Essay about PESTEL Analysis

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CATHOLIC UNIVERSITY OF EASTERN AFRICA FACULTY OF COMMERCE DEPARTMENT OF MARKETING & MANAGEMENT NAME: CHRISTOPHER MUNENE NO: 1018463 UNIT: TOPICS IN MARKETING MANAGEMENT CODE: CMK 424 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? 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 the larger society and affect the micro environment.…show more content…
These factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. 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. Trends in social factors affect the demand for a company's products and how that company operates. 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

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