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ENVIORNMENTAL ANALYSIS
Submitted By:
VISHNU S
Business environment means all of the internal and
external factors that affect how the company
functions including employees, customers,
management, supply and demand and business
regulations.
Environmental analysis is a strategic tool. It is a
process to identify all the external and internal
elements, which can affect the organization’s
performance. The analysis entails assessing the level
of threat or opportunity the factors might present.
These evaluations are later translated into the
decision-making process. The analysis helps align
strategies with the firm’s environment.
Types of Environmental Analysis
 PESTEL
 STEEPLED Analysis
 SWOT Analysis
PESTELAnalysis
Political Factors
Economic Factors
Social Factors
Technological Factors
Environmental Factors
Legal Factors
Political Factors
• Pressure Groups & Lobbying
• International Wars
• Internal Conflict
• Government Term
Economic Factors
• Interest Rate
• Exchange Rate
• Taxation
• Availability of Credit Facilities
• International Trade
• Fiscal and Monetary Policies
• Per Capita Income
• Business Cycles
• Level of Unemployment
Social Factors
• Media views
• Tradition
• Values & Norms
• Attitudes & Opinions
• Lifestyle
• Religious beliefs
Technological Factors
• Technology maturity
• Energy
• Research & Development
• Communication Systems
• Manufacturing Capacity
Environmental Factors
• Climate
• Clean Energy
• Pollution
• Green Branding Issues
• Waste Disposal
• Recycling
Legal Factors
• Employment Law
• Health and Safety Law
• Competition Law
• Regional Legislation
• Investment Law
STEEPLED Analysis
• Social Factors
• Technological Factors
• Economic Factors
• Environmental (Ecological) Factors
• Political Factors
• Legal Factors
• Ethical Factors
• Demographic Factors
Evolution of STEEPLED Analysis
•Political
•Economic
•Social
•Technological
PEST
•Social
•Technological
•Economic
•Environmental
•Political
STEEP
•Political
•Economic
•Social
•Technological
•Legal
•Environmental
PESTLE
•Political
•Economic
•Social
•Technological
•Environmental
•Legal
•Industry
PESTELI
•Social
•Technological
•Economic
•Environmental
•Political
•Legal
•Ethical
•Demographic
STEEPLED
Ethical Factors
• Responsibility to Host Community
• Good Faith
• Universal Rules
Demographic Factors
• Educational Levels
• Age Distribution
• Number of People Within Working Age Group
• Net Inward Migration
SWOT Analysis
Strengths are positive attributes in the internal factor of
your business.
Weaknesses are negative factors in your business that
needs to be improved.
Opportunities are external positive factors which
predicts the prosperity of your business.
Threats are external negative factors that may affect
your business.
Businesses can make use of SWOT analysis to know
high performing areas, explore new initiatives, make
smarter decisions, identify the areas of improvement,
know the opportunities and foresee the challenges.
Knowing the strength & areas of improvement,
grabbing the opportunities and facing the
challenges are essential factors to be considered
in a business decision making process.
THANK YOU!

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Enviornmental analysis

  • 2. Business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations.
  • 3. Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization’s performance. The analysis entails assessing the level of threat or opportunity the factors might present. These evaluations are later translated into the decision-making process. The analysis helps align strategies with the firm’s environment.
  • 4. Types of Environmental Analysis  PESTEL  STEEPLED Analysis  SWOT Analysis
  • 5. PESTELAnalysis Political Factors Economic Factors Social Factors Technological Factors Environmental Factors Legal Factors
  • 6. Political Factors • Pressure Groups & Lobbying • International Wars • Internal Conflict • Government Term
  • 7. Economic Factors • Interest Rate • Exchange Rate • Taxation • Availability of Credit Facilities • International Trade • Fiscal and Monetary Policies • Per Capita Income • Business Cycles • Level of Unemployment
  • 8. Social Factors • Media views • Tradition • Values & Norms • Attitudes & Opinions • Lifestyle • Religious beliefs
  • 9. Technological Factors • Technology maturity • Energy • Research & Development • Communication Systems • Manufacturing Capacity
  • 10. Environmental Factors • Climate • Clean Energy • Pollution • Green Branding Issues • Waste Disposal • Recycling
  • 11. Legal Factors • Employment Law • Health and Safety Law • Competition Law • Regional Legislation • Investment Law
  • 12. STEEPLED Analysis • Social Factors • Technological Factors • Economic Factors • Environmental (Ecological) Factors • Political Factors • Legal Factors • Ethical Factors • Demographic Factors
  • 13. Evolution of STEEPLED Analysis •Political •Economic •Social •Technological PEST •Social •Technological •Economic •Environmental •Political STEEP •Political •Economic •Social •Technological •Legal •Environmental PESTLE •Political •Economic •Social •Technological •Environmental •Legal •Industry PESTELI •Social •Technological •Economic •Environmental •Political •Legal •Ethical •Demographic STEEPLED
  • 14. Ethical Factors • Responsibility to Host Community • Good Faith • Universal Rules
  • 15. Demographic Factors • Educational Levels • Age Distribution • Number of People Within Working Age Group • Net Inward Migration
  • 17. Strengths are positive attributes in the internal factor of your business. Weaknesses are negative factors in your business that needs to be improved. Opportunities are external positive factors which predicts the prosperity of your business. Threats are external negative factors that may affect your business.
  • 18. Businesses can make use of SWOT analysis to know high performing areas, explore new initiatives, make smarter decisions, identify the areas of improvement, know the opportunities and foresee the challenges.
  • 19. Knowing the strength & areas of improvement, grabbing the opportunities and facing the challenges are essential factors to be considered in a business decision making process.