UNIT 2 Understand the environment

The PESTEL analysis below would be relevant for the suggested health care social innovation above. The aim of the PESTEL is to analyse the Political, Economic, Social, Technological, Environmental, and Legal aspects of a business.

It is a very important tool for measuring market growth, market position and direction in which a business is moving.


  • Services
  • Infrastructure
  • Tax Policy
  • Regulation


  • Emerging Tech
  • Tech Transfer
  • R&D Efforts
  • Communication


  • Growth Rate
  • Inflation
  • Labour Costs
  • Business Cycle


  • Resource Management
  • Energy
  • Availability
  • Workplace Health
  • Climate Charge


  • Demography
  • Education
  • Cultural Norms
  • Income


  • Regional Laws
  • Law Enforcement
  • Court System

Now lets apply the following SWOT analysis to the same case study.

A SWOT analysis will provide the social innovator with a clear, easy-to-read map of internal and external factors that may help or harm a project, by listing and organising the ideas/projects strengths, weaknesses, opportunities, and threats.

This analysis can clearly show its chances for success, given present environmental factors. We also cover this in more detail in Module 6 but with key focus on of the social innovation.

SWOT Analysis


  • Local & Creative approach
  • Experienced Physician
  • Trained, adequate staff
  • Resources: Lab/instrument
  • Central location
  • Strong commitment & funds
  • Transportation


  • Organisation & tech development
  • Participation of local leaders
  • Coordination with NGO
  • Improved safety system
  • Telemedicine for speciality
  • Strong referral system


  • No speciality, primary service
  • Lack of funds, salary
  • Unequipped lab, no instrument
  • Loss of key staff/understaffed
  • No transport, off located
  • Patient load
  • Lack of technology


  • No Government budget, inflation
  • Workforce strike, nurse, doctor
  • Small semi urban nursing home
  • Patient prefer them
  • Loss of alliances, NGO
  • Misinformation
  • Competitors has new products

The social innovator should also look at Porter’s five forces analysis for the social innovation idea.

The framework is an effective tool in analyzing the level of competition within an industry.

It is also used to identify whether new products, services or businesses have the potential to be profitable.