Pestle draft03


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  • If you take a look at the Case Study on Post Harvest Losses you can see that there is a column which describes the importance in time “ Importance” - Increasing > - Unchanged = - Decreasing <
  • Pestle draft03

    1. 2. <ul><li>An organization’s marketing environment is made up of </li></ul><ul><ul><li>Internal environment – internal customers, office technology, wages, finance etc. </li></ul></ul><ul><ul><li>Micro environment – external customers, agencies, distributors, suppliers, competitors etc </li></ul></ul><ul><ul><li>Macro environment – PEST analysis </li></ul></ul>
    2. 3. <ul><li>PEST analysis is a tool used in marketing to study the external factors affecting a business when a company or an organization tries to launch a new product or enter a new market. </li></ul>
    3. 4. <ul><li>Entering a new market </li></ul><ul><li>Launching a new product or service </li></ul><ul><li>Considering a potential acquisition </li></ul><ul><li>Investigating a potential partnership </li></ul><ul><li>Examining an investment opportunity </li></ul>
    4. 6. <ul><li>SWOT covers – </li></ul><ul><ul><li>Internal Environment </li></ul></ul><ul><ul><li>Micro Environment </li></ul></ul><ul><li>PEST covers – </li></ul><ul><ul><li>Macro Environment </li></ul></ul>
    5. 7. <ul><li>In contrast to a SWOT, PESTEL encourages you to think about the wider environment and what might be happening now and in the future which will either benefit or be of disadvantage to the organization, individual etc </li></ul><ul><ul><ul><li>– a kind of radar which picks up trends and developments in the external environment which can be used to inform longer term planning and strategy making </li></ul></ul></ul>
    6. 8. <ul><ul><li>Government type and stability </li></ul></ul><ul><ul><li>Freedom of the press, rule of law and levels of bureaucracy and corruption </li></ul></ul><ul><ul><li>Regulation and de-regulation trends </li></ul></ul><ul><ul><li>Social and employment legislation </li></ul></ul><ul><ul><li>Tax policy, and trade and tariff controls </li></ul></ul><ul><ul><li>Environmental and consumer-protection legislation </li></ul></ul><ul><ul><li>Likely changes in the political environment </li></ul></ul>The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses.
    7. 9. <ul><ul><li>Stage of a business cycle </li></ul></ul><ul><ul><li>Current and projected economic growth, inflation and interest rates </li></ul></ul><ul><ul><li>Unemployment and supply of labor </li></ul></ul><ul><ul><li>Labor costs </li></ul></ul><ul><ul><li>Levels of disposable income and income distribution </li></ul></ul><ul><ul><li>Impact of globalization </li></ul></ul><ul><ul><li>Likely impact of technological or other </li></ul></ul><ul><ul><li>changes on the economy </li></ul></ul><ul><ul><li>Likely changes in the economic environment </li></ul></ul>Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing
    8. 10. <ul><ul><li>Cultural aspects, health consciousness, population growth rate, age distribution, </li></ul></ul><ul><ul><li>Organizational culture, attitudes to work, management style, staff attitudes </li></ul></ul><ul><ul><li>Education, occupations, earning capacity, living standards </li></ul></ul><ul><ul><li>Ethical issues, diversity, immigration/emigration, ethnic/religious factors </li></ul></ul><ul><ul><li>Media views, law changes affecting social factors, trends, advertisements, publicity </li></ul></ul><ul><ul><li>Demographics: age, gender, race, family size </li></ul></ul>
    9. 11. <ul><ul><li>Maturity of technology, competing technological developments, research funding, technology legislation, new discoveries </li></ul></ul><ul><ul><li>Information technology, internet, global and local communications </li></ul></ul><ul><ul><li>Technology access, licensing, patents, potential innovation, replacement technology/solutions, inventions, research, intellectual property issues, advances in manufacturing </li></ul></ul><ul><ul><li>Transportation, energy uses/sources/fuels, associated/dependent technologies, rates of obsolescence, waste removal/recycling </li></ul></ul>Technology is vital for competitive advantage, and is a major driver of globalization.
    10. 12. Political (incl. Legal) Economic Socio-cultural Technological Environmental regulations and protection Economic growth Income distribution Government research spending Tax policies Interest rates & monetary policies Demographics, Population growth rates, Age distribution Industry focus on technological effort International trade regulations and restrictions Government spending Labor / social mobility New inventions and development Contract enforcement law Consumer protection Unemployment policy Lifestyle changes Rate of technology transfer Employment laws Taxation Work/career and leisure attitudes Entrepreneurial spirit Life cycle and speed of technological obsolescence Government organization / attitude Exchange rates Education Energy use and costs Competition regulation Inflation rates Fashion, hypes (Changes in) Information Technology Political Stability Stage of the business cycle Health consciousness & welfare, feelings on safety (Changes in) Internet Safety regulations Consumer confidence Living conditions (Changes in) Mobile Technology
    11. 13. <ul><li>PEST’LE’ Analysis is the extended form of Est analysis </li></ul><ul><li>L – Legal </li></ul><ul><li>E – Environmental </li></ul>
    12. 14. <ul><ul><li>current home market legislation, future legislation </li></ul></ul><ul><ul><li>European/international legislation </li></ul></ul><ul><ul><li>regulatory bodies and processes </li></ul></ul><ul><ul><li>environmental regulations, employment law, consumer protection </li></ul></ul><ul><ul><li>industry-specific regulations, competitive regulations </li></ul></ul>
    13. 15. <ul><ul><li>Ecological </li></ul></ul><ul><ul><li>environmental issues, environmental regulations </li></ul></ul><ul><ul><li>customer values, market values, stakeholder/ investor values </li></ul></ul><ul><ul><li>management style, staff attitudes, organizational culture, staff </li></ul></ul><ul><ul><li>engagement </li></ul></ul>
    14. 16. <ul><li>The main problem with these external PESTLE factors is that they are continuously changing </li></ul><ul><li>Therefore PESTLE analysis should include a thorough analysis of what is affecting the organization or a project Now, and what is likely to affect it in the Future </li></ul><ul><li>The result of a PESTLE analysis is usually a list of positive and negative factors that are likely to affect a project </li></ul><ul><ul><li>However, by themselves, theses factors they mean very little </li></ul></ul><ul><ul><li>It is important to bear in mind, that PESTLE analysis requires careful Application of results </li></ul></ul>
    15. 17. <ul><li>Other forms of PEST - PESTLE, PESTLIED, STEEPLE and SLEPT: Some people prefer to use different flavors of PEST analysis, using other factors for different situations. The variants are: </li></ul><ul><li>PESTLE/PESTEL: Political, Economic, Sociological, Technological, Legal, Environmental; </li></ul><ul><li>PESTLIED: Political, Economic, Social, Technological, Legal, International, Environmental, Demographic; </li></ul><ul><li>STEEPLE: Social/Demographic, Technological, Economic, Environmental, Political, Legal, Ethical; and </li></ul><ul><li>SLEPT: Social, Legal, Economic, Political, Technological </li></ul>