It is essential for an organisation to continually assess its external environment, or macro-environment to ensure it develops an awareness of changes and developments so it can review its strategy accordingly. The macro-environment is classified as the environment in which the organisation has very little influence. The PESTLE model, as shown in Figure 2 is a tool that can be used to asses this environment. The source of factors that potentially drive change are categorised as Political, Economic, Sociological, Technological, Legal and Environmental.
Figure 2: The PESTLE Model
By understanding these environments, it is possible to maximise the opportunities and minimise the threats to the organisation. Specifically, a PESTLE analysis is a valuable tool for understanding future market growth or decline, so that the organisation can adjust its strategy accordingly.