What is a pestle in university of hertfordshire - Essay Example

Pestle in of Hertfordshire According to of Hertfordshire, pestle are factors that affect the performance of the organization. For an organization to set its goal it must conduct a critical analysis on the pestel as they might negatively impact on the overall performance of the organization.One of the factors is political factors. These factors involves government policies, e.g. subsidies, tariffs etc that might impact on the organization. Other political factor includes banning of the sale of a certain product in order to protect the public.

Second factor are economical factors. Some of these factors include interest rates, change in taxation, economic growth, inflation and even exchange rates. When these factors are not considered when making critical decisions in the organization, they may impact negatively to the organization. The level of competition also has an impact on the overall decision to be made by an organization. Third factor is sociological factors. Cultural factor may negatively impact on the success of a product in the market.

Other social factors such as the religion may also have a negative impact on the organization. Fourth macro-factor that may affect the organization is technology. New technologies create new products and create a demand of specific services. Technology also poses a threat to the organization through increasing the level of competition. In addition, it creates new opportunities. Climatic factors such as weather and climate change may have a negative impact on the organization. Some of the organizations that are likely to be affected by this sector include farming, tourism and also insurance.

Lastly, Legal factors also affect the organizations existence and performance. Legal changes might bring about changes in the consumption behavior of the people. Passing of new laws may therefore create new opportunity or eliminate the product from the market. ReferencesLorat, N. (2009). Market audit and analysis. New York: GRIN Verlag.