Framing the issues

Characterizing the context of the issue very important for both being able to participate in and facilitate environmental decision-making processes. In order to understand the understand the ‘big picture’ of the current state of a particular environment, we can use a management tool such as PESTEL analysis.

(Source : Metternicht, G. 2016)


PESTEL analysis consists of Political, Economic, Social, Technological, Environmental, and Legal. The factors of the PESTEL framework are not independent of each other. For example factors such as technological advances may affect the social and economic conditions of different markets.

The political segment  includes elements such as tax policies, changes in trade restrictions and tariffs, and the stability of governments. The economic segment including an impact of globalization, international trade, income distribution, employment, interest rate, exchange rate, and inflation.Meanwhile, the social factors include trends in demographics such as population size, age, ethnic mix, as well as cultural trends such as attitudes towards obesity and consumer activism.

The technological segment include, for instance, changes in the rate of new product development, increases in automation, and advancements in service industry delivery. The environmental segment involves the physical conditions within which organizations operate. It includes factors such as natural disasters, pollution levels, and weather patterns. And The legal segment centers on how the courts influence business activity. Examples of important legal factors include employment laws, health and safety regulations, discrimination laws, and antitrust laws.

Reference :

Metternicht, G. 2016, Unit 3 :Framing the Issues:What is the problem?, Lecture IEST 5003, UNSW

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