3.3.1. The Framework of Macro Environment Analysis - PESTLE
The growing trend for organic food and the analysis for both external and internal aspects are very
crucial to understand the organic food market and industry. The approach of using established models
such as PESTLE analysis and Porter's five forces one to understand important elements in the organic
food market supposedly extends the view in the need for the future and as well as strategically move to be
in-place. The PESTLE Analysis model framework (Renewal Associates, 2003) is established to help
entrepreneurs understand the macro environment changes, its impact on the industry and involvement in
the organic food industry. The analysis of each variation of PESTLE has three main elements. These
elements include;
a. External factors,
b. Implications of external factors and
c. Relative importance of implication of external factors.
The analysis will involve answering few questions such as those influences in the present time and
also in the next few years. The study will also include the analysis on the key drivers of change in the
external environment that will affect organic food industry in Turkey.
PESTLE analysis allows one important aspect of strategic analysis, the "external environment" to be
investigated systematically by the use of a methodology. This study looks into how a systematic method
can be used to analyze the external environment that can influence the organic food industry in Turkey.
The systematic approach to analyze the PESTLE analysisin Turkey is based on the model established by
Renewal Associates (2003) called "PESTLE Analysis-A model Framework". According to the framework,
the list of the external factors should refer to the descriptive list of factors that influences or pressures the
industry. In this case, it refers to the implication on the organic food industry now and in the future. The
implications that affect the organisation should be analysed in order to react accordingly.