Comprehensive PESTLE Analysis of Business Environment: A Report

This report delves into the PESTLE analysis framework, a crucial tool for businesses to assess their external environment. It examines the impact of political factors, such as government policies and trade regulations, on business operations. The economic factors, including interest rates and inflation, are also discussed, highlighting their influence on investment and growth. The report emphasizes the significance of social factors, such as consumer needs and preferences, in shaping business strategies. Technological advancements, including R&D and automation, are analyzed for their potential to enhance efficiency and competitiveness. The environmental factors, encompassing climate and resource management, are considered for their impact on sustainability. Finally, the report explores legal factors, such as consumer and employment laws, and their implications for compliance and risk management. The report uses various journals and online resources to support the analysis and provide a comprehensive understanding of the PESTLE framework.

ENGLISH ESSAY

ESSAY
According to Halbe, J. and et.al (2014) PESTEL analysis is one of the concepts in
marketing principles where organisations treat it as a tool to scan the market environment where
they see to expand their business venture. Further, it is also found that it is utmost necessary for
the business firm to undertake the same to get the competitive advantage over the rival
competitors who are working in the same industry. This framework has been made by
considering different elements which are necessary for the organisations to consider effectively.
It includes aspects like political, economic, social, technological, environment and legal.
From the viewpoint of Pomeranz, (2013), Political aspects are the one who determines the
extent to which the government has affected the economy of a particular industry. Political
factors include major areas like tax policy, labour law, environmental law, trade restrictions, etc.
Economic factor on the other side determines the economy performance that directly influences
a business venture and also have some resonating long term impacts. This factor involves
economic growth, the rate of interest, exchange rates, inflation rate, etc. These factors also
emphasise on how business tends to operate and make better decisions.
Social environment plays an important role as here; the manager has to scrutinise the
external environment and should majorly focus on as what customers are in need of. Satisfying
their needs will give venture a competitive edge over their major rivals who are working in the
same industry. Further, business ventures are also coming up with different types of social
techniques to motivate the morale of the employees so that they can work with best of their
dedication to meet their individual and organisational goals and objectives. Technological
factors usually focus on making innovations in the technology (What is PESTLE Analysis? A
Tool for Business Analysis, 2016). Organization to be successful has to use best of the
techniques so that they can give stiff competition to the rivals. Some of the technological
innovations can be seen in the form of R&D, automation, etc. Using best of the technique will
reduce the cost of the venture and also there will be the improvement in the working in the form
of quality.
Halbe, J. and et.al., 2014 also supported that there exist some factors which are usually
determined by the surrounding environment. It is necessary for the manager of any venture to
consider the best environment so that the organisation gets best of the output. Moreover, it also
includes weather, the climate where the firm is working. Major emphasise is given on satisfying
the utmost needs and demands of customers. Legal factors on other side have both internal and
external sides. There exist some major laws which can influence the performance of some firms

in some countries. Some of the legal factors consist of discrimination law, consumer law,
employment law, health and safety, etc. Ventures have to abide the same in clear and effective
manner.

REFERENCES
Journals & Books
Gillam, S. and Siriwardena, A.N., 2013. Leadership and management for quality. Quality in
primary care. 21(4) . pp. 253-259.
Halbe, J. and et.al., 2014. Functional organization analysis for the design of sustainable
engineering systems. Ecological Engineering. 73. pp. 80-91.
Pomeranz, Y., 2013. Food analysis: theory and practice. Springer Science & Business Media.
Online
What is PESTLE Analysis? A Tool for Business Analysis. 2016. [Online]. Available through: <
http://pestleanalysis.com/what-is-pestle-analysis/#>. [Accessed on 6th December 2016].