Business Environment

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Forces that affect organisation’s ability Political

to develop and maintain successful Economic


transactions with its customers Social
Technological
Dynamic: ever changing in nature Legal
The Macro-Environment Can be sub-divided into Environmental
(external factors that affect an micro-environment and tool used to analyse and identify the key macro-
macro-environment environmental (external) factors that may affect an
organisation’s performance, many of organisation
which are beyond the control of the find out the current external factors
aims of doing the
business) affecting the organisation

Factors which the organisation


Business PESTLE analysis
identify which may change in the future

environment
has some control over

The market structure that the


PESTLE exploit the opportunities/defend against the
threats better than competitors

organisation competes in
used to examine the current and future state of
the industry an organisation belongs to
Has direct impact on the The Micro-Environment Strenghts
company’s strategy Weaknesses
Opportunities Step 1. Gathering information about factors
Employees
(Lifeblood of the business) Threats
the PESTLE process Step 2. Identifying which PESTLE factors
Customers Strategic planning tool
(Companies survive by meeting represent opportunities/threats

Elements
customer’s needs and wants.)
Suppliers SWOT Internal: strengths and weaknesses
(Good relationships with suppliers helps
combat rises in prices.)
External: opportunities and threats
Shareholders
(They own the company.) Specifying the objective of the business
venture/ project to identify the internal and
Media
external factors favourable/ unfavourable
(Can affect the business performance
through positive/negative attention.) to achieving that objective

Competitors
(Close observation allows
to differentiate.)
This mindmap is downloaded from
dineshbakshi.com

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