The LoNG PESTLE…

The LoNG PESTLE

You’ve heard of the PESTLE… or perhaps you call it the DESTEP, the STEEPLE, or the PESTEL… but have you heard of the LoNG PESTLE?

As its name suggests, the LoNG PESTLE is an extension on the original strategic tool that offers a more detailed look at the operating environment.

Unlike the traditional PESTLE analysis, which is one of the most utilised planning tool for analysis of the immediate environment, the addition of LoNG to PESTLE expands the analysis to a 6x3 matrix that identifies political, economic, social, technological, legal and environmental factors at the local, national, and global levels.

Local Factors

Local factors encompass the specific conditions and influences that affect businesses in their immediate surroundings. These factors can include local government policies, infrastructure, labor market conditions, and the competitive landscape. For example, a business located in a rural area may face different challenges and opportunities compared to one in a metropolitan area.

National Factors

National factors refer to the broader economic, political, and social conditions within a country. This includes national economic trends, government regulations, political stability, and cultural norms. Understanding national factors is essential for businesses operating within a specific country, as these factors can significantly impact business operations and strategy.

Global Factors

Global factors encompass trends and influences that transcend national boundaries. This includes global economic trends, international trade policies, geopolitical events, and advancements in technology. In today's interconnected world, global factors play a crucial role in shaping business environments and strategic decision-making.

By considering factors at the local, national, and global levels, LoNG PESTLE provides a more nuanced and comprehensive understanding of the external environment.

This enables organisations to better:

✚ identify potential risks and opportunities that may arise from different levels of the external environment.

✚ develop strategies that are adaptable to varying local, national, and global conditions.

✚ anticipate and prepare for future trends and developments that may impact the business.

While the addition of LoNG is simple, it is also effective in broadening and organising your organisation’s consideration of its own unique environment, enabling leadership to make more informed decisions that enhance their competitiveness and adaptability in a rapidly changing business landscape.

The LoNG PESTLE is an extension of the original planning tool.