5 Best and Practical Pestle Analysis Examples To Know
Any management student seeking assignment writing help must realize that businesses don’t thrive in a vacuum. There are some factors, which connect the businesses with the outside world that presents a rapidly changing landscape. If you can evaluate this landscape, and the attributes that influence the performance of your organization, then it becomes convenient for you to plan the course of action for the future. This is why marketers often resort to PESTLE/PESTEL analysis.
A PESTEL/PESTLE analysis is a potent tool used to determine the external forces that influence the growth and development of an organization. For Pestle analysis definition, PESTLE/PESTEL analysis stands for Political, Economic, Social, Technological, Legal and Environmental. , all of which are factors that impact the progress of a corporate organization.
Ahead of implementing any marketing strategy or plan, it is vital to perform a situational analysis. And the PESTLE/PESTEL analysis should be carried out at every stage to decipher the changes in the external factors. Organizations that effectively assess and respond to changes in the external factors are able to stay ahead in the competition and have a competitive edge.
So it’s essential for the marketing and business management students to know about these factors so that they can create an accurate PESTLE analysis on their academic papers. For the convenience of the students, we have also put together some examples of the PESTLE analysis for a better understanding of the students.
Examples of PESTLE/PESTEL Analysis
Starbucks is a popular American restaurant chain that has spread its wings in different parts of the world. Now let’s dive in to see how the external factors have contributed to its growth.
The primary political aspects that influence the organization is the sourcing of raw materials. Since most of its raw materials originate from various parts of the world, Starbucks is careful about complying with the regulations of the countries where the raw materials come from.
Even though the organization still has to deal with rising costs of operations and labour, but the rapid expansions are an indication that the organization has proper strategies in place to thrive even amidst the adverse economic situations.
As pointed out earlier as well, the organization has to keep the quality factor in mind, as that’s the most crucial social challenge that the company has to deal with as it reaches out to a larger consumer base.
Starbucks has already equipped itself with the technological advancements, and have tied up Apple to present a mobile app that offers discounts to the users.
Starbucks has to make sure it complies with the laws and regulations put forth by the governments of the countries it collects the raw materials from.
Starbucks also has to be proactive in maintaining an ethical and sincere approach so that it isn’t responsible for any environmental hazards.
So the students can understand from the aforementioned analysis that Starbucks is thriving in a relatively stable external environment. Also since it belongs to the food and beverages industry, there will always be a steady demand for their products among the consumers, even when there are economic concerns.
Microsoft is an American multinational organization that delves into advanced computer technology. Now let’s shed some light on the external factors that would have an impact on its overall operations.
The major political factors to influence the growth of the organization are listed down below.
- It should welcome an increased amount of governmental support for automation.
- It should put in place a huge number of international trade agreements.
- It should look for political stability in the majority of the markets.
The organization has to keep in mind the following economic factors to accelerate its growth.
- The economic prosperity in the majority of the countries where it has expanded its operations.
- The organization should also keep a watch on the disposable income of the middle-class sections.
The social factors that must drive the organization to growth are mentioned below.
- Promoting cultural diversity within the workforce and acquiring more talents from different parts of the world.
- The organization should also look into the demand for high quality customer service.
Since the company itself forays into technology, the organization has to integrate the following external technological factors into its framework.
- Amplifying the volume of online transactions
- Seamless implementation of mobile technology
- Integrating automation in businesses
The company has to take adequate measures regarding the following legal practices for the overall prosperity.
- Revising the patent laws
- Implementing the proper regulations for electronic waste disposal
- Maintaining the energy consumption regulations
The environmental factors that the organization should focus on to drive more growth are as follows.
- Implementing the ecologically sustainable approach while presenting their products
- Amplifying the use of recyclable materials
Through the PESTEL/PESTLE analysis of Microsoft Corporation, students can highlight on a multitude of opportunities that can propel the company’s success, development, and expansion in the global computer software and hardware market. All in all, the external factors are beneficial to the business, considering the endless possibilities that are available to Microsoft in markets on different parts of the world.
3. Tesla Motors Inc.
This multinational corporation is famous for manufacturing electric vehicles, energy storage, and solar panels.
The following political factors are at play in case of the growth of this organization.
- Political stability in the major markets for the organization
- Incentives from the government for electric automobiles
- Extending the agreements for free trade.
Mentioned below are the economic factors that affect the operations of the company.
- Reducing the expense of renewable energy
- Lowering the costs of batteries
- Dealing with the economic stability issues
Social factors and norms influence the company’s progress, as indicated in this section of the PESTEL/PESTLE Analysis of this organization.
- Rising practices of low-carbon lifestyles
- More emphasis on renewable energy
- Boosting the distribution of wealth in the developing markets
This section the Analysis identifies how technologies drive the company’s progress. The following external factors are crucial in Tesla’s automotive business:
- Increased rate of technological change
- Amplifying the automation in business
- Rise in the popularity of online mobile systems
There are certain environmental factors that affect the decisions and strategies of the organization. The following are some of the pointers that the organization has to take note of.
- Elevated standards on waste disposal
- Climate change
- Expanding various environmental initiatives
The students can focus on the profitability of Tesla Motors, Inc., which is likely to increase over time. They can also indicate how the organization is also striving to improve its operations in the global market.
Airbnb is a multinational organization that offers people with short-term lodging, rent and lease services. It’s an inexpensive alternative to hotel accommodations. Let’s discuss how the various external factors determine the growth of the organization.
The organization has to keep in mind the following aspects while dealing with the political factors.
- The organization must keep track of the tax rates and regulations in different countries.
- Implementing a secure experience for the consumers in war or conflict-prone areas.
The company needs to take in to account the following practices to deal with the economic factors that influence the operations.
- A steady income for the people who rent out the accommodation
- The organization should look for expansion in the developing countries as well.
The nature of this organization invariably involves social and cultural exchanges between people belonging to different parts of the world. So it becomes mandatory to deal with the social factors for the prosperity of the organization.
- The organization has to manage the diversified cultural exchanges with a lot of care and consideration.
- The organization has to be more proactive about educating the hosts from different countries regarding dealing with the people coming from the different cultural background.
The organization has to deal with the technological actors by implementing the practices mentioned below.
- Analyzing the consumer behaviour using technology
- Since the entire process of booking accommodations is through the app, it has to focus on providing seamless customer support to the users at all times.
Since the organization has expanded in many countries, the legal factors automatically come into play. The following are the issues that the organization has to focus on to prosper.
- The organization has to keep in mind the housing laws and Taxation laws.
- The organization should inform the hosts about the specific laws as well.
The organization has to pay attention to the following environmental factors that would guarantee its prosperity for the long haul.
- Educating the hosts about sustainability, proper waste management could work in favour of the organization
- Focusing on the cause of energy conservation.
From the analysis, students can emphasize on how Airbnb has a made a dent in the hoteling industry. They can indicate how the organization is using the existing resources and offering a steady income to those people (hosts) who are providing a space for the visitors.
In case of Amazon, the political factors are crucial in the development of the e-commerce industry.
- Governmental encouragement for e-commerce
- Promoting political stability in developed countries
- Striving for governmental efforts on stringent cyber-security
The following economic factors are crucial for the progress of the organization
- The rising disposable income in the developing nations
- The economic stability of the markets within the developed countries
Social conditions define Amazon.com Inc.'s growth and performance as a leading online retailer. Some of the issues that the organization should look into are-
- The organization has to implement policies to deal with the wealth disparity
- Keeping tabs on the online buying habits
The following are the technological aspects that the organization has to deal with to retain its success.
- An Increased technological obsolescence
- Promoting IT efficiency
- Focusing more on cyber threat policies
The legal aspects that the company has to emphasize on include-
- Increasing the product regulation
- Emphasis on environmental protection laws
Amazon Takes into consideration the following ecological factors in its strategic operations.
- More interest in environmental initiatives
- Increased emphasis on sustainability of operations
- Rising popularity of low carbon lifestyles
So the students can learn about the key issues that have to be taken care of by the organization to ensure the company’s long-term success. They can further determine how favourable the conditions are for further expansions of the company.
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