Remote environment: The remote environment has a variety of factors that compromise; any type of firm’s operating situation. “The remote environment comprises factors originating beyond, and usually irrespective of, any single firm’s operating situation economic, social, political, technological, and ecological factors”. These environments are also popularly known as external environments.
There are many strategic analysis tools that a firm can use, but some are more common. The most used detailed analysis of the environment is the PESTLE analysis. This is a bird’s eye view of the business conduct. Managers and strategy builders use this analysis to find where their market currently. It also helps foresee where the organization will be in the future.
PESTLE analysis consists of various factors that affect the business environment. Each letter in the acronym signifies a set of factors. These factors can affect every industry directly or indirectly. For example, when the economy slows and construction starts to decrease, an individual contractor is likely to suffer a decline in business, but that contractor’s efforts in stimulating local construction activities would be unable to reverse the overall decrease in construction starts.
