Inflation and Pestle Analysis
Pestle Analysis
A pestle analysis is one of the most popular and effective methods of analysing the external macroeconomic factors that could impact on a business within a specific industry. Commonly, a pestle analysis will be used alongside other analyses that focus on internal factors. The combination of the pestle analysis with other factors will allow a company to create a strategic management plan of how to move its business forward in a way that maximises the opportunities available to it, externally. A pestle analysis comprises of six factors, namely political, economic, socio-cultural, technological, legal and environmental. The latter two have been recent additions to the pestle analysis (formerly known as pest) and reflect the growing importance of the environment and regulation to companies across all industries.
Pestle Analysis - Political
Political issues as part of the pestle analysis include all sorts of factors that normally derive from the government in the form of policies or legislation. For the purposes of the pestle analysis of a self-employed beautician, there is little in the way of trade restrictions and tariffs to be concerned about. With the government currently encouraging parents (and specifically single parents) back to work the beauty industry should see a growing number of workers available. As peak times generally evenings and weekends, this could certainly fall in line with the political drive to encourage mothers back to work as this would be the times where alternative childcare would not be available.
Pestle Analysis - Economic
The pestle analysis then goes on to look at the economic impact on beauty industry. Key areas for the pestle analysis include inflation rates, interest rates and general economic conditions. The Beauty therapies are usually considered luxury products; therefore, when there is an economic downturn, the number of customers is likely to reduce. Where individuals have less disposable income due to high
A pestle analysis is one of the most popular and effective methods of analysing the external macroeconomic factors that could impact on a business within a specific industry. Commonly, a pestle analysis will be used alongside other analyses that focus on internal factors. The combination of the pestle analysis with other factors will allow a company to create a strategic management plan of how to move its business forward in a way that maximises the opportunities available to it, externally. A pestle analysis comprises of six factors, namely political, economic, socio-cultural, technological, legal and environmental. The latter two have been recent additions to the pestle analysis (formerly known as pest) and reflect the growing importance of the environment and regulation to companies across all industries.
Pestle Analysis - Political
Political issues as part of the pestle analysis include all sorts of factors that normally derive from the government in the form of policies or legislation. For the purposes of the pestle analysis of a self-employed beautician, there is little in the way of trade restrictions and tariffs to be concerned about. With the government currently encouraging parents (and specifically single parents) back to work the beauty industry should see a growing number of workers available. As peak times generally evenings and weekends, this could certainly fall in line with the political drive to encourage mothers back to work as this would be the times where alternative childcare would not be available.
Pestle Analysis - Economic
The pestle analysis then goes on to look at the economic impact on beauty industry. Key areas for the pestle analysis include inflation rates, interest rates and general economic conditions. The Beauty therapies are usually considered luxury products; therefore, when there is an economic downturn, the number of customers is likely to reduce. Where individuals have less disposable income due to high