Question

perform a PESTLE analysis on college.

Answer 1

What is a PESTLE analysis?

PESTEL analysis is used by companies or organizations to monitor and determine the impact of external environmental factors.

P- POLITICAL

E- ECONOMIC

S - SOCIAL

T - TECHNOLOGICAL

L - LEGAL

E - ENVIRONMENTAL

L - LEGAL

PESTEL ANALYSIS ON COLLEGE

1. POLITICAL FACTORS -

Government Policies - Any change in the government policies in regards to college or universities can force the college to make sudden unwanted changes. For example, some services that were being provided in the campus get banned by the Government.

Taxation Policies - Sudden changes in taxation policies can shake the financial statements of the college and can demand changes in the fee structure, expenses of the college, etc.

Labor Law - Changes in labor law also can be impactful for a college. For example, introduction of the minimum wage system can lead to unemployment of lower-wage staff because the college was paying less than what it needs to pay after introduction of the system.

2. ECONOMIC FACTORS -

Taxation - Change in taxes can promote sustainable development but also reduces funding for the college. Changes in taxation policies generally demand instant changes in the financial framework of the college.

Budget Changes - Budget changes can affect the college in increasing or decreasing the cost of the services for the students.

Student Admissions - The count of student admissions is the aspect on which the college runs its operations and provide facilities. Less no of admissions can reduce the facilities due to lower revenue and vice versa.

Financial Performance of College - The comparison of financial performance between the present and last year could give rise to changes in the fee structure for the next year.

3. SOCIAL FACTORS

Reputation - The college reputation in the public can play a crucial part in the count of student admissions. The college must practice operations is such a way the reputation continues to grow.

Social Media Presence - The presence of college on social media can enhance the image and goodwill. Regular updates about the events, exams, extracurricular activities should be done on the social media pages.

Retention of Staff - Staff satisfaction should be the most important objective of any college as an experienced and educated staff is very easy to lose but very hard to find.

Public or Society Pressure - Ensuring trust in the eyes of society in regards to every aspect is very important. The safety of the students from any kind of hazards is what society wants from college.

4. TECHNOLOGICAL FACTORS

Cost of Technology - The technological cost always is on the higher side. The college should make the right decisions with respect to technology to reduce the costs and do the operations effectively and efficiently.

Check for the Technology - Regular checks of the technology is very important for any college. The outdated technology should get replaced by the latest technology for efficient operations of the college.

Use of Technology - The use of technology should be done in an effective manner so that the core benefits of it can be taken or otherwise it would be a loss for the college.

Infrastructure - Technological presence in the infrastructure of the college can help in getting more students.

5. LEGAL FACTORS -

Change in Legislation - The change in legislation leads to changes in tax policies, penalties, rules, and regulations. The adoption of such changes needs to be adopted by the college suddenly to avoid any prosecution.

Knowledge - The staff is generally unaware of the legalization that needs to be followed by the college and this generally leads to fines and penalties imposed on the college. Communication of such legal laws and rules should be done with every member of college staff.

Updates - Any updates in the legal structure of the country should be acknowledged by the college to avoid an prosecution of rules.

6. Environmental Factors -

Change is a season or climate - Changes in climate would directly impact the energy costs incurred by the college. Also during rains, the risk of flood arises. The college management should make POA for such circumstances to achieve the goal effectively and efficiently.

Location of the College - The flood-prone college location would not help the students in taking admission in it. The college location should be free from risk of hazards like floods, earthquakes, etc.

Infrastructure - The infrastructure of the college should follow the environmental rules or else can get punished by the government. Also, older buildings should be reconstructed in accordance with the rules of the government. Reconstruction also helps the college in staying away from risks of breakdowns and also in practicing the operations with complete efficiency.