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PESTEL / STEEPLE (Political (Factors such as the type of government,…
PESTEL / STEEPLE
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Political
Factors such as the type of government, ideology as shown by the attitudes in the free market, imposition of tariffs, business incentives offered and stability of the government
These involve government stability, form of the political structure, the attitude towards private ownership and trade policies or free-areas of trade.
Economic
Factors such as the GDP growth rate, inflation rates, interest rates and exchange rates
Objectives include control inflation, reduce unemployment, economic growth and equity in the distribution of income. These influence the objectives in a business
Social
Factors including population size and structure, lifestyle, age groups and education levels.
The responses of society towards a range of different issues - business ethics, social welfare, women, religion etc. can present opportunities (promote that the business supports or helps in an issue) or threats (acting unethically)
Technological
Factors include the state of the technological advancement and introduction of new technologies - e.g CAD or CAM
Advances in new technology has improved productivity. However, this can cause threats for a business = new working practices, new products in new markets, efficiency, quicker product development time etc. These can be costly, cause loss of jobs and even be unreliable.
Ethical
General code of ethics followed by most people in the country, and the tendency of people to be ethical
The principles that should be considered this can cause changes in objectives where bad press could occur. Or general changes in order to gain good press.
Legal
Legal factors include any law influencing business activity; competition, law, health and safety at work, employee / consumer protection
The gov. imposes legislations and laws in order to protect the general public from adverse business actions. This may cause a change in objectives for the business
Environmental
Includes weather and climate, flora and fauna or environmental pressure groups activity's
Changes in social attitudes towards the environment have meant that businesses also have to adapt, change objectives and review their role in the environment