PESTEL Analysis: The Pestel Analysis Of IBM

1955 Words8 Pages
PESTEL Analysis
Political
IBM is a multinational company hence operates in different countries. This means that the taxation laws of various countries would lower or increased the cost of business (Ford, 2014). IBM is forced to sell products at a high cost in countries such as the United Kingdom due to high taxes charged. The company is a large importer of products hence it must consider the importation regulation of each country it is operating in. Countries charge different tariffs hence the importation of products will differ. The political climate impacts on the business environment. For instance, IBM can only operate in countries that have a good political climate. Countries that are characterized by civil war create a bad business environment.
Economic Factors
The company operates in the economy hence micro and macro element impact on the performance of the company. High inflation rates discourage the purchase of products. It reduces the purchasing power of consumers causing low sales (Boone & Kurtz, 2011). The cost of borrowing
…show more content…
The first one is understanding the strengths of employees when assigning responsibilities. Every individual has strengths, and a manager should identify the strength of each employee and create an opportunity where they can use them. Understanding the strengths of employees enables a manager to identify a suitable motivational method. According to Fredrick Herzberg two-factor theory of motivation the main motivators for people is the feeling of completing a task, being valued and appreciated, trust, responsibility, and rewards. Therefore, team leaders are encouraged to create a sense of trust and responsibility within the organization by giving employees more responsibilities and control. Managers ensure that the employees have the right tools to complete the task. The employees are provided with the right resources to complete task, and access to
Open Document