3 Pestel Framework
PESTEL FRAMEWORK
The framework provides a comprehensive list of influences on the possible success or failure of particular strategies. Important to do PESTEL analysis whilst developing a strategy!
PESTEL is an acronym which stands for;
Political
This highlights the role of governments. Firms will be directly affected by the actions of government and other political events. These might be major events affecting the whole of the business community or they may be actions affecting just one part of the economy.
Economical
This refers to macro-economic factors that affect business organisations. Economic factors can range from big to small, from local to national to international, from current to future;
Some example from the rising costs of raw materials to the market entry of a new rival, from the forthcoming Government Budget allocation to the instability of international exchange rates, from the current availability of investment funds to the likely future cash flow from a new product. Business must constantly take such factors into account when devising and acting upon its business strategy.
Social
Social influences include changing cultures and demographics. This aspect of the business environment concerns social attitudes and values. The social/cultural environment also includes social trends, such as an increase in the average age of the population, or e,g, changes in attitudes towards seeking paid employment while bringing up small children.
Technological
This refers to innovation such as the internet and the rise of new composite materials. MPESA and is impact on banks especially Equity Bank strategy.
Environmental
This refers specifically to the green issues such as pollution and waste. Opportunities created for green energy.
Legal
This aspect embraces the legislative constraints or changes, such as health and safety legislation or [example] restrictions on company mergers and acquisitions.
INSURANCE INDUSTRY
Political
Political stability which has led
The framework provides a comprehensive list of influences on the possible success or failure of particular strategies. Important to do PESTEL analysis whilst developing a strategy!
PESTEL is an acronym which stands for;
Political
This highlights the role of governments. Firms will be directly affected by the actions of government and other political events. These might be major events affecting the whole of the business community or they may be actions affecting just one part of the economy.
Economical
This refers to macro-economic factors that affect business organisations. Economic factors can range from big to small, from local to national to international, from current to future;
Some example from the rising costs of raw materials to the market entry of a new rival, from the forthcoming Government Budget allocation to the instability of international exchange rates, from the current availability of investment funds to the likely future cash flow from a new product. Business must constantly take such factors into account when devising and acting upon its business strategy.
Social
Social influences include changing cultures and demographics. This aspect of the business environment concerns social attitudes and values. The social/cultural environment also includes social trends, such as an increase in the average age of the population, or e,g, changes in attitudes towards seeking paid employment while bringing up small children.
Technological
This refers to innovation such as the internet and the rise of new composite materials. MPESA and is impact on banks especially Equity Bank strategy.
Environmental
This refers specifically to the green issues such as pollution and waste. Opportunities created for green energy.
Legal
This aspect embraces the legislative constraints or changes, such as health and safety legislation or [example] restrictions on company mergers and acquisitions.
INSURANCE INDUSTRY
Political
Political stability which has led
References: Gerry, J. , Kevan, S. , & Richard, W. (2008). Exploring corporate strategy: Text & Cases (8th ed.). Harlow: Financial Times Prentice Hall. Sloman, J. , Hinde, K. , & Garratt, D. (2010). Economics for business. (5th ed.). Harlow: Financial Times Prentice Hall. Insurance regulatory authority; strategic plan 2008-2012.