Pestal Essay

368 Words2 Pages
Produce a brief PESTE(L) report on your chosen organisation. What is the point of this? Pestel Analysis is very important to an organisation it considers it environment before it begins it marketing process. Pestal analysis allows an organisation to asses factors that could affect the growth and capital of a business. For example, a company wants to enter a market doing a pest analysis can allow them to see if the the market is rising, falling, already dominated by big companies, if the government has put rules and regulations in the market so making it hard for companies to start. Pest analysis is not just for new companies but existing companies also do pest analysis to see if different political, economical, social or technological factors has change and could affect the business. Pestel Analysis Political factors The government has a lot of power in the running of businesses. Companies must make sure that they run their business in accordance with government rules and regulations or face being punishment. A company like M&S has to make sure that they are running their business in accordance to the government regulations. An example would be if the government decides to raise the minimum working age to 18 M&S will have to make sure that all their employees are 18 or above. That would mean releasing all underaged workers. If M&S fail to comply with these regulations they can be heavily fined or in much serious cases be forced to close down. Another political factors that could effect marks and spencer is if the government decided to raise the minimum pay to £6. Marks and Spencer would have to increase pay of all employees who’s pay is bellow the minimum wage. Is it a opportunity or a threat? Political factors can be seen as a threat to most business. If the government decides to make laws or regulations concerning businesses it can affect

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