Pestle Analysis

Topics: PEST analysis, Economics, Emerging markets Pages: 9 (1738 words) Published: November 27, 2014
introduction
the pestle analysis is a set of tools used to analysis and evaluate various factors which determines and affects the environment of an organization, which should be identified in order to  aid company's so they can achieve optimum performance . (c) . pestle analysis' also help in the decision making process a as it gives companies more knowledge about their business . pestle analysis is divided in 6 main categories which are Political, Economic, Social , Technological, Legal, Environmental. pestle analysis is basically gathering information about the each categories of pestle then Identifying which of the PESTLE factors represent opportunities or threats to company.

Political
Economic
 Current national policy
 National strategic documents and consultations impacting on you  Local commissioning consultations and
Strategic Planning Processes
 Local government structure and annual reports
 Local healthcare needs – NHS Bill
 The budget and pre-budget review
 Current political view on public finance and business growth  Your local authority’s spending review
process
 Sources of grant funding and investment
 Potential new markets and sales opportunities

Social

Technological
 Current health and social trends at local and national level  Make up and demographics of your local
population or marketplace
 Hot topics or key words in the media
 Public reaction to recent local events
 Reach into local marketplace
 Is your information communication technology up to date?  What systems and processes are
prevalent in the market place?
 If you are in service delivery, what’s
considered best practice?
 Have your staff training and qualifications needs changed? Environmental
Legal
 Environmental regulation
 Reduction of carbon footprint
 Sustainability
 Organisational environmental Impact
 Local impact of adverse weather
 Employment law
 Health and safety regulation
 Equality and diversity law
 Money laundering / tax compliance
 Sector specific regulatory compliance

Political: examples
apple: There are many problems which cannot be controllable by the company such as political uncertainties, war against terrorism, authority to work and health issues which can affect the sale of Apple’s product worldwide. As to reduce operating cost Apple has manufactures it product in different countries like Ireland, China, Korea, Czech Republic and Cork. If these countries face any political instability or any problem which causes to delay in manufacturing operation which will led to a big problem (Reisinger, D., 2012)

Samsung

In most of the markets where Samsung operates, the political environment is helpful to its operations and though there are minor problems in some of the foreign markets like India, but overall Samsung can be said to be operating in markets where the political factors are benign. However, in recent months, it has faced significant political headwinds in its home country of South Korea because of the country’s tensions with North Korea wherein the company has had to take into account not only the political instability but also the threat of war breaking out in the Korean Peninsula. Apart from this, Samsung faces political pressures in many African and Latin American countries where the political environment is unstable and prone to frequent changes in the governing structures. (c) Sony

Reduction in recession and credit crunch could cause Sony to speed up its trade; meanwhile same situation could happen for the competitors of Sony, which may affect Sony negatively. Therefore, Sony needs to be very careful to its innovation and idea generation. Sony is globalized company so that changing in international law or trade restriction could affect the way in which Sony works, and Sony needs to follow the rules and regulations, that are imposed by the government. The terms...
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