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    Caribbean Business Environment - PESTEL Analysis

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    Xperiment Beatz
    The document discusses a PESTEL analysis framework used to analyze the external business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors. The analysis breaks down opportunities and risks in each area and how they impact the company. The company then develops strategies to address these external factors. Each PESTEL factor is then defined, including examples of considerations for political, economic, social, technological, environmental, and legal factors.

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    Caribbean Business Environment - PESTEL Analysis

    Uploaded by

    Xperiment Beatz
    300 views6 pages
    The document discusses a PESTEL analysis framework used to analyze the external business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors. The analysis breaks down opportunities and risks in each area and how they impact the company. The company then develops strategies to address these external factors. Each PESTEL factor is then defined, including examples of considerations for political, economic, social, technological, environmental, and legal factors.

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    The document discusses a PESTEL analysis framework used to analyze the external business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors. The analysis breaks down opportunities and risks in each area and how they impact the company. The company then develops strategies to address these external factors. Each PESTEL factor is then defined, including examples of considerations for political, economic, social, technological, environmental, and legal factors.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    300 views6 pages

    Caribbean Business Environment - PESTEL Analysis

    Uploaded by

    Xperiment Beatz
    The document discusses a PESTEL analysis framework used to analyze the external business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental, and Legal factors. The analysis breaks down opportunities and risks in each area and how they impact the company. The company then develops strategies to address these external factors. Each PESTEL factor is then defined, including examples of considerations for political, economic, social, technological, environmental, and legal factors.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    Caribbean Business

    Environment
    FINA 3001
    PESTEL ANALYSIS
    Notes on this topic are taken from
    www.corporatefinanceinstitute.com

    PESTEL analysis is a framework used in strategic


    planning to analyse the external environment in which
    a business operates. The analysis breaks down the
    opportunities and risks into political, economic,
    social, technological, environmental and legal factors
    to see how they affect the company. The company
    then develops strategies to address them.
    PESTEL
    Political factors include tax policy, trade restrictions,
    tariffs and government bureaucracy
    Economic factors relate to how economic conditions
    impact firms. The main economic indicators that firms
    must consider are: economic growth (gross domestic
    product); interest rates; exchange rates; inflation;
    unemployment.
    Social factors refer to those factors related to the
    cultural and demographic trends in society. Social norms
    and pressures affect consumer behaviour and hence
    determines their wants and needs.
    PESTEL
    Social factors for consideration are: culture and
    perception; health consciousness; population growth
    rates; age distribution; career attitudes.
    Technological factors refer to innovation in the
    industry and the economy as a whole. Lagging behind
    in technology trends for a specific industry is very
    harmful to operations. Technological factors include:
    Research and Development R&D; Automation;
    technological incentives; the rate of change in
    technology. For example, a company decides to digitize
    its paper files for quicker access to company information.
    PESTEL
    Environmental factors refer to the ecological impacts
    on a business. The environmental factors that
    businesses have to pay attention to are: weather
    conditions; climate change; pollution; natural disasters.
    It is important that businesses pay attention to and plan
    for these eventualities as weather extremes have
    become more frequent. The impact of natural disasters
    has been felt around the world. Additionally, there is
    increasing pressure on businesses to become more
    environmentally friendly as seen in the new thrust
    towards corporate social responsibility.
    PESTEL
    Legal factors refers to any legal element that
    determines what a business can and cannot do. Legal
    factors include: industry regulation; licenses and
    permits; labour laws; intellectual property.
    There is sometimes a blurring of the lines between
    legal and political. This occurs when legislatures pass
    laws born out of a policy or policies developed by the
    government that affects how a business operates.

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