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Maria Celine A. Barlis 11-ABM - 1: Marketing

This document provides an overview of a PESTLE analysis, which examines the political, economic, social, technological, legal, and environmental factors that affect a business or organization. It analyzes the macroenvironmental influences and helps identify threats and weaknesses. Each factor is then defined, with political factors including things like taxes and trade policies, economic factors like inflation and growth rates, social factors such as cultural trends and demographics, technological factors pertaining to innovations, legal factors involving consumer laws and regulations, and environmental factors concerning climate, weather, and environmental changes. Examples are given for each type of factor to illustrate how they can impact businesses.

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Marean Nichole
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58 views1 page

Maria Celine A. Barlis 11-ABM - 1: Marketing

This document provides an overview of a PESTLE analysis, which examines the political, economic, social, technological, legal, and environmental factors that affect a business or organization. It analyzes the macroenvironmental influences and helps identify threats and weaknesses. Each factor is then defined, with political factors including things like taxes and trade policies, economic factors like inflation and growth rates, social factors such as cultural trends and demographics, technological factors pertaining to innovations, legal factors involving consumer laws and regulations, and environmental factors concerning climate, weather, and environmental changes. Examples are given for each type of factor to illustrate how they can impact businesses.

Uploaded by

Marean Nichole
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MARIA CELINE A.

BARLIS
11- ABM- 1
MARKETING

PESTLE analysis gives you an overview of the whole situation your business might be in. Precisely, it is a bird’s eye
view of the stimulus and the scenarios that surround your trade and your business.

It is a framework or tool used by marketers to analyse 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.

Political: These factors determine the extent to which a government may influence the economy or a certain
industry.

[For example] a government may impose a new tax or duty due to which entire revenue generating structures of
organizations might change. Political factors include tax policies, Fiscal policy, trade tariffs etc. that a government
may levy around the fiscal year and it may affect the business environment (economic environment) to a great
extent.

Economic: These factors are determinants of an economy’s performance that directly impacts a company and have
resonating long term effects.

[For example] a rise in the inflation rate of any economy would affect the way companies’ price their products and
services. Adding to that, it would affect the purchasing power of a consumer and change demand/supply models
for that economy. Economic factors include inflation rate, interest rates, foreign exchange rates, economic growth
patterns etc. It also accounts for the FDI (foreign direct investment) depending on certain specific industries
who’re undergoing this analysis.

Social: These factors scrutinize the social environment of the market, and gauge determinants like cultural trends,
demographics, population analytics etc.

[For example] for this can be buying trends for Western countries like the US where there is high demand during
the Holiday season.

Technological: These factors pertain to innovations in technology that may affect the operations of the industry and
the market favorably or unfavorably.

[For example] automation, research and development and the amount of technological awareness that a market
possesses.

Legal: These factors have both external and internal sides. There are certain laws that affect the business
environment in a certain country while there are certain policies that companies maintain for themselves. Legal
analysis takes into account both of these angles and then charts out the strategies in light of these legislations.

[For example], consumer laws, safety standards, labor laws etc.

Environmental: These factors include all those that influence or are determined by the surrounding environment.
This aspect of the PESTLE is crucial for certain industries particularly .

[For example] tourism, farming, agriculture etc. Factors of a business environmental analysis include but are not
limited to climate, weather, geographical location, global changes in climate, environmental offsets etc.

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