Pestel Analysis of the Macro-Environment
The ‘environment’ is everything happening in the world outside that is relevant to your business. As Baines(2011) describe : “The operating environment for all organisations is never static and seldom entirely predictable, and can therefore profoundly affect a company’s course of action.” Only after examine the nature of the marketing environment, we can therefore set up appropriate marketing strategies for organisation.
Generally, the marketing environment can be classified into three levels: the external environment, performance environment and internal environment. Organization may have different degree of influence on each level and elements in each level may also have different impact on organization itself.
The external environment is characterized in two ways. On one hand, the elements do not have an immediate impact on performance of an organization, on the other hand, organization may possess limit power to control them. The most popular framework examine the external environment is known as “ PESTLE” which stands for political,economic, socio-cultural, technological ,legal and ecological environment. PESTEL analysis of the macro-environmentThere are many factors in the macro-environment that will effect the decisions of the managers of any organisation. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyse these factors managers can categorise them using the PESTEL model. This classification distinguishes between: * Political factors. These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the
Generally, the marketing environment can be classified into three levels: the external environment, performance environment and internal environment. Organization may have different degree of influence on each level and elements in each level may also have different impact on organization itself.
The external environment is characterized in two ways. On one hand, the elements do not have an immediate impact on performance of an organization, on the other hand, organization may possess limit power to control them. The most popular framework examine the external environment is known as “ PESTLE” which stands for political,economic, socio-cultural, technological ,legal and ecological environment. PESTEL analysis of the macro-environmentThere are many factors in the macro-environment that will effect the decisions of the managers of any organisation. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyse these factors managers can categorise them using the PESTEL model. This classification distinguishes between: * Political factors. These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the