Question

Given your knowledge of PESTLE, what factors do you think that COVID-19 effects?

Answer 1

A PESTLE analysis is a framework to analyze the key factors (Political, Economic, Sociological, Technological, Legal, and Environmental) influencing an organization from the outside. It offers people professionals insight into the external factors impacting their organization

6 ELEMENTS OF PESTLE :

Political

Economic

Historical

sociological

technological

legal

environmental

ADVANTAGE AND DISADVANTAGE OF PESTLE ANALYSIS :

Advantages:

• It’s a simple framework.
• It facilitates an understanding of the wider business environment.
• It encourages the development of external and strategic thinking.
• It can enable an organization to anticipate future business threats and take action to avoid or minimize their impact.
• It can enable an organization to spot business opportunities and exploit them fully.

Disadvantages:

• Some PESTLE analysis users oversimplify the amount of data used for decisions – it’s easy to use insufficient data.
• The risk of capturing too much data may lead to ‘paralysis by analysis’.
• The data used may be based on assumptions that later prove to be unfounded.
• The pace of change makes it increasingly difficult to anticipate developments that may affect an organization in the future.
• To be effective, the process needs to be repeated on a regular basis.

  WHAT FACTORS DOES COVID19 EFFECTS :

• The novel coronavirus, or COVID-19, has already changed society. As governments worldwide struggle to adapt to the new reality, they are introducing measures aimed at preventing the further spread of the virus and increasing the resilience of their public healthcare systems. But with more than 2.5 billion workers and consumers on virtual lock-down, COVID-19 is also having an enormous impact on the global economy, disrupting production and trade worldwide. Companies face unprecedented levels of PESTLE risk as a result of travel restrictions and serious resource and workforce shortages that are disrupting supply chains and business as usual.

• With COVID-19 set to dominate the world’s attention in the weeks and months to come, we’re taking a closer look at how PESTLE risks are surfacing in media coverage. The COVID-19 risk tracker, powered by Nexis Newsdesk, features interactive charts that provide insights into how coronavirus pandemic coverage exposes political, economic, societal, technological, legal, and environmental risks in near real-time. Explore the analysis here.

• When all of the PESTLE factors are tracked in relation to the company mentions, it’s easy to see that the impact of the coronavirus pandemic leaves no industry untouched—airlines and automakers, banking, and finance, even the digital communication platforms that are enabling social interaction despite physical distancing restrictions. Apple and Amazon dominate in mentions, perhaps because these organizations have both suffered supply chain challenges as a result of COVID-19 and have turned their attention to addressing the critical needs of healthcare workers and consumers during this time.

• The coronavirus pandemic will eventually come to an end. In the meantime, we’ll keep monitoring emerging issues on our COVID-19 & PESTLE Risk tracker and helping companies manage the risks they face with an agility that comes from improved awareness. The charts update approximately every 15 minutes, so return often to see how trends shift as the world moves forward with addressing and overcoming the COVID-19 challenge.

• THANK YOU