PESTEL REPORT Essay Example | Topics and Well Written Essays - 1000 words

PESTEL REPORT - Essay Example Political, Economic, Social, Technological, Environment and Legal issues greatly differ in respect to domestic as well as the global structure. PESTEL analysis provides an overview towards the different external factors that the business or organization has to take into consideration. The Political environment of the country highly contributes to the stability of the nation which is as vital aspect to consider regarding the business development. Political factors include intervention of government policies, labor laws, trade restrictions and tax policies. The Economic influences of a nation or the global environment provide a great impact on the business operation and decision making. These factors include the growth of the economy, inflation rate, exchange-rate, globalization, GDP and GNP growth. The Social and cultural aspects of a region contribute considerably to the products demand and business market. The social factors include population growth rate, career attitudes, age dist ribution safety measures, educational infrastructure and cultural taboos. Technological aspect of the business determines the production level and affects the cost and quality of the products. Technological factors include R&D activity, automation, rate of technological change, emergence of new technologies and impact of communication. Environmental issues directly or indirectly affect the business well-being in regard to its kind. Environmental factors include ecological and environmental aspects such as climatic change, weather. Also environmental awareness creates an impact towards the production of products either positively or negatively. Legal issues are widely taken into consideration when establishing a business in a particular region. Legal factors include consumer law, discrimination law, employment law, and health and safety law. Depending on these factors, a PESTEL analysis should provide a context for the business in relation to its external environment. After having a brief introduction about all these factors, let us take a deeper discussion on the effect and influence of economic factors in business growth and development. Influence of Economic factors on business: The economic environment of a country greatly influences the businesses and their market. Though economic factors are out of control for business, it shows a profound effect on the performance and marketing of the business products. It contributes to the product demand, cost structure, pricing strategies, profitability and various other issues within the concern. In addition, it provides a direct impact on the behavior of the consumer in buying the business products. In case of international business, it is a vital one to consider the economic environment of the region or country as it provides a prominent influence over the business growth and its products market. On the whole, â€Å"the strengthening of an economy will generally benefit industries, but the extent of its effect wil l vary according to which economic factors are most affected.† (Henry 2008). One of the major aspects that impact business and economy is the Gross Domestic Product rate (GDP). A constant and positive level GDP is essential to sustain a good business economy. A business GDP has to be on a constant check and appropriate measures have to be taken to maintain the same. Appropriate changes to the policies will