A PESTLE analysis is a framework that analyzes the macro-environmental factors influencing an organization. It assesses the political, economic, social, technological, legal, and environmental factors - the letters that make up the acronym. Managers use PESTLE analysis to identify opportunities and threats from external factors to inform strategy and decision making. The analysis examines influences in each category that are outside an organization's control. Examples of applying PESTLE analysis to Coca-Cola, Adidas, and Nike are provided to illustrate how it can be used.
A PESTLE analysis is a framework that analyzes the macro-environmental factors influencing an organization. It assesses the political, economic, social, technological, legal, and environmental factors - the letters that make up the acronym. Managers use PESTLE analysis to identify opportunities and threats from external factors to inform strategy and decision making. The analysis examines influences in each category that are outside an organization's control. Examples of applying PESTLE analysis to Coca-Cola, Adidas, and Nike are provided to illustrate how it can be used.
A PESTLE analysis is a framework that analyzes the macro-environmental factors influencing an organization. It assesses the political, economic, social, technological, legal, and environmental factors - the letters that make up the acronym. Managers use PESTLE analysis to identify opportunities and threats from external factors to inform strategy and decision making. The analysis examines influences in each category that are outside an organization's control. Examples of applying PESTLE analysis to Coca-Cola, Adidas, and Nike are provided to illustrate how it can be used.
A PESTLE analysis is a framework that analyzes the macro-environmental factors influencing an organization. It assesses the political, economic, social, technological, legal, and environmental factors - the letters that make up the acronym. Managers use PESTLE analysis to identify opportunities and threats from external factors to inform strategy and decision making. The analysis examines influences in each category that are outside an organization's control. Examples of applying PESTLE analysis to Coca-Cola, Adidas, and Nike are provided to illustrate how it can be used.
Download as PPTX, PDF, TXT or read online from Scribd
Download as pptx, pdf, or txt
You are on page 1/ 15
Class-21
Introduction to Business
Business Environment
Umma Hania Lecturer Bangladesh University of Professionals What is PESTLE Analysis?
A PESTLE analysis is a framework or tool used by marketers to analyze
and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis. PESTLE Analysis: PESTLE Analysis: o The 6 factors make up the acronym PESTEL. o Each letter represents one factor. It is often called PESTLE. o You may these factors using other tests too. PEST,STEEP, and STEEPLE are similar analyses. Some other variations are STEPJE, STEP, and LEPEST. o Managers can choose any based on the nature of the firm and the factors they wish to study. Political Factors: • The political factors account for all the political activities that go on within a country and if any external force might tip the scales in a certain way.
o Trading policies o Government changes o Funding o Foreign pressures o Conflicts in the political area o Shareholder and their demands Economic Factors: • The economic factors take into view the economic condition prevalent in the country and if the global economic scenarios might make it shift or not.
o Disposable income o Unemployment level o Foreign Exchange rates o Interest rates o Trade tariffs o Inflation rate Social Factors: • Social factors are your consumers. You need to look at buying habits, emotional needs, and consumer behavior in this section. Because these are the people who directly influence your sales.
o Ethnic/religious factors o Major world events o Demographics o Consumer opinions and attitudes o Trends o Education o Brand preferences Technological Factors: • Technology can be directly involved with company products, like manufacturing technologies.
o Technological development o Research and development o Associated Technologies o Patents o Licensing o Information technology o Communication Legal Factors: • Legal factors have to do with all the legislative and procedural components in an economy. Also, this takes into account certain standards that your business might have to meet in order to start production/promotion.
o Employment law o Consumer protection o Industry specific regulations o Competitive regulations o Future legislation o Environmental regulations Environmental Factors: • Environmental factors have to do with geographical locations and other related environmental factors that may influence upon the nature of the trade you’re in. For example, agri-businesses hugely depend on this form of analysis.
o Ecological o Environmental issues o Staff attitudes o Management style o Environmental regulations o Consumer values Example: PESTEL Analysis of Coca-cola Example: PESTEL Analysis of Adidas Example: PESTEL Analysis of Nike At a glance:
