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PESTEL Analysis of Education Industry Sample Essay

PESTEL Analysis of Education Industry

PESTLE analysis is an important tool in the educational sector has it makes it possible to improve the process of decision making. This is especially true if you take into consideration world demands are changing and there is a need to ensure education matches up to these changing needs. It also helps focus on the bigger picture of future education.

In the education sector, this analysis also makes it possible to determine environment changes that might impact the planning, management and future financing of the industry. The following is an outline of the political, economic, social, technology and environment factors that affect and influence the education industry.

Political factors

Economic factors

  • Cost of resources such as books or papers, teaching and support staff and technology solutions such as laptops etc
  • Material shortage on international and national markets
  • Risk of high valued staff members moving from the low performing schools/institutions to high performing ones
  • Parents ability to raise funds needed for optional activities
  • Local industry closure can affect the industry’s fund raising plans
  • Local or central government funding decisions can affect the genera performance of the industry

Social factors

  • Birth rate decline which reflects national trends
  • Changes in the local population. This can either be an increase or decrease in the numbers.
  • Inability for the industry to attract qualified staff
  • Parental preference has increased the tendency of parents to choose which schools their children are going to attend.
  • Demographic changes can affect pupil rolls or nature of the needs of students
  • Inability of the staff to acquire or access training that is needed to ensure the industry continues to flourish.

Technological factors

  • Shift from paper based to e-book readers.
  • Out of date computer hardware
  • New computer viruses that affect the operations of the industry
  • Risk of choosing the inappropriate technology
  • Change to equipment or standards required
  • Disturbing/illegal images on the internet that affect security measures

Legislative factors

  • New legislation that creates non-compliance with law and also creates administrative burdens
  • Child protection changes
  • Raise in the age of those leaving school
  • Lowering or raise of age starting age
  • Change in the opening hours of schools
  • Safety and health legislation

Environmental factors

  • Reduction in green space that is availed for activities
  • Use of huge amounts of photocopier toner and paper to deliver printed information
  • New developments that pose a threat to students in the industry
  • Disposal of waste
  • Changes in the local bus routes

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Online sources:

http://www.trainingindustry.com/blog/blog-entries/pest-to-pestle.aspx

http://rapidbi.com/pestle-analysis-for-schools-and-education/