The SWOT and PESTLE analytical tools are effective studies which are undertaken at the start of the venture to obtain a 360 degree view of the project at hand and its external environment. These studies are undertaken so that before venturing into a new territory a pan-optic macro and micro economic level survey can be done so that the business plans and consequent strategies can be devised accordingly. There are several advantages for carrying out the SWOT and PESTLE analyses which we shall look into here.
Firstly, the SWOT and PESTLE studies together offer a complete overview of the internal and external condition(s) of the prospect project or business thereby giving the planners and organizers a good theoretical and working knowledge of how to proceed with the same. Once this has been secured, the business planners and strategy developers can go ahead and design their blueprints and course of action to be followed.
Secondly, since the SWOT and PESTLE studies provide such an extensive inspection of various factors that may positively or negatively affect the venture, in the end it leaves very little room for mistakes to be made. This especially removes the risk factor of the “unknown” to a great extent. For example, with changing governments, policies and laws change in accordance to which the people and organizations must act. Therefore, via the PESTLE analysis, when this knowledge is at hand then the planners can go ahead and make the required changes from time to time.
Thirdly, the aforementioned analyses create dialogue and discussion among the various legs of the organisation. It brings together all members, employers and employees together for an open deliberation where anyone and everyone is welcome and in fact, encouraged, to let their concerns be highlighted so that they can be effectively tackled. They may also voice any new developments they may know about in the factors of the external environment. This unhindered dialogue is necessary in any group for effective working and marinating a well oiled machinery. This exercise also encourages teamwork since members from all sections are required to work with each other.
An important feature of these studies is the fact that they are redone from time to time. This helps companies and organisations stay at the top of their game. These periodical reinvestigations are helpful in because they help get rid of the problems that grow through within time both within and without the business.
Since, the two studies are free, these are also cost-effective programmes which offer much more than they ask for. All that is required is time and open conversation where quality discussion can take place for good result which will benefit the organization or business. In case experts are employed to lead such discussions, employment is generated.
The SWOT and PESTLE are like periodical evaluations and re-evaluations which all organisations, not necessarily business bodies, go through from time to time. This overall big picture helps to recognize their abilities and available opportunities and their shortcomings and thus act accordingly to capitalize the former and negate the latter to the farthest extent possible.