Difference between revisions of "PESTLE Analysis"

1. Political: analyses the extent to which the government leverages the economy through tax policies, fiscal policies, trade tariffs and so on having thus an impact on the company’s business.

2. Economic: analyses the overall performance of the economy which determines the way the companies will prise their products and services. The economic factors are: inflation rate, interest rate, foreign exchange rate, economic growth patterns, foreign direct investment etc.

3. Social: analyses the social factors like culture, population analytics, demographics and so on which can determine the buying trends of the companies’ products.

4. Technological: considers the existent technological innovation and its impact on the market.

5. Legal: examines the legal aspect of a market from two different perspectives; one is related to the laws within the business environment of a specific country and the other relates to the policies of the companies. According to these two perspectives and their matching degree the companies choose certain strategies.

6. Environment: refers to the environmental factors, namely: geographical location, climate and weather.The main businesses exposed to these factors are: agri-businesses, farming etc^[1][2]