Helping smaller businesses to analyse their external business environmental challenges and opportunities
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SPONSORED CONTENT By Julie Macleod
As a Business Advisor, I have a passion for helping businesses manage growth and navigate change.
Small businesses can find it is hard to keep up with all the external changes happening globally, nationally and locally and even harder to understand how these changes might present challenges or opportunities for them. It is however, an important business discipline which should be carried out at least every five years thoroughly, with ongoing mini reviews at least annually.
This month I want to talk about a smart business tool which smaller businesses can use to analyse their external business environmental challenges and opportunities called PESTLE.
PESTLE is a way of looking at a business from an external perspective, helping business managers to consider the key influences and the implications. A PESTLE is probably the most used ‘macro-economic’ analysis tools in business and when done properly, a PESTLE analysis can test a business’s sensitivities to the business environment. If you’re drawing up a business plan, or looking for funding, don’t be surprised if you’re asked for a PESTLE by your business funder or grant provider as part of the application process.
PESTLE addresses external influences, changes, challenges and opportunities which are:
1. Political
2. Economic
3. Social
4. Technological
5. Legal
6. Environmental
In previous articles I have touched on opportunities presented to businesses in the Highlands which are socially and technologically driven. To demonstrate the value of PESTLE, and as a nod to the upcoming UN Climate Change Conference (COP26) hosted by the UK in Glasgow on 31 October – 12 November 2021, I am going to demonstrate how PESTLE analysis can be used to identify opportunities and challenges for businesses in the Highlands.
The COP26 hashtag is COP26 #OneStepGreener and for businesses in the Highlands there really is an opportunity to promote every step being taken to protect the environment.
Challenges:
- In 2019, tourism contributed about 5% to global greenhouse gas emissions, and it is expected to grow to 130% in 2035 (Trivago, 2019).
- By 2050, hotels will need to reduce their carbon footprint by 90% to be in line with the Paris Climate Agreement (EHL, 2019).
- Experts say the modern-day traveller will increasingly be looking for “smart ways” to reduce their own carbon footprint on holiday.
Opportunities:
VisitScotland have used PESTLE analysis to identify a number of ways to protect the Scottish natural heritage and our environment for future generations in their #RespectProtectEnjoy visitor and community pledge – for example:
- Reduce Carbon Emissions – by slowing down and savour every moment of what there is to see, do and learn.
- Reduce the Impact of the Global Supply Chain - shop local to enjoy the best products and support Scottish makers and businesses.
- Practice Smart Food Sourcing and Eating - sample the delicious, seasonal foods available all across Scotland.
- Protect the Natural Heritage – by seeking out and respecting the rich and diverse cultures that are found throughout Scotland. Avoid crowded places and come back when it's less busy. Take care when exploring the great outdoors and bring and wear the right equipment. Check ahead to see if there is access or parking. Park my vehicle safely and responsibly.
If you would like support in producing a PESTLE analysis for your own business, I would be happy to help. For more information, please contact: julie.macleod@technacom.com.
To help businesses, communities and visitors in the Highlands capitalise on and fulfil the opportunities listed above, SmARt Explorer have adopted the hashtag SmARt Explorer #Support Local to highlight the fact that the SmARt Explorer Digital Community Guide promotes local businesses, food and attractions for areas within the Highlands. The App can be downloaded for free and used to explore the local area and support local business instead of passing through or driving long distances to access better known destinations. The Dingwall Community Visitor Guide launched recently is the first of 450 town guides to be produced across Scotland in the next 12 months. For the Highlands, the recently launched Easter Ross Visitor Guide is the first of many
regionally focused guides to help visitors and community alike to support local.
For more information about the FREE digital app contact: julie@thesmartexplorer.com
For hotels and restaurants, a more widespread use of technology-assisted options, such as mobile check-in, contactless payments, voice control and biometrics can also provide smart ways to reduce carbon footprint for holiday makers. The SmARt Explorer digital concierge is one low-cost way to
start this transformational journey.
For more information about the SmART Explorer digital concierge contact: julie@thesmartexplorer.com
