Description Pestle Analysis Provides A Framework For Investigating And Analysing The External Environment For An Organisation

tax changes, new laws and government policy changes. Managers should not just rely on the PESTLE analysis, it is a tool, a snapshot in time, which will assist in understanding the current factors, it will not determine a direct path in the direction they need to follow to progress the company considerably. When in fact managers most need to judge, into what factors are most likely to change and also which have the greatest impact to them, so in the case of Centre Parc’s they need to consider mostly economical and sociological. A way of achieving the relevance of each factor to the company is to rank or score the factors, so there is a clear understanding of which are of most importance and vice versa. As Centre Parc’s has many different villages, this means that it includes many divisions and also brands (Starbucks, and Zilli restaurants), so managers need to concentrate on one specific area within each village.

Several factors as it relates to the Macro Environment can impact and influence Virgin Atlantic and its strategies. According to Pandey (2011) “PESTEL is a macro environmental framework used to understand the impact of the external factors on the organisation and is used as strategic analytical technique. The term PESTLE is an acronym for:

Evaluating information on events occurring outside the organization and identifying trends is environmental scanning. Trends are determined through the forces of social, economic, technological, competitive and regulatory sources. In some of my research on this subject, I found reference to the term PESTLE analysis which involves six different environments for assessment: political, economic, social, technological, legal and environment.

Macro environment is crucial to the development of a company. All the external factors can have huge positive or negative influences on Travis Perkins plc, therefore a better understanding of the environment of the company is of supreme significance (Peng & Nunes, 2007). Among all the analysis tools, PEST analysis is one of the most effective tools to analyze the external environment of a company (Riley, 2012). This part will demonstrate PESTLE analysis of Travis Perkins plc below. The result of PESTLE analysis can be demonstrated in the following table 1.

The PESTLE analysis can be used to assess the strategic relevance of the six principal components of the macro-environmental: political, economic, social, technological, environmental, and legal forces. It can be used as a tool by companies to better understand of the macro- environment they are operating in.

PESTEL analysis helps to infer whether a particular factor is helping the organization to achieve its goals or is affecting in its road to success.

With this in mind, the PESTEL model was developed to give researchers and practitioners a framework in which to consider the broader business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. Furthermore, a PESTEL analysis is a technique that evaluates the potential impact of political, economic, social, technological, environmental, legal factors on an organization. This set of factors represents a broad set of industry and environmental considerations that any organization should make when designing strategic goals

Factors in the political and legal environments appear to represent an important influence on decisions made within companies. It seems as though changes in this environment can directly affect company performance. With ExxonMobil operating in nearly 200 countries worldwide (ExxonMobil, 2001) the list of possible political and legal aspects appears to be endless. Importance should be given only to implications that can gravely affect operations. Making this choice of differentiation between significant and insignificant influencing factors may well be the most important decision to be made by ExxonMobil. Therefore the main question that arises is: What political and legal factors from the

External analysis of general environment will be done using PESTEL which refers to how the political, economic, social, technological, environmental and legal environment affects an organization. Below will be a diagram of PESTEL, followed by a brief explanation of each factor and their examples.

PESTEL analysis is a method used to study macroeconomics - the macroeconomic environment of an enterprise. Otherwise, it is called the general segmentation of the environment. It defines the basic spheres of the environment, which are areas that have a crucial impact on the functioning of the organization. Also marks the future strategy of the organization through an in-depth analysis.

PESTEL analysis is to identify and analyze the strategy and business environment, it is stand for Political, Economic, Social, Technological, Legal, and Environmental factors. This model is to assessing the current environment and potential changes. If

Political factors refer to political situation of the country and the extent to which it may affect and interfere with the project.

PESTLE acronym describes the six environmental areas that might affect an organization, Political, Economic, Social, Technological, Legal and Environmental. Political factors concerns governmental influences on the environment. It revolves around the particular government in your particular country. It manifest itself through policies, directors and regulations. Economic factors could be interest rates and inflation. Its looks at employment levels. It looks at if the economy is booming or if it is going through a depression. Social aspects of technology are often overlooked by developers at early stages, (Kolois, Read) Social factors include behavior, preference and attitude of the target market. This would include customer expectations,

From a shift in loсal publiс opinion to a сhange in government or even a new industrial world superpower entering the market, politiсs influenсe how muсh funding is available, how muсh tax must be paid, minimum wage rates, how markets are сontrolled and the quality and quantity of staff available for hire. When planning ahead, manager needs to сonsider likely сhanges to markets, budgets and availability of suitable appliсants as a result of reсent or antiсipated politiсal influenсes. For example, if a сhange of government is possible in the сoming year, understand the new administration’s priorities in relation to markets, industries and businesses.

This paper will highlight the issues in the domestic environment such as social and environmental concerns,