Pestle Analysis

1565 words 7 pages
Show More
Application of PESTLE analysis 1. Define the purpose of PESTLE analysis and spell out some of the main constituents of each factor.

PESTLE analysis “Political, Economic, Social, Technological, Legal and Environmental analysis” is used to evaluate the many factors in the macro environment that will affect the decisions of managers in any organisation. It is normally carried out before a SWOT analysis which is applied for assessing an internal environment of a business (Panah, 2012). Government policy, economic growth, social trends, new technologies, new laws and climate change are all examples of macro change. Political factors include tax policy, trade restrictions and tariffs. It’s what the government intends to change in the …show more content…

This is a benefit for the business because they have a wider access of skilled workers to choose from; therefore the business is able to save costs by spending less money on training and making less staff redundant. As a result, the business is able to increase competitiveness and profitability of the business.

Businesses are always investing in new technology, whether it is to save costs or to keep current with the consumer’s demand. There is a rising demand in electric vehicles forecasted; as a result, it is important that Alfa Romeo invests money on the research and development of electric vehicles. The initial cost of the new technology can be a minor drawback, as it might be expensive; on the other hand, if successful the business is able to be more efficient in the long term. Ultimately cutting more cost and increasing the competitiveness of the business.

Minimum wage is set to rise steadily in the UK. Therefore when a business such as, Alfa Romeo is planning to locate a manufacturing base in the UK, they may find this as a slight possible drawback, because they are not able to maximise profitably as they might of imagined. On the other hand, this could be beneficial as the employees may feel motivated from their wages to do more work and to produce better quality work, which will lead to the business being more efficient in meeting deadlines, consequently improving competitiveness. As a result, the business is able to use this to

Related

  • Pestle Analysis
    2014 words | 9 pages

    1. Introduction to the assignment and summary of the selected business. This assignment is about the factors that influences the business environment in different ways. This is about environmental analysis which is dynamic process that comprises scanning, monitoring, disseminating and forecasting. There are different factors which influences the business in 21st century. Somehow these factors have impact on the business in favour of the business and sometimes have an adverse….

    Show More
  • ‘Pestle’ Analysis for Starbucks Coffee Company
    1191 words | 5 pages

    ‘PESTLE’ Analysis for Starbucks Coffee Company Political: •High taxation imposed on farmers in those countries producing the coffee bean will usually mean Starbucks pay a higher price for the coffee they purchase. Any fluctuations in taxation levels in the industry are almost certainly ultimately passed on to the consumer. •Trade issues will affect Starbucks predominantly when exporting and importing goods. When another country’s government imposes a tariff it not only results in an efficiency….

    Show More
  • Swot and Pest of Fast Food Industry
    2399 words | 10 pages

    Holborn College Subject : Corporate Strategy | Course Work Title : Fast Food Industry Analysis | Module Code : WAMB 4006 | Module Leader : G.Bowen | Student Name : Parineeta Ubhiryane | Student ID : 37754 No. of words….

    Show More
  • Bmw Business Strategy
    1860 words | 8 pages

    European car industry. “With the threat of legislation looming BMW has shown that even premium car makers can seriously reduce CO2” Jos Dings Director, Transport and Environment • Restrictions and firm pollution norms set up in US markets SWOT Analysis Strengths • BMW 's strengths are its BMW is a renowned for its global brand name, highly skilled engineers, designs, gratitude factor and economies of scale. • BMW has always been associated with quality and performance and have….

    Show More
  • Unit 10: Market Research in Business
    2320 words | 10 pages

    Unit 10: Market Research in Business In this assignment I will continue working alongside the local entrepreneur to discovering whether or not there is a market available in order for them to open up an internet cafe. I will be creating a research plan which sets out to investigate whether or not the entrepreneur should set up the business. The research plan will have to consist of objectives and these objectives must be S.M.A.R.T, the research objectives will also have to be based on what I would….

    Show More
  • The Kumeyaay People of California
    2390 words | 10 pages

    were used as tools. These games involved shooting targets and were common among boys and young men who made up the warrior group whose sole purpose was to protect the members of the community. Pestles and mortars are used for domestic grinding purposes even in the modern community. The presence of a pestle and mortar in the exhibition signifies that there were domestic grinding activities among the Kumeyaay. These tools were most likely used to grind and crush tubers and other leafy plants for food….

    Show More
  • Grameenphone
    2005 words | 9 pages

    1.0 Micro and Macro Analysis Micro Analysis: Micro Analysis is individual study of the factors affecting firms in a specific sector or industry. Micro factors include competition, suppliers, customers, labor and competition. The effect of changes in these factors on the individual decision makers, how their choices are coordinated by markets, and how prices and demand are determined in individual Macro Analysis: Macro Analysis is the study of the behavior of the individual firms or markets. through….

    Show More
  • Amspar Business Project
    4776 words | 20 pages

    EMILY LEWIS-GARWOOD RAMC | 5/5/2009 | | Contents ACKNOWLEDGEMENTS 3 TERMS OF REFERENCE 4 ABOUT THE AUTHOR 5 Summary 6 Introduction 7 Present Situation 11 METHODOLOGY 14 PESTLE Analysis 18 PESTLE Analysis 20 SWOT Analysis 22 Options for Implementation 23 Cost Benefit Analysis 27 CONCLUSION 28 RECOMMENDATIONS 29 BIBLIOGRAPHY 30 ACKNOWLEDGEMENTS Lt Col J Taylor, Senior Medical Officer and Liz Thurley RGN for their time and sympathetic help in providing….

    Show More
  • 5BIC template Business Issues amp Contexts of HR v1
    3465 words | 14 pages

    Core Unit - 5BIC = 6 credits 3000 words On final submission please enter your total word count for learning outcomes summatively assessed (excluding bibliography): ﾧ Learning Outcome 1: Understand key contemporary business issues affecting the HR function within private, public and third sector organisations. Assessment Criteria 1.1 Explain types of organisations and the roles of management in them. Indicative Content: Understand key contemporary business issues affecting the HR function within….

    Show More
  • Describe the Influence of Two Contrasting Economic Environments on Business Activities Within a Selected Organisation
    1723 words | 7 pages

    P5-Describe the influence of two contrasting economic environments on business activities within a selected organisation Within my selected organisation, Tesco, there are 2 important economic environments that have an influence on business activities. Both economic environments will have a different way on affecting Tesco. The economic environments are growth and recession. Economic growth occurs when more goods are being produced and consumed, and incomes are rising. A growth company tends to….

    Show More

Popular Essays