PESTEL Analysis - Manu Melwin Joy - School of Management Studies, Cochin University of Science and Technology

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Image result for pestel analysis A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factors that have an impact on an organisation. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis.

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Prepared By
Manu Melwin Joy
Assistant Professor
School of Management Studies
Cochin University of Science and Technology
Kerala, India.
Phone – 9744551114
Mail – manumelwinjoy@cusat.ac.in
Kindly restrict the use of slides for personal purpose.
Please seek permission to reproduce the same in public forms and presentations.

PESTEL Analysis
• A PESTEL analysis is a framework or tool used
by marketers to analyse and monitor the
macro-environmental (external marketing
environment) factors that have an impact on
an organisation. The result of which is used to
identify threats and weaknesses which is used
in a SWOT analysis.

Political environment determines the extent to which a
government may influence the economy or a certain
industry.

Economic environment consists of determinants of an
economy’s performance that directly impacts a
company and have resonating long term effects.

Social environment scrutinize the social climate of the
market, and gauge determinants like cultural trends,
demographics, population analytics etc.

Technological factors pertain to innovations in
technology that may affect the operations of the
industry and the market favorably or unfavorably.

Legal factors pertain to certain laws that affect
the business environment in a certain country.

Environmental factors include all those that influence
or are determined by the surrounding environment.

Political
Low cost manufacturing in China
calls to restrict Chinese imports in the United States
growing nationalism and anti-Americanism in China

Economic
Increased labour costs in China
Stagnating middle-class incomes in developed countries
A strong U.S. dollar could increase exchange rates

Social
Growth in consumer spending in africa
younger people in Apple’s established markets lack the
strong emotional attachment
A backlash against expensive products among some
customers

Technological
Competitors duplicate Apple’s products and services
(Google Pay in one year after the release of apple pay)
Limited New consumer products (Apple TV)
cyber criminals make Apple’s systems less secure

Environmental
disposal of used or nonworking electronic devices
Pollution from manufacturing facilities in China
transoceanic shipping and Apple’s supply chain
Apple is highly vulnerable to increases in electricity
costs

Legal
By offering financial services, Apple could face increased levels
of litigation
Entering the auto business could increase regulatory, insurance
and litigation costs at Apple.
intellectual property laws make the company highly vulnerable
to both piracy and litigation.

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Economic conditions, economic policies and the economic system are the important external factors that constitute the economic environment of a business. The economic conditions of a country-for example, the nature of the economy, the stage of development of the economy, economic resources, and the level of income, the distribution of income and assets, etc- are among the very important determinants of business strategies.

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Strategic Plan Part 2: SWOT Analysis Paper Douglas Razo BUS/475 July 14, 2016 Dr. Tem Bugarin Running head: STRATEGIC PLAN PART 2: SWOT ANALYSIS PAPER 1 STRATEGIC PLAN PART 2: SWOT ANALYSIS PAPER 9 SWOT Analysis Table External Forces Strength Weakness Opportunity Threat Trend Legal and Regulatory Government laws implemented to help business with goals. Unreliable laws with “loop holes”. An educated society; citizens know laws that can benefit their businesses. Laws to prevent scams become unreliable. Laws may/may not become effective. Global Business stability. The difference in exchange rate and economic standings. Demographic growth. Unforeseeable event; war, natural disaster, economic hurtles. Global stability. Economic Local, national, or international growth. Local, national, or international recession. Additional customers. Lack of growth. GDP Growth. Technological Improved capabilities. Supply and demand of newer products might require a wait time. A higher standard and quality of goods. Become reliant on technology. Technological advancements benefit businesses. Innovation Improved technology. Foreign competition. Constant future growth and improvement. Rise in prices. Creation of new ideas and concepts. Social New and anticipated movie release. Ineffective marketing attributes. Customer’s positive or negative word of mouth. Competition implements effective advertising elements. Connect with Customers. Environmental Weather. Preferred weather from customers. Undesirable weather by customers. Unforeseeable weather. Weather can affect the number of customers. Competitive Analysis Competitors struggling to accomplish their goals and meet quotas. Competitors surpassing Regals goals and quotas. Additional investors within the stock market. Unable to assess competitor’s information. Identify competitor’s abilities and plans. SWOT Analysis Table (Cont.) Internal Forces Strength Weakness Opportunity Threat Trend Strategy Can determine what Regal desires to accomplish. Unable to achieve goals. Assess and create goals based on economic growth, competitor analysis, and demographic growth. Unforeseeable events. Accomplish goals. Structures Good Location. Requires updating and renovation. Expansion or new location. Damage to the building. Reliable buildings. Processes and Systems Motivated and qualified managers who can accomplish tasks. Paperwork difficulties. Separate business interests. Changing the needs of customers. Allows for a stronger foundation for the business to grow. Resources Strong, reliable and affordable supply lines. Price, supply and delivery delays. Expand supply field. Business growth allows suppliers to set higher prices. Establish a strong business relationship with supply businesses. Goals Establish own goals based upon time of year. Unable to accomplish goals. Exceed and create new goals. Unforeseeable events affect Regals ability to achieve goals. Goals are met/ not met. Strateg.

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