CHAPTER PROJECT

USING THE PESTLE FRAMEWORK, IDENTIFY THREE OR MORE TRENDS THAT

HAVE IMPLICATIONS ON TOURISM. YOU MAY DO THIS AS A COLLABORATIVE
GROUP ACTIVITY USING GOOGLE SLIDES.

A PESTEL FRAMEWORK, is a tool or for marketers. You may use it to assess and screen your
company's external marketing environment. The strategic management tool assesses macro-
environmental elements. The outcomes make decision-making considerably easier. Different
macro-environmental elements might have an impact on company strategies. As a result, it is
critical to adhere to the PESTEL framework. The goal is to determine how the various
components impact business performance. The PESTEL framework allows you to evaluate six
different types of environmental impacts. PESTEL is divided into six areas to aspects that can or
will impact the issue of the analysis.

They are:

o Political
o Economic
o Sociocultural
o Technological
o Environmental
o Legal
P olitical variables include how and to what degree a government intervenes on behalf of an
organization or an industry. It refers to the effects that government policies may have on your
company. Political variables such as political stability or instability, international trade policies,
tax policies, trade restrictions, and so on are examples of political factors.
 Tax policies
 Stability of government
 Entry mode regulations
 Social policies
 Trade regulations
 Trade traffics
 Labor regulations
 Health & Safety

E conomic variables, such as those mentioned above, determine an organization's or an industry's financial
status. Because these elements are so important in determining the supply-demand dynamics in the economy,
they have a long-term impact on a firm, whether direct or indirect. Economic variables such as economic
growth, the inflation rate, exchange rates, interest rates, and many more are examples of economic factors.

 Disposable income of buyers

 Credit accessibility
 Unemployment rates
 Interest rates
 Inflation
 Exchange rates

S ocial, or specifically, socio-cultural, aspects are concerned with the demographic characteristics,
norms, and practices of the population in which an organization operates. These characteristics assist
marketers in better understanding their clients' wants. It also emphasizes the local labor force and the
long-term circumstances under which they will be willing to work. Population growth rate, wealth
distribution, lifestyle preferences, and other social variables are examples.
 Population demographics
 Distribution of Wealth
  Changes in lifestyles and trends
 Educational levels
 Cultural differences
 Ethnicities
 Employment
 Location

T echnology has become critical to the health of every company's enterprise. Technology
advancements can have a positive or negative influence on industry and market operations. It has become
critical to examine and monitor these aspects. They provide a significant contribution to specific decision-
making circumstances, such as whether or not to enter a given sector. Technological variables include
research and development activity, automated processes, technological awareness, and so on.
 New discoveries and innovations
 Rate of technological advances and innovations
 Rate of technological obsolescence
 New technological platforms

E nvironmental concern. Also, the scarcity of raw resources, carbon footprint objectives, and
pollution standards have made them even more critical to the operation of a company.
Environmental considerations include ecological characteristics such as weather and climate, as
well as environmental offsets and so forth.
 Waste disposal laws
 Environmental protection laws
 Energy consumption regulation
 Popular attitude towards the environment

L egal businesses must now comprehend the legal framework within which they may function
effectively. While some of these elements overlap with the political aspects, they often contain
more specific laws and regulations, such as discrimination laws, copyright regulations, consumer
protection laws, and so on.
 Employment regulations
 Competitive regulations
  Health and safety regulations
 Product regulations
 Antitrust laws
 Patent and Copyright infringements
 Import/Export laws

REFERENCES
Contributor, Pestle. (n.d.). The PESTEL Framework Explained: 6 Important Factors. PESTLE

Analysis.

https://pestleanalysis.com/pestel-framework/#Political_Factors_in_the_PESTEL_Frame

work