By understanding the environment in which the company operates (external to the company), advantages of the opportunities can be taken and the threats minimized.
Specifically the PEST or PESTLE analysis is a useful tool for understanding risks associated with market growth or decline, and as such the position, potential and direction for a business or organization.
A PEST analysis is a business measurement tool, looking at factors external to the organization. It is often used within a strategic SWOT analysis (Strengths, Weaknesses, Opportunities and threats analysis).
PESTLE is an acronym for Political, Economic, Social, Technological, Legal , Environment factors, which are used to assess the market for a business or organizational unit. The PEST analysis headings are a framework for reviewing a situation, and can also be used to review a strategy or position, direction of a company, a marketing proposition, or idea.
It is important to clearly identify the subject of a PEST analysis (that is a clear goal or output requirement), because an analysis of this type is multi-faceted in relation to a particular business unit or proposition - if the focus is diluted an unclear picture is produced - so the situation and perspective has to be clear when PEST is used to analyse.
A market is defined by what is addressing it, be it a product, company, organization, brand, business unit, proposition or idea. So it should be clear as to how the market is being analysed.
The PEST subject have a clear definition of the market being addressed, which might be from any standpoints like a product looking at its market.3
So let us look at LONDON EYE and its prospects of increasing its popularity not just in Britain but as one of the most popular global tourist attractions
This paper will be using the PESTLE or PEST tool to present the external environment affecting the promotion of London Eye as a global tourist attraction. The project needs to make use of at least two elements of the PESTLE Analysis tool. The political/governmental and technological elements will be discussed for the purpose while the environment and corporate social responsibility will also be touched upon.
There's absolutely no doubt London Eye is steadily gaining popularity. According to31st March 2009 issue of DESTINATION, a tourist magazine London Eye has been voted Britain's top tourist attraction.
Bev Fearis the writer says, "London Eye along with Cumbria's Lake District and Blackpool Tower has topped a poll of the destinations and attractions that Brits would choose to promote to overseas visitors following a survey of 1,000 people conducted at the Best of Britain & Ireland 2009 event in London.
The event formed the grand finale to Visit Britain's British Tourism Week, which aims to raise national and international awareness of the size, value and importance of Britain's tourism industry."9