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PESTEL Analysis is also referred as PEST Analysis and is used as a tool by companies to track the environment which they are operating in or planning to launch a new product, service, project, etc. PESTEL Analysis is a concept in marketing principles which can also be expanded in a form which denotes Political, Economic, Social, Technological, Environmental and Legal. The entire environment can be viewed through PESTEL Analysis from many different angles from which one wants to keep a check or track while the contemplation of certain ideas or plans. In PESTEL Analysis, all the above mentioned aspects are necessary for any business industry. PESTEL Analysis proves to be one of the vertebrae of the backbone of the strategic management. More than just understanding the market, the PESTEL Analysis enables to understand what a company should do and also accounts for the organization’s goals and also the strategies attached to them. PESTEL Analysis is also known as the environmental scanning component of the strategic market. PESTEL Analysis Assignment Help informs us that the PESTEL Analysis gives the overview of different macro – environmental factors which are used for understanding market growth or decline potential, business positions and direction of operations.
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Composition of PESTEL Analysis
The basic compositions of the PESTEL Analysis are given in PESTEL Analysis Assignment Help.
- These are
• P for Political- As the word suggests, this component allows the intervening of the government in the economy and thus influencing certain industry. The government has the political factors like including taxes, trade restrictions, labour law, tariffs, environmental law, political stability, etc.
• E for Economic-Economic factors includes factors like economic growth, interest rate, inflation rate, exchange rates etc. Operating a business and making decisions are affected by this factor of the PESTEL Analysis which is given in PESTEL Analysis Assignment Help.
• S for Social- This aspect of the PESTEL Analysis includes the cultural aspects, health consciousness, age distribution, population growth rates, career attitudes, and emphasizes basically on safety. Social factors affect the demand for a product in the company and also the operation of the company.
• T for Technological-Technological landscapes changes very rapidly and this impact the way people markets their products. Technological aspects like R&D activity, technology incentives, automation and rate of technological change are included in factors of technology.
• E for Environmental-The ecological and environmental factors such as climate change, climate, and weather are the factors included here and affect the industries like farming, tourism and insurance. It is explained in PESTEL Analysis Assignment Help.
• L for Legal-In order to trade in a successful manner, the company needs to know what is legal and what is not legal. The discrimination law, antitrust law, consumer law, employment law, health and safety law are included in Legal factors.
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