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Policy and Pestle Analysis

Decent Essays

PESTLE Analysis

A PESTLE analysis for Mydin must consider all the important external factors impacting on the company. These factors may have political, economic, social and culture, technological, legal or environmental dimensions. These forces, although out of the company’s control, may have an impact on the success of any future plans. By considering them, a company can change direction, build contingencies, identify new opportunities or do nothing at all. It is an important part in the strategic decision making.

Political analysis

The political analysis must include the impact of local and national government, and the international situation. The Economic analysis needs to investigate the influences of the stock market and …show more content…

Current trend indicate that customers have moved towards ‘one-stop' and ‘bulk' shopping, which is due to a variety of social changes. Mydin have, therefore, increased the amount of non-food items available for sale. Demographic changes such as the aging population, an increase in female workers and a decline in home meal preparation mean that Mydin are also focusing on added-value products and services.

In addition, the focus is now towards; the own-label share of the business mix, the supply chain and other operational improvements, which can drive costs out of the business. National retailers are increasingly reticent to take on new suppliers (Clarke, Bennison and Guy, 1994; Datamonitor Report, 2003). The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs. One example of Mydin adapting its product mix is to accommodate an increased demand for organic products.
Technological factors

Technological factors are usually easier to spot, because new technologies involve change, and change is always noticed. For instance, online shopping has had a major impact on Mydin's recent success. Conversely, The change created by technological advances often lead to legal problems, which is why legal analysis is always an important part of a PESTLE analysis.

Legislative factors

Various

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