Analysis of 

Grupo Financiero Inverlat

Posted by Freddie Murphy on Aug-02-2021

At EssayPandas, we can help you complete different MBA assessment projects and theoretical
frameworks like PESTEL/PEST/STEP analysis of different companies. For instance, Grupo
Financiero Inverlat' PESTEL analysis will mainly focus on the external Macro-Environmental
factors such as Political, Economic, Social, Technological, Environmental, and Legal, that can
directly affect Grupo Financiero Inverlat.

A detailed PESTEL Analysis can help managers explore three inter-related environments, i.e.,
the overall industrial environment where the company is located, the geographic market or
country in which it runs its operations, and wider socio-economic factors. Below is a
demonstration of how this PESTEL analysis can be written step by step. Ask us for custom
PESTEL Analysis help if you still find it difficult.

1. Model introduction
PESTEL is an acronym for Political, Economic, Social, Technological, Environmental, and
Legal Analysis. This environment scanning tool is mainly used to understand the external macro-
economic influences on the industry, a particular sector, business, and its product/service
offerings. These environmental forces are considered external as they cannot be controlled by a
firm. However, an in-depth PESTEL analysis of Grupo Financiero Inverlat can enhance the
companies’ readiness to handle external environmental turbulence. It is one of the most widely
used strategic planning and management tools that help management in assessing the impact of
different environmental factors on the business and identifying the threats and opportunities that
reside in the external environment. By gaining an in-depth understanding of the external
environment, management can make wise strategic decisions according to the underlying
context.

PESTEL analysis is a simple and easy to apply environment scanning framework that facilitates
the understanding of the broader business environment. It encourages organizational
management to think strategically, and quickly respond to the external environment changes to
avoid or reduce the negative impact on business operations. It also encourages the management
to analyze the external business environment from different possible dimensions. However,
conducting a detailed PESTEL analysis involves extensive time, and the model cannot offer a
full picture of the environmental complexity. Moreover, the model does not clearly highlight the
complex inter-connectedness between different external environmental forces. Despite these
limitations, the model is still extensively employed to make important business decisions. Model
is found to be particularly helpful when firms need to make international expansion decisions.
The effectiveness of this model increases when it is combined with other strategic planning tools.