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PESTLEG Analysis

The document analyzes the PESTLE factors that can affect businesses globally and locally. PESTLE stands for political, economic, social, technological, legal and environmental factors. It provides examples of each type of factor and how they can impact businesses.

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Hương Ly Lê
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195 views8 pages

PESTLEG Analysis

The document analyzes the PESTLE factors that can affect businesses globally and locally. PESTLE stands for political, economic, social, technological, legal and environmental factors. It provides examples of each type of factor and how they can impact businesses.

Uploaded by

Hương Ly Lê
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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P. E. S. T. L. E.

G
ANALYSIS

G Global
Political

•Trade barriers: Trade barriers are regulations that governments put in


place to protect domestic businesses from international competition.
Governments may impose tariffs on imports or provide subsidies to help
boost support and sales for domestic businesses.

•Tax policies: Businesses must follow numerous tax regulations, such as


obtaining an Employer Identification Number. Governments may also
establish policies that increase or decrease the taxes corporations pay.

•Political stability: The political stability of a government can affect


businesses in that country. For example, if there are protests and strikes
against government actions, businesses may see a temporary lull in
consumer support.

•International relations: A country's relationships with other nations can


directly impact a business' ability to export and import goods and services.
For example, during a trade war, a company may not be able to import
materials they need from the other nation involved in production
Economic factors can directly impact businesses' operations
and profits. Economic and political factors may overlap, such
Economic as monetary policies that governments establish. Economic
factors typically include:

• Economic growth

• Interest rates

• Employment rates

• Foreign exchange rates

• Supply and demand

• Cost of raw materials

• Inflation rates

• Consumer spending power


Socio-cultural factors, social factors involve the
demographics, beliefs, attitudes and traditions of a region’s
inhabitants. These factors help businesses understand the
Social-cultural profiles and motivations of their potential customers.
Businesses can use these insights to develop marketing
strategies that align with customers' needs and behaviors.
•Cultural trends Examples of social factors include:

•Population growth rates

•Education levels

•Income levels

•Age distribution

•Health consciousness

•Lifestyles

•Career attitudes
Technological factors represent how businesses and
industries utilize technology to produce and sell products
and services or run operations. Businesses that stay
Technology updated on technological advancements can use them to
develop and improve their strategies and processes. Beyond
advancements, technological factors may also include
consumers' access to the following:

•Technology

•Technological infrastructure

•Emerging technologies

•Automation

•Research
Legal factors are the laws of the country in which a business
resides. These laws may overlap with other factors, particularly
political factors, and can impact how businesses in that country
Legal operate. As a result, businesses must stay updated on legislation
changes to ensure adherence to local and national laws. Here
are some examples of legal factors:

• Health and safety: Health and safety laws and regulations require businesses to follow
practices that ensure the health and safety of employees and customers.
• Equal opportunities: Equal opportunity laws prohibit discrimination during the hiring process
or in the workplace.
• International trade: International trade laws may regulate what businesses can import from
and export to other countries.
• Advertising standards: Advertising laws set standards for how businesses advertise their
products or services, such as requirements that these ads must contain truth or evidence to
support claims.
• Consumer rights: Consumer rights laws hold businesses accountable for maintaining
consumers' rights, such as information privacy and safety.
• Product labeling: Product labeling laws require businesses to label food and medicinal
products accurately and notify consumers of their contents.
• Product safety: Product safety laws require businesses to ensure their products are safe for
consumer use and provide warnings as needed.
• Labor laws: Labor laws might include things like minimum age and minimum wage for
employees, as well as the maximum number of hours an employee can work in a shift. Businesses
must adhere to labor laws to ensure they provide proper treatment to their employees.
• Environmental laws: Governments usually require that businesses, especially those in the
automotive, agriculture and chemical industries, adhere to regulations that protect the
environment from toxins and pollution. For example, an environmental law for clean air may push
a company to limit its emissions.
Environmental factors involve the impacts that changes in
Environment the natural environment can have on businesses. This
includes factors such as:

•Weather

•Scarcity of raw materials

•Pollution

•Climate change

•Waste disposal

•Agriculture

•Sustainability practices
Global forces impact on the world trade e.g. Ukraine War,
Global Middle-east conflict – Israeli and Hamas War

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