Unit II Journal

Ha Huynh

Columbia Southern University

BUS 6320 Global Strategic Management

Michael Morris

October 12, 2021

 PESTLE helps a firm evaluate the external environment in which it operates or is likely to

operate. PESTLE analysis in an in-depth analysis of a market dependent upon a “new” mix of

parameters. Essentially, it helps answers a series of questions about PESTLE to help the firm

with its strategic choices. PESTLE stands for political, economic, social, technological, legal,

environment. In business, when attempting to achieve objectives in this modern age, performing

a Pestle analysis is the next best thing to a genuine reality check.

 Political: the government could impose a new tax or duty that would change the

industry's cost structure.

 Economic factors are considered in terms of: economic growth, inflation and interest

rates, economic stability, cost of goods and resources, unemployment policy, credit, etc.

 Social factors scrutinize the market environment and evaluate determinants such as

cultural trends, demographics, population analysis, etc.

 These factors relate to technological innovation that can influence on industry and likely

to favorably and adversely affect labor market performance.

 Changes in legislation that occurs in a country can affect business.

 Environmental factors such as weather, geographical location, temperature will also

greatly impact on business and consumer demand.

It's essential a firm carries out its PESTLE analysis systematically and formally. Most of all,

when planned or unplanned events happen like the recent renegotiations of NAFTA or Brexit,

and as part of regular strategic management, it is vital to do PESTLE analyses. Various forms

exist to help to do the analysis. However, we must always understand the goal of the analysis: to

help with strategic choices available to the businesses based on the outcome of the PESTLE

analyses.
 Ride-sharing market Uber been always in endless controversies. Political: Uber did not

have apparent insurance regulations, minimum salary complications and Uber faces bans in

many countries. Economic: Uber operates a sharing economy, fares is priced much cheaper and

easily make an appointment, Uber is very competitive and monopoly thus restricted in countries,

Uber brings new career chance but lower pay. Social: the drivers work hard and friendly, there is

very little scope of friction between the driver and the passenger, quick pick up, experience

passenger comfort has increased manifold. Technology: Uber’s frontend technology moves

faster, promotions are targeted by Uber to specific via social media platforms. Legal: focus to

prevent partial or complete bans in countries, follow worker safety and copyright

rules/regulations. Environment: many believe that Uber’s fuel usage increase and growth traffic

jams.