example of a pestle analysis essay

More Like this

PESTLE Analysis Examples

Before We See PESTLE Analysis Examples, Let’s Recap on the Basics.

A PESTLE analysis looks at the macro trends in the surrounding environment of a certain business or organization. It examines the political, economic, social, technological, legal, and environmental elements of the operating market that may have either positive or negative effects on your company or organization.

DOWNLOAD THE FREE GUIDE

A PESTLE analysis is often used as an extension of a SWOT analysis . Remember that the external matrix of the SWOT evaluates and creates awareness about the opportunities an organization should take advantage of, as well as the threats it should avoid. This external analysis is part of evaluating your organization’s strategic position within its market, industry, and larger operating environment.

Here, we will take a deep dive to examine what you should feature in your own PESTLE analysis. We’ll examine some PESTLE analysis examples from some of the most successful companies of our time.

Definitions and General PESTLE Analysis Examples:

A PESTLE analysis will look different for each industry, and it must be approached differently as well. Consider your organization’s unique position, market, and needs when conducting a PESTLE analysis.

It is easiest to begin with a SWOT analysis and then use your PESTLE as a companion piece to dig deeper into the external megatrends—both threats and opportunities—that the market and operating environment will present to your organization.

From our PESTLE analysis examples, here are some factors you may consider using:

Examples of Political Forces

These are the external forces affecting your organization that are brought on by government. They may include laws, policies, regulation or de-regulation trends, governing bodies and leadership, foreign trade and foreign relations, political issues and trends, tax policy—any political factors that could influence your organization’s opportunities or threats.

Examples of political forces include:

• Changes in government/election cycles: Will the possibility of shifting party majorities in upcoming or recent elections affect regulation or de-regulation in your industry or a related industry? Does this create a threat or an opportunity?
• Fiscal policies: How might changes in tax codes affect your budget and profits? How can you prepare for this?
• Wars and conflicts: What recent or current conflicts might affect foreign relations and/or trade in your industry? What can you do to create stability?
• Legislation changes: Is there legislation (proposed or passed) that would substantially affect your operations or your customers?
• Trade agreements: Do you see any upcoming opportunities in the form of new foreign markets? Or conversely, do you see any threats to your foreign markets?
• Political movements: What issues are becoming increasingly important to the people in your target audience? How does this affect their relationship with your brand?

Examples of Economic Forces

The economic environment you operate in includes several factors to consider, such as general economic climate, taxation, and globalization. Inflation rates, shifts in consumer spending, supply chain issues, demand curves, and global economic health may all be a part of your economic analysis.

Examples of economic forces include:

• Employment rates and compensation: Do you have a ready labor market, or are good team members hard to come by? Which direction is the trend heading? What do you need to consider in terms of compensation to bring on and keep talent in your industry?
• Inflation: How is inflation affecting the price of your materials? How is it affecting your customers and their spending?
• Currency devaluations: How is your currency—and the currency of your customer base—performing? How might this affect your costs and revenue?
• Stock market and market values: What recent or predicted trends in the stock market do you see impacting your industry and your organization?

Examples of Social Forces

Social forces focus on the opinions and attitudes of consumers that relate to your product, as well as the changing population and demographics of your operating market. Your analysis might consider social justice movements and other trends, both in your immediate environment and in the broader environment your customers are coming from.

Examples of social forces include:

• Demographic changes: What are the ages, experiences and backgrounds, and racial and gender identities of your customer base? Have any of these shifted or are they projected to shift? If so, how and why? What do you need to do to accommodate customers coming in?
• Religious beliefs: Are there religious or spiritual beliefs that intersect with your organization or your product? How can you be sensitive to those?
• Consumer opinions: How do consumers feel about your product (or products like yours)? Are there positive or negative changes in this general sentiment?
• Purchasing patterns: Due to economic or other factors, are your customers spending less in your market? More?
• Popular media: What current events, celebrity opinions, or other media influences will your consumers be tuned into? Are there any that might affect thoughts, ideas, and feelings about your organization, product, or brand?

Examples of Technological Forces

This focus area considers how technological forces may be impacting your organization. Changes in technology can affect your positioning as an organization. Some recent examples are the rise of cryptocurrency, the emergence of work-from-home technology, AI developments, and even concerns over cyber security.

Examples of technological forces include:

• Increased emergence of AI: What capabilities do you see as opportunities for your organization?
• Energy usage: What new technologies would allow you to save on energy costs (both to your organization and to the environment)?
• Cloud software: What developments have been made to cloud storage to make it more effective, and are you taking advantage of those developments? Conversely, are there security threats to be aware of in this software for your organization’s data?
• Internet: What improvements are available to maximize speed and reliability for the online work of your team?
• Technology usage incentives: Are there incentives available to encourage certain technology use?
• New machinery or tech: Are there emerging industry-specific technologies or equipment that would improve the quality, cost, or efficiency of your organization’s work?

Examples of Legal Forces

While similar to the political aspects, the legal elements in your PESTLE analysis examine the practical application of those political factors into rules and regulations that impact your organization’s business or customers. Depending on your business, you may need to consider local and state laws as well as federal laws.

Examples of legal forces include:

• Patent and intellectual rights laws: How might developments or decisions in intellectual property law affect you and/or your competitors?
• Protection laws: Are there consumer protection laws that would affect the way you interact with and do business with your customers?
• Occupational safety laws: What occupational safety laws do you need to be aware of to conduct business in a way that protects both your employees and your organization?
• Import and export laws: What legal parameters are there for ordering goods from other countries, as well as for selling your product in other countries?
• Licenses: What licenses do you, your employees, and your organization need in order to fill the roles that are needed?

Examples of Environmental Forces

Environmental factors are affected by weather, geography, climate change, and health crises. In addition to the public health crisis caused by the pandemic, the world has also been impacted by wildfires and other natural disasters across the globe. As an organization, you ought to consider the short-term and long-term impacts of these accelerating changes.

Examples of environmental forces include:

• Climate change: How might short- and long-term effects of climate change, including rising sea levels and increasing frequency of extreme weather, impact your organization and customers?
• Consumption of non-renewable resources: What necessary resources could become limited or depleted in the future that would impair your business?
• Energy alternatives:
• Gas emissions: How does your organization contribute to, and how is it affected by, gas emissions? What steps could be taken to reduce emissions and to prepare against the effect of emissions?
• Natural disasters: What natural disasters pose a threat in your area, or in the areas where many of your customers are located? How can you be prepared for these threats?
• Environmental hazards: What other hazards in your environment could prove threatening to your organization?

*Bonus: Ethical Factors to Consider

Over the last few years, business and marketing strategy experts have added a third ‘E’ to the PESTLE analysis – the ethical factor . This can include things such as fair-trade practices, child labor issues, increasing demand for conscious business models, and corporate social responsibility. As these issues come to your attention, examine the megatrends and take the opportunity to evaluate them within your organization’s environment.

Examples of ethical forces include:

• Workers’ rights: What strides can your organization make (or what strides is your organization already making) to take care of those who work for you?
• Fair trade laws: Especially concerning overseas trade, what issues do you need to be aware of in order to promote ethical and responsible practices?
• Human rights issues: How far have you followed the organizations you partner with, contract with, buy supplies from, and do other business with? Are there any organizations whose relationships need to be reconsidered due to human rights violations?
• Corporate social responsibility:
• Diversity, equity, and inclusion: What practices and attitudes are being adopted successfully to promote diverse, equitable, and inclusive workplaces? Conversely, are there practices and attitudes that are backfiring? Which might you best adapt for your organization?

6 Real-World PESTLE Analysis Examples from 8 Successful Companies:

Food and beverage industry pestle analysis examples:, starbucks pestle analysis example.

For Starbucks, lowering costs and staying aware and sensitive to the issues that are important to its customer base are two courses of action that become clear after an environmental analysis.

• Sourcing raw materials and following fair trade practices , which has gained a lot of attention from politicians in the West.
• Keeping up with laws and regulations in other countries from which Starbucks buys its raw materials.
• Economic recession , which has led many customers to seek cheaper alternatives.
• Rising labor and operational costs due to inflation.
• Retiring of the Baby Boomer generation, along with changing family patterns and lowered birth rates leading to fewer spending customers.
• Changing workstyles and lifestyles, including increased remote work .
• Enabling mobile payments , which increases the potential customer base.
• Agricultural developments that might impact raw material production.
• Introduction of caffeine consumption-related policies by health organizations.
• Industry licensing regulations.

Environmental

• Natural disasters in countries that produce coffee beans .
• Environmental laws and regulations related to packaging and waste .

Beyond Meat PESTLE Analysis Example

A California-based producer of plant-based meat substitutes, Beyond Meat is poised to take advantage of many environmental trends that could provide an opportunity to expand.

• Animal farming is receiving political pressure to cut back on expansion.
• Laws and regulations about greenhouse gas emissions.
• Vegan meat is projected to grow from 1% to 10% of meat consumption by the end of the decade.
• Vegan meat has the potential to be cheaper than animal meat , but would need drastic changes to its efficiency to realize this.
• Rise of veganism in developed countries.
• Increasing awareness and vocality of environmentally conscious citizens.
• An extensive amount of technology in R&D for this industry.
• Social media and other technological platforms for advertising and brand-building .
• New food safety standards to classify plant-based meat products.
• Soy farming has raised some concerns about deforestation and soil degradation.
• Plant-based products shown to be much more environmentally friendly than animal meats.

Retail Industry PESTLE Analysis Examples:

Walmart pestle analysis example.

Due to its size and profitability, Walmart has a uniquely competitive edge , yet its growth and continued profitability are sensitive to several external factors .

• Global differences in government regulations , such as banned products in some countries.
• Emergency curfews closing stores early.
• Inflation raising costs; brand appeal is based on low prices.
• Supply chain issues. Continued pressure on the supply chain and inflation is causing increased overhead costs.
• Business model rejected in some places, such as Germany.
• Increased trend toward online shopping , especially post-pandemic.
• Consumer push for same-day delivery of products.
• Adoption of automation for basic tasks.
• Expansion of mobile app and online services.
• Expansion of available technology in distribution and warehouse centers.
• Proposed legislation to raise minimum wage .
• Recent labor lawsuits open doors for further litigation.
• Call to reduce waste and use of nonrenewable energy.
• Weather and climate considerations in a wide number of locations.

Amazon PESTLE Analysis Example

The technology and online retail giant has many opportunities to capitalize on , with a few threats to monitor .

• Government pressure on anti-trust and monopolies for major corporations.
• Pressure from the federal government and local government about employment practices .
• Governmental regulations on cybersecurity and privacy protection.
• Increasing disposable incomes in developed countries.
• Inflation and supply chain issues impacting online stock.
• Macro-trend for organizations to seek and purchase cloud computing products and solutions.
• Increasing consumerism in developed economies and emerging economies.
• Increasing demand for same-day delivery of products to consumers.
• Increasing dependence on technology , cloud computing, and AI.
• Expansion of robotic automation for picking, packing, and delivery of the product.
• Expansion of AI to serve Amazon Web Services.
• Unionization and labor laws impact Amazon’s workforce.
• Changing import and export regulations .
• Import and export tax on goods sold.
• Increasing energy costs increase the cost of supply chain delivery.
• Environmental impact of plastic and plastic packaging .
• Carbon emissions and new fuel options as an organization.

Tech Industry PESTLE Examples:

Apple pestle analysis example.

Like other big tech companies, Apple stands to gain from growing reliance on digital technologies and movement toward energy efficiency—but so do its competitors .

• Trade disputes , especially between the U.S. and China.
• Pressure from federal regulators on antitrust .
• Increasing political pressure on consumer privacy protection and data.
• Changing economic tides and changing economic forecasts create uncertainty in the tech sector.
• Supply chain scarcity and resource constraints on product production.
• Stagnant changes to income of Apple’s buyer pool for luxury products.
• Rapid growth in emerging markets for entry-level products.
• Rising global use of mobile access across the globe.
• Increasing global dependence on digital ecosystems.
• Anti-Apple sentiment due to exclusivity and price.
• Growing technological and development capabilities of the competitive set .
• Pressure from cybercriminals threaten the data security of Apple products.
• Increasing privacy regulations and protections.
• Legal challenges to Apple’s policies and practices related to the app store .
• Ethically and efficiently recycling broken and unused electronic devices , especially those containing lithium batteries.
• Environmental impacts of manufacturing products in China.
• Climate change impacting shipping and supply chain routes .

Airbnb PESTLE Analysis Example

The unique matchup business model of Airbnb, as well as companies like Uber and Lyft, have taken the market by storm—but have also incurred significant legal battles .

• Housing laws and vacation rental bans in some markets conflict with business model.
• Varying tax rates from counties and countries.
• The housing crisis and crunch in the housing market.
• Varying prices and availability of hotels as a primary competitor.
• Increase access and desirability of travel .
• Resistance from locals about the impact of vacation rentals in residential areas .
• Social acceptance of ridesharing and travel sharing business model.
• Increased reliance on mobile apps and other digital solutions .
• Increasing security of online payment systems.
• Legal challenges in some states and countries.
• Environmental impact of single-use products for hospitality .

What is the purpose of conducting a PESTLE analysis? 

A PESTLE analysis can help you understand where your organization stands in the external market and assess the macro-trends that could potentially affect your business/product.

What are all the components of a PESTLE analysis?

A PESTLE analysis looks at six aspects of the environment that could impact your organization: Political, Economic, Sociological, Technological, and the two newly added — Legal and Environmental. Some PESTLE analyses even incorporate ‘ethics.’

What does PESTLE stand for?

Two things you should always consider as you’re going through each aspect of the PESTLE analysis are: where am I now, and where do I want to go? These two questions will guide you in figuring out your current state in the macro environment and your ideal state. Next, it’s important that with each factor or event you outline in your PESTLE, you also consider whether they pose an opportunity or a threat.

Thanks for sharing….extremely useful

Thank you for sharing ..it has helped

Thanks very helpful for understanding the concept of PESTLE analysis.

Very insightful and pratical. Helpful indeed Thank you

Comments Cancel

Join 60,000 other leaders engaged in transforming their organizations., subscribe to get the latest agile strategy best practices, free guides, case studies, and videos in your inbox every week..

Leading strategy? Join our FREE community.

Become a member of the chief strategy officer collaborative..

Free monthly sessions and exclusive content.

Do you want to 2x your impact.

Guide on How to Write PESTLE Analysis

Nowadays, almost every company can operate in any country, thanks to internationalization and globalization. However, there are certain conditions to consider before opening a branch in a new place. You may have heard few variations of analysis' name: PESTEL, PESTLE and PEST. PESTEL or PESTLE is the same, and this analysis concerns political, economic, social, technological, legal and environmental aspects. A PEST analysis covers all the factors mentioned above, apart from legal and environmental aspects. This article from EssayPro contains an extensive guide on the PESTLE analysis, which is fundamental for understanding the possibilities for entrepreneurship in a country.

Whenever you carry out the PESTLE analysis for business, you automatically get acquainted with the chosen place's peculiarities. If top managers research beforehand, they might face severe consequences like low profits or even the inability to work under certain circumstances.

What Is PESTEL

Everybody would probably agree that interest rates or health and safety laws affect business regardless of its field and other specific characteristics. Also, political instability can cancel out a country's positive aspects of high technological awareness. Moreover, inflation rates and buying trends determine the decisions of a business owner who does strategic planning.

All of the factors mentioned above are a drop in the business environment. To avoid chaos, scientists systematized the determinants of the climate where a business operates. Hence, every PESTLE analysis example becomes a detailed critical analysis of the company’s surroundings that affect its performance.

What Are the Components of the PEST

The more concise version of PESTLE (PESTEL) analysis is PEST. Although it covers fewer internal and external factors, it still gives factual information about the following determinants:

• Political factors

Indeed, political factors are one of the first to consider when entering a new market. If a country can boast its political stability, it instantly becomes attractive to numerous investors worldwide. An entrepreneur wants to be sure that the current government is interested in creating a safe environment for foreigners.

• Economic factors

The second influential segment includes economic factors. Everything from interest rates and exchange rates to the percentage of annual economic growth and trade tariffs has an impact. So, naturally, economic instability scares away potential investors.

• Social factors

Next, a company’s management assesses social factors. Here, aspects like population growth rate, health consciousness, or age distribution determine the appeal of the business environment. The enterprise needs lots of skilled workers and potential buyers to operate successfully.

• Technological factors

Why do technological factors matter for businesses? Let’s say that a company originates from a country where many new technologies, like artificial intelligence, are usual. Adjusting to the new environment could be complicated if the firm chooses a place with fewer technology incentives.

Need some essay writing, math homework or essay editing help ? Leave us a notice ' help me with my math homework ' and we'll give you a hand asap.

What Is PESTLE Analysis Used For

PESTLE analysis helps calculate possible risks and profits. First, political factors determine whether the country is open to new ventures. Second, economic factors show how prosperous the place is. Third, the category of social factors reflects the demand for a product or service. Finally, the level of technology and legal factors demonstrate how climate change or global warming might affect your business decisions.

Do you need a high-quality essay without delay?

Reach out to our professional writers.

PEST Analysis Examples

Are you looking for a sample paper on PESTLE factors? Here, you can find a suitable PESTLE analysis template highlighting a business's economic, social, technological, legal, and other factors. Generally, a high-quality PESTLE analysis example includes consumer protection laws, employment laws, or corporate social responsibility. In the current economy, strategic thinking is a good competitive advantage for every specific business. Indeed, all PESTLE components help better understand buying habits, trade restrictions, technological change, etc.

PESTLE Analysis of Apple

Strategic decision-making for a technological giant must include examining political, economic, social, and technological factors. Undeniably, the PESTLE analysis of Apple helps to build a proper business plan for operating in other countries like China.

Political stability is one of the essential components of the external environment. While Apple has zero issues with safety regulations or fiscal policies, it may suffer from international conflicts. The trade war between China and USA perfectly illustrates how governments affect companies’ performance. First, China's decreasing scale of cheap manufacturing leads to higher production costs. Also, both countries raise import taxes, that increase the product cost.

Since Apple products are on the pricey side, determinants like economic growth and purchasing power are important for successful ventures in foreign countries. Nowadays, Asian countries like China demonstrate stable growth of gross domestic product and increasing buying power of their citizens. Consequently, opening new branches in prosperous places might increase profits.

Another component of PESTLE analysis for business are social specifics of the target country. For instance, in places like China, population growth rates exceed expectations. Therefore the enterprise gets enough workers and consumers. Moreover, Apple’s marketing efforts make people perceive their products as luxury. So, the buyers’ desire to show high status can boost the demand among the Asian population. However, the US trade war with China may also negatively affect Apple sales.

The next segment of the PESTLE model covers technological advancements. For Apple, external factors like the level of technological development are critical. Companies like Samsung, Xiaomi, and Lenovo fight for bigger market shares by implementing innovations. At the same time, Apple barely comes up with anything revolutionary in their gadgets, so their target audience often chooses other brands.

• Legal factors

The legal macro environment often includes safety laws or patent laws and other legislation regarding any business activity. Apple has a strong brand, so to maintain a good public image, this company avoids getting into law scandals. Still, this business takes risks by working with music and software that has copyright and patent protection. In case of a lawsuit, the loyalty of Apple customers may suffer drastically.

• Environmental factors

The final segment of the PESTLE analysis studies environmental issues like climate change or environmental regulations. For instance, Apple can generally withstand global warming or other weather changes by placing its factories in safe areas. However, the strict environmental policy of countries like China makes Apple make environmentally friendly choices in its production processes, like ditching lithium batteries. This way, the brand can maintain an even better reputation in the target country.

Overall, the PESTLE analysis has shown the aspects of the macro environment that affect Apple’s performance abroad. In addition, the examination has demonstrated both drawbacks and advantages of the company’s policy. Although Apple has to adjust to the changing environment to stay relevant, it still has multiple strong sides.

Do You Need Some Help With Your PESTLE Analysis?

Contact our professional writers. We process all requests fast.

McDonalds PESTLE Analysis

Whenever prominent corporations want to operate in a wider business environment, they study the economic, technological, legal, and environmental state. In other words, a company wants to know what to expect in a new market. The information about  these determinants and even more is available in the Mcdonalds PESTLE analysis:

Since Mcdonald's is the largest and most famous fast food company, most of its concerns connect to food safety. Many countries have stricter safety standards than the US, Mcdonald's place of origin. For this reason, the corporation has to align with the local legislation or avoid opening branches where losses can exceed profits. More risky regions in terms of policy would be Middle Eastern or Asian countries.

If we talk about the economy as the next criterion of the external environment, the circumstances differ from country to country. As an illustration, the recently slowing economic growth in Eastern Europe is a drawback for the local Mcdonald's restaurants. On the contrary, the steady growth of the economy in Western Europe and developing countries is a good sign. Nonetheless, employees rarely use Mcdonald's to satisfy their career attitudes. Therefore, a high employee turnover rate causes losses for the company.

Mcdonald's views cultural preferences as a crucial social factor, so the chain adapts to people’s tastes in different regions. An example of such adaptation is the famous Japanese menu with lots of rice and fish. Likewise, the Indian Mcdonald's branch caters to the mostly vegetarian tastes of citizens, and so on. However, the trend for a healthy lifestyle and weight loss might threaten the company, so it needs to change its strategy.

In recent years, Mcdonald's has tried to keep up with worldwide technology trends. This strategy helps the fast food corporation to boost demand in all countries. One of the greatest high-tech implementations was the sensory screens for ordering food. This decision allowed to attract more customers who wanted more menu positions. In the pandemic period, contactless restaurant options became even more topical. Further automatization would be a winning strategy for Mcdonald's.

One of the biggest legal issues for Mcdonald's branches worldwide would be changing employment laws, especially the increase of minimum wages. In this case, changes are inevitable, so the management should think of redistributing the profits correctly. Next, it’s the company’s priority to follow the changes in laws of every country. Sometimes, governments ban certain ingredients or toys from Happy Meals.

Regarding the ecology, the management of Mcdonald's actively shows their awareness of environmental issues. Becoming more environmentally friendly is the company’s objective. For instance, Mcdonald's tries to switch to only recyclable packaging to decrease pollution. Also, the local restaurants in many regions prefer to use energy-efficient technologies. Yet, there is an even worse ecology issue, global warming. The changing weather conditions might lead to a shortage of food and disruption of supply chains.

The detailed PESTLE analysis for business helps its top managers make proper decisions on both new and usual markets. Foreseeing the dangers and opportunities is essential for a company’s success.

Coca Cola PESTLE Analysis

Managers interested in discovering new markets have to employ PESTLE analysis for business. As an illustration, Coca Cola PESTLE analysis examines political, economic, social, technological, legal, and environmental conditions. 

Like any other food or beverage company, Coca-Cola works under country legislation, specifically consumer protection laws, copyright laws, etc. Governments naturally aim to prevent any harmful products from entering the market. Luckily for Coca-Cola, most countries allow their drinks on the shelves of their shops. But, there are circumstances like sanctions, which make trade and investment impossible in certain regions. For Coca-Cola, such restricted areas are Cuba, North Korea, and Russia.

Indeed, the Coca-Cola brand is the first that comes to mind when you think of sweet beverages. This fact is hardly surprising since the company owns half the market share, leaving only fifty percent for all its competitors. Overall, the demand for this drink is steady in most countries, yet some trends can change the situation. As everybody knows, Coca-Cola drink is far from healthy. Consequently, people who shift to a more nutritious low-sugar diet might stop buying the beverage, causing lower profits.

Because Coca-Cola operates in so many countries, it has to adjust its marketing strategy to the socio-cultural aspects of every nation. But, by far, its attempts were successful and led to the popularization of the brand worldwide. One of the examples is the creation of unusual tastes in certain countries. Japanese consumers, for instance, highly appreciate the green tea taste and lemon Coke. Besides, Coca-Cola sold bottles with names, and people liked them. So, naturally, sales went up in all regions.

A beverage giant like Coca-Cola manages to draw people's attention from all age categories, but it mostly caters to the younger generation. So how does this brand attract more consumers in such a competitive market? Coca Cola uses modern technologies to its advantage. Besides working on the drink, the company heavily invests in social media marketing. The hashtags and online games aim to gain more buyers who want to be cool and trendy.

The Coca-Cola Company is famous for the secret formula of its drink. The brand has zero problems with patents or copyright, but the issues emerge from the other side. Coca-Cola is unfortunately notorious for mistreating its workers, who even protested against its unfair policy. What is more, there were even rumors about racial discrimination. So, the company has to work in this direction to clear its image.

As the biggest soft drinks producer in the world, Coca-Cola faces several accusations from eco-activists. Water shortage is the first problem that arises in places where the company places its factories. Statistically, Coca-Cola is the largest consumer of fresh water, so it drains its supplies everywhere. The issue is especially severe in countries that suffer from droughts, like India. Another problem to work on is plastic pollution due to piles of Coca-Cola bottles. Recyclable materials would be an awesome alternative.

PESTLE analysis for a business like Coca-Cola builds the most efficient strategy. Proper steps help to avoid pitfalls and secure market position.

Got an assignment to write a gun control essay , but don't know where to start? Read our blog article and get yourself pumped!

Is the deadline for your essay too soon?

Ask our essay writers for help.

PESTLE Analysis for Amazon

Luckily for people who love to shop comfortably, services like Amazon exist to meet their needs. This global leader in e-commerce gains customers’ trust thanks to its smart tactical and strategic plans. The management uses PESTLE analysis for Amazon, which shows the company’s strong and weak sides:

Paving the way into multiple countries' markets means dealing with the local political environment. On the one hand, Amazon thrives in developed regions that can boast political stability. However, on the other hand, unpredictable environments like Eastern Europe or the Middle East threaten the company’s activity. Furthermore, rising foreign trade taxes may affect Amazon, like the cybersecurity failure.

Sometimes, high prices for the products, together with increasing shipping costs, scare away company clients. This issue is topical for Amazon, especially in developing countries. However, automatizing the processes can help this company save costs and set lower prices. A more influential factor for Amazon is competition with Aliexpress or Walmart. They have the potential to take over the market in Asian countries and the USA correspondingly.

Depending on the average income, Amazon sales might differ from country to country. More developed countries generally have a bigger percentage of citizens who use e-commerce. Furthermore, online shopping has become a large cultural phenomenon since the beginning of lockdowns. As a result, people got used to receiving their packages without going outside, which positively affected Amazon’s revenues. At the same time, too many company employees are losing their jobs because of automatization, which is a negative factor.

Technology and innovations are sure something that Amazon implements where it is possible. Since delivery is the company’s main service, the management attempts to make the process more efficient. Everything here revolves around creativity. Customers from developed regions can even receive groceries through drones. Another improvement is the possibility to talk to customer service through live chats or e-mails. Overall, Amazon constantly invests in its R&D department.

Legal matters are one of the most complicated, as every country has different requirements for foreign business activity. Amazon strictly follows consumer and employment laws to avoid tarnishing its reputation and bearing losses. Still, there are controversial situations where this business has to change its strategy. First, the counterfeit accusations can obstruct Amazon’s activity. Selling fake goods is legally punishable in most countries. Also, governments might suspect that Amazon collects consumer data underhandedly.

The examination of Amazon’s ecological strategy proves that this business cares about its effect on the environment. Even though e-commerce produces fewer emissions than shopping in brick-and-mortar shops, the change is still necessary. To become more environmentally friendly, Amazon encourages its clients to choose longer delivery options since quick shipment is bad for the ecology. Such initiatives improve the brand image and strengthen customer loyalty.

Altogether Amazons PESTLE analysis digs out the needed information about the company's activity. The final objective is to assess the effect of the environment on this brand and to find the best solutions for arising issues.

How do PESTLE Factors Affect a Business

Indeed, the lack of market research usually backfires with the sudden obstacles in the company’s way. Our papers writing service recommends using PESTLE analysis for businesses to make efficient decisions. Originally, every PESTLE analysis template contained several factors influencing companies worldwide. Like so, political circumstances might encourage or prohibit a firm from working in a country by enforcing the law, which is another category.

Next, economic strength impacts the demand for products and prices for raw materials. On top of that, socio-cultural specifics determine whether the s and services can be popular. Another subject of analysis is the level of technology, which should be enough for an innovative enterprise. Finally, the state of local ecology affects foreign business too. The company must be responsible for any potential harm to nature.

SWOT and PESTLE: Difference

You could have heard of two equally popular abbreviations, SWOT and PESTLE. In a nutshell, both of them relate to business and marketing. At first, these frameworks might seem a bit similar, but they do differ. For instance, if you look at the PESTLE analysis definition, you can see that it covers only the macro environment where a business operates. At the same time, SWOT examines internal factors like strengths and weaknesses and external determinants like opportunities and threats.

How does our research paper writing services compare the two methods? The thing is, both of them are essential. It is worth mentioning that SWOT analysis suits new brands and products more, while PESTLE analysis works better for expanding businesses.

Why Is PEST Analysis Useful for Business

Granted that company owners think of expansion, they have to consider everything. In such situations, PESTLE analysis for business is an awesome way to study unknown markets. The framework covers every detail that can potentially boost or disrupt business activity. On the contrary, superficial analysis is ineffective as it often misses economic, cultural, or legal specifics. Moreover, changes can happen overnight, so PESTLE analysis should be recurring.

A key goal of the market examination is minimizing dangers for a company. Analyzing the current situation in a country, along with its previous experiences, gives a hint of future events. However, certain circumstances, like natural disasters or international conflicts, are impossible to predict. That is why management should have a backup plan just in case.

In conclusion, any PESTLE analysis template gives companies recommendations regarding their foreign strategy. Furthermore, the study is thorough, so you can find an essay to buy at our service that always finishes work on time. Finally, preparation gives a clear view of the best direction for a company in a world of endless possibilities.

Read also AP Lang argument essay example from our writers. This information will be useful to you for your essay writing.

Expert Help for Your PESTLE Analysis Essay

PESTLE analysis can be intricate and time-consuming. Our professional writers are here to help, offering tailored essays that dissect and analyze each aspect of the PESTLE framework with precision.

Related Articles

PESTLE Analysis: Explained with Examples & Templates

Edraw content team, do you want to use pestle analysis.

EdrawMind helps move ideas forward, faster and better. Learn from this PESTLE Analysis complete guide to know everything about PESTLE. Just try it free now!

1. What is PESTLE Analysis?

The PESTLE analysis is a tool to identify macro (external) forces an organization faces in its business. More specifically, PESTLE analysis studies the external challenges of a business. And guides to overcome them.

The external challenges are Political, Economic, Social, Technological, Legal, and Environmental. The word "PESTLE" is an acronym for these six factors.

PESTLE analysis is an important marketing tool. It helps every business identify significant changes in the broad business background, thus helping in better strategic business planning.

There are many variants of the analysis to fulfill the needs of businesses with unique requirements. They can use variants as per their needs. For example, if the technological factor doesn't matter to an industry, they can choose a variant that excludes it. A few widely used variants of PESTLE analysis are STEEPLE, SLEPT, and PESEL.

2. What are the 6 PESTLE Factors? With Complete Lists

Now we'll discuss each factor of the PESTLE analysis with examples and try to understand how they impact a business.

1. Political:

The P stands for political, the first and an essential factor of the PESTLE analysis model. Political factor determines how government and government policy may impact a business. Here we analyze the government's policy-making patterns regarding business laws and regulations like tax guidelines. It also deals with business to political relations and their impacts on the overall market. The political stability or instability in a country and their possible outcomes. Government's behavior with businesses in general. The political factors deal with such and many other questions.

Summarization of the political sub-factors:

• Government stability
• Political policy
• Tax guideline
• Fiscal laws
• Trade regulation
• Safety regulation
• Employment laws

2. Economic:

E stands for economic. The economy significantly affects a business's organizational operations. For example, equipment prices and maintenance costs increase with inflation and interest rates increment. Also, with a rise in the currency exchange rate, the duty on imports of raw materials increases, ultimately leading to a rise in the product price. The economy directly impacts the growth and performance of the industry. The end consumer's financial state is also essential. An affordable and quality production puts a base of a successful business; we can achieve it only when the economic factor is carefully analyzed.

Summarization of economic sub-factors:

• Inflation rates
• Interest rates
• Economic growth
• Employment or unemployment rates
• Currency exchange rates
• Raw material costs

S is for social . This factor helps a business understand its end consumer needs. The focus remains on the social environment, public behavior, and identifying emerging trends among the people. It deals with the customers' values, hopes, desires, and fears. It also discusses what motivates or disgusts the general masses and why. Careful analysis of social factors is crucial for a good business plan and strategy. The social factor helps companies do a robust customer analysis to solve their customers' problems with their products or service.

Summarization of social sub-factors:

• Demographic characteristics
• Education levels
• Custom and values of the population
• Cultural trends
• Attitude changes
• Changes in lifestyles

4. Technological:

Technological factors consider the rate of technological development and innovation that could affect a market or industry. Technology is overgrowing, and the industry should be able to acquire that technology as soon as possible to remain in the race before the competition overtakes the market.

Technology also poses threats. For example, it is also possible that a particular product could be replaced by a much cheaper and more advanced alternative of another company. Therefore, keeping oneself updated on the new trends and advancements in an industry is necessary. Every organization must possess the latest technology required to develop and enhance its products or services.

Summarization of technological sub-factors:

• Changes in digital or mobile technology
• Development

It is crucial for an organization to know what is legal and allowed within the territories of the country they operate. They also must be aware of any possible change in laws or legislation in the country and its impact on industry operations.

Summarization of legal sub-factors:

• Employment legislation
• Consumer law
• Healthy and public safety
• Local trade regulation and restrictions
• International trade regulation and prohibitions

6. Environmental:

A successful business model gives importance to the environment . Carbon footprint, climate change, and waste disposal are critical for it. Also, the environmental impacts are essential for the low cost and good quality production. For example, a product suitable for a cold atmosphere should be prepared in a low-temperature area rather than investing in air conditioning. Also, proper environmental conditions ensure that the products remain fine for a more extended period

Summarization of environmental sub-factors:

• Recycling procedures
• Carbon footprint
• Waste disposal
• Sustainability

3. When to use PESTLE Analysis?

PESTLE analysis is used before a strategic business decision. The analysis effectively detects and understands broad, long-term trends in the business background. Therefore, it is extensively used in a range of business planning situations. Let's see where we can use it.

Strategic business planning

With PESTLE analysis, we can obtain contextual information about the business direction, whether the business is growing or not? Growth targets, brand positioning, and risks to productivity ratios.

Expansion of the business

The PESTLE analysis may also help determine when and where a business should expand. It could be determined by considering labor costs, tax laws, and the need for the product where the industry plans to expand.

Workforce Planning

PESTLE analysis can help to plan the required workforce for an organization. For example, a technical workforce will be required for a technology-related business. PESTLE analysis help to choose the right workforce by considering factors like availability of labor, availability of skilled labor, and the cost.

Product development

A PESTLE analysis help determines if a product or service still fulfills the needs of the consumers in the marketplace. It may also tell what product would suit the current market conditions. Also, it reveals why a product fails or succeeds in similar business conditions.

Marketing Planning

PESTLE analysis helps in marketing a brand or product effectively. It deals with the factors required to sell a product proficiently to the customers. Many major organizations use the PESTLE analysis for product promotion and marketing.

Organizational change is a PESTLE analysis example. It deals with the possible opportunities and threats around labor changes, such as skills, increment or decrement in the labor cost, shortages, or current workforce capabilities.

4. How to do PESTLE Analysis?

Before doing PESTLE analysis, it is better to arrange a team of experts for the task. A team could be organized based on six PESTLE factors. It is necessary to obtain information on each area of the PESTLE model. Every element has its importance. If anything is left out, the analysis would not be much helpful. Therefore, field experts are required for this analysis, i.e., a technical team member could be hired to research the technological aspects. Likewise, an environmentalist could be employed to study the environmental factors.

There are ten steps to take to do a successful PESTLE analysis.

• Identify the scope of research that covers the present and possible future scenarios.
• Decide who will collect the information and how.
• Identify appropriate sources of information.
• Gather the information. Make sure to arrange the information correctly to be used again easily.
• What did you find? Analyze the information carefully.
• Make a list and put the items in terms of their importance. Most important things go first, and less important things go last.
• Identify the options you have to address the issues.
• A discussion document for all stakeholders.
• Discuss the findings with stakeholders.
• Discuss the plan and decide on actions to take.

5. PESTLE Analysis Examples

Here are three examples of PESTLE analysis of three highly successful companies.

Amazon PESTLE analysis indicates the significant threats that might pose a problem for the company. Also, it shows the growing opportunities that are being developed with the ever-increasing technology and economy-these opportunities aid in holding their place in the online market.

Google PESTLE Analysis tells that they have many opportunities and some threats. They must prepare a solid plan which can aid them to survive in the highly certain economic factors in any competitive market. Google Should develop a more secure medium for the users.

Tesla's PESTLE Analysis example highlights many vital elements that have been helpful in the company's growth. From the economic perspective, the company has many challenges, but at the same time, from environmental and technological factors company's rapid growth is evident.

6. Pros and Cons of PESTLE Analysis

It encourages critical thinking.

It helps to prepare the business for the future.

It helps to manage business risks and threats.

It helps businesses capitalize on new opportunities.

It is a straightforward approach with a simple framework.

It takes a lot of time to process.

It involves many steps.

It needs to be done at regular intervals.

External factors could change quickly, so it cannot be easy to present and analyze up-to-date information.

7. Key Takeaways

PESTLE analysis helps in the development and growth of businesses and organizations. It helps to analyze strong and weak areas of industries. A proper PESTLE analysis report may help you grow your business. With EdrawMind, you can create eye-appealing PESTLE analysis graphs and reports for your business with a few clicks and easily share them with your team members. You can also select from 100s of already present templates and customize them according to your needs.

You May Also Like

Boost your creativity and productivity with brainstorm templates: a comprehensive guide.

EXAMPLES & TEMPLATES

Health Mind Map Complete Guide With 10+ Examples

Personal mind map complete guide with 10+ examples, business mind map complete guide with 30+ examples, mind map ideas for students: explained with 30+ examples, biology concept map complete guide with 30+ examples.

• Skip to primary navigation
• Skip to main content
• Skip to primary sidebar

PESTLE Analysis

Insights and resources on business analysis tools

PEST Analysis: Examples and Meaning in Business

Last Updated: Apr 8, 2024 by Jim Makos Filed Under: PEST Analysis

What is a PEST analysis, and what are its four parts? What is the difference between PESTLE analysis and PEST, and why is it important for every business? As a business student, analyst, manager or owner, you are called to conduct a PEST analysis sooner or later. In the next 10 minutes, I’ll go through everything you need to know about PEST analysis and how you can do a PEST analysis of an organization starting from scratch. I promise you’ll know more about PEST analysis than 99% of people out there, as I’m explaining everything as concisely as possible. Let’s start with the PEST analysis definition.

What is a PEST Analysis?

PEST analysis is a strategic tool for organizations to identify and assess how Political, Economic, Social, and Technological external factors impact operations so that they can gain a competitive edge. A PEST analysis helps you determine how these factors will affect a business’s performance and strategy in the long term. It is often used in collaboration with other analytical business tools. For example:

• A combination of PEST and SWOT analysis usually gives a clearer understanding of a situation with related internal and external factors
• PESTLE analysis is an extension of PEST analysis that covers legal and environmental factors

I’m going to explain the PEST analysis as simply as possible with examples and a template for better understanding. I will also show how to do a PEST analysis starting from scratch, even for people without any business education like me!

Why Do a PEST Analysis

It’s simple: to succeed. For a business to be successful, they need a few things:

• A solid product
• Marketing plan
• Identifiable brand
• Happy customers
• Thorough budget
• An investor or two
• Unique selling position
• And a whole lot of research

Throughout the endless market research, customer acquisition costs, and project risk assessments, business managers could forget about outside influences ( we call these external factors in this type of analysis). Aside from the company’s internal resources and industry factors, PEST’s macroeconomic factors can impact a company’s performance in a big way.

By being aware of external factors, managers can aid their business. But if they don’t know them, they can cripple their business before it begins. That’s how advantageous PEST analysis is .

What are the four parts of PEST analysis?

Now, let me explain each of the four parts of a PEST analysis more thoroughly. You’ll better understand what each of these external factors in this analysis is all about.

• Political – Here, government regulations and legal factors are assessed in terms of their ability to affect the business environment and trade markets. The main issues addressed in this section include political stability, tax guidelines, trade regulations, safety regulations, and employment laws.
• Economic – Next, businesses examine the economic issues that have an impact on the company. This would include factors like inflation, interest rates, economic growth, the unemployment rate and policies, and the business cycle followed in the country.
• Social – At this stage, businesses focus on the society and people. Elements like customer demographics, cultural limitations, lifestyle attitudes, and education come into play here. This part allows a business to understand how consumer needs are shaped.
• Technological – This may come as a surprise, but technology may not always be an ally for businesses. Depending on the product, technology may affect the organization positively but also negatively. In PEST’s last section we find technological advancements, the role of the Internet, and how an industry’s innovation creates winners and losers.

Every business is different. Some factors may not affect a firm or industry as they would with others. But it’s beneficial to have a well-rounded view of the many factors that could affect them. Along with the ones that will affect them.

This is why we do PEST analysis for a business — to be aware of risks, opportunities, influences, and limitations. Let’s go deeper into these external factors that impact the success of a business. I’ll also briefly mention a specific example for each of them.

Political Factors

Political factors in PEST analysis refer to the extent to which the government and political actions in a country influence the business climate. Here are some examples that will occasionally make it into the (P) of my PEST analysis:

• Tax policies
• Tax incentives
• Political tensions
• Employment laws
• Import restrictions
• Health and safety laws
• Consumer protection laws
• Tariff and Trade restrictions
• Regulation and deregulation

For instance, a country’s foreign policy often plays an important role in determining trade regulations. This can either result in trade restrictions or trade incentives and can affect an organization’s operations. Read my dedicated page on political factors with more examples here .

Economic Factors

In the (E) part of PEST Analysis, we run into how the economy affects the organization. I consider the following economic factors when doing a PEST analysis:

• Interest rate
• Inflation rates
• Exchange rates
• Unemployment rate

For instance, exchange rates affect a global organization by influencing the cost of imported and exported goods. Furthermore, interest rates influence the cost of capital available to the organization. Thus they are significant in the expansion and growth of a business. Find more economic factors and examples of how they affect businesses here .

Social Factors

Social factors include different cultural and demographic aspects of society. These can affect the macro-environment in which the organization operates.

In the ‘S’ part of the PEST analysis I usually examine:

• Age distribution
• Cultural diversity
• Demographics shifts
• Population growth rate
• Health consciousness and trends
• Changing consumer lifestyles and preferences

A study of these factors can help organizations understand the dynamics of existing and emerging potential markets along with future customer needs.

Social factors are more unpredictable than economic and political factors, simply because people are unpredictable. But every business needs customers. And what and how they buy has an immediate effect on an organization’s profitability.

Based on these social factors, marketers create buyer personas. These avatars are necessary for businesses to target the ideal customer.

For example, if you’re selling whey powder, you go after fitness enthusiasts and bodybuilders. You are looking for people that follow an active lifestyle. Hence, a declining trend in health consciousness doesn’t seem encouraging.

That’s the tip of the iceberg. Learn more about social factors here .

Technological Factors

Technological factors aren’t important only for tech-related businesses. The (T) part in PEST analysis may affect even the most old-school organization that’s been operating for a century.

Technology is evolving at a rapid pace and consumers are becoming extremely tech-savvy. With the advent of new technology, older technology gets outdated and obsolete. If an organization does not look out for technological changes, it can lag behind its competitors.

I often include the following technological factors when conducting a PEST analysis:

• Cybersecurity Threats
• Emerging Technologies
• Big data and computing
• AI and Machine Learning
• Supply Chain Automation

Let’s consider the advancements in computing; more specifically, networking.

If a business offers the latest and fastest Wi-Fi in their store, it’s an added luxury. It’s annoying if it still operates on 3G speeds, but won’t ruin sales. However, if they handle all receipts in an online database and that goes offline because they didn’t keep their network infrastucture up-to-date then they have a major problem. Especially in big holidays like Black Friday.

Again, this is about impact on the business operation. How will ‘X’ technology affect the business in the long and short term? That’s what we’re trying to figure out with PEST analysis.

A ton more technological factors can be found here .

PEST Analysis Examples

Here is a hypothetical PEST analysis example that can give you a clear understanding of how this works:

Here at PESTLEanalysis.com I rarely limit myself to PEST analysis. I almost always go the extra mile and include the Legal and Environmental factors when I initiate a PEST analysis. This leads to a more detailed analysis called PESTLE.

PESTLE Analysis: An extension of PEST Analysis

PESTLE analysis is an extension of PEST that is used to assess two additional macroeconomic factors. These factors are the  Legal and Environmental conditions that can have an impact on a organization. Examples of PESTLE analysis are similar to those of a PEST analysis, but they will include factors such as these:

• Discrimination laws
• Copyright and patent laws

Environment:

• Waste management
• Changes in weather and climate
• Laws regarding pollution and recycling
• Use of green or eco-friendly products and practices

So, if you want to assess a business situation comprehensively, a PESTLE analysis is a definite must. You can find more about that analysis here .

Why PEST Analysis Is Important For Every Business

So, now that we did a PEST analysis, how’s that going to help the business?

What does a five-year business plan look like? Or a ten-year plan? It likely involves growth.

Whether it’s the expansion of a product line or opening stores in new locations, business changes need proper preparation. And that’s where the PEST analysis comes in.

PEST analysis is the foolproof plan for business expansion !

Both new business owners and veterans should include PEST analysis in their business plan. By breaking down the critical influences in the P.E.S.T. categories, businesses get a better understanding of whether their next business move is strategic or doesn’t make sense.

For example, politics isn’t just about political tensions, unrest and elections. Politics are also about trade policies, regulations and taxation. Companies doing business worldwide have to consider laws in the countries they operate, as well. Even if they aren’t doing international trade yet, it could be a possibility in the future, and going in blind is a good way to toss success out the window.

PEST analysis helps people become aware.

Aware of how political parties and regulations can impact a business. And how the economy (past, present, and future) affects an industry. It allows people to understand consumers — who they are, what they buy, and why they don’t buy. And finally, it identifies what technology is necessary for the development and success of a product, business, or industry.

It’s almost like an outline. It shows people what influences impact the quality, success, or devastation of businesses and industries. You can’t stop the four influences, but if you’re aware of them and their impact, you can plan around, against, or with them.

PEST analysis is often used by business analysts, marketers, students, and business owners, since it’s super important for every business!

All you need to do a proper PEST analysis is time. And the payoff is worth every second.

How PEST analysis works

PEST analysis requires research and data, sometimes ten years old, sometimes only a couple. The more information I have to go through, the more accurate my final results will be. By looking into the past and the present, I can make predictions for the future.

By studying these recent developments through a PEST analysis lens, organizations are deciding whether to jump into this for the long haul or for the time being.

You want to look at your industry in a similar light. Ten years ago, did it exist? Has it slowed down within the last two years or are more companies diving in? More competition can be a strong sign an industry is booming, but it could also be the first sign of oversaturation.

Break down your assessment into the four categories of PEST analysis. Start with politics and work your way through the remaining factors. Or start from the bottom. Whatever gets the job done and makes the analysis enjoyable.

How to Do a PEST Analysis From Scratch

I’ve written dozens of PEST analyses over the last couple of years. Below I document my process on how to do a PEST analysis , even when you’ve never written one before.

You should have a topic in mind. Most PEST analyses are about a specific business, industry, or product. However, they can also be applied to countries, too. You can’t start without a topic, though, so have it ready.

Where to find information for your PEST analysis

It’ll be easier to find and segment information if you break your analysis down into four sections, like the acronym implies:

• Technological

Each section will require its own information. However, some of this information will overlap.

For instance, the economy is often closely tied to political (in)stability. And the state of the economy always affects consumers (social). You don’t need to look for these patterns specifically— it’ll become apparent as you discover new information.

Start with the history

You should be familiar with your topic. If you’re not, read about its history. Learn how it was established, how long it has been around, and who founded it. Read about any major achievements on the organization in question over the last few years. Jot down notes whenever something that seems relevant or important pops up.

After this informational primer, it’s time to start on the four sections. I do my PEST analysis in order of the acronym because the information often bleeds into the next section.

Finding Political Information

Political information is easier to find than in other sections of the analysis (social and technological, specifically). Here, you’ll want to investigate the current political climate.

For instance, if the organization originates from America, you’ll research the current political parties. Who is in charge? Has this affected business operations in any way?

If your topic (business, product, industry) was established years ago, what was the political climate like then? Are different parties in power now? If this is the case, then you’ll want to compare how things have changed for your topic from then to now.

This is also the section where you’ll look into laws and regulations affecting business. Remember the list we went through in the beginning.

I find this information with a simple Google search. Such as “tariff laws USA” (plug in the country you’re searching for if it’s not the United States).

It’s best to get this information from a government site. These sites end in .gov. You may also find information from organizations (websites ending in .org) but not all of these sites are legitimate organizations. Be wary while you research.

Honestly, most of the information you’ll find is dense. But it’s easier if you have a goal. Look for signs of:

• Government (in)stability
• Possible political corruption
• New bills/regulations that may impact your topic
• Any issues your topic has had with current/former regulations or political parties

If your topic is a company, finding the right information may be easier. Search for “company name + political issues” or “company name + policies” and see what comes up. Avoid any information from untrustworthy sites and sites with no legitimate source.

Finding Economic Information

While you’re researching political information, you may come across connections to the current economy. For instance, political instability often leads to economic instability. This causes unemployment rates to rise and employee strikes. This affects how much disposable income people have.

You may have already found information in your political section that confirms economic problems. But if you haven’t, search government sites for current tax rates, interest rates (if your topic involves international business), and the current state of the economy. Is it good? Thriving? Or bad and declining?

Again, use government websites. Search for economic statistics over the last few years. If your topic is an industry, see how many companies (startups) have started within the last few years.

If your topic is a business that has international stores, look into the relationship between the country of origin and each country the company does business. If the relationship is good, it’s often a good outlook for the company. But if it’s bad, it may lead to problems. What problems? Do a bit of digging online.

Also, if your PEST analysis is for a company, you may look into stocks . Have they been declining? On the rise? Because if it’s the former, then the business may not be looking good. And you’ll want to find out why .

If my topic is a business, I sometimes check out the competition. I’ll look into how that other company has been fairing economically, specifically how its sales have risen or fallen over the last couple of years. If it’s dropped products, shifted marketing efforts, etc., I want to know why . A competitor analysis isn’t always necessary , but it can shed light on possible problems your topic may face.

Finding Social Information

This section is a bit trickier. Political and economic sectors rely heavily on data and evidence. You can find this information on government websites. News sites too, even. And although you can find databases about demographics and population growth for this section — all applicable in a PEST analysis — I wouldn’t stop there.

In the social section, I often examine how consumers are impacted by political and economic factors. You can draw conclusions based on the information you’ve already gathered from your political and economic segments.

For instance, if there is political instability and the economy is on the fritz, then consumers may feel uneasy. They may have fewer job options. And that means they’re less likely to spend frivolously. If your topic is a luxury product, it may mean the company that makes it may have lower sales this year.

But you also want to learn about how consumers feel about your topic. If it’s a company, do consumers generally like it? Or is public opinion souring? There should be a reason for why.

Consider Facebook. The company’s CEO, Mark Zuckerberg, has consistently been in hot water over the years. If not for data breaches affecting millions of users, but for their shady involvement with fake news and political tampering.

This has led many consumers to shy away from using Facebook. And this affects businesses that use Facebook to reach new customers.

In this section of the PEST analysis, I’m more likely to search for my topic on news sites and publications. The more popular the topic, the easier it’ll be to find articles written about it. But if the topic has ever been in the news, you’ll likely find it online.

Websites to search include :

• Consumer Reports
• Local news websites
• Other reputable sources

If you know your topic has been in the news for something bad, you can search the topic + the problem.

Although the information may overlap, take keynotes here. See how the problem is affecting consumer opinion. You may even want to take a look at the comments (if there are any) and see what people are saying. It’s coming straight from the lion’s mouth (consumers).

I think many PEST analyses favor numbers too much. We live in a world where anyone with an opinion can be heard, thanks to the internet. And enough of those voices can cause a business to change its policies and products. It can even cause the company to collapse.

So it’s important to search for how consumers feel about your topic too.

Finding Technological Information

This section of the PEST analysis is a bit abstract as well. You’re looking into how new technological advancements has affected your topic positively or negatively. You should also look into what technology your topic uses (currently). And what technology they may want to incorporate.

You may want to look at competitors if your topic is a product or business. See what others are using. And think about why they are.

Press releases

It may be beneficial to search for press releases involving your topic, if possible. If your company is using new technology, they may have announced it through a press release. You can search “company name + press release” or search through these press release websites:

• PR NewsWire
• NPR: National Public Radio

You may also find other information here for the other sections of the PEST analysis. Which is just an overall bonus. If all else fails, check if your topic has a website (unless it’s an industry or country). Discuss how they use social media (if they don’t, then… discuss that too!). In this section, you’re assessing what your topic uses, what it doesn’t, and why.

Putting it all together in a final PEST analysis

You’ll likely have heaps of information at hand. For some it’ll feel like too much — but that’s never the case for a PEST analysis. As you begin to read through each section’s notes, incorporate the most interesting, pressing, or surprising information. If anything overlaps with other sections, include that too.

I write each section of a PEST analysis at a time. I take my notes and create coherent sentences. Sometimes I make a list of the most important points and include them that way. If the section is long, I’ll use subheadings to break up the information.

Work on each section separately. And then if there are overlapping themes, incorporate those in. You may want to use those at the end of each section to connect to the next.

Once you’ve done this, you’ve completed your PEST analysis! Most of the work is in finding the information and making it coherent. The last 10-20 percent is putting it all together. So, once the research phase is done, you’re basically done too!

Understanding PEST Analysis: Taking Action

In conclusion, developing an understanding of what is PEST analysis becomes even more important when a company is about to launch a new business or a new product. In general, when they are about to change something drastically. That’s when all these factors play an important role in determining the feasibility and profitability of the new venture.

Therefore, developing an understanding of PEST analysis is useful for organizations for analyzing and understanding the ground realities of the environment they have to operate in.

Realizing what is PEST and knowing how to take this analysis into consideration, the organization can be in a better position to analyze the challenges, environment, factors, opportunities, restrictions and incentives it faces. In case an organization fails to take into account any one of these factors, it may fail to plan and operate properly.

But don’t PEST analysis stop you. Here are some variations that may come in handy when assessing how the external environment affects an organization:

• STEEP Analysis
• STEEPLED Analysis
• SWOT Analysis

PESTLE Analysis Examples

Online platform development: rafeeq.

• Subjects: Applications Tech & Engineering
• Words: 1666

“Student Beans”: Starting the Business in India

• Subjects: Business E-Commerce

What Should the Brazilian Government Do About Reducing Amazon’s Deforestation?

• Subjects: Environment Environmental Management
• Words: 1612

Joyous Group Holdings and Its Industry’s Analysis

• Subjects: Business Company Analysis
• Words: 2497

Setting up a Multinational Motor Vehicle Manufacturing Plant in China

• Subjects: Business Strategy

Abu Dhabi National Oil Company’s Light & Heavy Vehicle Transportation

• Subjects: Business Logistics
• Words: 5298

International Company Project: Uber South Africa

• Subjects: Business International Marketing
• Words: 9152

Search Engine Content Converter

• Subjects: Business Product Marketing
• Words: 2185

Waitrose & Partners Brand’s Strategic Management

• Subjects: Business Strategic Management
• Words: 3005

Business Plan on Fawz Olympic Academy

• Subjects: Business Company Structure
• Words: 6110

The King Edgar Hospital’s National Health Service Trust

• Subjects: Health & Medicine Healthcare Institution
• Words: 4757

Case Analysis on Banking Industry of Germany

• Subjects: Economics Finance
• Words: 2322

Nike Inc.’s Marketing Strategy and Management

• Subjects: Business Strategic Marketing
• Words: 2492

Dark and Historical Tourism

• Subjects: Tourism Tourism Destinations
• Words: 2763

Entrepreneurship: Amara Online Shoe Shop

• Subjects: Business Entrepreneurship
• Words: 7379

The United States-Australia Trade Relationship

• Subjects: International Trade Politics & Government
• Words: 2686

BSG-ONLINE – Company Analysis

• Subjects: Brand Management Business
• Words: 2816

Business Plan of “L.k Bennett”

• Subjects: Business Marketing Project
• Words: 4621

Tesco’s Business Environment and Strategic Capability

• Words: 3881

Setting Up New Business in the United Arab Emirates

• Subjects: Business Management
• Words: 6616

Yahoo Inc.: Competing on the Edge

• Subjects: Internet Tech & Engineering
• Words: 2070

Company Ltd, Hong Kong: Ukraine Market Research

• Words: 4809

PDR Hotel & Resorts: Managing Hospitality

• Subjects: Hotels Tourism
• Words: 3077

International Marketing of the Quartz Company: Operating in the Czech Republic

• Words: 5181

British Petroleum Alternative Energy

• Subjects: Economics Financial Reporting
• Words: 4557

Environmental Scans: PEST Analysis

Advanced international business: sbc holdings plc.

• Subjects: Business Company Information
• Words: 2690

External and Internal Analysis of Tesla Essay

Process of change in adma and zadco consolidation: evaluating the solution and its implementation.

• Subjects: Business Organizational Management
• Words: 3001

Zara as a Global Organisation Leading & Managing Change

• Subjects: Business Global Scale Management
• Words: 1929

Strategic Direction For Four Seasons Hotels and Resorts

• Words: 4102

IKEA’s PESTLE Analysis

• Subjects: Business Marketing

Strategic Marketing Plan for Air Arabia

• Words: 1979

The Emirates Groups’ Compliance with Labour Law

• Subjects: Business Employees Management
• Words: 3394

Toyo Tires Company’s PESTLE Analysis

Strategic approaches for global events.

• Subjects: Entertainment & Media Events
• Words: 3787

Marks & Spencer Company’s Marketing Environment

• Words: 4359

Marks & Spencer Company’s Strategic Analysis in 2015

• Words: 1616

Zara Company’s Competitive Edge and Entry into Japan

• Words: 1195

Mott MacDonald Company’s Strategic Placing

• Words: 1164

Taiwan Local Market: Taco Bell Company’s Analysis

Ezdan holding: economic and marketing activities.

• Words: 3696

Seventh Generation’s Entrance to Kuwait Market

• Words: 3773

Kangaroo Moms Campaign: Marketing Project

• Words: 3260

McDonald’s Venture Into the Indian Market

• Words: 1412

Philip Morris Company and New Tobacco Legislation

• Words: 1748

Blue Nile Company’s Analysis

• Words: 1097

Sainsbury Company’s Strategic International Business

• Words: 2990

The United Arab Emirates’ Risks: PESTLE Analysis

• Subjects: Business Risk Management
• Words: 1641

Procurement and Supply in Managing Expenditures

• Words: 5566

Dettol with Oud Product of Reckitt Benckiser Group

• Words: 2570

DoseSystem Company’s Entry to the US Healthcare Market

• Words: 4142

Economic, Financial and Social Growth Prospects of the UAE

• Subjects: Economics Financial Growth
• Words: 1360

Harrods and Emaar Properties Companies Issues

• Words: 3961

Emirates Motor Company and Mercedes Benz Import

• Words: 5853

Indonesian Business Environmental PESTLE Analysis

• Words: 1440

Just Falafel Company’s Business Environment

• Words: 4518

Beverly Wilshire Hotel’s Strategic Planning Tools

• Words: 3619

ASDA Group Limited: Marketing Management

• Words: 2589

Office Furniture and Stationery Store Business Plan

• Words: 6327

Puma SE Company: Strategic Management Analysis

• Words: 3567

Zara Company Strategic Plan Analysis

• Words: 1108

Virgin Atlantic Airways Company Analysis

• Words: 2879

Strategic Analysis of Toronto’s Financial Sector

• Words: 1707

Qantas Airways Limited Analysis

• Words: 9218

SKK Company and Its Business Environment

• Subjects: Business Case Study
• Words: 3506

External Environment Analysis: Argos Retailer Company

• Words: 1451

Developing a Growth Plan for a Restaurant

• Words: 3097

The Movie Industry

• Subjects: Business Industry
• Words: 1657

Conexia Strategic Management

• Words: 2878

International Business Environment: Toyota

• Words: 1223

Strategic Analysis on McDonald’s Corporation

• Words: 3460

Marketing Strategy for a Shopping Mall

• Words: 3147

Energy Generation Industry in India

• Words: 5025

Manchester United FC: Continuing Success but at What Cost?

• Words: 5513

Unilever’s Personal Care Products

• Words: 2271

Procter & Gamble Company

• Words: 3598

Uniqlo Organizational Structure Evaluation Essay

• Words: 5278

Strategic Management Project: Emirates Airlines

• Words: 3397

Risk Analysis: Entering the Qatar Market

• Subjects: Business Impact of Business Issues
• Words: 3128

Blue Nile Case Analysis

• Words: 2295

Wal-Mart in China

• Words: 2769

PESTLE Analysis of Project Ballycotton

• Words: 1156

Contemporary Issues in Global Business Management: An Analysis the Business Strategy of Nike Incorporation

• Words: 3329

The footwear industry

• Words: 1400

ZipCar Marketing Strategy

• Words: 2414

Absolut Vodka

• Subjects: Advertising Entertainment & Media
• Words: 3590

Creating employment and business opportunities for ODA

• Words: 2768

PESTLE analysis of the China Hotel Industry

• Words: 3825

Feasibility Study: Detailed Strategic Destination Risk Analysis for French Cuisine Restaurants

• Subjects: Hospitality Industry Tourism
• Words: 3310

Marketing Plan; Southwest Airlines

• Words: 1894

An outline of ‘PESTLE’

External and internal environments in strategic plans.

• Subjects: Business Organizational Planning
• Words: 1084

Sony Corporation and Its SWOT and PESTLE Analyses

• Subjects: Business Recognizable Brand

Brazil’s Bid’s to Host the 2014 FIFA World Cup

• Subjects: Economic Systems & Principles Economics
• Words: 3484

Marketing Plan for the New PriceSmart’s Royal Health Lotion

• Words: 2527

Strategic Marketing Plan for Marina Bay Sands Hotel

• Words: 2838

The 2020 Summer Olympics Games in Doha City

• Words: 4444

Nokia Corporation Marketing

• Subjects: Business Financial Marketing
• Words: 3150

Diageo and The Recession

• Words: 2673

Winchester’s Bid to Host the 7th World Summit on Art & Culture 2017: A Critical Analyses of Strengths & Weaknesses

• Words: 4187

Bidding Document: Madrid’s bid to Host the 2020 Summer Olympics Games

• Subjects: Sport Events Sports
• Words: 4168

Fitness Shoes Marketing Strategy

• Words: 2800

Marketing for Spice Man

• Words: 6042

Alexander Mcqueen

• Words: 2422

Palm, Inc.: Mobile Phone Industry Analysis

• Words: 2647

Burswood Entertainment Company Expansion to Brazil

• Words: 1752

SWOT/PEST (LE) Analysis on Cadburys PLC

• Words: 1292

Marketing Plan of a New Food Company: MegCo Limited

• Words: 2136

Dubai Refreshments Company

• Words: 1988

International Business – Superdry in India and China

• Words: 3474

Coca-Cola in Kenya

• Words: 2691

Topshop Pricing Strategy and Marketing Plan

• Words: 2241

Online Shop Business Plan

• Words: 5946

How to Write PESTLE Analysis: Step by Step Guide (2023-2024)

Introduction

What is pestel analysis, the components of the pest.

• 1)      Political Factors
• 2)      Economic Factors
• 3)      Social Factors
• 4)      Technological Factors
• 5)      Environmental Factors
• 6)      Legal Factors

What Is PESTLE Analysis Used For?

Pest analysis examples.

• 1.      Political Factors
• 2.      Economic Factors
• 3.      Social Factors
• 4.      Technological Factors
• 5.      Legal Factors
• 6.      Environmental Factors
• 5)      Legal Factors
• 6)      Environmental Factors
• 3)      Socio-Cultural Factors

SWOT and PESTLE: Understanding the Difference

Swot analysis, pestle analysis, comparing swot and pestle, minimizing business risks, strategic guidance for foreign ventures, ensuring timely and reliable assistance, preparation for a world of endless possibilities, pestel analysis help.

PESTLE Analysis was originally developed as PEST Analysis in the late 1960s by Harvard professor Francis Aguilar. The acronym was later expanded to PESTLE, incorporating two additional factors, Legal and Environmental, making it a comprehensive tool for analyzing the external macro-environmental factors affecting a business or organization’s operations. Today, PESTLE Analysis is widely used across various industries to assess the impact of political, economic, social, technological, legal, and environmental factors on business strategies and decision-making processes .

In today’s globalized world, businesses have the opportunity to expand their operations into new countries and regions. However, successful expansion requires a thorough understanding of the external factors that can impact a company’s success in a new market. One essential tool for conducting such analysis is the PESTLE analysis, also known as PESTEL analysis.

This comprehensive framework, brought to you by GradeSmiths, examines the Political, Economic, Social, Technological, Legal, and Environmental factors that can influence a business environment. By conducting a PESTLE analysis, entrepreneurs and top managers gain valuable insights into the specific characteristics and challenges of the target market, helping them make informed decisions and mitigate potential risks.

In this article, GradeSmiths delves into a step-by-step guide on how to conduct a PESTLE analysis, providing you with the necessary knowledge to assess the opportunities and risks for entrepreneurship in any country or region. Whether you are an established company planning to expand or a budding entrepreneur seeking new possibilities , understanding the PESTLE analysis is a crucial step towards sustainable growth and success in a dynamic global market.

PESTEL analysis, also known as PESTLE analysis, is a powerful tool used by businesses to systematically assess and understand the external factors that can impact their operations and performance. It provides a comprehensive framework for examining the Political, Economic, Social, Technological, Environmental, and Legal aspects of a business environment.

PEST analysis is a simplified version of PESTLE (PESTEL) analysis, focusing on four key components that influence a business’s environment. Despite covering fewer factors, PEST analysis provides valuable information about the following determinants:

1)      Political Factors

Political factors encompass the influence of government policies, regulations, and political stability on businesses. This includes factors such as taxation policies , trade restrictions, labor laws, and government stability. Understanding the political landscape is crucial for businesses to navigate potential risks and opportunities in a particular market.

2)      Economic Factors

Economic factors refer to the economic conditions and trends that can affect businesses. This includes factors such as economic growth, inflation rates , exchange rates, and consumer spending patterns. Analyzing the economic environment helps businesses make informed decisions and adapt their strategies accordingly.

3)      Social Factors

Social factors examine the social and cultural aspects that can influence businesses. This includes factors such as demographics, lifestyle preferences, attitudes, and cultural norms. Understanding social trends helps businesses tailor their products and services to meet the needs and preferences of their target market.

4)      Technological Factors

Technological factors focus on the impact of technology on businesses. This includes factors such as advancements in technology, digitalization, and innovation. Embracing technological changes can give businesses a competitive edge and open up new opportunities for growth.

5)      Environmental Factors

Environmental factors consider the influence of environmental issues on businesses. This includes factors such as climate change, environmental regulations, and sustainability practices. Being environmentally responsible is not only essential for corporate social responsibility but also for meeting consumer demands.

6)      Legal Factors

Legal factors encompass the legal and regulatory aspects that can affect businesses. This includes factors such as labor laws, intellectual property rights, and consumer protection laws. Complying with legal requirements is vital for businesses to avoid legal issues and maintain a positive reputation.

Conducting a PESTEL analysis enables businesses to gain valuable insights into the external factors that shape their operating environment. It helps them make strategic decisions, identify potential risks, and capitalize on opportunities to achieve long-term success and sustainability. By systematically evaluating these factors, businesses can adapt and thrive in a dynamic and ever-changing business landscape.

PESTLE analysis is a powerful tool used by businesses to assess the external factors that can impact their operations and d ecision-making process . It serves various purposes, including:

• Risk Assessment: PESTLE analysis helps businesses identify potential risks and challenges in the external environment. By analyzing political, economic, social, technological, legal, and environmental factors, companies can anticipate potential obstacles and plan effective risk management strategies.
• Market Entry and Expansion: Before entering a new market or expanding their operations to a different country, businesses conduct PESTLE analysis to understand the market’s overall climate. It allows them to evaluate whether the political and economic conditions are favorable for growth and expansion.
• Strategic Planning: PESTLE analysis plays a crucial role in strategic planning. By examining the external factors, businesses can align their strategies with the prevailing market conditions. It helps them make informed decisions about product development, pricing, marketing, and distribution.
• Identifying Opportunities: Apart from assessing risks, PESTLE analysis also helps companies identify potential opportunities in the market. Understanding social trends, technological advancements, and legal changes can give businesses a competitive edge by capitalizing on emerging opportunities.
• Regulatory Compliance: Legal and environmental factors in PESTLE analysis help businesses ensure compliance with the relevant laws and regulations. Understanding the legal landscape helps companies avoid legal disputes and penalties while operating in a new market.
• Environmental Impact Assessment: The environmental aspect of PESTLE analysis allows companies to evaluate the potential impact of their business activities on the environment. It encourages businesses to adopt sustainable practices and reduce their carbon footprint.

So, PESTLE analysis provides businesses with valuable insights into the external factors that can influence their success. By understanding the political, economic, social, technological, legal, and environmental conditions, companies can make informed decisions, minimize risks, and capitalize on opportunities for growth and prosperity.

If you’re in search of PESTLE analysis examples, you’ve come to the right place. Below, we provide a comprehensive PESTLE analysis template that highlights the various factors affecting a business, including economic, social, technological, legal, and environmental aspects. A well-crafted PESTLE analysis example will delve into critical areas such as consumer protection laws, employment regulations, and corporate social responsibility initiatives.

In today’s dynamic economy, strategic thinking has become a crucial competitive advantage for businesses in every industry. A thorough PESTLE analysis can provide valuable insights into understanding consumer buying habits, trade restrictions, technological advancements, and other crucial factors that can impact a company’s success.

For instance, the economic component of a PESTLE analysis can shed light on the economic conditions of a particular market, such as inflation rates, unemployment rates, and consumer spending patterns. The social aspect can explore demographic trends, cultural norms, and societal attitudes that influence consumer preferences and behaviors. The technological component can analyze the level of technological advancements and innovations that may affect a company’s operations and product development.

Moreover, a comprehensive PESTLE analysis should consider the legal factors, including laws and regulations related to the industry, intellectual property rights , and labor laws. Additionally, the environmental aspect should assess the impact of ecological trends, sustainability practices, and climate change on the business.

By conducting a PESTLE analysis, businesses can gain a deeper understanding of the external environment, anticipate potential challenges and opportunities, and make well-informed decisions to stay competitive in the market. Whether you’re a seasoned entrepreneur or a startup, a PESTLE analysis is an invaluable tool to navigate the complexities of the business landscape and ensure long-term success.

PESTLE Analysis of Apple

When it comes to strategic decision-making, even technological giants like Apple must carefully assess the external factors that can significantly impact their business. Conducting a PESTLE analysis for Apple is an indispensable tool for devising a robust business plan, especially when expanding operations into countries like China.

1.      Political Factors

Political stability is a vital aspect of the external environment. While Apple generally adheres to safety regulations and fiscal policies, it is not immune to the effects of international conflicts. The ongoing trade war between China and the USA exemplifies how government decisions can influence companies. The imposition of higher import taxes and the shifting landscape of cheap manufacturing in China can lead to increased production costs for Apple.

2.      Economic Factors

As a producer of premium-priced products, Apple closely monitors economic growth and purchasing power in foreign markets. Fortunately, Asian countries like China are experiencing stable GDP growth and rising consumer purchasing power, making them attractive prospects for Apple’s expansion plans. Venturing into these thriving regions presents an opportunity for increased profits.

3.      Social Factors

Understanding the social dynamics of a target country is crucial for successful business ventures. In China, where population growth rates exceed expectations, Apple can find an abundant pool of both workers and consumers. Moreover, Apple’s astute marketing efforts position their products as luxury items, appealing to the Asian population’s desire to showcase high status. However, the trade war between the US and China could also have adverse effects on Apple’s sales in the region.

4.      Technological Factors

For Apple, staying at the forefront of technological advancements is paramount. However, competitors like Samsung, Xiaomi, and Lenovo continuously challenge Apple’s market share with innovative offerings. Apple’s target audience may seek out these rival brands if Apple fails to introduce revolutionary features in their gadgets.

5.      Legal Factors

Legal considerations play a significant role in Apple’s operations, encompassing safety laws, copyright protection, and patent legislation. Apple strives to maintain a positive public image by avoiding legal controversies. However, the company does take calculated risks when dealing with copyrighted music and software, potentially risking its loyal customer base in the event of a lawsuit.

6.      Environmental Factors

Environmental issues, including climate change and environmental regulations, cannot be overlooked in the PESTLE analysis. While Apple can mitigate weather-related risks by strategically locating its factories, countries like China’s strict environmental policies push Apple to make eco-friendly choices in its production processes. For instance, Apple’s decision to abandon lithium batteries aligns with the country’s environmental concerns and bolsters the brand’s reputation.

Thus, the PESTLE analysis highlights the crucial macro-environmental factors that significantly impact Apple’s performance in foreign markets. By examining the strengths and weaknesses of Apple’s policies, this analysis emphasizes the importance of adapting to the ever-changing business landscape while capitalizing on the company’s numerous strengths. Despite facing challenges, Apple’s strategic approach and strong market position, positions it for continued success.

McDonald’s PESTLE Analysis

When a prominent corporation like McDonald’s expands its operations into new markets, a comprehensive understanding of the external business environment becomes paramount. Conducting a PESTLE analysis for McDonald’s provides valuable insights into the economic, technological, legal, and environmental factors that can significantly impact its performance in different regions.

As the largest and most renowned fast-food company, McDonald’s must address food safety concerns in various countries. Compliance with local legislation or risk assessment becomes crucial, as some regions have stricter safety standards than the company’s country of origin, the US. Opening branches in riskier regions with uncertain policies, such as Middle Eastern or Asian countries, requires careful consideration.

McDonald’s faces varying economic circumstances in different countries. Slowing economic growth in Eastern Europe poses challenges for local McDonald’s restaurants. On the other hand, the steady growth of economies in Western Europe and developing countries presents opportunities. However, the high employee turnover rate within the company affects its profitability, necessitating efforts to improve employee retention strategies.

Cultural preferences play a significant role in McDonald’s adaptation strategy. Customizing menus to cater to local tastes is exemplified by the Japanese menu, featuring rice and fish, and the Indian menu, tailored to the largely vegetarian preferences . However, the growing trend for healthier lifestyles and weight loss poses a threat to the company’s traditional offerings, necessitating a shift in its strategy.

Embracing global technology trends, McDonald’s has implemented sensory screens for ordering food, attracting customers seeking a broader menu selection. The pandemic accelerated the adoption of contactless restaurant options, making further automation an advantageous strategy for McDonald’s to pursue.

5)      Legal Factors

Shifting employment laws, particularly increases in minimum wages, present significant legal challenges for McDonald’s branches worldwide. The management must adapt its profit distribution strategies accordingly. Additionally, staying compliant with each country’s changing laws, including ingredient bans or restrictions, is essential to ensure uninterrupted operations.

6)      Environmental Factors

McDonald’s has shown a strong commitment to environmental issues, aiming to become more environmentally friendly. Initiatives include switching to recyclable packaging to reduce pollution and adopting energy-efficient technologies in local restaurants. However, global warming poses severe environmental challenges, potentially leading to food shortages and supply chain disruptions.

So, the comprehensive PESTLE analysis allows McDonald’s top managers to make well-informed decisions in both familiar and new markets. By proactively identifying potential risks and opportunities, the company can ensure sustainable success and navigate the ever-changing business landscape effectively.

PESTLE Analysis for Netflix

Netflix, the global streaming giant, has revolutionized the entertainment industry with its on-demand content delivery platform. Employing PESTLE analysis for Netflix uncovers key factors that influence the company’s performance and strategic decisions.

Operating in various countries means Netflix must navigate different political landscapes and regulations. Content censorship and licensing agreements can impact the availability of certain shows or movies in specific regions. Additionally, government policies related to media content and distribution may affect Netflix’s expansion plans.

Economic conditions in different markets influence consumer spending on entertainment services. Subscription prices and local competition can impact Netflix’s market penetration and revenue generation. Fluctuations in exchange rates can also affect the cost of content acquisition and licensing agreements.

Changing consumer preferences and viewing habits influence Netflix’s content strategy. The platform must cater to diverse audiences and cultural preferences to remain relevant globally. Social trends like cord-cutting and binge-watching shape the company’s content release and distribution strategies.

Netflix heavily relies on technology for content delivery and user experience. Continuous investment in streaming technology and platform optimization is critical for maintaining customer satisfaction. Technological advancements, such as 4K streaming and virtual reality, provide opportunities for enhancing user engagement.

Legal challenges related to copyright infringement and intellectual property rights are significant concerns for Netflix. The company must navigate complex licensing agreements and negotiate content distribution deals with production studios and content creators. Compliance with data protection and privacy laws is also crucial to maintain consumer trust.

While Netflix’s primary operations are digital, the company’s environmental impact includes energy consumption for data centers and content delivery networks. Adopting sustainable practices, such as using renewable energy sources for data centers, contributes to the company’s environmental responsibility.

Overall, the PESTLE analysis for Netflix reveals the complexities and challenges the company faces in the dynamic entertainment industry. Understanding these factors enables Netflix to make informed decisions, adapt to changing market conditions, and continue its global growth and success in the ever-evolving streaming landscape.

Coca Cola PESTLE Analysis

In the pursuit of discovering new markets, astute managers rely on the comprehensive PESTLE analysis for business. For Coca Cola, this analysis delves into the political, economic, social, technological, legal, and environmental conditions, providing valuable insights into its global operations.

As a major food and beverage company, Coca-Cola operates under the purview of country-specific legislation, including consumer protection and copyright laws. While most countries readily permit the sale of Coca-Cola products, some regions face trade and investment restrictions due to sanctions. Countries such as Cuba, North Korea, and Russia represent areas where Coca-Cola’s operations may be limited.

Coca-Cola enjoys unparalleled brand recognition, owning a significant portion of the market share for sweet beverages worldwide. However, despite steady demand in most countries, shifting consumer trends towards healthier diets may impact sales. The company may face challenges if health-conscious individuals reduce their consumption of sugary beverages, potentially leading to lower profits.

Operating in diverse countries, Coca-Cola successfully tailors its marketing strategies to match the socio-cultural aspects of each nation. Customizing tastes and introducing unique bottle designs, such as bottles with names, has garnered widespread popularity and increased sales in various regions, including Japan.

Catering predominantly to the younger generation, Coca-Cola leverages modern technologies to capture consumer attention and maintain a competitive edge. Extensive investments in social media marketing, hashtags, and online games appeal to trendy and tech-savvy consumers, contributing to the brand’s popularity.

While Coca-Cola has navigated patent and copyright matters successfully, the company has faced challenges concerning employee treatment, including protests against unfair policies and allegations of racial discrimination. Addressing these issues and fostering a positive work environment is crucial for improving the company’s public image.

As the world’s largest soft drinks producer, Coca-Cola grapples with environmental concerns raised by eco-activists. Water shortage, particularly in regions where factories are located, poses a significant challenge, given the company’s substantial water consumption. Efforts to promote recyclable materials and reduce plastic pollution are essential steps towards enhancing environmental sustainability.

PESTLE analysis provides Coca-Cola with a robust strategy, guiding the company to navigate potential pitfalls and secure a strong market position. By understanding the impact of various external factors, Coca-Cola can make informed decisions to thrive in an ever-changing global business landscape.

PESTLE Analysis for Amazon

As the leading global e-commerce giant, Amazon caters to the needs of millions of satisfied customers with its smart tactical and strategic plans . Employing PESTLE analysis for Amazon reveals the company’s strengths and weaknesses, enabling effective decision-making and strategic planning.

Operating in multiple countries necessitates navigating complex political environments. While Amazon thrives in politically stable regions, unpredictable markets in Eastern Europe and the Middle East pose challenges. Additionally, rising foreign trade taxes and cybersecurity failures may impact the company’s operations.

Amazon faces challenges in some markets due to high product prices and increasing shipping costs, particularly in developing countries. Nevertheless, the company can leverage automation to optimize processes and offer competitive prices. Competitors like Aliexpress and Walmart also influence market dynamics in Asian countries and the USA.

The income levels of different countries influence Amazon’s sales, with more developed nations witnessing higher e-commerce adoption rates. The COVID-19 pandemic accelerated the cultural shift towards online shopping, benefiting Amazon’s revenues . However, automation has led to job losses, raising concerns about social implications.

Technology and innovation are at the core of Amazon’s business model. The company continually invests in research and development to enhance its delivery processes and customer experience. Innovations like drone deliveries and efficient customer service through live chats or emails solidify Amazon’s technological edge.

Navigating various legal requirements in different countries is a complex challenge for Amazon. Adhering to consumer and employment laws is essential to protect the company’s reputation and mitigate potential losses. However, counterfeit accusations and data privacy concerns may require strategic adjustments.

Amazon demonstrates a commitment to environmental sustainability by encouraging longer delivery options to reduce emissions. Despite e-commerce’s lower environmental impact compared to brick-and-mortar shopping, the company strives to become even more eco-friendly. These initiatives improve the brand image and foster customer loyalty.

Therefore, the PESTLE analysis provides invaluable insights into Amazon’s business environment, enabling the company to assess its impact on the market and devise effective strategies to address emerging challenges. By leveraging this analysis, Amazon can stay ahead in the dynamic and ever-changing e-commerce landscape.

How do PESTLE Factors Affect a Business

In today’s highly competitive business landscape, companies must navigate a myriad of external factors that influence their operations and success. PESTLE analysis provides a comprehensive framework to assess the macro-environmental factors that impact a business. This one-page analysis delves into the significance of PESTLE factors and their effects on businesses worldwide.

Political factors play a crucial role in shaping a business’s operating environment. Government policies, regulations, and stability can either facilitate or hinder business operations. For instance, political stability encourages investments and expansion, while political instability may create uncertainty and deter foreign investors. Additionally, changes in taxation policies, trade agreements, and labor laws can impact a company’s profitability and strategic decisions.

Economic conditions significantly influence business performance. Factors such as GDP growth, inflation rates, and exchange rates affect consumer spending and purchasing power. In a thriving economy, consumers are more likely to spend on goods and services, boosting businesses’ revenues. Conversely, an economic downturn may lead to reduced consumer spending and demand for products and services. Furthermore, fluctuations in commodity prices and raw material costs directly impact a company’s production costs and profitability.

3)      Socio-Cultural Factors

Societal norms, cultural preferences, and consumer behavior have a profound effect on businesses. Companies must adapt their products, marketing strategies, and business practices to cater to the unique needs and expectations of different demographics and cultures . For example, consumer preferences for eco-friendly products have prompted businesses to adopt sustainable practices and eco-conscious initiatives. Understanding socio-cultural trends is essential for businesses to connect with their target audiences and remain relevant in the market.

The rapid pace of technological advancements shapes the business landscape in significant ways. Embracing technology is crucial for companies to stay competitive and meet consumer demands. Innovations in automation, artificial intelligence, and data analytics streamline operations, enhance efficiency, and enable personalized customer experiences. Failure to adopt technology can leave businesses lagging behind and vulnerable to disruptors in the industry.

Legal factors encompass various regulations and laws that businesses must comply with to operate ethically and lawfully. Intellectual property rights, labor laws, consumer protection laws, and data privacy regulations are just a few legal considerations that impact businesses. Non-compliance with legal requirements can lead to hefty fines, reputational damage, and even business shutdowns. Staying informed about legal changes and proactively adapting to them is crucial for long-term sustainability.

Environmental factors have become increasingly significant for businesses as sustainability and corporate social responsibility gain prominence. Concerns about climate change, environmental impact, and resource depletion have urged businesses to adopt eco-friendly practices and reduce their carbon footprint. Embracing sustainable initiatives not only benefits the environment but also enhances a company’s reputation and attracts environmentally-conscious consumers.

In the realm of business and marketing, strategic analysis frameworks play a pivotal role in understanding the internal and external factors that impact a company’s performance and decision-making. Two widely used frameworks are SWOT and PESTLE analysis . While they share the common goal of aiding businesses in their strategic planning, they differ in their focus and scope. This article aims to delve into the disparities between SWOT and PESTLE analysis, emphasizing their distinct applications and significance in the business world.

SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats. It is an internal and external assessment tool used to evaluate a company’s current position and potential for growth.

• Strengths : SWOT analysis identifies a company’s internal strengths, such as core competencies, unique selling points, and resources that give it a competitive advantage in the market.
• Weaknesses: This aspect highlights the internal limitations, vulnerabilities, and areas in which a company may be falling short compared to its competitors.
• Opportunities: SWOT analysis explores external factors, such as market trends, emerging opportunities, or changing customer preferences, that a company can leverage to expand its business.
• Threats : The analysis also examines external factors that pose potential risks or challenges to the company’s growth and profitability.

SWOT analysis is particularly useful for startups and new products, providing a comprehensive overview of their competitive position and potential pathways for development.

PESTLE analysis, on the other hand, stands for Political, Economic, Social, Technological, Legal, and Environmental analysis. It is a macro-environmental framewor k that assesses the external factors that influence a company’s operations.

• Political: This factor examines how government policies, regulations, and political stability impact the business environment.
• Economic: PESTLE analysis considers economic factors like GDP growth, inflation rates, exchange rates, and consumer spending, which can significantly affect a company’s performance.
• Social: The analysis delves into societal factors, including demographics, cultural trends, and consumer preferences, which influence market demand and customer behavior.
• Technological: This aspect explores technological advancements and innovations that can create new opportunities or disrupt industries.
• Legal: Legal factors encompass the impact of laws, regulations, and compliance requirements on business operations.
• Environmental: PESTLE analysis also considers the impact of environmental factors, such as climate change, sustainability initiatives, and eco-friendly practices, on businesses.

PESTLE analysis provides businesses with valuable insights into the broader market environment, helping them identify potential risks and opportunities in their expansion endeavors.

Both SWOT and PESTLE analyses are essential strategic tools that complement each other in the decision-making process.

SWOT analysis focuses on a company’s internal factors and immediate competitive landscape, providing a snapshot of its strengths, weaknesses, opportunities, and threats.

PESTLE analysis, on the other hand, assesses the external macro-environment, considering broader factors that may influence the company’s market entry, expansion, and sustainability .

Thus, SWOT and PESTLE analysis are two distinct yet complementary frameworks that offer valuable insights into a company’s strategic planning process. SWOT analysis helps businesses identify their internal strengths and weaknesses and external opportunities and threats, while PESTLE analysis provides a broader perspective on the macro-environmental factors that may impact business operations. By leveraging both frameworks, businesses can make informed decisions, capitalize on opportunities, mitigate risks, and navigate the ever-evolving landscape of the business world.

Why Is PESTLE Analysis Essential for Business Expansion

When it comes to expanding a business into new markets, comprehensive research and strategic planning are paramount. PESTLE analysis emerges as a powerful tool to explore uncharted territories. This framework delves into every critical detail that can either propel or hinder business activity in a foreign market. Unlike superficial analyses, PESTLE analysis dives deep into economic, cultural, and legal specifics, ensuring a holistic understanding of the external environment. Moreover, given the ever-changing dynamics of the global landscape, PESTLE analysis should be an ongoing process.

The ultimate goal of conducting a PESTLE analysis is to minimize risks and uncertainties for a company operating in unfamiliar territories. By thoroughly examining the current situation in a country and analyzing its historical experiences, businesses can gain valuable insights into potential future events. However, certain factors, such as natural disasters or international conflicts, remain unpredictable. In such cases, having a well-thought-out contingency plan becomes crucial to navigate unforeseen challenges successfully.

A well-executed PESTLE analysis serves as a compass, providing companies with valuable recommendations for their foreign market strategy. The thorough examination of political, economic, social, technological, legal, and environmental factors equips businesses with the necessary knowledge to make informed decisions and seize opportunities. Armed with such insights, companies can align their operations with the unique characteristics of each market and tailor their approach accordingly.

At times, businesses face tight deadlines and require prompt and reliable solutions. Our essay writing service stands ready to offer timely assistance, providing you with a comprehensive PESTLE analysis that meets your specific requirements. With a team of skilled professionals, we ensure that your analysis is delivered on time without compromising on quality.

In conclusion, embracing the power of a PESTLE analysis equips companies with a clear vision and a well-structured approach to navigate the complexities of international markets. A thorough assessment of the external environment provides the groundwork for making informed decisions, mitigating risks , and seizing opportunities. As businesses venture into a world of endless possibilities, proper preparation through PESTLE analysis becomes a catalyst for success, enabling them to thrive in diverse and dynamic global landscapes.

In a world where expansion is a constant aspiration, PESTLE analysis remains an indispensable ally for businesses seeking to chart their course towards growth, sustainability, and global success.

Frequently Asked Questions (FAQ) about PESTLE Analysis

• What is PESTLE analysis, and how does it differ from SWOT analysis?

PESTLE analysis is a strategic tool that examines the macro-environmental factors influencing a business, including political, economic, social, technological, legal, and environmental aspects. On the other hand, SWOT analysis evaluates both internal factors (strengths and weaknesses) and external factors (opportunities and threats) that impact a company. While PESTLE focuses on the external environment, SWOT delves into both internal and external aspects of a business.

• When should businesses use PESTLE analysis?

PESTLE analysis is particularly useful for companies looking to expand into new markets. It helps them thoroughly research and understand the various factors that could impact their business operations in unfamiliar territories . This analysis provides essential insights to strategize and make informed decisions when entering new markets.

• What are the components of a PESTLE analysis?

The components of PESTLE analysis include Political, Economic, Social, Technological, Legal, and Environmental factors. By analyzing these factors, businesses can gain a comprehensive understanding of the external environment and its potential effects on their operations.

• How often should a PESTLE analysis be conducted?

PESTLE analysis should be a recurring process, especially for companies operating in dynamic and ever-changing global markets. External factors can shift rapidly, making regular assessments vital to adapt and respond to new challenges and opportunities.

• How does PESTLE analysis help minimize risks for businesses?

PESTLE analysis enables businesses to identify potential risks and uncertainties in foreign markets. By examining political stability, economic conditions, social trends, technological advancements, legal regulations, and environmental issues , companies can develop contingency plans and mitigate risks associated with operating in unfamiliar territories.

• How does PESTLE analysis assist in strategic decision-making?

A thorough PESTLE analysis provides crucial insights into the external environment, allowing businesses to make informed strategic decisions. Understanding the political, economic, social, technological, legal, and environmental factors helps companies tailor their market entry strategies and adapt their products or services to meet the specific needs and demands of each market.

• Can PESTLE analysis be applied to specific companies?

Yes, PESTLE analysis can be tailored to evaluate the impact of external factors on specific companies. For example, the blog includes PESTLE analysis examples for well-known companies like Apple, McDonald’s, Amazon, and Coca-Cola. By conducting a company-specific PESTLE analysis, businesses gain valuable insights into the unique challenges and opportunities they might encounter .

• How can businesses prepare for potential environmental challenges?

PESTLE analysis addresses environmental factors, which include ecological issues like climate change and environmental regulations. Businesses can prepare for potential environmental challenges by adopting eco-friendly practices, minimizing their environmental footprint, and aligning their operations with sustainable and environmentally responsible initiatives.

• Where can businesses seek professional help with PESTLE analysis?

Businesses can seek professional assistance with PESTLE analysis from expert research paper writing services, like GradeSmiths. These services offer comprehensive and in-depth analyses tailored to specific business needs and deadlines, providing businesses with valuable insights to drive their expansion and decision-making processes.

• How does PESTLE analysis contribute to long-term success in the global market?

PESTLE analysis equips businesses with a holistic understanding of the external environment, enabling them to make strategic decisions that align with market dynamics. By minimizing risks, seizing opportunities, and adapting to changes in the global market, PESTLE analysis becomes a catalyst for long-term success and sustainability in an increasingly interconnected and competitive world.

🚀 Struggling with your PESTEL analysis essay? No worries! Gradesmiths is your ultimate solution! 🌟 Our skilled team is here to assist you in navigating the complexities of political, economic, social, technological, environmental, and legal factors with ease. 📚💼 With our reliable support, you’ll breeze through your essay, showcasing a deep understanding of your subject and impressing your professors! 🌍💡 Don’t stress – trust Gradesmiths to boost your academic success! 🎓🏆 Get in touch with us today and conquer your PESTEL analysis like a pro! 📧📞 Let’s ace this together! 🤝📝

• RESEARCH PAPER FOR SALE
• RESEARCH PAPER WRITER
• RESEARCH PROPOSAL WRITING SERVICES
• SCHOLARSHIP ESSAY HELP
• SPEECH HELP
• STATISTICS HOMEWORK HELP
• TERM PAPER WRITING HELP
• THESIS EDITING SERVICES
• THESIS PROPOSAL WRITING SERVICE
• TRIGONOMETRY HOMEWORK HELP
• ADMISSION ESSAY WRITING HELP
• BIOLOGY PAPER WRITING SERVICE
• BOOK REPORT WRITING HELP
• BUY BOOK REVIEW
• BUY COURSEWORKS
• BUY DISCUSSION POST
• BUY TERM PAPER
• CAPSTONE PROJECT WRITING SERVICE
• COURSEWORK WRITING SERVICE
• CRITIQUE MY ESSAY
• CUSTOM RESEARCH PAPER
• CUSTOMER CONDUCT
• DISSERTATION EDITING SERVICE
• DISSERTATION WRITERS
• DO MY DISSERTATION FOR ME
• DO MY POWERPOINT PRESENTATION
• EDIT MY PAPER
• English Research Paper Writing Service
• ENGLISH RESEARCH PAPER WRITING SERVICE
• ESSAY WRITING HELP
• ESSAYS FOR SALE
• GRADUATE PAPER WRITING SERVICE
• LAW ASSIGNMENT WRITING HELP
• MARKETING ASSIGNMENT WRITING HELP
• NON-PLAGIARIZED ESSAYS
• NURSING ASSIGNMENT HELP
• PAY FOR COURSEWORK
• PAY FOR ESSAYS
• PAY FOR LITERATURE REVIEW
• PAY FOR PAPERS
• PAY FOR RESEARCH PAPERS
• PERSONAL STATEMENT EDITING SERVICE
• PERSONAL STATEMENT WRITER
• PERSUASIVE ESSAY WRITING HELP
• PERSUASIVE ESSAY WRITING SERVICES
• PHD THESIS WRITING SERVICE
• PROOFREAD MY PAPER
• PSYCHOLOGY ESSAY WRITING SERVICES
• THESIS STATEMENT HELP
• WRITE MY ANNOTATED BIBLIOGRAPHY FOR ME
• WRITE MY CASE STUDY
• WRITE MY DISCUSSION BOARD POST
• WRITE MY LAB REPORT

• Call to +1 844 889-9952

PESTEL Analysis – Free Business Essays & How-to Guide

🔝 top-10 pestel analysis examples.

• 🔤 PESTEL Analysis: Definition & Importance

👣 How to Do PESTEL Analysis in 5 Steps

• 💭 PESTEL Analysis Examples: McDonald’s & Amazon

📝 PESTEL Analysis Research Paper Examples

💡 essay ideas on pestel analysis, 👍 good pestel analysis essay examples to write about, 🎓 simple research paper examples with pestel analysis.

Are you looking for an explanation of PESTEL analysis? You’ve come to the right place! From this page, you will learn what PESTEL (PESTLE) analysis stands for and how to conduct it. You’ll also find excellent examples of the macroenvironmental analysis of Amazon and Mcdonald’s.

• Jet Company’s Supply Chain Strategy
• Louis Vuitton Company's Strategic Management Policies
• Just Us! Coffee Roaster Company's Marketing Plan
• External and Internal Analysis Tools in Strategic Management
• Eastman Kodak Company's Marketing Analysis
• Toyota Motor Corporation Analysis
• Internationalization of Business: Management Report
• Pepsi Company Analysis: Operations and Performance
• Nike Marketing Plan: Marketing Mix, Concept, and Strategy Case Study
• Ocean Beauty Center: Business Proposal

🔤 PESTEL Analysis: Definition & Importance

PESTEL analysis looks at macro factors influencing a company’s daily operations. Companies can’t directly control these circumstances and must adapt to them. This analysis is significant because its results can affect business growth, planning, and marketing strategies. Companies should conduct this research at least every 6 months.

What Does PESTEL Analysis Stand for?

The PESTEL acronym stands for:

• P — Political . It includes laws and legislation that can influence the company. Regulations, restrictions, policies, and political stability fall under this category. They can disrupt the supply chains or influence HR and industrial regulations.
• E — Economic . The economy plays a significant role in how businesses operate and grow. Companies should assess economic growth prognosis, inflation, interest, and exchange rates because these things can change customer behavior.
• S — Social . Social factors cover customers’ attitudes and demographic trends, such as health consciousness, age distribution, population growth, etc. This factor helps companies understand their customers better since, for instance, younger and older individuals have different buying habits.
• T — Technological . Companies should monitor emerging technology. New tech can influence how a business produces and distributes goods and services. Companies may use the tech to find new ways of communicating with target markets.
• E — Environmental . Environmental conditions also play a role in a company’s daily work. These encompass the changing climate, pollution levels, scarcity of raw materials, and carbon footprint targets.
• L — Legal . Lastly, businesses should consider the current legal framework they operate in. Advertising standards, health and safety protocols, product safety, and customer rights laws can change unexpectedly.

Now that you know what PESTEL stands for, you might try conducting this analysis. It may be tricky if you don’t know what steps to take. The whole process can be broken down into 5 sections:

💭 PESTEL Analysis Examples: McDonald’s & Amazon

We’ve made several examples to ensure that you remember how to do PESTEL analysis.

Amazon PESTEL Analysis

The microenvironment of Amazon consists of the following factors:

• Political . Amazon faces intense competition in China because of the country’s policy of backing national e-commerce.
• Economical . The corporation benefited from economic measures introduced during the coronavirus pandemic.
• Social . Amazon enjoys most of its profits from tech-savvy millennial buyers.
• Technological . This company heavily invests in drone package delivery tech.
• Environmental . The corporation does little to reduce its greenhouse gas emissions.
• Legal . Amazon faces legal complications because of its work practices.

PESTEL Analysis: McDonald’s

Macroenvironmental factors affecting McDonald’s include the following:

• Political . The chain has been banned from operating in several countries.
• Economical . McDonald’s had to close shop in Norway due to the high price of meat and produce.
• Social . The fast-food company excels at adapting its products for oversea markets.
• Technological . McDonald’s invests in new digital menus and self-serve kiosks.
• Environmental . The fast-food corporation seeks ways to reduce waste and help the environment.
• Legal . This chain is often involved in lawsuits over its trademarks.

The PESTEL analysis can better prepare businesses when facing new external factors in their daily operations.

• HSBC Holdings Plc's Financial Services Development Business essay sample: HSBC is operating in an intensely competitive market. The market has various players who have different capacities based on a number of factors.
• Emirates Airlines' Operations and Improvement Business essay sample: This paper reviews the operations of Emirates Airlines to identify its strengths and weaknesses and suggest ways through which it can improve its operations.
• Apple Inc.'s Internationalization Marketing Capacity Business essay sample: Apple Incorporation has managed to retain its top position as the most valuable brand in the global market, edging out other reputable companies.
• Toyota Company in China: Global Strategy Business essay sample: In this paper, the focus is on analysing the current problems that Toyota is facing in China and strategies that can be employed to address them.
• Ford Motor Company's Competitive Advantage and Future Business essay sample: This paper has provided a comprehensive analysis of Ford Motor Company's strategies to conclude the company's competitive advantage and potential for further development.
• Apple Incorporated: History and Analysis Business essay sample: The paper analyzes Apple's history and mission, its current position on the market, its strengths and weaknesses, to understand the reasons of its success.
• Pepsi Company Problems and Solutions Business essay sample: In this paper, we discuss Pepsi company problems and solutions. 📉 Inside, you will find a critical analysis of PepsiCo challenges and objectives. 🎯 Besides, learn how to address challenges faced by PepsiCo effectively. ✨
• Amazon Company's E-Business Strategy Business essay sample: Amazon is a global online retail giant. Established in 1994, the company has grown over the years into a multinational corporation with an active presence in the US.
• Strategic Management of Nestle: Nescafe Marketing Strategy Business essay sample: Researching strategic management of Nestle or ☕️ Nescafe marketing strategy? Business strategy analysis is very important as it enables the company’s executives to make better 📈 decisions. The Nestlé Company is the business of interest in this case.
• General Motors Company's Non-Market Environment Business essay sample: The paper discusses the environmental and technological factors of the non-market environment in relation to the case study of the General Motors company.
• FreshDirect Business Model & Strategic Analysis Business essay sample: Analyzing FreshDirect business model? 📦 In this essay, we investigate how profitable FreshDirect’s business model is and what can be improved. 🪄
• Cobra Beer Company's Marketing Issues Business essay sample: In this paper, the analysis focuses on the market forces that Cobra Beer faces in the market and how it has developed strategies to deal with these forces.
• Emirates Airline Company's Case Business essay sample: The aviation industry of the United Arab Emirates plays a significant role in the growth of the region’s economy. This report focuses on the case of Emirates Airlines in UAE.
• Brand Awareness and Its Impact on the Reputation Business essay sample: The tool for analyzing the organization's environment is SWOT analysis. This tool is useful in measuring the attitude of organizations towards environmental factors.
• Electrolux Company's Business Studies and Strategy Business essay sample: One of the most outstanding stakeholders of Electrolux is the targeted community of consumers who are located in various markets across the world.
• EasyJet Company's Comprehensive Manner Business essay sample: This study evaluated the current EasyJet Company's operations and availed recommendations on the expected procedures towards profit making.
• Emirates & British Airlines' Human Resources Strategies Business essay sample: This paper will discuss human resources strategies that will be adopted by a joint venture between Emirates Airlines and British Airlines.
• Abu Dhabi Oil Company's Strategic Analysis Business essay sample: Abu Dhabi Oil Company has distinct advantages that can propel it to new heights. It can exploit many opportunities to further its dominance in the local and regional markets.
• Ritz-Carlton, Dubai International Financial Centre Business essay sample: The researcher seeks to discuss principles, theories, and practices that the Ritz-Carlton Hotel should embrace to achieve success in the Dubai market.
• Southwest Airlines Company Strategic Management Business essay sample: By the end of 2014, Southwest Airlines was one of the best companies in the airline industry. Its success founded on the provision of exceptional travel services at lower prices.
• McDonalds Company: Human Resource' Functions Business essay sample: McDonalds Fast Food Company has been chosen as an example of an organization for this report and this report will further discuss the HR agenda within this organization.
• AgLocal Company: Innovation Market Opportunity Business essay sample: This research analyzes AgLocal to determine its business concept, vision, and market strategies that it uses to penetrate the highly competitive software market.
• Emirates Airlines' Successful Strategic Management Business essay sample: In this strategic management paper, the focus was to determine the strategic management techniques that Emirates Airlines has been using to achieve its current levels of success.
• Microsoft Corporation's Market Competitiveness Business essay sample: This research paper evaluates Microsoft's growth consistency by examining the company's background and analyzing internal factors, and external factors, business
• Adnams Company: Marketing Approach Redesigning Business essay sample: The framework designed by the Adnams Company to address marketing issues may pose a significant threat to the firm’s success.
• ADNOC Gas Processing Strategy Business essay sample: ADNOC Gas Processing (previously GASCO) was established in 1978 through joint venture among ADNOC, Shell, TOTAL, and Partex.
• Amazon.com Inc.'s Business Management Business essay sample: The analysis of Amazon shows that it has a flexible and adaptable business model that has facilitated its growth in both product lines and global expansion.
• The United Kitchen Provider's Market Strategy Business essay sample: This research focuses on evaluating the internationalization and market entry strategy of The United Kitchen Provider into the Kenyan market.
• Virgin Group's Successful Strategic Management Business essay sample: Virgin Group is one of the most successful conglomerates in the world. Most people attribute Virgin’s growth to its founder, Sir Richard Branson.
• Tesla Internal Environment & Tesla External Strategy Analysis Business essay sample: Analyzing Tesla’s strategy in the global environment 🌎 ? Tesla operates in an automotive industry 🚗 that is exposed to political instabilities in major markets, although government incentives have helped in the development of EVs.
• Phone Manufacturing Company's Marketing Management Business essay sample: The phone manufacturing company targets customers in the low and middle price ranges. This paper analyzes its marketing plan for the previous four years.
• Marketing Analysis of Etisalat Corporation Business essay sample: This study analyzes the competitive position of Etisalat Corporation by using the SWOT and PESTEL analysis to determine the marketing strengths and weaknesses of a company.
• Toyota Motor Corporation's Marketing Plan Business essay sample: The market plan contains a detailed analysis of Toyota, its internal and external activity, the marketing strategies that the company uses, the marketing mix and SWOT.
• Digital Entrepreneurship: Videogame Sales Tracker Business essay sample: The subject of this report is a business idea – a service that tracks videogame sales on game launchers and online stores and collects the best deals.
• Nike Inc.'s Marketing in the United Arab Emirates Business essay sample: Nike does not have its own factories and a permanent production base, which makes its organization mobile and dynamic.
• Apple Company's Current Marketing Strategies Business essay sample: In this study, the researcher will be interested in investigating the current marketing strategies of Apple Inc, and how effective they are in addressing the issue of competition.
• Steel Industry: Thriving in a Competitive Global Environment Business essay sample: The global steel industry is highly competitive as large multinational corporations struggle to expand their market share beyond their national borders.
• Saudi Aramco Company: Engineering Economic Strategy Business essay sample: All operations, explorations, and concerns regarding oil and gas within the Kingdom of Saudi Arabia pass through Saudi Aramco.
• Amazon in India Business essay sample: The governments where Amazon operates have the role of legislating strong cybercrime laws and effectively implementing them to protect the online business platform of this multinational company.
• Global Business Management: Japanese Market Place Business essay sample: The political environment in Japan has evolved over the past decades from dictatorship to constitutional monarch.
• Dyson Company's Strategies and Challenges Business essay sample: Dyson is one of the leading players in the handheld vacuum industry. This discussion gives a detailed analysis of the company’s business strategies, competitors, and existing challenges.
• Apple's iPhone 7: Marketing Plan Business essay sample: Apple Inc. is one of the leading companies in the technology industry where it specializes in the production of electronic gadgets.
• Marketing Plan for Home Appliance Repair in Australia Business essay sample: In Australia, the scale of operations in-home repair industry is very small. There is approximately one retail store for every fourteen households in the country.
• Ford Motor Company: Strategic Goals Business essay sample: The business goals of Ford are to deliver the best quality and innovative solutions to the end consumer, expend internationally and enter new markets.
• Marketing Environment and Strategic Analysis Business essay sample: The environment of business comprises internal and external business environments. They affect the organization's decisions, strategies, processes, performances.
• Wal-Mart: Strategic Management Business essay sample: The paper will analyze and evaluate Wal-Mart stores in America, internal and external factors that influence the corporation.
• Ryanair in the European Low-Cost Airline Industry Business essay sample: Ryanair's low model of growth has been leaned and aggressively sought by several low-cost airlines in Europe and in other parts of the world.
• Marketing Audit of the Peppers Restaurant Business essay sample: The food industry is one of the profitable industries today. Pepper’s is a UK-based company that followed the structure of successful restaurants located in the USA and France.
• Critical Analysis on Nissan with Rio Tinto and Vestas Business essay sample: A report evaluates and compares investments opportunities in three companies, Nissan, Rio Tinto and Vestas. A special attention is given to political and environmental environments
• Ford Motor Company: Management of Change Business essay sample: In Ford Motor Company there is a critical need to address radical change, personal inconvenience, and new accountability.
• International Marketing in the Parker Pen Business essay sample: This paper undertakes to study the international marketing strategy used by parker pen. Parker pen is a company that has gone global which sells products over 154 countries worldwide.
• American Automobile Industry Business essay sample: This paper is based on the American automobile industry’s recent integrated marketing communication strategies.
• Jimmy Possum: The Business Case Study Business essay sample: This article talks about Jimmy Possum as a successful business in the Australian furniture sector, it`s strategic and marketing decisions with PESTEL analysis and SWOT analysis.
• Drax Group PLC: Marketing Plan Business essay sample: Drax Group plc is an independent British power generation player with the largest coal-based power plant all over the Western Europe.
• Diageo Ltd.: Strategic Financial Management Business essay sample: Diageo Ltd it's a holding that specializes in the following areas: production and distribution of alcoholic beverages; sale of bitters and liquors; hospitality industry.
• The England Supermarket Factors Business essay sample: This paper therefore tries to give political, social, economical, and technological factors that effect large scale retail industry in the United Kingdom using England as an example.
• Personal Finance Tesco Company Business essay sample: Tesco Plc is known as major grocery retail store worldwide. But now Tesco is going to offer Consumer Banking n the financial market to gather potential customers.
• Ryanair – The Low-Fares Airline Business essay sample: The purpose of this paper is to study the case of O' Higgins “Ryanair – the low-fares airline’’. The paper considers the environmental issues of the European airline industry.
• Milco Company: Management Business essay sample: Milco Company is one of the food companies being operated under the group name National Food Product Company. The company was established in 1973.
• The Emirates Airways Comprehensive Analysis Business essay sample: The Emirates Airways Company is a global company that faces the challenge of the global coordination of its services where it requires to apply modern technology.
• Agent Provocateur Company: General Notions and Background Business essay sample: Agent Provocateur is an English, London-based company that specializes in production and sale of luxury lingerie items for women of the high income social groups.
• Southwest Airline Company: The Background Business essay sample: The Southwest Airline Company was incorporated in 1967 as Air Southwest Company adopting the current name later in 1971.
• A New Mobile Phone That Is Compatible to Projectors Business essay sample: Development of technology is a well-cited demand of consumers of mobile phone sets and innovation in the field becomes the single indicator of success.
• McDonald’s Strategic Management and Analysis Business essay sample: This study seeks to carry out an analysis of McDonald’s strategies, explore how the company provides value to its customers and how it builds a competitive advantage.
• Wait Watchers International: Strategic Analysis and Future Directions Business essay sample: This analysis will help Weight Watcher company to align its performance positively against the forces of change that affect the business environment.
• Contemporary Developments in Business and Management Business essay sample: Effective communication, motivation, the work ethic of workers, risk management system, internal control, and internal audit are the major internal issues for the company's growth.
• Advanced Marketing Strategy of Nokorola Report Business essay sample: The report analyzes Nokorola’s status using the PESTEL analysis, the porter forces, and the six Ps and describes what Nokorola can do to salvage its future.
• PESTEL and Porter’s Five Forces Analysis for the Euro Disney Business essay sample: Assessing the situation that Euro Disney faced in 1994 with a PESTEL analysis and Porter’s Five Forces in order to assess what is the effect that external forces have on the company.
• Asda Stores' Strategic Marketing Business essay sample: The report evaluates and analyzes the current marketing strategies of Asda and proposes changes in its strategic planning and channels of distribution.
• Jet Airways' Strategic Financial Management Business essay sample: The purpose of this report is to evaluate the strategic position of Jet airways. Jet Airways is one of the leading private airlines in India.
• Dunn Brothers Franchise Inc.'s Strategic Plan Business essay sample: The purpose of the paper is to prepare a strategic plan for Dunn Brothers Franchise Inc to introduce a new food menu, which is popular with the customer.
• Valero Energy Comprehensive Analysis Business essay sample: The paper discusses the Valero Company's external environment, recognizes present opportunities, factors hindering change, and finalizes with recommendations.
• PESTEL Company Strategic Analysis Business essay sample: The PESTEL analysis will put a spot light on the major concerns especially the external factors that will have a negative effects on the business.
• Ryanair - the Low-Fares Airline Business essay sample: Ryanair is one of the low cost airlines in Europe with its headquarters at Dublin airport in Ireland. The company was established in 1985, flying between Waterford and London.
• Coca-Cola: Company Marketing Analysis Business essay sample: Coca-cola Company, having been in business for over 100 years, has undergone a lot of innovation and re-evaluation for its products, and this is what has kept it afloat for all these years.
• Strategic Analysis of Samsung Electronics Co. Ltd Business essay sample: The following paper presents a comprehensive in-depth strategic analysis on the development and management of Samsung Electronics Co. Ltd.
• International Strategic Management Overview Business essay sample: The purpose of this paper is to provide an extensive overview of the essential topics of international strategic management.
• Food Industry: McDonald’s Company Business essay sample: McDonald’s is one of the world’s leading fast-food corporations. Its fast growth in the global scene have influenced the food industry by revolutionizing the fast-food sector.
• Phantom and Wakame: Companies Analysis Business essay sample: Phantom is a consultancy firm that could help Wakame in regard to management optimization and marketing changes.
• BlueJeans: Business Strategy and Recommendations Business essay sample: The analysis of BlueJeans shows that it employs different business strategies because it has been leading in creating unique innovations over time in line with it is mission and vision.
• Bandtech Company's Business Plan Business essay sample: This paper provides a breakdown of the business plan for Bandtech including advantages and weaknesses that are likely to be encountered during the operational stage.
• Ryanair & Next Step: Primary Issues and Prospects for the Company Business essay sample: Ryanair airline was the first among European low-cost airlines to apply the horizontal diversification strategy, which means that it began to acquire other European low-cost airlines.
• Reflection on AMGD Global PTE. LTD Business essay sample: This report will examine the AMGD business idea, present an industry analysis, identify issues, and discuss strategic differentiation and future for the company.
• Microsoft Corporation: The Rise of a Major Company Business essay sample: Microsoft Corporation is a leading organization in the sales, design, and production of IT solutions and servers; it is aligned with an effective plan and business strategy.
• Bates Farms and Dairy: PESTEL Analysis Business essay sample: This paper shows why Bates Farms and Dairy should enter the US market by conducting PESTEL analysis on the country and discussing the viable market segmentation plan.
• Inventory Optimization and Management in Oil and Gas Business essay sample: In the current competitive business environment and the global economic volatility, the focus of managers is shifting from the growth of revenue to profitability growth.
• Eastman Kodak Company's Strategic Management Problem Business essay sample: Eastman Kodak failed to embrace change at a time when customers’ expectations were changing, allowing its rivals to expand their market share rapidly at their own expense.
• Heineken Company Analysis Case Study Business essay sample: The Heineken company’s leadership is made up of experienced leaders with diverse backgrounds and unrivaled expertise in their key operation areas.
• Malaysian Airlines' Marketing Plan Critique Business essay sample: This critique assesses the marketing plan of Malaysian Airlines under the scrutiny of the theoretical framework chosen, as well as the scope, and precision of the data provided.
• Management Report: Tesco Personal Finance Business essay sample: This management report has discussed Tesco’s strategy, the current position in recession, and justification of their strategy.
• CD Projekt S.A.: Business Report Business essay sample: CD Projekt S.A (CDR as noted in a stock market exchange abbreviation) is a Polish company that operates in the video game development industry.
• General Motors Company's Decision-Making Business essay sample: The essay defines the accurate system approach to defining problems and the right solution in the scope of modern engineering and technology.
• Company Analysis: The Coca-Cola Company Business essay sample: Analysis of the external environment makes it possible for the company to understand changing trends in the market, including threats and opportunities in a given country.
• Salim Group's Company Analysis Since 1990 Business essay sample: The political environments of the countries in which Salim and his group are venturing into are quite stable. The countries provide a good business environment.
• Financial Analysis for Burberry and Louis Vuitton Companies Business essay sample: This report presents an in-depth analysis of the financial performance of two leading clothing companies: Burberry and Louis Vuitton Companies.
• Selecting a Firm for Sourcing Exercise Business essay sample: In this paper, the researcher will provide a justified recommendation as to whether this organization would be considered for a sourcing exercise.
• The Entrepreneurship at Twitter Business essay sample: Twitter is one of the most popular, as well as powerful social media in the world today. It is an online microblogging and social networking service.
• United Airlines Strategic Analysis Report Business essay sample: This report analyzes the internal structure and external environment of United Airlines, one of the largest air carriers in the U.S.
• Tesco Plc Company's Business Environment Business essay sample: To analyze and evaluate the business environment of a Tesco Plc Company, factors like competitors, and the legal factor will be analyzed in this paper.
• Strategic Management Etihad Airways Business essay sample: This report will provide an industry analysis and discusses strategic management up-to-date and going forward for Etihad Airways.
• Business Issues in Context of Human Resources Business essay sample: The HR department had to develop effective strategic management to remain competitive with the global changes in the socio-economic and environmental settings of businesses.
• Almarai Company and Dynamics of Business Environment Business essay sample: A change in the political environment can change how corporations are governed and the models of business to adopt.
• Business Issues and the Context of Human Resources Business essay sample: The provisions underscore the minimum wage range, taxes, workplace safety, employees’ rights, and equal employment practices that a company ought to comply with during its operation.
• Monsoon PLC Analytical Report Business essay sample: The review consists of a marketing communications audit, strategy and plan, and other relevant advertising and marketing strategies.
• Alphabet Inc. (GOOGLE) Strategic Analysis Business essay sample: The history of Google can be traced to the initial idea of developing a search engine dependent on links to determine the importance of various pages within the World Wide Web.
• Strategic Management: Parcel Force Case Study Business essay sample: To address the case study of Parcel Force Worldwide, this paper would consider the SWOT as a variable of the case that has been identified first.
• Tesla: Marketing Distribution and Pricing Business essay sample: This report examines the pricing and distribution problems at Tesla, an overview of the company, pricing, distribution challenges, and recommendations will be discussed in detail.
• Visa Inc: Threat from Cryptocurrency Case Study Business essay sample: This paper evaluates Visa Inc.'s case focusing on the environmental analysis, its innovation efforts, and the way forward concerning the engagement with cryptocurrencies.
• Quillstine Farm's Start-Up Business Plan Business essay sample: The business plan explains how the Quillstine Farm company will spend a capital of 200 million on starting up the business.
• Dyson Company Market Entry Strategy Business essay sample: This essay will look at different marketing elements that affect the Dyson company as it plans to open a new store in New York in the US.
• Examples of How Changes in the Environment Affect Organizations: The Anglian Water Company Business essay sample: The purpose of this report is to outline the changes in the external environment that are affecting UK business organizations and to discuss additional theoretical concepts.
• Good Mark Company Limited: Evaluation Management Project Business essay sample: Good Mark Industrial Limited has faced various problems and challenges in the past period it has been in operation.
• BMW Company's Business Environmental Analysis Business essay sample: The paper critically evaluates the impacts that both macro and micro factors have on the organization's business objectives and decision-making.
• General Electric (GE) in India Business essay sample: This paper provides a comprehensive PESTEL analysis of the company by evaluating factors that hinder and assist in expanding its services in India and across the globe.
• MTN Ghana Company's Analysis and Future Strategies Business essay sample: MTN Ghana is a successful business that has been operating in Ghana since 2008. It benefits from MTN’s best corporate practices and has a stable position in the market.
• Costco Wholesale Corporation's Operations Management Evaluation Business essay sample: Evaluation of the operations management of Costco Wholesale Corporation demonstrated the adequacy of currently applied solutions to the identified challenges by the company.
• Johnson and Johnson Company Analysis Business essay sample: This paper aims to look at Johnson and Johnson’s background, macro forces that may affect the pharmaceutical giant, the analysis of SWOT, and porter's five forces.
• British Airways Plc.'s Fundamental Analysis Business essay sample: The paper provides an analysis of macro-factors affecting the airline industry and British Airways and an analysis of the company's competitive position in the industry.
• Johnson & Johnson Pharmaceutical Company's Analysis Business essay sample: The paper analyzes the market environment for Johnson & Johnson pharmaceutical products and assesses how the company can differentiate itself from competitors.
• Wirksworth Heritage Centre's Digital Marketing Business essay sample: The report will evaluate the background of digital communication audit, the history of Wirksworth Heritage, and museums within the United Kingdom.
• Whittard of Chelsea Firm's Market Entry Strategy for the US
• Strategic Management and Planning in Non-Profits
• Starbucks Corporation's Market and Strategic Analysis
• Amazon Company's Resources and Competencies
• Betterhomes LLC: Change Management
• Ryanair Firm's Competitive Position in the UK
• Associated Brands Industries Limited (ABIL) Charles Chocolates
• Tesco Company's Strategic Management Tools
• Human Resource Planning the Organization Unilever
• Marriott Hotels: Company Analysis
• AT&T Company's PESTEL and SWOT Strategic Analyses
• Lebanese Flower Restaurant: Case Study
• Garmin Case Study: Strategic Management
• The Walt Disney Company's Marketing Transformations
• Unilever's Management of Foods & Refreshment Division
• Netflix Case Study Report: Brief History
• Planning Tools in Management Accounting
• The Walt Disney Company Analysis
• McDonald’s Internal and External Strategic Analyses
• WeWork Singapore Firm's Strategies for Dealing with COVID-19
• Analysis of Disney Plus by The Walt Disney Company
• GAP Inc.: Strategic Management Plan
• Strategic Management: A Case Study of Netflix
• JD Sports Diversification: Real Estate Market in the UK
• Sony Corporation: The External Environment
• McDonald’s Threats and Opportunities in Norway
• Netflix: The Founders of Digital Streaming
• The Dudebox Subscription Market Research Project
• Management: Moyon Tea Business Plan
• A Qatar SME Analysis: The Case of Ciko Middle East
• The Unilever Group's Strategies for the Next Five Years

Cite this page

Select style

• Chicago (A-D)
• Chicago (N-B)

BusinessEssay. (2023, August 12). PESTEL Analysis – Free Business Essays & How-to Guide. https://business-essay.com/analyses/pestel-analysis-research-paper-examples/

"PESTEL Analysis – Free Business Essays & How-to Guide." BusinessEssay , 12 Aug. 2023, business-essay.com/analyses/pestel-analysis-research-paper-examples/.

BusinessEssay . (2023) 'PESTEL Analysis – Free Business Essays & How-to Guide'. 12 August.

BusinessEssay . 2023. "PESTEL Analysis – Free Business Essays & How-to Guide." August 12, 2023. https://business-essay.com/analyses/pestel-analysis-research-paper-examples/.

1. BusinessEssay . "PESTEL Analysis – Free Business Essays & How-to Guide." August 12, 2023. https://business-essay.com/analyses/pestel-analysis-research-paper-examples/.

Bibliography

BusinessEssay . "PESTEL Analysis – Free Business Essays & How-to Guide." August 12, 2023. https://business-essay.com/analyses/pestel-analysis-research-paper-examples/.

• Total Quality Management Analysis
• Risk Management Analysis
• Competitive Analysis
• Competitors Analysis
• Mission Statement Analysis
• Financial Analysis
• Supply Chain Management Analysis
• Performance Measurement Analysis
• Organizational Structure Analysis
• Financial Statement Analysis

How to do a PESTEL analysis

PESTEL , also known as PEST is a descriptive analysis of the company’s environment. When we talk about the company’s environment or context, we refer to all those external factors that are relevant to the organization, so its analysis is vital for the generation of strategies or campaigns in the short and long term.

Today in Ingenio Empresa we explain what PESTEL analysis is, how it is done and a practical example.

Table of Contents

What is PESTEL analysis?

The PESTEL analysis consists of the description of the company’s context or environment through the consideration of factors:

• Technological
• Environmental

The analysis can be limited to the first 4 factors, remaining as a PEST analysis, since environmental or legal issues are not always applicable.

Some analysts go further by considering factors such as Industrial (PESTELI), Ethics (PESTALE) and Demographics (PESTALD).

What is PEST analysis for?

That said, PEST, PESTEL or whatever you want to call it, allows you to perform a strategic analysis to determine the current context in which the organization moves, which gives you an input for the creation of strategies to either take advantage of the opportunities obtained in the analysis, or act against potential risks.

This is why it is such a widely used tool by organizations. In addition, ISO standards such as 9001 include among their requirements the understanding of the organization’s context. Tools such as PESTEL evidences the fulfillment of these requirements.

Thus, we can consider 3 essential benefits of PESTEL:

• It is a tool of simple application, because it is very easy to understand and staff can appropriate it, this greatly facilitates the teamwork.
• It can be integrated with other tools such as SWOT or Porter’s Forces, and besides, it can be easily replicated in organizational strategy.
• It can be used in any type of organization (large, medium, small) or in large projects.

How to perform a PESTEL analysis

The PESTEL analysis allows us to characterize the context, understanding how it affects the product or service.

Actually, performing this analysis is not complex. How to do it is limited to reflection about the aspects of the environment that concern to the company.

Therefore, the success of the tool lies in the composition of the team that performs the exercise. Consider a team with knowledge of the company, participative. Better if it is made up of personnel who work in the field. Multidisciplinary. With people who are curious and informed about the country’s situation. Workers from different processes who know what they are talking about is vital.

Once the team is defined, prepare the worksheet. Although for group exercises it is convenient to use sheets of paper and post-it notes, I believe that this is not the case. A computer, an Excel spreadsheet (at the end of the post I will give you one) and a group of people ready to define the business environment is more than enough.

A good practice is to define the type of impact (positive or negative) and whether it will be short, medium or long term.

Then, the analysis of each factor begins:

Political factors

Evaluates how government intervention may affect the company.

• Changes in government and its electoral programs
• Fiscal policy
• Government subsidies
• Wars and conflicts
• Changes in legislation
• Changes in trade agreements
• International agreements
• Internal and external conflicts
• Political movements

An analysis of this type can show that the company must make “strategies” towards the politicians of a country so that the laws that are generated in the government bring benefits. Taxes placed on soft drinks or tobacco are examples of this, and companies can generate strategies to remove these measures.

Economic factors

Consider how the national and international macroeconomic environment may affect the organization.

• Employment rates
• Economic cycle
• Economic decisions of other governments
• Currency devaluation and revaluation
• Trends in distribution channels
• Government deficits
• Consumer confidence index
• Market protectionism

For example, the imposition of tariffs by Donald Trump’s decision on Toyota is part of an economic variable to be taken into account.

Social Factors

Evaluates culture, religion, beliefs, habits, preferences, etc.

• Education level
• Purchasing patterns
• Customer opinions
• Opinions or perception of the media
• Income level

Here’s a far-fetched example: Think that you have a company producing vacuum-packed meat and you want to open a plant on the Asian continent. Considering that the cow is a sacred animal in India, would you think of this country to build the factory there?

Technological factors

Today more important than ever. Every day brings a technological advance and there is no sector that cannot benefit from it. In my experience, this is the most difficult and untapped aspect of all. The challenge is for the organization to be aware of what kind of technologies can benefit it.

• Machine Learning
• New programming codes
• New machinery or technological devices
• 3D printing
• Technology replacement
• Software in the cloud
• Obsolescence
• Incentives for technology use

Ecological or environmental factors

Evaluates how the environment affects the organization.

• Climate change
• Consumption of non-renewable resources
• Environmental policies
• Liquid gases
• Natural hazards

For example, health centers, which are required by law to separate hospital waste.

Legal factors

Companies must comply with the law and the law is constantly changing. Sometimes not only the law of the country where the organization is located applies, but also the law of the country where you want to be.

• Intellectual property
• Occupational health and safety
• Sector regulation
• Protection laws
• Minimum wage

Example of a PESTEL analysis of a company

Consider a company that manufactures water purifying filters. In their strategic planning exercise, they perform a PESTEL analysis to determine the risks and opportunities of the business.

In the political variables they consider:

• A recent change of president.
• Mayoral elections to be held in two years.
• Approaches to conclude a trade agreement with Central America.

In the economic variables they define:

• Currency changes.
• The effect of the increase in the interest rate.
• The increase in exports in the last year.

Within the social variables they define:

• Change in society’s thinking about self-care.

Then in the technological variables:

• 3D printing as an opportunity to optimize costs.
• Loss of magnetic information.
• In the environmental variables they define:
• The work to obtain environmental certifications.
• The work with production waste.

Finally, in the legal variables:

• The mandatory implementation of the occupational health and safety management system.

Having done this, the company defines how these factors impact the expected timeframe and the type of impact.

The result is as follows:

The PEST analysis and its relation to the SWOT analysis

The PEST analysis can serve as an input for the SWOT analysis . This is usually done as a way of addressing chapter 4 of the ISO 9001 standard for the implementation of a quality management system.

If we take into account that the PEST describes the organizational environment, many of the results of this analysis will imply a large part of the opportunities and threats of the SWOT Analysis. Hence, both tools can be integrated to determine the context of the organization.

1 thought on “How to do a PESTEL analysis”

Leave a comment cancel reply.

Save my name, email, and website in this browser for the next time I comment.

Home Essay Examples Business Tesco

Tesco: Pestle Analysis

• Category Business
• Subcategory Corporation
• Topic Tesco

Introduction

Tesco is one of the leading UK retailers with operations in over 12 countries around the globe (Fatricia, 2017). Tesco started its operations in 1924 as a London based vegetable stall. Today, it has expanded to be the biggest supermarket in the UK, with the most massive superstores dealing with a variety of retail products and services, from food, hardware products, to insurance and finance services(Tesco, 2020). Globally Tesco is ranked the second-largest retailer after Walmart in terms of market share and profitability. This essay examines how Tesco supermarkets are governed and how the external environment impacts their business operations.

How Tesco Plc Is Governed and Management Structure

Like many supermarkets chains in the UK and across the globe, Tesco follows a hierarchical organizational structure (Meng, 2020). In this organization structure, all the company’s critical positions are divided into different segments, which ensure a smooth flow of operations across all their business premises. At the top of this structure are vital managers and leaders who have supreme authority and responsibilities.

Our writers can write you a new plagiarism-free essay on any topic

At the top of Tesco’s leadership is the Tesco board. The board is composed of 10 members who include the chairman of the board, the CEO, Chief financial officers, and four non-executive directors. Below the Tesco PLC Board are five committees. These committees include the audit committee, the corporate responsibility committee, the nominations committee, the remuneration committee, and the disclosure committee. The committee plus the board have the most significant responsibility and authority overall operations of the company around the globe. This top-level management performs supervisory roles and takes all critical decisions as to the functioning of the business. These managers also represent the company in major national and international market activities.

Beside this holistic approach to the management of the organization, Tesco organization has another structure at regional and store level. This is also referred to as the mediate level. It is the link between the top-level managers and the ground staff. The vice presidents and other managers are found on this level. They coordinate activities between these two levels and perform essential operations functions such as human resource management, marketing, and personal relations.

The last level at Tesco management is the base level. At the top of this structure is the regional manager. The regional managers are responsible for making key decisions regarding the stores located in their regions. Below him is the store manager. The store manager receives reports from three key personnel: the food trading manager, the non-food trading manager, and the personnel manager. Each of these managers also controls another set of managers; for instance, there are fresh food section manager and ambient food section managers who report directly to the food trading manager. On the other hand, the electrical section manager and the clothing section managers’ report to the non-food trading managers.

One of the critical reasons why Tesco has adopted this structure is that it is large and has several layers within its operations (Meng, 2020). Thus the organization opted to use a functional structure that focuses on different departments in their business operations. Besides, this structure is based on function as opposed to individual store locations. Secondly, since the company has operations across various countries around the globe, it would have been different for one person to monitor and control all activities. Thus, the hierarchical structure helps the company manage various departments and stores, but it also helps them handle different people differently across different countries and cultures.

Furthermore, Tesco has an elaborate purpose and vision it seeks to achieve-‘to serve shoppers a little better every day.’ hence it is crucial to have the best care for customers in all stores it operates. The hierarchal structure helps the company to achieve this goal.

Importance of Carrying Out Pestle Analysis

Pestle analysis is a tool used by business managers and experts to monitor and analyze the external environment factors that impact a given organization (Morrison, 2020). PESTLE is an acronym for the political, economic, social, technological, environmental, and legal factors that influence business operations. According to Morrison (2020) conducting a PESTLE analysis is an essential process that helps marketers to identify threats and opportunities. Besides, scholars agree that it is crucial to perform this analysis before venturing into any market. Similarly, if you have an existing business, the review is significant in conducting the SWOT analysis. As a result, the PESTLE framework is strategic planning, a tool that helps managers to reduce business threats in their market. The importance of conducting a PESTLE analysis range from the idea phase, product launch, product development, marketing strategies to increasing success.

One of the key importance of conducting a PESTLE analysis is the cost-effectiveness associated with the analysis (Boddy, 2016). The only significant costs associated with this analysis are the time. This analysis can be completed through a simple organization of data and collection of responses from stakeholders. Simply put, the PESTLE analysis is a straightforward analysis where the amount of research and resources needed to conduct this analysis is optional. Besides, anyone in the organization can do the PESTLE analysis.

Another significant importance of the PESTLE analysis is that it helps the organization to have a deeper understanding of the external environment in which they are doing business (Boddy, 2016). Without this analysis, the environmental factors that directly or indirectly affect organization success might go unnoticed. For instance, a pharmaceutical company trying to develop a vaccine or drug for COVID 19 may overlook other safety and consumer laws while pushing to develop its drug. Such a company may also neglect the technological changes and barriers that consumers face in less developed countries compared to consumers in developed countries. Similarly, some organizations have developed products that thrive in one market but fail miserably when exported to other markets. Thus, the PESTLE analyses help managers understand different influential factors that can affect the success of any product launched in the market. Consequently, it encourages the development of strategic thinking for a deeper and holistic understanding of the business environment.

The PESTLE analysis has proved to be an essential tool for analyzing specific products in a given market segment. Even though many firms used this analysis to analyze the entire organization, it can also be used to analyze particular products. This analysis can be used to analyze customer relationships as well as marketing plans. This narrowing of the analysis can raise alertness and awareness of the potential opportunities and threats within and outside the external organizational environment. For instance, the PESTLE analysis can be sued to tell whether there is an existing competitor, potential /upcoming competitors, or whether there are other products within the organization that may provide threats or opportunities for the organization or specific products. For instance, an organization may look into projections for population increase that can be used to develop products that meet certain age segments effectively. With the PESTLE analysis, a business can thoroughly examine changes and create new strategies to maximize profits. Without this analysis, the organization may be gearing to existing threats within their market segment.

Most of the business opportunities are found in the external environment. Thus an organization may use the external analysis to exploit and strengthen the firm’s operations. For instance, today, most business organizations are concerned with the changes in technology and social trends. As such, most of the organization has integrated social media channels in marketing and communication strategies. Today social media platforms such as Twitter, Facebook, and Instagram have become an essential tool for business communication and marketing campaigns. Thus social and technological changes have emerged as opportunities to expand and increase their sales revenues. Many organizations have used this tool to build marketing campaigns and reach out to new customers. A robust external analysis allows the business to convert the external environment to the customer before competitors do. However, as Morrison (2020) points out, it is crucial to understand your reason before conducting any PESTLE analysis activity. You should be able to understand the target audience or the product which you would like to increase.

TESCO PESTLE Analysis

Political factors.

Tesco headquarters are in the UK. Besides the company, major operations and supermarkets are found in the UK. Needle (2015) posits that businesses must comply with various legislation that ensures the smooth functioning and safety of their operations. As Tesco operates across multiple jurisdictions across the UK and Europe, it needs to keep up with the changing political landscape. Tesco also has to analyze the political stability of any country it is operating since the more stable the political landscape; the more opportunities are available for Tesco to exploit. One of the critical political activities that have impacted Tesco’s operations is the Brexit. The new regulations that will come after Brexit are formalized will have a significant impact on the business operation and the sales of the revenues. As such, Tesco should be ready to analyze the Brexit regulations and identify potential threats and opportunities. Similarly, the tensions between China and the United States have a significant impact on the organization’s operations. The trade tensions between these two superpowers have affected the regulations regarding the products and services emanating from these markets. Besides the changes in tax policies among the two countries and elsewhere where Tesco operates significantly affects the profitability of its stores.

Economic Factors

There are numerous factors that play a significant role in the consumption of the products and services that Tesco deals with. As a result, Tesco has to analyze the trends in the economic changes in every country that it operates. These factors have a considerable impact on the sales revenues, product distribution, and the overall profitability of the stores(Needle,2015). For instance, the company keeps a keen eye on the various changes in tax policies to leverage the same for its future success. However, despite its global presence, Tesco largely depends on the UK market segment for a significant share of its profits. Thus any changes in the UK economy will have a massive impact on the profitability of the company. For instance, the economic changes will affect how the company prices its commodities and how it delivers its products and services to the consumers. The additional costs associated with the changes in the economy will be transferred to the consumers. Thus Tesco largely depends on the inflation index to price its commodities. On the other hand, the sales volumes largely depend on the disposable income in the countries it operates.

Social Factors

According to Fatricia( 2017) social factors have played an instrumental role in the business strategies at Tesco supermarkets. Due to the current social changes and, people prefer buying products in one go and based on social trends. Through the analysis of the social factors, the company has switched from a retailer of food items to cum non-food model where it stocks a variety of both food and non-food items. The company has also realized that various consumers’ products and services are demands based on societal influence. Hence the choice of products and services depends on different cultural and social factors with which the store is located.

Tesco has been monitoring the changes and trends in society and the culture of its consumers for ages. Through this analysis, the company has managed to design stores, products, and services that meet these changing needs. Since most of the stores are located in urban and cosmopolitan areas, Tesco has realized that to beat competitors across the UK; it needs to provide consumers with sufficient products and services to choose from. Similarly, over the recent past, most of the UK consumers have shifted towards organic products, and the company has managed to capture its customer base by changing its attitude towards promoting social activities and healthy living through eating organic products. Corporate social responsibility, which has been linked to many organizations’ success, has become an integral part of Tesco competitive strategy. Today, Tesco hires locals in a move aimed at benefiting society(Tesco, 2020).

Technological factors

Over the last decade, there have been numerous technological changes in the retail and manufacturing sector. According to Rosnizam et al., (2020) these changes have affected how businesses such as Tesco are conducting their activities. Tesco has realized that it is essential to keep up with the changes in technology for it to become relevant and competitive in the retail sectors. Consequently, the company has been experimenting with various retailing aspects and has achieved significant success in many stores. For instance, the company has been operating an online store where customers can order products and get their products delivered at their doorsteps. Today over 40% of its customers shop online (Rosnizam et al., 2020). Tesco has also partnered with another giant in the industry, Amazon, to create the Amazon Go, a cashier-less billing technology that is likely to revolutionize the retail industry. Through this technology, the company aims to reduce the long ques in most of its supermarkets, which will make shopping to be less time-consuming.

Legal factors

Any changes in laws and regulations regarding trade and industry will significantly impact Tesco operations. Thus, the company needs to follow all the laws and government policies to smoothly and conveniently meet the client’s needs.

Government department such as food retailing commission has laid down various rules and regulation that all retailers must follow by all industry players. Besides, Tesco has to adhere to labor laws, including equal pay, gender, race, and ethnicity issues.

Environmental Factors

Tesco is involved in various environmental initiatives. The main aim of these initiatives is to comply with the government regulations on environmental protection and create a more sustainable business venture (Tesco, 2020). For instance, the company is involved in various activities aimed at reducing and removing all non-recyclable materials in the supply chain (Evan and Mason, 2018). The company has also ensured that it is engaged in sustainable sourcing of its products which adheres to a zero-tolerance policy on pollution and illegal sourcing of raw materials (Evan and Mason, 2018).

In conclusion, the PESTLE analyses of Tesco PLC showcase the various external factors that impact its business operations. This analysis helps the company and other interested parties evaluate the brand’s external business factors and some of its major products and services.

Bibliography

• Boddy, D. (2016) Management an Introduction, (7th edition), Pearson Press
• Evans, B. and Mason, R., 2018. The lean supply chain: managing the challenge at Tesco. Kogan Page Publishers.
• Fatricia, R.S., 2017. Strategic Analysis of Tesco Supermarket. Jurnal Manajemen Terapan dan Keuangan, 6(02), pp.69-86..
• Meng, M., 2020. Tesco Company Organisational Structure Chart Example | Org Charting. [online] Orgcharting.com. Available at: [Accessed 9 July 2020].
• Morrison, J. (2020) The Global Business Environment, (5th edition), Palgrave.
• Needle, D. (2015) Business in Context, An Introduction to Business and Its Environment, (6th edition), Cengage Learning.
• Rosnizam, M.R.A.B., Kee, D.M.H., Akhir, M.E.H.B.M., Shahqira, M., Yusoff, M.A.H.B.M., Budiman, R.S. and Alajmi, A.M., 2020. Market Opportunities and Challenges: A Case Study of Tesco. Journal of the community development in Asia, 3(2), pp.18-27.
• Tesco, 2020. Our History. [online] Tesco PLC. Available at: [Accessed 9 July 2020].
• Tesco, 2020. The Little Helps Plan Framework. [online] Tesco PLC. Available at: [Accessed 9 July 2020].

We have 98 writers available online to start working on your essay just NOW!

Related Topics

Related essays.

By clicking "Send essay" you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

By clicking "Receive essay" you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

We can edit this one and make it plagiarism-free in no time

We use cookies to give you the best experience possible. By continuing we’ll assume you board with our cookie policy .

Home — Essay Samples — Business — Company — Pestle Analysis of Savva Company

Pestle Analysis of Savva Company

• Categories: Business Analysis Company

About this sample

Words: 1566 |

Published: Aug 16, 2019

Words: 1566 | Pages: 3 | 8 min read

Cite this Essay

Let us write you an essay from scratch

• 450+ experts on 30 subjects ready to help
• Custom essay delivered in as few as 3 hours

Get high-quality help

Verified writer

• Expert in: Business

+ 120 experts online

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

Related Essays

2 pages / 690 words

5 pages / 2405 words

3 pages / 1328 words

1 pages / 485 words

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

121 writers online

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

Related Essays on Company

Lululemon Athletica is a Canadian athletic apparel retailer that was founded in 1998 in Vancouver, British Columbia. The company is known for its high-quality yoga and workout clothing, as well as its focus on sustainability and [...]

Victoria's Secret is a renowned American lingerie and beauty retailer, known for its glamorous fashion shows and iconic Angels. The company was founded in 1977 and has since become one of the most recognizable and successful [...]

In 2014, Sephora, a multinational chain of personal care and beauty stores, faced several strategic challenges and opportunities. This case study will analyze Sephora's business strategy, marketing initiatives, and competitive [...]

When it comes to the debate over Chevy and Ford, it's a topic that has been ongoing for decades. Both of these automotive giants have a loyal following and have been producing vehicles for over a century. In this essay, we will [...]

Nortel became a prominent telecommunications company during the 1990s, but saw a swift decline starting in August of 2000 due to unethical accounting procedures that dissociated the company with Generally Accepted Accounting [...]

They began steadily purchasing the base ice boxes from the Grand Rapids Refrigeration Company in 1918. . During the year, the company produced sixty-seven such refrigerators. By 1923, the Kelvinator Company held 80 percent of [...]

Related Topics

By clicking “Send”, you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

Where do you want us to send this sample?

By clicking “Continue”, you agree to our terms of service and privacy policy.

Be careful. This essay is not unique

This essay was donated by a student and is likely to have been used and submitted before

Download this Sample

Free samples may contain mistakes and not unique parts

Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

Please check your inbox.

We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

Get Your Personalized Essay in 3 Hours or Less!

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy .

• Instructions Followed To The Letter
• Deadlines Met At Every Stage
• Unique And Plagiarism Free