Pestle Analysis and Business Strategies

Tutorial Questions
Contents
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INTRODUCTION...........................................................................................................................3
Pestle analysis:........................................................................................................................3
Zara (tangible and intangible resources)................................................................................4
Apple v/s Samsung.................................................................................................................4
TESCO...................................................................................................................................5
Reason behind LVMH diversification....................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
INTRODUCTION
For every business organisation, it is very essential to identify external factors that influence
on overall functions and operations of company. There are various business strategies used by
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companies such as competitive strategy, differentiation strategy and so on. Porter’s five forces
model is adopt by companies in order to gain information about competition level in market.
Pestle analysis:
It refers to a framework which is used by business organizations in order to examine the
market condition. By adopting this technique, managers can easily modify their strategies and
policies as per the changing environment so they can get favourable outcomes.
Political factor: Across the whole wide world, governments plays very essential and active
role which influences the overall performance of the company. In relation to BMW, Mercedes
Benz or Audi all these organizations are performing its functioning within same sector which is
automotive. Therefore, it has been identified that political environment highly affects the overall
performance in a positive manner as they provide ample number of opportunities for the business
organizations in order to expand their business functions at international marketplace.
Economical factor: Economic factor of a country have direct and strong impact on the
business functions. It has been identified that in the post recession era, companies are coming
back on the track which increases employment opportunities. In relation to the present context of
BMW, Mercedes Benz or Audi company getting positive response at the marketplace.
Social factor: Needs and requirements of an individual highly influence business entity.
Due to continues change in the demand of customers management team of BMW, Mercedes
Benz or Audi faces difficulties in order to satisfy the needs of customers at the same time beating
the competition level.
Technological factor: In reference to automobiles sector, it has been identified that role of
technology is growing at fastest level. In todays world customers are mainly looking for fuel
efficient as well as safer vehicles. Therefore, it requires new and advanced technology. In
relation to BMW, Mercedes Benz or Audi company have high quality advanced equipment and
technologies which will assist in producing high quality goods and services to their customers.
Legal factor: In reference to an automotive sector, it has been identified that organizations
need to adopt different legal policies so that they can provide safety to their customers. In
context of BMW, Mercedes Benz or Audi management team of the company needs to implement
some laws within their workplace so that they can easily conduct their functions at the
marketplace.
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