 
> 
= 
PESTLE
Legal factors - PHL 
Importance 
Increasing > 
Unchanged = 
Decreasing < 
• Lack of regulations, monitoring and enforcement on: 
– Quality standards 
– Food safety 
– Hygiene standards 
– Fish handling 
– Illegal inland fishing 
• Regulations in foreign export markets (e.g. EU, USA and Japan) 
• General trade agreements and tariffs 
> 
> 
> 
> 
> 
> 
> 
= 
PESTLE
Environmental factors - PHL 
Importance 
Increasing > 
Unchanged = 
Decreasing < 
• Insufficient availability of clean water 
• Tropical weather conditions 
• Pollution in harbor basin water 
• Lack of adequate sewage management 
• Oil spills in harbors 
• Hygienic conditions onboard boats and in harbors 
• Sustainability of fish stocks 
• Stock size. When stocks are large and catches good, PHL tends 
to increase 
> 
= 
> 
> 
= 
> 
= 
= 
PESTLE
References 
• Renewal Associates (2003). PESTEL Analysis. 
Downloaded 18. mars 2007 from: 
www.renwal.eu.com 
• Rapidbi (2007). The PESTLE Analysis Tool and 
Template. Downloaded the 2nd of June 2007 from: 
http://www.rapidbi.com/created/the-PESTLE-analysis- 
tool.html

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Pestle Analysis Of Sri Lanka

  • 1. PESTLE analysis Project Cycle Management ----- A short training course in project cycle management for subdivisions of MFAR in Sri Lanka MFAR, ICEIDA and UNU-FTP Icelandic International Development Agency (ICEIDA) Iceland United Nations University Fisheries Training Programme (UNU-FTP) Iceland Ministry of Fisheries and Aquatic Resources (DFAR) Sri Lanka
  • 2. Content • What is PESTLE analysis? • What does PESTLE analysis include? • Case study on post harvest losses.
  • 3. Learning objectives • After this lecture participants will be able to identify and undertake PESTLE analysis
  • 4. PESTLE analysis • PESTLE is an analytical tool which considers external factors and helps you to think about their impacts
  • 5. PESTLE analysis • Is a useful tool for understanding the “big picture” of the environment in which you are operating • By understanding your environment, you can take advantage of the opportunities and minimize the threats. • This provides the context within which more detailed planning can take place to take full advantage of the opportunities that present themselves.
  • 6. The factors in PESTLE analysis • P – Political – The current and potential influences from political pressures • E - Economic – The local, national and world economic impact • S - Sociological – The ways in which changes in society affect the project • T - Technological – How new and emerging technology affects our project / organization • L - Legal – How local, national and global legislation affects the project • E - Environmental – Local, national and global environmental issues
  • 7. PESTLE vs. SWOT • In contrast to a SWOT, PESTLE encourages you to think about the wider environment and what might be happening now and in the future which will either benefit or be of disadvantage to the organization, individual etc – a kind of radar which picks up trends and developments in the external environment which can be used to inform longer term planning and strategy making
  • 8. • Political: PESTLE – Government type and stability – Freedom of the press, rule of law and levels of bureaucracy and corruption – Regulation and de-regulation trends – Social and employment legislation – Tax policy, and trade and tariff controls – Environmental and consumer-protection legislation – Likely changes in the political environment • Economic: – Stage of a business cycle – Current and projected economic growth, inflation and interest rates – Unemployment and supply of labor – Labor costs – Levels of disposable income and income distribution – Impact of globalization – Likely impact of technological or other changes on the economy – Likely changes in the economic environment
  • 9. PESTLE • Sociological: – Cultural aspects, health consciousness, population growth rate, age distribution, – Organizational culture, attitudes to work, management style, staff attitudes – Education, occupations, earning capacity, living standards – Ethical issues, diversity, immigration/emigration, ethnic/religious factors – Media views, law changes affecting social factors, trends, advertisements, publicity – Demographics: age, gender, race, family size • Technological: – Maturity of technology, competing technological developments, research funding, technology legislation, new discoveries – Information technology, internet, global and local communications – Technology access, licensing, patents, potential innovation, replacement technology/solutions, inventions, research, intellectual property issues, advances in manufacturing – Transportation, energy uses/sources/fuels, associated/dependent technologies, rates of obsolescence, waste removal/recycling
  • 10. PESTLE • Legal: – current home market legislation, future legislation – European/international legislation – regulatory bodies and processes – environmental regulations, employment law, consumer protection – industry-specific regulations, competitive regulations • Environmental: – Ecological – environmental issues, environmental regulations – customer values, market values, stakeholder/ investor values – management style, staff attitudes, organizational culture, staff engagement
  • 11. PESTLE analysis and projects • It is possible to use the PESTLE analysis on projects as well for organizations • It is not always needed, especially if the projects are small • If PESTLE analysis is used for a project, then the focus should be on solving the “focal problem” and analyze how the external environment is affecting the process of solving the “focal problem” – e.g. the guidelines from the European Commission do not include PESTLE in their logical framework approach
  • 12. Issues of concern • The main problem with these external PESTLE factors is that they are continuously changing • Therefore PESTLE analysis should include a thorough analysis of what is affecting the organization or a project Now, and what is likely to affect it in the Future • The result of a PESTLE analysis is usually a list of positive and negative factors that are likely to affect a project – However, by themselves, theses factors they mean very little – It is important to bear in mind, that PESTLE analysis requires careful Application of results
  • 13. Similar analysis • Other forms of PEST - PESTLE, PESTLIED, STEEPLE and SLEPT: Some people prefer to use different flavors of PEST analysis, using other factors for different situations. The variants are: • PESTLE/PESTEL: Political, Economic, Sociological, Technological, Legal, Environmental; • PESTLIED: Political, Economic, Social, Technological, Legal, International, Environmental, Demographic; • STEEPLE: Social/Demographic, Technological, Economic, Environmental, Political, Legal, Ethical; and • SLEPT: Social, Legal, Economic, Political, Technological
  • 14. PESTLE analysis post harvest losses • Following is a case study of PESTLE analysis on post harvest losses (PHL)
  • 15. PESTLE Political factors - PHL Importance Increasing > Unchanged = Decreasing < • Low political interest among the general public and therefore little or no pressure on government • Low political pressure from fishermen and boat owners • Low interest among politicians • High interest among government to improve the situation on post harvest losses • Frequent changes in policy due to rapid changes in politically elected authorities within the government affecting stability of practical resolutions • Possibilities for fishermen- and vessel owner associations to influence future policy making and contributing to political decisions • International agreements e.g. IOTC > > = > = > >
  • 16. PESTLE Economical factors - PHL Importance Increasing > Unchanged = Decreasing < •Low average catches affect fishermen’s incomes and availability of capital to invest in improvements • Low purchasing power among a large group of customers in the domestic market • Limited knowledge in financial accounting affects operation of small and medium sized fishermen’s businesses • The ongoing conflict in Sri Lanka affects governmental expenditures and decreases the possible funding of development in the fisheries sector • The tsunami disaster had severe effect on the Sri Lankan fisheries sector e.g. on development and capacity > = > > <
  • 17. Sociological factors - PHL Importance Increasing > Unchanged = Decreasing < • Acceptance of low quality fish • Lack of awareness • Food safety and health problems due to low fish quality • The attitude of fishermen • Lack of specialized education among fishermen • Religious sentiments affecting industrial practices . > > = > > < PESTLE
  • 18. Technological factors - PHL Importance Increasing > Unchanged = Decreasing < • Lack of infrastructure (e.g. facility, machinery, tools, practices) • Inferior boat design • Inferior harbor design • Insufficient availability of freezing facilities • Inadequate processing facilities • Selectivity of fishing gear (i.e. gillnets) • Lack of technological improvements (e.g. freezers, insulating boxes etc.) • Lack of proper hygienic practices • Inadequate transport facilities > > > > > = > > = PESTLE
  • 19. Legal factors - PHL Importance Increasing > Unchanged = Decreasing < • Lack of regulations, monitoring and enforcement on: – Quality standards – Food safety – Hygiene standards – Fish handling – Illegal inland fishing • Regulations in foreign export markets (e.g. EU, USA and Japan) • General trade agreements and tariffs > > > > > > > = PESTLE
  • 20. Environmental factors - PHL Importance Increasing > Unchanged = Decreasing < • Insufficient availability of clean water • Tropical weather conditions • Pollution in harbor basin water • Lack of adequate sewage management • Oil spills in harbors • Hygienic conditions onboard boats and in harbors • Sustainability of fish stocks • Stock size. When stocks are large and catches good, PHL tends to increase > = > > = > = = PESTLE
  • 21. References • Renewal Associates (2003). PESTEL Analysis. Downloaded 18. mars 2007 from: www.renwal.eu.com • Rapidbi (2007). The PESTLE Analysis Tool and Template. Downloaded the 2nd of June 2007 from: http://www.rapidbi.com/created/the-PESTLE-analysis- tool.html

Hinweis der Redaktion

  1. The factors in a PESTLE analysis are: Political Environmental Social Technological Legal Economic
  2. Here we have examples - the list can change depending on the project or focal problem (We should not read out every items on this list, the participants can take a better look at it themselves, because we will focus on our case study)
  3. Here we have to mention that we used PESTLE when we analysed the case study for Post Harvest Losses. It proved to be very helpful for us, especially when we had to analyse factors that were NOT included in the SWOT (Internal - External factors) The PESTLE analysis helped us as well when we had to define the most serious problems in the problem analysis and risks or assumptions in the logframe By doing PESTLE we are scoping through many important factors that can affected our subject/program/program or institution (??? I do not understand this sentence). This might prove to be very important when you sit down with team-members in international groups or teams, then the local counterparts will become more conscious of factors that are so normal for them that they can be overlooked, an very important for the external partners to analyse and get introduced (critically) to the environment that they are going to work in. By doing both PESTLE and SWOT you will increase the overview of the dynamics of you project
  4. If you take a look at the Case Study on Post Harvest Losses you can see that there is a column which describes the importance in time “Importance” - Increasing &amp;gt; - Unchanged = - Decreasing &amp;lt;
  5. PHL stands for Post Harvest Losses