When is pestle analysis used

We hope that you have found the above information useful. If you would like help referencing this blog, check out our Harvard Referencing Blog. Toggle navigation. Economic Factors Economic factors have a significant impact on how an organisation does business and also how profitable they are. Social Factors Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of the population.

Technological Factors We all know how fast the technological landscape changes and how this impacts the way we market our products. Technological factors affect marketing and the management thereof in three distinct ways: New ways of producing goods and services New ways of distributing goods and services New ways of communicating with target markets Environmental Factors These factors have only really come to the forefront in the last fifteen years or so.

Legal Factors Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety. Complaints Policy - Apprenticeships. Complaints Policy - Qualifications. By Jim Woodruff Updated January 28, Strengths: Identify the advantages that your business has over the competition.

Weaknesses: Be honest about the weaknesses in your operations. Opportunities: Identify the external trends that you can take advantage of. Threats: Assess the outside conditions that may be obstacles and have a negative impact on business.

Political: Determine how the current direction of the political parties may influence business development and growth. Economic: Examine the effects of interest rates, taxes, the stock market, consumer confidence and other economic metrics.

Technology awareness and adoption have a positive correlation with companies desire for investment. Technological ability in countries includes having a good stable infrastructure such as Internet connection, technological innovation , research, easy patent regulations, electronic laws and regulations. India, for instance, succeeded to attract Silicon Valley giants to open branches there to their development and support offices.

Having clear laws and regulations ensures that the companies will get their rights and be protected; in contrast, corrupted countries may not protect companies under the umbrella of the law. Regulatory bodies, employment laws, company protection laws ensure the future security required for business sustainability.

The environmental impact becomes an essential part of the international regulations such as the European Union imports. Because the output products will not meet with the environmental regulations required by the importing countries. For example, the economic recession in was not predicted by many companies whose plans were disrupted and event terminated.

The business environment is constantly changing, and understanding where it is now and where it is headed is an easy way to identify and capture potential opportunities or identify and avoid potential threats. However, present-day data still gives a lot of insight into potential opportunities and threats for your business. Aside from just businesses, researchers, governments, and non-governmental organizations might also find PESTLE analysis very useful.

Researchers often look to PESTLE analysis to structure their reports on changing business environments; governments recruit the power of PESTLE analysis to help shape new regulations and distribute funding; non-governmental organizations use PESTLE analysis to help groups and often entire countries improve their financial situations.