Pestle analysis

Organizational Strategy theoratical work.

1. OrganIZATIONAL Strategy Selman Ay – 21260599

2. Presentation Agenda Introduction Definition of PESTLE Analysis Detailing each letter of PESTLE Aim of the analysis Coca Cola – PESTLE Analysis PESTLEWeb Conclusion

3. What is PESTLE Analysis? A  PESTL E analysis  is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization. The result of which is used to identify threats and weaknesses which is used in a SWOT  analysis .

4. The 6 factors make up the acronym PESTEL. Each letter represents one factor. It is often called PESTLE. You may these factors using other tests too. PEST, STEEP, and STEEPLE are similar analyses. Some other variations are STEPJE, STEP, and LEPEST. Managers can choose any based on the nature of the firm and the factors they wish to study.

5. Political Factors The political factors account for all the political activities that go on within a country and if any external force might tip the scales in a certain way. Trading policies Government changes Funding Foreign pressures Conflicts in the political area Shareholder and their demands

6. Economic Factors The economic factors take into view the economic condition prevalent in the country and if the global economic scenarios might make it shift or not. Disposable income Unemployment level Foreign Exchange rates Interest rates Trade tariffs Inflation rate

7. Social Factors Social factors are your consumers. You need to look at buying habits, emotional needs, and consumer behaviour in this section. Because these are the people who directly influence your sales. Ethnic / religious factors Major world events Demographics Consumer opinions and attitudes Trends Education Brand preferences

8. Technological Factors Technology can be directly involved with company products, like manufacturing technologies.   Technological development Research and development Associated Technologies Patents Licensing Information technology Communication

9. Legal Factors Legal factors have to do with all the legislative and procedural components in an economy. Also, this takes into account certain standards that your business might have to meet in order to start production/promotion. Employment law Consumer protection Industry-spesific regulations Competitive regulations Future legislation Environmental regulations

10. Environmental Factors Environmental factors have to do with geographical locations and other related environmental factors that may influence upon the nature of the trade you’re in. For example, agri-businesses hugely depend on this form of analysis. Ecological Environmental issues Staff attitudes Management style Environmental regulations Consumer values

11. Political Coca Cola products are at the mercy of the FDA. They must meet regulations, given by the government, to put products on store shelves. Economical Coca Cola products are distributed to hundreds of countries. And their income (roughly 70%) is from countries outside the United States. Social In Japan, they created 30 alternative flavors to appeal to Japanese consumers. In China, they are making similar efforts. Technological Machinery have helped Coca Cola manufacture products in better and higher quantities. Coca Cola has factories in Britain with top of the name machinery to ensure fast delivery times and quality product development. Legal Coca Cola retains all rights related to their business, including past and future products developed with a patented process. Environmental Coca Cola is affected by water accessibility. Water is necessary for soft drink development. But should something happen, like climate change, the company may be under fire.

12. Aim of PEST analysis PEST analysis  describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is part of an external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro-environmental factors to be taken into consideration. It is a strategic tool for understanding market growth or decline, business position, potential and direction for operations.

13. PESTLEWeb The PEST factors, combined with external micro-environmental factors and internal drivers, can be classified as opportunities and threats in a SWOT analysis. A graphical method for PEST analysis called ' PESTLEWeb ' has been developed at Henley Business School in the UK. Research has shown that PESTLEWeb diagrams are considered by users to be more logical, rational and convincing than traditional PEST analysis.

14. PESTLEWeb PESTLEWeb is a graphical ‘tool’ that allows you to map out your PESTLE Analysis as a picture. It helps to use pictures because… Human beings are very good at absorbing information visually through pictures To do a good PESTLE analysis you need to show connections between things in the environment and impacts on your business Pictures are a great way of building collaboration

15. Conclusion In conclusion, PESTLE analysis is an invaluable business tool that analyzes six different groups of external factors, all of which can affect businesses. From political ones to environmental ones, each of these categories presents a wide range of variables which can impact a business. However,  PEST analysis  (and its derivatives) is not an exhaustive technique that considers every type of factor, especially as some just can’t be categorized — so don’t be too concerned if you don’t get an even spread of different factors in your analyses!

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