PESTEL is one of the most effective strategic analytical tools available that can be used for analysing the external environment for the business (Klein, 2007). The abbreviation stands for political, economical, social, technological, environmental, as well as, legal factors that affect the business.
The following table illustrates the PESTEL analysis conducted for Oracle Corporation in UK marketplace:
Political
Environmental regulations and protection
Tax regulations
International trade regulations
The level of consumer protection
The level of political stability
Health and safety regulations
Contract enforcement regulations
Economical
Taxation
The level of economic growth
Interest rates
UK monetary policies
Unemployment rate and relevant policies
GBP:USD exchange rate
The level of government and consumer spending
Social
Social values
The nature of income distribution
Demographic tendencies
Social mobility of labour
Work-career balance
The level of consumer education
Personalities of opinion leaders
Technological
Technological breakthroughs in related to the software industry
Research and development
The level of energy use and associated costs
Innovations in information technology
The duration of technology life-cycle
Environmental
The activities of non-government environmental groups
Global warming issues
The impact of Oracle on environment and its consequences
Legal
Rules and regulations specific to the software industry
Other government regulations affecting Oracle in direct and indirect ways
References
Klein, G. (2007) “Strategic Marketing” GRIN Verlag
PESTEL is one of the most effective strategic analytical tools available that can be used for analysing the external environment for the business (Klein, 2007). The abbreviation stands for political, economical, social, technological, environmental, as well as, legal factors that affect the business.