Pest Analysis

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Task 3B What is a PESTLE Analysis? PESTLE analysis stands for "Political, Economic, Social, Technological, Legislative and Environment analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. PESTLE analysis is a useful tool for understanding the industry situation as a whole, and is often used in conjunction with a SWOT analysis to assess the situation of an individual business. It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. As part of the marketing planning process, a business has to analyse its external environment. One useful way of analysing the external environment is by grouping external forces into six areas using a PESTLE analysis. An organisation’s success is influenced by factors operating in its internal and external environment; an organisation can increase its success by adopting strategies which manipulate these factors to its advantage. A successful organisation will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates. Political Factors The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. Political factors that affect a business are usually beyond the control of the organisation. However, the business needs to anticipate changes and identify the action it needs to take to either make the most of an opportunity or ease a threat. A business must consider issues such as: * How stable is the political environment? * 2. Will government policy influence laws that regulate or tax your business? * 3. What is the government's position on
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