To begin with PESTEL Analysis Help services, it is crucial for the students to understand what are the internal and external environments related to any organization. Every organization has a structure, culture, shareholders, employees and reward systems. These factors determine the internal environment of the organization. Along with this, every company has some strategic partners, customers, distributors and suppliers associated with it. These are called the external factors that can affect the performance of the company. However, there are some macro-environmental factors that lie outside the scope of the external factors of a company but can greatly affect what products a company is going to build, what is its target audience and how the company is going to survive in the market.
PESTEL Stands for -
● P - Political
● E - Economic
● S - Social
● T - Technological
● E - Environmental
● L - Legal
What is PESTEL Analysis?
As the name suggests, the PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal Analysis which is a tool used by startups or organizations that are willing to establish their services in a new market or a new location to analyze these macro environmental factors. For instance, it can help a company determine how the political circumstances of a place can affect its consumers, how sustainable are a company's products or how the attitude of the customers can affect the sales.
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Reason to Use PESTEL Analysis
Starting with your PESTEL Analysis Assignment and don't know why it is required? Our writers can provide you with all the solutions regarding your PESTEL Assignment queries. To make the process of PESTEL Analysis help easier for you here are the main reasons to use this framework -
Determining the growth of the company
- PESTEL Analysis helps in identifying the prospective customers or audience of an organization hence serving as a business management tool.
Understanding the external environment
- an organization can control its internal environment, however, controlling its external environment is not easy. With PESTEL Analysis the management can get a better idea of how the external factors can affect the company's development
- the PESTEL Analysis allows a company to understand all the macro environmental factors can affect growth, customer engagement, business and marketing environments. All this helps in taking crucial decisions about the company, its marketing strategies and choice of products.
Transforming the business
- if a company is targeting a new market or opening a new branch at a different location which has the completely different political environment or socio-cultural practices, the PESTEL Analysis can help in determining how the organization can transform its business for the new requirements.
Factors of PESTEL Analysis
P – Political
We know how the government of a particular place can affect its education and legislation. Political factors include government policy, labor policy, trade limitations, and taxation.
E – Economic
The economy of a place can affect the demand and supply rates of a product or service in a locality and their prices. This includes interest rates, unemployment rates, economic stability, earnings of potential customers.
S – Social
The social factors include the belief system of a locality, attitude of the customers towards their growth, health, and career. These factors can help in deciding with the type of customers to chose for a particular product.
T – Technological
The level of technological advancements of a place and technological awareness of the customers come under this category. These factors affect the launch of new products in a particular place.
E – Environmental
With the change in time, it has become the duty of every company to ensure a sustainable and eco-friendly environment through their services. These include factors such as climate, weather, and environment of a place.
L – Legal
Unlike the political factors, the legal environment focuses on detailed laws of a place that can affect a company such as copyright laws, employment laws, and discrimination laws.
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