Nevertheless, their decisions are always affected by certain macro-environmental factors. These include trade barriers, tax changes, changes in government policy, introduction of new laws, and demographic…
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The factors analyzed using PESTLE model includes political, economic, social, technological, and legal and environment (Henry 2008, P.51).
Political factors in this case include government policies, conflicts, and wars, pressure groups, trading policies, grand, findings and initiatives and government term and change. Economic factors include general taxation, situation of home economy and trends, market and trade cycles, international economies and trends, factors affecting industries, monetary issues, exchange, and interest rates among others. Social factors analyzed include demographics, lifestyle trends, media views, consumer’ patterns of buying, Company, brand and technology image, lifestyle trends, consumer attitudes and preferences, and religious/ethnic factors. Others include major events and influences, publicity and advertising and changes in laws that impact on social factors. Technological factors include technological advancement, maturity of technology, laws governing technology, and consumer purchasing mechanism among others. Legal factors on the other hand include current and future legislations, European/foreign legislations and regulatory processes and bodies. Finally, environmental factors include corporate social responsibility expectations and awareness, environmental legislations, consumer buying patterns, public awareness on issues affecting the environment and political issues pertaining to the environment (Allen 2010, P.54).
Wars and conflicts are some of the elements of the political factors that affect an organization’s strategic decisions and performance. Wars and conflicts usually come because of political instability and lack of democracy in a country. The UK is one of the most stable countries politically, which has witnessed minimal incidences of wars and political unrest for more than 3 decades. This trend is expected remain constant in the future following the measures
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To cope with the challenging tasks posed by the environment organizations need to develop a sound understanding, for this purpose organizations conduct external environment analysis. External environment analysis is a difficult task but important activity which includes scanning, monitoring, forecasting and assessing.
Tyrrells Potato Chips is a manufacturing company that produces potato chips in UK. It is owned and initiated by Will Chase, who was a farmer and used to grow potato and started making potato chips as a business. It is considered as one of the biggest competitive advantage of the company.
According to the report, Pestle Framework of Business, all the factors indicated in the pestle analysis have the potential of affecting the business both in positive and negative ways. As such, some of the issues that connect to the nature of reality are essentially determined by the different factors that attend to the forces of the market.
By lowering the discount rate, the Fed will decrease the money supply and vice versa. However, discount rates are used by the Fed for direct changes in the monetary policy rather than control the money supply. The discount rate is described as the interest rates charged on commercial banks borrow reserves by the Federal Reserve banks.
On analyzing the situation, it becomes clear that in this era of innovation & technological prowess, it is not safe to seat on past or present laurels. A company like Google will always have to think ahead in terms of future trends and if it wants to maintain its strong position, it would have to give shape to the future of technology by introducing path breaking innovations at regular intervals.
The author states that Apple’s main strategic advantage is the integration of its various hardware and software products, allowing customers to discover and download applications and books through either Mac or Windows-based computers or iOS mobile devices, allowing for ease of access and thus more frequent sales.
The external environment can be divided into two categories; the general environment and the competitive environment. Under the general environment, the strategist must analyze the political, economic, social, technological, environmental and legal (PESTEL)
For example, using SWOT, it is possible for the company to perform an internal and external analysis that provides a futuristic way of developing strategy. SWOT is
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