pestle analysis

PESTLE Analysis Presented by:Bhalodiya khushbu d. Submitted to:snehal ma’am

Enrollment no:167600585003 SMT. Lauva patel MBA mahila collage, Amreli

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What is pestle ? •

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There are many companies in the world who conducts PESTLE analysis on their brands in order to as certain strategies for the future or to understand the market before launching their products. It is a fundamental tool used for market planning and strategizing that must be carried out to comprehend market trends and the systematic risks involved in the market.

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 It is a macro environment which is used to

understand the impact of the external factors on the organization.  The 6 factors make up the acronym

PESTEL

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Political: The political factors account for all the political activities that go on within a country and if any external force might tip the scales in a certain way. 1) Political stability 2) Tax policy 3) Employment labor law 4) Environmental regulations 5) Trade restrictions 6) Tariffs etc.

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Economical 

It affects the decision making process of the organization.

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A global player must examine the economic issues in the world and find opportunities with such conditions for business growth.

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Example :-

1)

Economic growth

2)

Interest rates

3)

Inflation rate

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Social  It represents the culture of the society that an

organization operates .  It includes demographics, age, distribution,

population growth rates etc. 

Example :-

1)

Age distribution

2)

Population growth rate

3)

Emphasis on safety

4)

Career attitudes

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Technological  It is related to new inventions and development.  Affect the cost and quality of the outputs. 

Example :1) Automation 2)

Technology incentives

3)

Rate of technological change

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Legal  It consists of both external and internal sides. There

are certain laws that affect both sides of the business environment. 

Example :-

1)

Consumer law

2)

Antitrust law

3)

Employment law

4)

Discrimination law

5)

Health and safety law

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Environmental  It refers to ecological and environmental aspects

such as climate, weather and climate change.  Changes in weather and climate  Laws regarding pollution and recycling  Waste management  Use of green or eco-friendly products and practices

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When use the pestle Analysis 

launching a new product or service

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entering a new region or country

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concidering a new route to your market

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working as part of strategic project term

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Advantage 

provides an understanding of the wider business environment encourages the development of strategic thinking may raise awareness of threats to an organization's ongoing profitability can help an organization to anticipate future difficulties and take action to avoid or minimize their effect can help an organization to spot business opportunities and exploit them successfully.

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Disadvantage •

The rapid pace of change in society makes it increasingly difficult to anticipate developments that may affect an organization in the future. Collecting large amounts of information may make it difficult to see the wood for the trees and lead to "paralysis by analysis." The analysis may be based on assumptions that prove to be unfounded.

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factor

For example :pestle analysis of coca cola

Political

They must meet regulations, given by the government, to put products on store shelves.

Economic

Coca Cola products are distributed to hundreds of countries. And their income (roughly 70%) is from countries outside the United States.

Social

In Japan, they created 30 alternative flavors to appeal to Japanese consumers. In China, they are making similar efforts.

Technological

Machinery have helped Coca Cola manufacture products in better and higher quantities.

Legal

Coca Cola retains all rights related to their business, including past and future products developed with a patented process.

Environmental

Coca Cola is affected by water accessibility. Water is necessary for soft drink development. But should something happen, like climate change, the company may be under fire.

example

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Thank you….

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