PESTLE Analysis

Presented by:-
Bhalodiya khushbu d.
Submitted to:-
snehal maam
Enrollment no:-
167600585003

SMT. Lauva patel MBA mahila collage, Amreli

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

entering a new region or country
concidering a new route to your market
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 :-
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.

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Thank you.

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