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Pestle Analysis

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Pestle Analysis

  1. 1. PESTLE analysis
  2. 2. Aims • Prepare a PESTLE analysis for a given situation and use it to analyse the impact of the external environment on a firm. • Evaluate the impact on a firm’s objectives and strategy of a change in any of the PEST/PESTLE factors.
  3. 3. What is it? • It’s a way of working out what is going on ‘out there’ so you can then respond to it.
  4. 4. POLITICAL • • • • • Environmental protection/legislation Consumer protection Government’s attitude Competition regulation Advertising standards
  5. 5. Economic • • • • • • • • Economic growth Taxation international trade Exchange Rate Employment law Health and Safety law Inflation Consumer confidence Minimum wage
  6. 6. Social • • • • • • • • • Income distribution Demographics Labour & Social mobility Lifestyle changes Attitudes to work and leisure Education Fashion and Fads Health & Welfare Living conditions
  7. 7. Technological • • • • • • • Changes in physical sciences Internet Energy use and costs Rates of technological obsolescence New discoveries Govt and Industry focus on tech Govt spending on research
  8. 8. Legal • • • • • • Employment law Health and Safety Taxation both corporate and consumer Other regulations International trade barriers Strength of the rule of law
  9. 9. Environmental • How people’s perception and reaction to environmental issues can affect a business.
  10. 10. Exam tip • Remember it is not enough to identify the factor, you must also identify the advantages and disadvantages as part of your analysis and recommendation while referring to the information provided.

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