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DEMONSTRATION
BY:-
ABHISHEK KANSAL
ISHAN JINDAL
SONAAL GUPTA
ROHIN GUPTA
Definition
Describes a framework of macro-
environmental factor used in the
environmental scanning component of
strategic ...
Introduction
Earlier tools and techniques for ‘Scanning the
Business Environment’ appears to be by Francis
J. Aguilar (196...
What is Macro
Environment?
The conditions that exist in the economy as a
whole, rather than in a particular sector or regi...
PESTEL Analysis
PESTEL
POLITICS
ECONOMY
SOCIAL
TECHNOLOGY
ENVIRONMENT
LEGAL
Factor affecting PESTEL Analysis :-
Political Factors
Government type
Corruption
Freedom of press
Regulation and de-regulation
Tax policy
Change in political ...
Political Heat Map
INDIA
Economic Factors
Stage of business cycle
Current & projected economic growth
Inflation rate
Interest rate
Labor cost
Excha...
Social Factors
Health
Cultural aspects
Population growth rate
Demographics : age, gender, race
Social mobility
Ethics
Educ...
Technological Factors
Degree of automation
Emerging Technologies
Rate of Technological Change
R&D activity
Technology legi...
Environmental Factors
Weather
Geography
Infrastructure
Customer values
Market values
Environmental regulations
Disaster qu...
Legal Factors
Antitrust law
Consumer law
Employment law
Health & safety law
Industry specific regulation
Environmental law...
Applicability
The model's factors will vary in importance to a
given company based on its industry and the goods
it produc...
Issues of concern
The main problem with these external PESTLE factors
is that they are continuously changing. Analysis of ...
Case study of
STARBUCKS
Starbucks
Established in 1971
It offers world’s finest fresh roasted whole bean
coffee.
Total stores – 22519 in 67 countri...
Political Factor
The main political factor is about sourcing the raw
materials.
Tax Policy
Employment laws
Economic Factors
The ongoing global economic recession.
The company has to deal with rising labor and
operational costs.
L...
Socio Cultural Factor
Changing family patterns
Consumer preferences
Changing work patterns
Changes in lifestyles of popula...
Technological Factor
Emergence of innovative technology
Biotechnological developments
Developments in agriculture
Environmental Factor
Environmental rules and regulations
Environmental disasters in countries which
produce coffee beans
G...
Legal Factors
Introduction of stricter customs and trade
regulations
Licensing regulations related to the industry.
Polici...
Conclusion of Case
Study
The PESTLE analysis above proves that
Starbucks has a quite stable external
environment. The key ...
Thank you
Questions are
welcomed
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pestel ppt

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pestel ppt

  1. 1. DEMONSTRATION BY:- ABHISHEK KANSAL ISHAN JINDAL SONAAL GUPTA ROHIN GUPTA
  2. 2. Definition Describes a framework of macro- environmental factor used in the environmental scanning component of strategic management By understanding external environment one can take advantage of opportunities and minimize threat
  3. 3. Introduction Earlier tools and techniques for ‘Scanning the Business Environment’ appears to be by Francis J. Aguilar (1967) who discusses ‘ETPS’. Thereafter, this(ETPS) or ‘environmental scanning analysis’ was modified yet again to become a so-called STEPE analysis. The model has recently been further extended to STEEPLE and STEEPLED, adding Ethics and Demographic factors.
  4. 4. What is Macro Environment? The conditions that exist in the economy as a whole, rather than in a particular sector or region. It represents forces that affect all firms across all industries. Van Der Heijden a scenario planner identifies three types of uncertainty : Risk Structural uncertainty Unknowables
  5. 5. PESTEL Analysis PESTEL POLITICS ECONOMY SOCIAL TECHNOLOGY ENVIRONMENT LEGAL Factor affecting PESTEL Analysis :-
  6. 6. Political Factors Government type Corruption Freedom of press Regulation and de-regulation Tax policy Change in political environment Trade and tariff control Employment legislation
  7. 7. Political Heat Map
  8. 8. INDIA
  9. 9. Economic Factors Stage of business cycle Current & projected economic growth Inflation rate Interest rate Labor cost Exchange rate Impact of globalization Taxes
  10. 10. Social Factors Health Cultural aspects Population growth rate Demographics : age, gender, race Social mobility Ethics Educational infrastructure Division of wealth in society
  11. 11. Technological Factors Degree of automation Emerging Technologies Rate of Technological Change R&D activity Technology legislation Global & local communication Technology access
  12. 12. Environmental Factors Weather Geography Infrastructure Customer values Market values Environmental regulations Disaster quotient climate
  13. 13. Legal Factors Antitrust law Consumer law Employment law Health & safety law Industry specific regulation Environmental law Discrimination law
  14. 14. Applicability The model's factors will vary in importance to a given company based on its industry and the goods it produces. For example, consumer and companies tend to be more affected by the social factors, while a global defense contractor would tend to be more affected by political factors
  15. 15. Issues of concern The main problem with these external PESTLE factors is that they are continuously changing. Analysis of what is affecting the organization or a project Now, and what is likely to affect it in the Future is important. The analysis may be based on assumptions that prove to be unfounded. Collecting large amount of information may make it difficult.
  16. 16. Case study of STARBUCKS
  17. 17. Starbucks Established in 1971 It offers world’s finest fresh roasted whole bean coffee. Total stores – 22519 in 67 countries Mission – To inspire and nurture the human spirit- One person, One cup and one neighborhood at a time.
  18. 18. Political Factor The main political factor is about sourcing the raw materials. Tax Policy Employment laws
  19. 19. Economic Factors The ongoing global economic recession. The company has to deal with rising labor and operational costs. Local currency exchange rates Local economic environment in different markets Inflation rate
  20. 20. Socio Cultural Factor Changing family patterns Consumer preferences Changing work patterns Changes in lifestyles of population The level of education of the population in local markets Changing values among population
  21. 21. Technological Factor Emergence of innovative technology Biotechnological developments Developments in agriculture
  22. 22. Environmental Factor Environmental rules and regulations Environmental disasters in countries which produce coffee beans Global warming and other environmental issues in a global level
  23. 23. Legal Factors Introduction of stricter customs and trade regulations Licensing regulations related to the industry. Policies and regulations by health authorities.
  24. 24. Conclusion of Case Study The PESTLE analysis above proves that Starbucks has a quite stable external environment. The key reason behind this might be because it operates in the Food and Beverages industry. This means consumers might reduce consumption partially but will not stop buying completely. So, as recession is the most important factor, Starbucks has to lower costs and increase the value. This way it can retain its consumer base and also gain consumer loyalty.
  25. 25. Thank you Questions are welcomed

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