PESTEL Analysis of Education Industry

10/12/2015 by: admin in: Academic Sample Papers Comments Of

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

Privatization of schools

Changes in skills needed for one to become a tutor or teacher

The expectations to become self financing

Government initiatives that create risk of the industry failing

Curriculum changes that come with shorter lead times

Economic factors

Cost of resources such as books or papers, teaching and support staf and
technology solutions such as laptops etc

Material shortage on international and national markets

Risk of high valued staf 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 afect the industrys fund raising plans

Local or central government funding decisions can afect 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 staf

Parental preference has increased the tendency of parents to choose which

schools their children are going to attend.

Demographic changes can afect pupil rolls or nature of the needs of students

Inability of the staf 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Out of date computer hardware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 afect the operations of the industry

Risk of choosing the inappropriate technology

Change to equipment or standards required

Disturbing/illegal images on the internet that afect 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/