Pestle Analysis

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10.

PESTLEANALYSIS
oduction

The term PESTLE is used to describe a framework for analysis of macro environmental
factors.

The PESTLE analysis is a simple to understand and quick to implement.


CASE &fUDyON SAsUINS
2.The Key FactoS1Pauwttal
-ddwwautmpaekf** no Kaua, "faa
) POLITICAL 2- 6conomical- Jhuy aue 'mouihg zouonda duapng.
3 Secual- Jt Ao uaamiid couhDuin
Political factors are how and to what Muliiww olltical
amod tnokA
extent a government intervenes in the aa
economy and the activities of corporate. Legaf Economic

aule
Political factors may also include goods Mu Your
and services which the governmentOmpa Business

wants to
Strategy
provide or be provided and Environmenta! Social
those that the government does not want
to be provided. TecAmotog Samaum 4pno
-

Furthermore, governments have great RKDt ampitowt ntas.


influence on the health, education and
infrastructure of a nation. uu
U g a - Sunce tny Aave dndmatan! opzd
2 . ECONOMIC Laino vphonu i y Aad zo pay h a g
6 GnniommintalL - ugutung a n a c t m o p t w n p e y u a
Economic factors have major impacts on how businesses óperate ánd take
decisions.

For example, interest rates affect a firm's cost of capital and therefore to what extent
a business grows and expands.

Exchange rates affect the costs of exporting goods and the supply and price of
imported goods in an economy.

The money supply, inflation, credit flow, per capita income, growth rates have a
bearing on the business decisions.
3. SOCIAL

Social factors affect the demand for a company's products and how that company

operates.

4. TECHNOLOGY

Technological factors can determine barriers to entry, minimum efficient production


level

Furthermore, technological shifts can affect costs, quality, andleadto innovation.

5. LEGAL
Legal factors affect how a company operates, its costs, and the demand for its products.
6. ENVIRONMENTAL (Nanmal)
farming, and in_urance.
Factors affect industries such as tourism,
Flogoo Ün Kasnmuu

Growing awareness to climate change is affecting how companies operate and the
and diminishing or destroying existinc
products they offer--it is both creating new markets

ones
hen transpose the final items that we have identified
from your list to a PESTLE matrix.

The PESTLE Matrix


Economic
Political
Economy situation & trends
.Political stability
.Political principles and ideologies Interest and exchange rates

Current and future taxation policy Inflation and unemployment

Regulatory bodies and processes Strength of consumer spending

Thrust areas of political leaders.


Government policies
Social Technological

Lifestyle trends Maturity of technology

Demographics Manufacturing maturity and capacity

Brand, company, technology, image Innovation potential

Consumer buying patterns


Ethnic/religious factors Intellectual property rights and

Media views and perception copyrights

Legal Environmental

Business and Corporate Laws Ecological/environmental issues

Employment Law Environmental hazards

Competition Law Environmental legislation

Health & Safety Law Energy consumption

International Treaty and Law Waste disposal

Regional Legislation

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