Pestel model

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It is clear that companies need to know what is and what is not legal in order to trade successfully and ethically. Legal Factors: Although these factors may have some overlap with the political factors, they include more specific laws such as discrimination laws, antitrust laws, employment laws, consumer protection laws, copyright and patent laws, and health and safety laws.

Environmental Factors: These factors relate to the influence of the surrounding environment and the impact of ecological aspects.

pestle analysis example

Besides it really varies from industry to industry and from nation to nation how important certain factors are. Economic Factors These factors include inflation rates, interest rates, economic growth, exchange rates, unemployment rates, the disposable income of the consumer, etc.

Pestle analysis template

This is important because it will allow your business to 1 spot bad decisions before you make them , and 2 optimize your business strategy. Lets look at each of these macro-environmental factors in turn. This can include government policy, political stability or instability, corruption, foreign trade policy, tax policy, labour law, environmental law and trade restrictions. Sponsored Environmental Factors The impact of the environmental factors has come to the forefront in recent years. Economic The economic factors affecting a business refer to the economy in which it operates. It helps organizations doing strategic planning to expand their businesses. It is clear that companies need to know what is and what is not legal in order to trade successfully and ethically.

Factors include interest rates, employment or unemployment rates, raw material costs and foreign exchange rates. The population trends like age distribution, income distribution, growth rate, career attitudes, safety emphasis, etc.

How much importance does culture has in the market and what are its determinants? These are all factors that need to be taken into account when assessing the attractiveness of a potential market.

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PESTEL Analysis (PEST Analysis) EXPLAINED with EXAMPLES