PESTLE analysis
Pestle analysis is like a magic wand that helps grown-ups make smart decisions.
Imagine you are going on a long trip with your family. Before you go, you need to think about all the things that might happen on the way. What if it rains? What if there is a lot of traffic? What if you get lost?
When grown-ups want to make big decisions for a business, they do a similar thing, but instead of thinking about a car ride, they think about the big world around them. Pestle looks at six different things:
P - stands for Political. This means they think about the rules and laws made by the government. Like how people are allowed to do business or how they need to pay taxes.
E - stands for Economic. This means they think about how much money people have and how it affects the business. If people have a lot of money, they might buy more things from the business. But if people don't have much money, the business might have to be cheaper so people can still buy things.
S - stands for Social. This means they think about what people like and don't like. They think about what is happening in the world and how it might affect the business. For example, if kids suddenly start loving robots, a toy company might want to make more robot toys.
T - stands for Technological. This means they think about all the cool machines, computers and phones that people use. They think about how people might want to use these things to buy things from the business.
L - stands for Legal. This means they think about all the rules that are already made. They think about all the things the business is not allowed to do by law.
E - stands for Environmental. This means they think about how people treat the world around them. They think about what kind of things are good for the environment and what kind of things are bad. For example, if a business uses a lot of plastic, it might make the world more polluted.
By thinking about all these things, grown-ups can make sure they are ready for anything. It's like wearing a raincoat in case it rains. Pestle analysis helps grown-ups make better choices for businesses by thinking about everything that might happen.
Imagine you are going on a long trip with your family. Before you go, you need to think about all the things that might happen on the way. What if it rains? What if there is a lot of traffic? What if you get lost?
When grown-ups want to make big decisions for a business, they do a similar thing, but instead of thinking about a car ride, they think about the big world around them. Pestle looks at six different things:
P - stands for Political. This means they think about the rules and laws made by the government. Like how people are allowed to do business or how they need to pay taxes.
E - stands for Economic. This means they think about how much money people have and how it affects the business. If people have a lot of money, they might buy more things from the business. But if people don't have much money, the business might have to be cheaper so people can still buy things.
S - stands for Social. This means they think about what people like and don't like. They think about what is happening in the world and how it might affect the business. For example, if kids suddenly start loving robots, a toy company might want to make more robot toys.
T - stands for Technological. This means they think about all the cool machines, computers and phones that people use. They think about how people might want to use these things to buy things from the business.
L - stands for Legal. This means they think about all the rules that are already made. They think about all the things the business is not allowed to do by law.
E - stands for Environmental. This means they think about how people treat the world around them. They think about what kind of things are good for the environment and what kind of things are bad. For example, if a business uses a lot of plastic, it might make the world more polluted.
By thinking about all these things, grown-ups can make sure they are ready for anything. It's like wearing a raincoat in case it rains. Pestle analysis helps grown-ups make better choices for businesses by thinking about everything that might happen.