BY

S.ROHIT
(171FC01094)
 INTRODUCTION
 PESTEL
- POLITICAL
- EOCNOMICAL
- SOCIAL
- TECHNOLOGICAL
- ENVIRONMENTAL
- LEGAL
 Prospects of a business depends not
only on the resources but also on the
environment. Hence an analysis of the
environment is required for policy formation
and strategy formulation. So the PESTEL
analysis is used for analyzing the
international business Environment. PESTEL
is one of the management tool used for
analyzing the business environment, like
PESTEL there are some other tools like SWOT
Analysis, Porters 5 Force Model, Competitive
Analysis etc.,
 PESTEL is an management tool, to analyze the total
external environment that would affect the company.
It is a framework that organizes information gathered
form environmental scans, which allows decision
maker to understand and make connections with a
mass information.
PESTEL analysis examines six key macro
environmental factors in order to understand their
interactions with the organization. They are
 POLITICAL
 ECONOMICAL
 SOCIAL
 TECHNOLGICAL
 ENVIRONEMTNAL
 LEGAL
 Political issues are a function of how much the
government intrudes or is involved in an organizations
operations. In particular, it looks at taxation and
tariffs, regulations, political stability and elections.
For example:- Google was slapped with a 2.7 billion
fine by the European Union for antitrust abuses.
Issues to be considered:-
 How stable is the political environment?
 Will government policy influence laws that
regulate or tax your business?
 What is the governments position on
marketing ethics?
 Does the government have a view on culture
and religion?
 Marketers need to consider the state of trading
economy in short and long terms. This especially
true when planning for international business.
If we take U.S. Economy as a whole. The
economic factors like growth, employment,
inflation, and interest rates. Companies with
foreign operations will worry about the exchange
rates. These factors are important in long range
forecasts for revenue and expenses.
Issues to be considered :-
• Interest Rates
• The level of inflation, employment level, per-
capita etc.,
 Society and culture have great impact on
the business environment. These factors
includes demographics like population growth,
age, distribution, and attitudes towards safety
and health consciousness.
Issues to be considered:-
 What is the dominant religion?

 What are the attitudes to foreign products

and services?
 Does language impact upon the diffusion of
products onto markets?
 How much time do consumers have for

leisure?
 Technology is vital for competitive advantage, and
is a major driver of globalization many organizations
not only just seen the technological environment but
also monitor closely for a new and disruptive
processes. Walt Disney and Alphabet (Google’s parent
company) investing billions in virtual reality so that
the power to disrupt the gaming and entertainment
industries.
 Weather, climate, change, air quality, and
natural disasters are all environmental factors.
Some industries are especially at risk from
changes in the natural environment, including
manufacturing, agriculture, tourism and travel
and sports and entertainment. Many regulations
passed to control the pollution.
Shell Oil spent more than $7 Billion for
exploring parts of the arctic circle for oil, a
venture that is not possible. So the project is
cancelled due lack of results and strong
international protests that it may cause further
damage to an environmentally sensitive
locations.
 Legal factors include discrimination laws,
consumer protection laws and employment,
health and safety policies. Antitrust, piracy
and copyrights laws, as well as immigration
issues are also growing importance in the
business environment. All of these factors
affect how organizations operations, their
costs, and demand for products.