Industry Analysis: PESTLE Forces and Impact on Balanced Scorecard

This report provides an analysis of the key forces that influence an industry, focusing on the PESTLE framework (Political, Economic, Social, Technological, Legal, and Environmental factors) and their impact on a company's operations and strategic planning. It highlights the importance of considering these external factors to develop suitable business strategies and achieve growth. The report also discusses how these forces affect the balanced scorecard, a strategic tool used to measure both current operational activities and future performance indicators. By analyzing the external environment through the PESTLE model, managers can gain insights into the trends and changes that significantly influence organizational performance. The report concludes that understanding and addressing these key factors are crucial for industries to develop appropriate strategies and ensure ethical and sustainable operations.

REPORT

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Discuss the five key forces to consider when analysing an industry.....................................1
How do these forces impact the balanced scorecard..............................................................2
CONCLUSION................................................................................................................................2
REFERENCES ...............................................................................................................................3

INTRODUCTION
There are various key factor that impact and influence that impact an industry along with
its operations. In addition to this, these influences impact its performance as well as productivity.
The following report will included PESTL analysis in order to determine key factors that
influence an industry relative to its impact on the balance scorecard.
MAIN BODY
Discuss the five key forces to consider when analysing an industry.
There are several external factors that impact an industry and consist of various forces as
well. These key force need to be considerer by an industry in order to develop suitable strategies
as well as business plans (Xiao and Hill, 2018) . Given below are five key forces that need to be
analysed by an industry through PESTLE analyses:
PESTLE Analysis:
Political:
It is vital for an industry to analyses various political force that can impact its overall
operations. Factors such as tax rates, import and export duties need to be considered by an
industry in order to develop suitable strategies in order to attain growth and success.
Economical:
This is a crucial force that need to be considered by an industry in order to understand
economic elements such as inflation and unemployment rate. This is vital for an industry as it
will impact the overall price and cost of products as well as operations (Aghasafari et. al., 2020)
.
Social:
Social factors such as the behavior of customers need to be consider by an industry in
order to develop product or services that will fulfil the needs of customers. This is important as it
allows an industry to gain the perspective of consumers in an optimal manner and attain growth.
Technological:
The introduction of new and advanced technology need to be consider by an industry in
order to enhance its current operation in an optimal manner. In addition to this, it helps a industry
to attain high level of productivity as well as performance (Yate et. al., 2020) .
Legal:
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There are various legal elements such as industrial and environmental laws along with
employment laws that an industry has to consider in order to ensure it does not face any legal
hindrance. In addition to this, it allows an industry to function in an ethical manner.
How do these forces impact the balanced scorecard
The balanced scorecard is a strategical tool used to measure operational activities of
present as well as indicators of future performance. In order to evaluate performance of a
company, it is important for management to analyse external factors of environment in which
business operates (Głowniak et. al., 2021). It is used by managers in the form of preparation of
structured report containing execution of activities performed by an organisation. The external
factors including political, economical, technological and other factors of pestle model is
significantly linked to balance scorecard. The performance of an organisation is determined by
changes and trends of external environment which comes under PESTL analysis.
CONCLUSION
From the above report, it has been concluded that, it is highly important for an industry to
identify key factors that influence its operation. This allows the industry to ensure that it is able
to develop appropriate strategies while taking into account the key consideration. The report also
highlighted the impact of these consideration on the balance scorecard.
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REFERENCES
Books and Journals :
Aghasafari, H., Karbasi, A., Mohammadi, H. and Calisti, R., 2020. Determination of the best
strategies for development of organic farming: A SWOT–Fuzzy Analytic Network
Process approach. Journal of Cleaner Production, 277, p.124039.
Głowniak, S., Szczęśniak, B., Choma, J. and Jaroniec, M., 2021. Mechanochemistry: Toward
green synthesis of metal–organic frameworks. Materials Today, 46, pp.109-124.
Xiao, Y. and Hill, J.M., 2018. Benefit of hydrophilicity for adsorption of methyl orange and
electro-Fenton regeneration of activated carbon-polytetrafluoroethylene
electrodes. Environmental science & technology, 52(20), pp.11760-11768.
Yate, A.V., Narváez, P.C., Orjuela, A., Hernández, A. and Acevedo, H., 2020. A systematic
evaluation of the mechanical extraction of Jatropha curcas L. oil for biofuels
production. Food and Bioproducts Processing, 122, pp.72-81.
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