![\"PESTEL](\"http:\/\/research-methodology.net\/wp-content\/uploads\/2015\/12\/PESTEL-Analysis.png\")
<\/a><\/p>\nThe majority of resources explain the application of PESTEL assuming their audience is business owners. This article adopts an alternative approach and below is the explanation of the framework for business students who have been assigned by their educational institution to conduct PESTEL analysis.<\/p>\n
Application of PESTEL as a part of your assignment can be facilitated via the following steps:<\/p>\n
<\/p>\n
Step 1: Data Collection <\/strong><\/p>\n If you have a choice, you should select a multinational corporation as a case study company to conduct PESTEL analysis due to the availability of relevant data about famous multinational enterprises. Company annual report along with official website of the company is the most comprehensive source of data needed to conduct PESTEL analysis. Additionally, you can purchase a company report<\/a> on this portal. The portal offers reports about the most famous multinational enterprises and repots contain PESTEL analysis of respective companies. Online versions of the most popular business journals and magazines such as Wall Street Journal, The Economist and Inc. are also effective sources data to be used for your analysis.<\/p>\n <\/p>\n Step 2: Deciding which factors to discuss<\/strong><\/p>\n There is a vast range of political, economic, social, technological, environmental and legal factors that effect the company you have chosen as a case study. You do not have the space to discuss all of these factors in your paper; therefore, you will have to choose the most significant factors for your analysis. Unfortunately, there is no general rule or a universal recipe as to what factors to discuss.<\/p>\n The table below illustrates the most significant factors that affect business organizations listed in order of importance:<\/p>\n 1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Government stability<\/p>\n 2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Level of bureaucracy<\/p>\n 3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Extent of corruption<\/p>\n 4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The freedom of press<\/p>\n 5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Home market lobbying and import restrictions<\/p>\n 6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Tax policies<\/p>\n 7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Trade control<\/p>\n 8.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Tariffs<\/p>\n 9.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Activities of trade unions<\/p>\n <\/td>\n 1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Macroeconomic climate in the country<\/p>\n 2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Inflation rate<\/p>\n 3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Interest rate<\/p>\n 4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Currency exchange rate<\/p>\n 5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Tax rates<\/p>\n 6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rate of unemployment<\/p>\n 7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cost of labor<\/p>\n 8.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Availability of credit<\/p>\n 9.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Changes in disposable income of consumers<\/p>\n 10.\u00a0\u00a0 Government\u2019s monetary and fiscal policies<\/td>\n<\/tr>\n 1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Changing family values<\/p>\n 2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Childless families<\/p>\n 3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Same sex marriages<\/p>\n 4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Aging population<\/p>\n 5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Population growth rate<\/p>\n 6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Health-consciousness of population<\/p>\n 7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Level of education<\/p>\n 8.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Consumer attitude towards imported products and services<\/p>\n 9.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Changes in consumer purchasing habits<\/p>\n 10.\u00a0\u00a0 Impact of religion and beliefs<\/td>\n 1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Industry-specific technological innovations<\/p>\n 2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Increasing popularity of e-commerce<\/p>\n 3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Increasing integration of IT and internet into business processes<\/p>\n 4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Changes in technological infrastructure<\/p>\n 5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rate of technological change<\/p>\n 6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Changes in communication infrastructure<\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/td>\n<\/tr>\n 1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Increasing media coverage of environmental issues<\/p>\n 2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Climate change<\/p>\n 3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Global warming<\/p>\n 4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Environmental pollution<\/p>\n 5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Impact of activities of non-government environmental organizations<\/p>\n 6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Ozone de-layering<\/p>\n 7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Consumer attitudes towards \u2018green\u2019 products<\/td>\n 1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Trade regulation\/de-regulation<\/p>\n 2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Regulation of competition<\/p>\n 3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Anti-trust rules and regulations<\/p>\n 4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Discrimination law<\/p>\n 5.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Copyrights, patents and intellectual property law<\/p>\n 6.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Data protection law<\/p>\n 7.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Employee health and safety rules and regulations<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n It is important to note that although in the table above factors affecting businesses are listed in order of importance, the patterns of data collected during the previous step may indicate that certain factors have the most significant impact compared to other factors on your chosen company for each category of factors. Your task is to determine specific factors under each category that proved to have the biggest impact on the business, appreciate the nature of the impact and understand the consequences.<\/p>\n <\/p>\n Step 3: Writing <\/strong><\/p>\n Depending on the total word count requirement specified in your assignment instructions, you will need to discuss about 4-5 factors under each category. The knowledge about the total word count requirement is important in a way that you need to discuss each category of factors and each specific factor with more or less equal numbers of words. One of the common and effective ways of conducting PESTEL analysis is to present the list of factors with the most significant impact on the form of table, similar to the table above, followed by discussion of each individual factor listed in the table.<\/p>\n <\/p>\n To assist with your assignment, you can find samples of PESTEL analysis here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" PESTEL is a strategic analytical tool used to assess external factors affecting businesses. PESTEL acronym stands for political, economic, social, technological, environmental and legal factors impacting companies. PESTEL has recently evolved from PEST analysis once intensifying forces of globalization and intensifying forces of competition in the marketplace coupled with other set of factors increased the importance and potential impact of environmental and legal factors on businesses. The majority of resources explain the application of PESTEL assuming their audience is business owners. This article adopts an alternative approach and below is the explanation of the framework for business students who have been assigned by their educational institution to conduct PESTEL analysis. Application of PESTEL as a part of your assignment can be facilitated via the following steps: Step 1: Data Collection If you have a choice, you should select a multinational corporation as a case study company to conduct PESTEL analysis due to the availability of relevant data about famous multinational enterprises. Company annual report along with official website of the company is the most comprehensive source of data needed to conduct PESTEL analysis. Additionally, you can purchase a company report on this portal. The portal offers reports about the most famous multinational enterprises and repots contain PESTEL analysis of respective companies. Online versions of the most popular business journals and magazines such as Wall Street Journal, The Economist and Inc. are also effective sources data to be used for your analysis. Step 2: Deciding which factors to discuss There is a vast range of political, economic, social, technological, environmental and legal factors that effect the company you have chosen as a case study. You do not have the space to discuss all of these factors in your paper; therefore, you will have to choose the most significant factors…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":7119,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"tpl-sidebar.php","meta":{"footnotes":""},"categories":[],"tags":[],"yst_prominent_words":[],"_links":{"self":[{"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/pages\/7137"}],"collection":[{"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/comments?post=7137"}],"version-history":[{"count":0,"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/pages\/7137\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/pages\/7119"}],"wp:attachment":[{"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/media?parent=7137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/categories?post=7137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/tags?post=7137"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/research-methodology.net\/wp-json\/wp\/v2\/yst_prominent_words?post=7137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n\n
\n Political<\/strong><\/em><\/p>\n Economic<\/strong><\/em><\/p>\n \n Social<\/strong><\/em><\/p>\n Technological<\/strong><\/em><\/p>\n \n Environmental<\/strong><\/em><\/p>\n Legal<\/strong><\/em><\/p>\n