Pestel

In: Business and Management

Submitted By sampath930
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WAITROSE IN CHINA

PESTEL ANALYSIS

An organisation (or) business effect or make the decisions depending on the factors in the macro environment.To analyse these external factors, the bussiness planners categorised to as PESTEL model.It is helpful strategic tool for understanding business position, market growth or decline, potential. PESTEL analysis is vital and used widely to understand the external factors affecting the organisation.It is a strategic external analysis used to evaluate (Political,Economic,Social,Technological,Environmental ,Legal) of a particular organisation or business.It is very important when you start operating in a new region or country.It also helpful to break your unconscious assumptions,and you can adapt to the reality of new environment.

POLITICAL: political factors are how and to what degree a government interfere in the country economy.It includes areas like tax policy,labour laws, environmental laws,trade restrictions,political stability.

ECONOMICAL:The factors include in economical are economic growth, interest rates,exchange rates,inflation rates.It is how government supports trading and business in the country.

SOCIAL: Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.

TECHNOLOGY: Technological factors include technological aspects such as research and development (R&D) activity, automation, technology incentives and the rate of technological change.

ENVIRONMENTAL:The factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. LEGAL: The factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a…...

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