1. What is Pestle Framework?

PESTLE stands for - Political, Economic, Sociological, Technological, Legal, And Environmental.

The origin of this framework is difficult to establish however some data is available which refers to the ETPS environment by Francis J. Aguilar. Later it was reorganized as STEP by Arnold Brown.

Later in 1980s several authors included variations from taxonomy classifications and thus formed PEST or PESTLE Analysis framework.

Political environment

·        Tax policies

·        Govt laws

·        Employment laws

·        Trade/Tariff regulations

·        Industry affecting environment.

·        Regulations.

Economic environment

·        Economic growth/decline

·        Commerce

·        Competition

·        Trade deficits

·        Wage rates, working hours

·        Cost of living etc


·        Work ethics/ Career attitude

·        Culture

·        Gender bias


·        Suppliers, vendors, raw material, infrastructure.

·        Information technology

·        Industry specific technology breakthroughs, researches.


·        Legislations

·        Imports/exports

·        Recycling/disposal laws

·        Employment laws

·        Intellectual property


·        Global warming

·        Climate change

Let look at an example of PESTLE Analysis for a telecommunication company. 



2. What is Porter's 5 forces Analysis Model?

Porter’s 5 Forces model:

This industry analysis model was developed by Michael E. Porter of Harvard Business School in 1979. 

This model was challenged and a extended six forces model has been developed which includes Complementars such as combination products (e.g: MS Window and Mcafee Antivirus)

The five forces with reasons for existence are described below with an example of telecoms industry.

Reasons that attract new entrants in ay industry are:

·         Good returns

·         High and steady growth

·         Low barriers to entry (capital costs, raw materials)

·         Latest technology

Reasons for high probability of Substitute products and services are:

·         Switching costs

·         Price performance trade off of substitutes

·         Patents of Invention


Reasons for threat from Buyers:

·         Buyer purchase volumes relative to seller sales.

·         Option for substitute products with lower switching costs.

·         Brand identity


Reasons for threat from Suppliers:

·         Switching costs between suppliers

·         Presence of substitute products.

·         Costs relative to total purchases in the industry.

·         Supplier brand identity favoured by buyer.


Rivalry among or within firms:

·         Like for like product performances

·         Advertising strategies

·         Customer service

·         Price competition

·         Time to Market


Porter's Analysis of Telecoms Industry.


3. What is SWOT Analysis?
This analysis technique was developed by Albert Humphrey who led a convention at Stanford University in 1960s.

The main objective of the technique is the study the Strength, weakness, opportunities and threats and improve the state of the Organisation by:

a. Using or Capitalizing on the strengths.

b. Recognize and improve on weakness.

c. Exploit the Opportunities.

d. Work around the threats either to avoid them or turn them into advantages
Strengths and Weakness can be analysed in terms of an organisations Resources, Core Competencies, Performance and Portfolio.

These factors are used in goal and objective setting, identifying areas of improvement, defining Strategies.

Following is the explanation on SWOT.


4. What is MOST Analysis?

Ans 4. MOST Analysis forms a part of Strategic planning. It is the set of analysis done in order to define the strategy and direction in which the Organisation is heading.

Mission:  This is the reason for existence of any Organisation. It is an instruction stating what business the organisation is in and what it is intending to achieve.

Objectives: These are short term or long term goals set to fulfil the mission set for an Organisation.

Strategy: It is the step by step approach taken to achieve short term and long term goals.

Johnson & Scholes' definition of Strategy is that "Strategy is the direction and scope of an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations".

Tactics: These are immediate actionable items that will help set the path for strategic implementation.

It is very important to select the right strategies to fulfil the set objectives. For example if an organisation is in business of successfully selling a product or service that is diminishing with time and is being taken over by another product that the Organisation is not offering very soon the organisation will be out of business if it does not adapt a strategy of offering new products or innovating existing products.

Also appropriate tactics need to be used to help set the strategic direction of the Organisation. For example: If one of the Organisations strategies is to use integrated IT systems to help support the business processes and B2B interactions. It first needs to analyse existing and new business processes to automate, stop creation of disparate systems and apply tactical measures to create a converged form of information gathering so that implementing new IT systems is done within estimated time and effort.

If you have understood these terms in relation to an Organisation you will realise that Missions drive Objectives drives Strategies drives Tactics and none exists independently. 

Utimately, in the ever changing business environment one key element of MOST should be change management (i.e. change to MOST) to adapt to changing business environment.

5. What is Resource Analysis?

Ans 5.  Resource analysis helps identify the strengths and weakness of an Organisation. Resources fall into following main categories:

Financial - Available funds and capacity to raise funds for new ventures.

Human - Ability to use/scale existing staff or change by outsourcing, partnerships etc.

Physical - Available infrastructure, suppliers, assets, IT systems etc and ability to raise new if required.

Intangible - Brand recognition, Reputation, Goodwill are the main factors.