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STEEPLED Demographic STEEPLE Ethics SPELIET
The PESTEL Analysis provides you with a framework that enables
you to investigate your external environment by asking questions
for each factor and discussing the likely implications.
• What are the key politicalfactors?
• What are the importanteconomic factors?
• What cultural aspects are mostimportant?
• What technological innovations are likelyto
occur?
• What current and impending legislation may
affect the industry?
• What are the environmentalconsiderations?
POLITICAL FACTOR
Trade
Government u reaucracy
B
Restrictions
Stability Issues
of Reforms
Employment
Government Stability of
& Operational
Leadership Neighbors
Laws
GOVERNMENT STABILITY EMPLOYMENT &
OPERATIONAL LAWS
World Bank Political
Worldwide Stability & • Support to Training and
Governance Absence of Employment Programme for
Indicators. Violence/Terr Women (STEP) .
orism Value • Entrepreneurship
Date Value Development Programme,
Skill Development Programme
2013-12-31 12.32 (SDP),Management
2012-12-31 11.85 Development Programme .
2009-12-31 10.90 • Monetary & Fiscal Policy of
2005-12-31 17.79 Govt. of India.
1996-12-31 19.23
TAX REGULATION TRADE RESTRICTIONS OF
REFORMS
• The rate of the individual and • FERA Restrictions Removed.
corporate tax has been
reduced in order to bring more • RTP Restrictions Removed.
people in the tax net. • Free Entry of Foreign
Investment.
• Local Arms Of MNCs Come
Under Service Tax Scanner. • Reduction in Restrictionsof
Export-Import.
• Heavy reduction in the import
duties has been implemented.
GOVERNMENT LEADERSHIP CORRUPTION LEVELS
Economic
legislation EEE Economic
system
Economic
policies
Importance of Economic Environment
• Helps to estimate the markettrends.
• It’s a leading indicator of government goals and its planned
use of economic tools and marketreforms.
• Determine opportunities and threats.
• Giving directions for economicgrowth.
• Help to deal with businesschallenges.
Factors affecting Economic Environment
• Growth rate
• Inflation
• Business cycle
• Labor cost
Limitations of Economic Environment
• Reduces the individual freedom of choice.
• Less scope of foreign investment.
• Imposes too many restrictions.
SOCIAL FACTOR
Research Government
Production
& Activity &
Efficiency
Development Legislation
Importance of Technical Environment
• Automation
• Improved quality of parts and endproduct
• Incentives
• Significant costsavings
• Use of outsourcing to control costs and offer greater flexibility
ENVIRONMENTAL FACTORS
• Environmental factors include those factors that influence or determine
surrounding environment.
Organization Government