Pestel Analysis of the Macro-Environment

1852 Words May 29th, 2012 8 Pages
The ‘environment’ is everything happening in the world outside that is relevant to your business. As Baines(2011) describe : “The operating environment for all organisations is never static and seldom entirely predictable, and can therefore profoundly affect a company’s course of action.” Only after examine the nature of the marketing environment, we can therefore set up appropriate marketing strategies for organisation.
Generally, the marketing environment can be classified into three levels: the external environment, performance environment and internal environment. Organization may have different degree of influence on each level and elements in each level may also have different impact on organization itself.
The external environment
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The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. * Legal factors: these are related to the legal environment in which firms operate. In recent years in the UK there have been many significant legal changes that have affected firms' behaviour. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organisation's actions. Legal changes can affect a firm's costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).Different categories of law include: * consumer laws; these are designed to protect customers against unfair practices such as misleading descriptions of the product * competition laws; these are aimed at protecting small firms against bullying by larger firms and ensuring customers are not exploited by firms with monopoly power * employment laws; these cover areas such as redundancy, dismissal, working hours and minimum
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