PESTEL analysis refers to a framework that is used in scanning the external, macro-environment of an organization. Political factors In Europe, the automobile industry has been a major economic stone. Different incentive schemes were introduced early in
Economics Selling goods in the global marketing is extremely challenging. Discuss the major political, economic, socio-cultural, technological, legal and ecological challenges that a global marketing manager may have to contend with?
Selling and marketing goods in the global market intensifies these issues and creates a larger challenge for marketing managers. The macro environment is where organisations do not have any control.
How and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability.
From the list it is clear that political factors often have an impact on organisations and how they do business.
Organisations need to be able to respond to the current and anticipated future legislation, and adjust their marketing policy accordingly. Political factors may also include goods and services which the government wants to provide or be provided merit goods and those that the government does not want to be provided demerit goods.
Furthermore, governments have great influence on the health, education, and infrastructure of a nation. Economic factors Economic factors have a significant impact on how an organisation does business and also how profitable they are.
This refers to the purchasing power of potential customers and the ways in which people spend their money. These factors include economic growth, interest rates, exchange rates and the inflation rate.
These factors have major impacts on how businesses make decisions. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. These vary from one country to another, thus affecting the global market as marketing managers have to look at the market as a whole but cater to the different needs from each country.
Socio-cultural factors These represent the culture of the society that an organisation operates in. These include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.
A PESTEL analysis is an acronym for a tool used to identify the macro (external) forces facing an organisation. The letters stand for Political, Economic, Social, Technological, Environmental and Legal. Only after examine the nature of the marketing environment, The most popular framework examine the external environment is known as “ PESTLE” which stands for political,economic, socio-cultural, technological,legal and ecological environment. PESTEL analysis of the macro-environmentThere are many factors in the macro-environment that. In this section, the industry is examined using the PESTEL model which is significant in analysing macro environment. The industry is also examined using the five forces model. Finally, the threats and opportunities in the footwear industry environment are identified.
For example, an ageing population may imply a smaller and less-willing workforce thus increasing the cost of labor. Furthermore, companies may change various management strategies to adapt to these social trends such as recruiting older workers.
These factors are important as they have a direct effect on how marketers understand customers and what drives them.
Technological factors The technological environment is perhaps one of the fastest changing factors in the macro environment.
Technological factors refer to the rate of new inventions and development, changes in information and mobile technology, changes in internet and e-commerce or even mobile commerce.
As these markets develop it can create new markets and new uses for products.The PESTLE Analysis is a framework used to scan the organization’s external macro environment.
The letters stand for Political, Economic, Socio-cultural, Technological, Legal and Environmental.
A PESTEL analysis for automobile industry in Europe indicates the major drivers that are used in predicting future scenarios. PESTEL analysis refers to a framework that is used in scanning the external, macro-environment of an organization.
The following analysis known as the PESTEL analysis is a framework used to scan the organization’s external macro environment which refers to forces that are part of .
This section requires the analysis of the Macro environment (through the PESTEL model); the analysis of the Industry (through the Five Forces of Competition framework); and the identification of the main opportunities and threats.
In this section, the industry is examined using the PESTEL model which is significant in analysing macro environment. The industry is also examined using the five forces model.
Finally, the threats and opportunities in the footwear industry environment are identified. Macro-Environmental Analysis: PESTEL Political Factors One tool commonly used for carrying out analysis of a company’s external environment is the PESTEL analysis, in which the legal, environmental, technological, social, economic, and political factors are examined (Dockalikova & Klozikova , p.