PESTEL Analysis: A Strategic Tool for Marketing

Running head: PESTEL ANALYSIS
PESTEL Analysis
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1PESTEL ANALYSIS
Executive Summary:
The report gives an overview and analysis of the PESTEL framework as a tool of strategic
marketing. PESTEL is a tool used by the marketers for analyzing and monitoring factors of
external environment that has an influence on the organization. The report commences with a
conceptual overview of the PESTEL framework. The report also puts forward an analysis of the
PESTEL framework as a strategic tool in the perspective of Al Muntazah, a supermarket chain of
Bahrain. The report also undertakes PESTEL analysis of Australia, the chosen country, where
the chosen company wants to make an entry. There are also recommendations provided in
support of the market attractiveness of the chosen country that makes it suitable for entry.

2PESTEL ANALYSIS
Table of Contents
Introduction:....................................................................................................................................3
Conceptual Overview of PESTEL Framework...............................................................................3
PESTEL Framework as a Strategic Tool.........................................................................................5
PESTEL Analysis of the Chosen Country.......................................................................................9
Conclusion and Recommendations:..............................................................................................11
References:....................................................................................................................................12

3PESTEL ANALYSIS
Introduction:
The report gives an insight into PESTEL framework as a strategic tool for marketing.
PESTEL is a tool used by the marketers for monitoring and analysis of the factors of the external
environment that influences an organization. PESTEL represents a mnemonic that when
expanded denotes political, economic, social, technological, legal and environmental. The
framework however provides an overview of environment from different angles while
contemplating on a certain plan/idea. The facet of these techniques remains vital for a particular
industry. In other words, the PESTEL framework is the backbone of the strategic management
that defines the doings of the company along with holding accountability for the goals of the
organization. The report puts forward a conceptual and theoretical perspective of the PESTEL
framework from the purview of the chosen company, Al Muntazah. The report also undertakes a
sound examination of the PESTEL factors that the company needs to consider. There are also
recommendations on the attractiveness of the Australian market that will support the decision of
the chosen organization in making an entry.
Conceptual Overview of PESTEL Framework
The PESTEL is an acronym that represents the political, economic, social, technological,
environmental and legal factors. It is not only a powerful but also a widely used tool for
understanding the strategic risk of a firm. It aids identification of the impacts and the changes
taking place in the external macro environment of the firm (Rothaermel 2015). The external
environment comprises of the variables beyond the firms control but involves analysis for the
realignment of the corporate strategy and shift of the business environment. A firm however
operates as portion of a bigger ecosystem and remains vulnerable to varied exogenous factors