A macro environmental analysis technique, PESTEL analyses the impact that political, economic, socio-cultural, technological, environmental and legal factors may have on an industry’s profitability potential (Johnson, Scholes & Whittington, 2005). Within each major PESTEL heading, there are a variety of sub-factors to be considered. PESTEL analysis can be used by non-profit organizations as part of the strategic planning process. It can also be used in conjunction with other management tools such as Porter’s Five Forces Analysis and market segmentation and marketing and management capabilities analysis.
PESTEL has been designed to review and analyse the impacts on profitability however it can be used by non-profit organizations to identify areas where funding or operations may be threatened. Analysing the macro-environment of the non-profit organization is important to ensure that the organization can meet future challenges.
The Impact of Political Factors on Non Profit Organizations
When considering the impact that political factors may have on future industry profitability, government stability, taxation policies, foreign trade regulations and social welfare policies may all contribute to an industry’s profit potential (Johnson, Scholes & Whittington, 2005).
- Thatcher Profit And Wood
After 160 years in existence, venerable New York law firm Thacher, Proffitt & Wood will shut down next year after its structured-finance practice collapsed and more ...
- Common Stock Uncommon Profit
- Non Profit Corporations Act Saskatchewan
- Employment Non Profit
Food For The Poor is the third-largest international relief and development charity in the United States, feeding 2 million people everyday. Founded in 1982 Food For ...
- Oil Windfall Profits Tax Act
Should There be a "Windfall Tax" on the Excess Profits of Oil Companies? In a Nutshell
