There are many factors in macro-environment that will affect the decisions of managers in any organization. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. Managers can analyses these factors through the PESTEL analysis. PESTEL Analysis is one of the tools that often used by managers to analyze the broad macro-environment of an organization. It provides a comprehensive list of influences on the possible success or failure of particular strategy. PESTEL Analysis includes political, economic, sociocultural, technological, environmental and legal.
(i) Political
The government has announced subsidy cuts for sugar, petrol, diesel and liquefied petroleum gas (LPG) as part
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People now are demanding for beverages that are low calories, sugar, carbohydrates and total fat. Therefore, F&N beverage has to adapt to the increasingly health-conscious consumers and refocus more marketing resources and efforts into ‘healthier’ products to meet the customers’ needs before it is too late.
Besides that, changing lifestyles also lead to different demands from the consumers. Therefore to cater for the needs of consumers, F&N beverage marketing came out with different kind of flavours of 100 PLUS which include ‘original’, ‘lemon lime’, ‘tangerine’ and ‘Aqtiv’ to satisfy the needs of the consumers.
(iv) Technological
Technological change creates opportunity for product improvements and new marketing techniques such as the internet and e-commerce. Technological factors that contribute to the improvement of company’s result are as follows:
•The effectiveness of the company’s advertising, marketing and promotional programs. The new technology such as internet and multimedia’s are used as a tool to provide advertisement to attract their customers. This technology is used to sell their products.
•Introduction of cans and plastic bottles have increased the sales for 100 PLUS as these are easier to carry around
•As the technology is getting more and more advanced, there has been introduction of new machines all the time which increases the productivity of the company tremendously
•Direct store-delivery (DSD) which allows
All Saints ensures that all regulations are met by having their vendors, suppliers and subcontractors sign their compliance manual based on the core conventions of the International Labour Organisation.
PESTEL analysis is widely used to better understand the external environment of the company. The acronym PESTEL stands for political, economic, sociocultural, technological, environmental, and legal factors. PESTEL analysis helps managers better understand the threats and opportunities a company faces.
PESTEL is the acronym for political, economic, sociocultural, technological, ecological and legal, and theses are external forces at the macro legal divided into six segments. These forces embedded in the global environment can create both opportunities and threat, so managers must monitor them closely. Managers must be aware of changes, like new competitors entering their market, in order to stay competitive in the business environment/marketplace.
Pestel analysis consists of environmental factors that lead to the understanding weaknesses and strengths of the organization in an attempt to influence the organization’s success. The macro-environmental factors are political, economic, social, technological, environment and legal.
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.
Canada is one of the mightiest countries in the world due to its many unique characters. In the context of economy Canada is a leading competitor for many other giants in the world. As country there are many things to boast about Canada. Natural resources, healthcare, arts, music, and many more made Canada very much popular among other nations. This report discusses and analyse the political, economic and legal characteristics of Canada and its effect on doing business there in briefly.
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.
The knowledge and understanding of technology is very high in this industry as technological innovation is necessary for the success of the firm in an
Like PCs, machinery, services and office equipment. All these are essential for the overall cost structure. Secondly, Technology development that primary Includes R&D for designing the product, staying up to date with the needs of the customers and directly delivering products to people who do not have time to shop. The the Internet has contributed to have a Human resource management by providing the online recruitment of employees more effective with no waste of time. And help to hire qualified IT specialists. Therefore, the company for sure will aim to increase the number of trained, recruited staff. And finally, the Infrastructure in which it includes offices, plants, warehouses and distribution centers. Lately the company is upgrading its infrastructure technology and is installing new security systems which aim to reduce internal
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
This Case study is intended to provide strategic analysis for Emaar properties and providing it with
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