Pestle Analysis Assignment Help from PhD. Qualified Experts

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What is Pestle Analysis, and how does it work?


Pestle analysis is a term that businesses use to track macro-environmental factors, their impact on the business, and their plans to launch a new project/product/service. The outcome is utilized in the SWOT analysis to identify threats and weaknesses. It's a marketing philosophy concept. It's also referred to as a PEST analysis. PESTLE is a mnemonic that stands for:







      E- Environmental

All of these things are influenced by the outside world.


The following are the more comprehensive details of the PESTLE mnemonic:


Political Factors: It all boils down to how and to what extent the government intervenes in the economy. Tax policies, fiscal policies, trade tariffs, corruption, bureaucracy, internal political concerns, trading policies, conflicts, wars, and terrorism are all political elements. Political issues certainly impact organizations and how they do business, as demonstrated by this. The organization's objective is to respond to present and projected future legislation and adjust its marketing strategy accordingly.


Economic Factors: Economic factors have a significant impact on how a company conducts business and how profitable and successful it is. Economic growth, interest rates, exchange rates, inflation, and customer and disposable business income are all elements that influence this. There are two types of economic factors: macroeconomic and microeconomic. The macro element in an economy is usually concerned with demand management. The government employs three key mechanisms: interest rate control, taxation policy, and government spending. The micro aspects are concerned with how people spend their money. This has a significant influence on B2C businesses in particular.


Social Factors: Social elements are often referred to as socio-cultural factors. They are the ones who are involved in the population's shared beliefs and attitudes. Population increase, age distribution, health consciousness, career preferences, and so forth are all examples of these influences. These specific interest elements directly impact how marketers see customers and what motivates them.


Technological Factors: As we all know, technology is continually developing, which impacts how a company markets its products. Marketing and management are both affected by technological variables in three ways:


1.      Developing novel methods for producing goods and services.

2.     Using new methods to distribute goods and services.

3.     Using new methods to communicate with target markets.


Environmental factors: These are the only ones that have come to the fore in the last fifteen years. Environmental factors have become the most crucial with the increasing scarcity of raw materials, pollution targets, conducting business ethically and sustainably, and government-set carbon footprint limits. Marketers are confronted with a slew of challenges in this area. The customer requires that the things they buy be ethically sourced and produced sustainably.


Legal Factors: There are both internal and external aspects to this factor. It encompasses labor rules, health and safety regulations, consumer protection legislation, product quality and labeling, etc. Companies must know what is lawful and not legal to trade profitably. When a company trades worldwide, this becomes extremely difficult because each country has its own set of rules and regulations.


The following is a comprehensive study of Uber, the leading shared taxi service provider:



       Political considerations: conforms to the minimum wage regulation, handles bans in several nations and makes its position on driver's insurance apparent.


       Economic factors: It is conveniently accessible, has reasonable fares, and while the salary isn't great, it provides additional job opportunities.


       Social factors: It is user-friendly, has a rapid pick-up option, and offers a better trip than taxis.


       Technological factors: Excellent mobile app for clients, electronic media and social media promotional usage.


       Environmental factors: There may be an increase in fuel use and traffic congestion.


       Legal considerations: Copyright rules must be observed. Bans must be avoided in many countries. Labor and employee safety must be observed.


The following is a comprehensive analysis of Nike, the well-known sports shoe and apparel manufacturer:


       Political factors: It should consider each country's taxation and manufacturing rules, as well as the import and export policies.


       Economic factors: It should target customers with a high purchasing power, and it should look into developing countries as potential markets for Nike.


       Social factors: Target health-conscious people; the shoes and clothing should be suitable for both health-conscious and sporty individuals.


       Technological factors: It uses the most advanced technology, is constantly changing and represents both an opportunity and a threat.


       Environmental considerations: It must develop environmentally friendly products.


       Factors of law: It must protect copyrights and the designs of the shoes and garments it creates and follow health and safety regulations.


Pestle analysis has the following advantages:


1.      Simple to comprehend.

2.     Maximizes the possibilities that are presented.

3.     Preparedness in the event of a threat.


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Created on May 2nd 2022 02:07. Viewed 340 times.


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