In general, a PESTLE analysis implies the assessment of an organization’s external factors. They traditionally include political, economic, sociological, technological, legal, and environmental aspects that may contribute to an organization’s performance or cause workforce issues (PESTLE analysis, 2021; Messineo, no date). A PESTLE analysis is highly beneficial for managers responsible for strategic decision-making as it allows them to identify both issues and options for their solution (Whittington, 2001). In relation to a neonatal department, there are multiple external factors that lead to internal problems, including a lack of staff competence, problems with procurement, and challenges connected with digitalization. In general, a PESTLE analysis presupposes information gathering and the analysis of findings in order to identify workforce problems and suggest solutions considering the environment. On the one hand, it is a simple tool that encourages strategic thinking, allows us to prepare for future challenges, and see opportunities. On the other hand, a PESTLE analysis may use insufficient or too broad data – in this case, solutions may be inefficient.
In turn, Porter’s Five Forces Analysis is used to define an organization’s strategies taking into consideration the five forces of the competition (Traynor, 2018). They include a threat of substitutes, industry rivalry, barriers to entry, and the bargaining power of both suppliers and consumers (Porter, 1998). In relation to a neonatal department, it is essential to address its workforce issues in order to stay competitive and provide quality healthcare delivery to patients. At the same time, an industrial analysis allows one to define an organization’s strengths and weaknesses and clarify the areas that need improvement (Industry analysis and competition: Porter’s five forces, no date). At the same time, this analysis does not consider other forces, including internal ones, that may impact the organization’s performance.
- External factors: political, economic, sociological, technological, legal, and environmental PESTLE analysis, 2021).
- Efficient for strategic making (Whittington, 2001).
- Encourages strategic thinking and allows to prepare for future challenges.
- Too broad or insufficient data will not provide solutions.
Porter’s Five Forces Analysis
- Five competitive forces (Porter, 1998).
- Allows to define an organization’s strengths and weaknesses and clarify the areas that need improvement (Industry analysis and competition: Porter’s five forces, no date).
- Does not consider other factors.
Messineo, R. J. (no date) What goes into a PEST analysis for healthcare?
PESTLE analysis (2021).
Porter, M. (1998) Competitive strategy. New York: Free Press.
Traynor, R. M. (2018) Survival strategies in a competitive hearing healthcare market.
Whittington, R. (2001) What is strategy – and does it matter? Thomson Learning.