A PESTLE analysis can be used to analyse a organisations current and future environment as

part of the strategic management process.

A PESTEL analysis is an acronym for a tool used to identify the macro (external) forces
facing an organisation. The letters stand for Political, Economic, Social, Technological,
Environmental and Legal

Political - These determine the extent to which government policy may impact on an
organisation or a specific industry. ………..

Ireland is a member of the EU and Eurozone , a lot of financial support from the EU received

Political decisions –

Covid

2022 - Restriction are lifting … Coming out of the pandemic … positive impact on business
…..

Gov imposed Restrictions : Non essential business closures – negatively affect

business – sales/profits decrease , many business closures …. ,

Tighter restrictions on the transportation of goods/ raw

materials from other countries - negative impact on
businesses as supply chains very badly effected

Pandemic payment – very generous €350 - positive …

facilitated spending as people still had disposable
income spend in business when unemployed … also
negative as encouraged business to voluntary
shutdown because due to the pandemic payments
available

Min wage increase – new law imposed …. ( legal ) €10.50 … Jan 2022

Positive – may increase productivity as staff get paid more they work harder ….More
disposable income so people spend more money in business – however inflation may
hamper this (Economic )

Small business negative … , increase their overheads , wages bill goes up may result in
letting staff go or business closures in extreme cases

(2021) - New Gov administration in America - president Joe Biden .. Positive political
decisions around international trade made - eg America and the EU , remove barriers to
trade that were imposed by Trump … this will have a far more positive impact business .
Joe Bidens links to Ireland will also have a positive impact on trade relationships between
Ireland and the US .

In 2022 – Joe Bidens presidency in the USA will continue to have a positive impact on
business in Ireland and the EU ….

Brexit –

Uk Political decision to leave the EU , very negative impact on Irish businesses ,

Ireland’s long standing trade relationship with the UK , Irish Business …. The blow
was softened as a deal was reached between the UK and the EU on Christmas Eve in 2020,
removing the barriers of trade such as tariffs ect … Also no hard border between Ire and
Northern Ire was agreed . However the administration cost for Irish businesses will greatly
increase for imports and exports with the UK , estimated to cost Irish businesses over 20
million annually , a drastic increase from 1.6 million.

Brexit – All companies with operations in the UK ….. the uncertainty with the political
environment looming is having a very negative impact on business operations …..

2022 – Brexit still continues to have a negative impact , however the agreement reached as
discussed above has definitely improved the situation but also as discussed above the
additional administration costs and time for Irish businesses are without doubt very
hindering …..

Brexit may also have a positive effect on the Irish economy and business as there is
even more opportunity for FDI re directed to Ireland and not the UK with more global
businesses looking for access to the Eurozone now . ( Remains in 2022 )

https://www.irishtimes.com/news/politics/ireland-s-relationship-with-britain-will-always-
be-close-and-special-taoiseach-1.4463472

2022 - New Global Corporation Tax rate of 15 %... Part OECD …Irish Gov agreed to this …
risk... as are corporation tax has risen from being one of the lowest in the world 12/5 % and
therefore attracted a lot of FDI into Ire that we may lose some of this FDI …. Ireland will
have to attract FDI for other reasons such as our educated workforce , access to the EU and
very supportive business environment ….

However – positive impact would be higher tax rate leads to higher revenue for the Irish
economy …
Positive impacts on business operations - Countries that have a stable Government and
good fiscal and taxation policies will have a positive impact on businesses that operate in
that country. Ireland would be regarded as having a stable government that influence the
economy in a positive way through government spending and taxation. …(2021 , see point
above her Corpo tax in 2022 … We have one of the lowest corporation tax rates in the world
at 12.5 % and this encourages FDI into Ireland which in turn results in a great deal of
business for indigenous firms who supply goods and services to these Multinational and
global businesses )

2022 - The Irish Government spends a great deal of money improving the infrastructure of
the country making it a better environment for businesses to operate. For example
increased spending on our transport systems such as better roads, ports and airports has
made it more easy for businesses operating in Ireland to import and export ….. Spending
on digital Infrastructure supports online business etc

US and China Trade war : American imposed high tariffs on imports from China to protect
their economy and China retaliate

Middle east and US Trade War : Oil ….

Negative impacts on business operations - Lack of political stability in a country effects

business operations. This is especially true for the companies which operate internationally.
For example , UK in relation to Brexit over the past number of years has led great deal of
uncertainty around the exit of Britain from the European Union and how this would affect
business in the UK , also any pending elections could result in uncertainly re the new
governments support for business eg in Ireland could further result in lack of consumer
confidence ……. Recent terrorist attacks which have taken place in the UK/ France/
America would resulted in political instability and have had a very serious effect on
businesses operating in these countries in particular FDI with the threat of these foreign
companies pulling out of these countries …..

2022 – Russia and the Ukraine - … political instability .. huge impact globally … America ,
Germany … threat of war … very negative impact on business globally …. Irish Fishermen are
being very negatively impacted by the Russian warships launching …kill fish … already
struggling …..

Economic …..

Positive impact on business operations - eg Countries that have a strong economy with good
economic growth such as Ireland / USA etc
Negative impact on business operations eg Countries that have a weak economy with poor
economic growth eg African countries, Britain (Brexit)

Irish economy has been the fastest growing in Europe after the bailout received from the EU
in 2013 , experiencing steady GDP growth however it has suffered over the last year due to
Covid 19 which has seen nationwide lockdowns having very negative effects on business in
Ireland with less demand for goods and services during and resulting in a decrease in GDP
of 3 % . However the Irish Government has announced a fiscal plan of €24.5 (from the IMF )
to distributed to support the recovery for the Covid crisis , this will have a positive impact of
businesses in Ireland in the form of tax incentives , grants , gov spending ect

Irelands strong economy attracts FDI to the country and these international businesses will
continue to play a big part in the recovery from the Covid 19 Crisis.

https://santandertrade.com/en/portal/analyse-markets/ireland/economic-political-outline

Social

Ageing Population

An Ageing global population - People globally are now living longer than ever before
which , life expectancy is higher and birth rates are lower. This increases the demand for
more products and services for this older demographic eg . health care and
pharmaceutical products

Aging Populations: A Blessing For Business (forbes.com)

Different cultures can impact certain industries negatively eg – Muslim countries and the
drinks industries/ Also how businesses market and promote to Muslim countries particularly
around women , global brands often adapt their marketing mix to cater for these cultural
differences / Meat -

Culture in Ireland , very social nation - entertainment , socialising , eating out , drinking ,
pubs, music etc Covid has had a very negative effect on the hospitality sector due to
restrictions imposed by the government on this sector ,

Trends and Lifestyle Choices

Social Media – impact businesses very positively for the most part , access to wider
markets , marketing & promotion far cheaper through this medium – Influencers, boggers,
vloggers – drive up sales for business. Negative publicity is also a risk through social media ,
can be very damaging for businesses . Social media - resulted in the discovery of new ideas
and cultures
Smart Technology – impact businesses in a positive way , customers have access to online
shops at touch on a button from phones etc , processes /operations have become a lot more
efficient because of technology (cheaper & faster ) Huge demand for tech gadgets – latest
versions of Iphone’s etc … Hige demand for technology over lockdown so that people and
business can stay connected , working from home, home schooling ,

Aesthetics - big trend one of the fastest growing sectors – beauty industry benefit from this
increasing demand for aesthetics which is encourages through social media , influencers etc

Health and Fitness – big trend … increasing … Fitness industry very negatively affected by
Covid with the closure of gyms etc whereas Pharmaceutical/ health care have
experienced expedited growth with a greater demand for pharmaceutical products and PPE
gear as everyone is trying to protect their health from Covid .

Negatives

Not reacting to change cam be detrimental for business , Nokia not responding to the
markets desires for smart phones led to a fall in the sales and profits . There were the
leading mobile phone provider before smart phones came onto the market

Technological

2022 With a huge shift to remote working forced on businesses due to the pandemic
technology has reshaped the way we do business

Impact of Technology 2022 - IEEE Transmitter

Positive

Technology allowed business operations to continue during covid - online platforms ,

working remotely etc

Reduce overheads for business - paperless office , less paper & printing costs which also
allows businesses to be more ethical - supporting a sustainable environment

Automation …. Operations/ processes more Efficient and effective ( quicker and cheaper
and l ess human error )

Internet resulted in on-line operations so now businesses have access to huge markets ie
global to sell their products and services which leads to increased sales and profits

Social Media : Facebook, twitter Instagram, bloggers , influencers etc new way of marketing
and promoting your business reaching a larger and wider audience at a fraction of the
traditional off line marketing and promoting techniques.
Negative

Technology doing the work of humans… people losing jobs

Costs can be very high particularly for smaller businesses – installing , maintaining and
upgrading …. Speed of change in tech advancements for business can be hard to keep up
financially

Increased competition for business due to accessibility to international markets via the
internet – websites , social media, e-commerce etc

Cyber Security – hackers etc …. Major issue for businesses , loss of customer confidence …
2020 Russian minister

Legal

Regulation of social Media platforms , governments tackling the spreading of harmful,

unture and illegal content - this will greatly impact the social media giants and all
businesses using social media

Low corporation tax – benefits business operating in Ireland

GDPR – Date protection , all business info is treated the same throughout Europe –
transparency and consistency for businesses and business customers

Plastic bag tax – reduced costs for businesses as no longer supply plastic bags and now
charge for them …

Negatives

Environmental laws have resulted in huge investment for business requiring them to make
their processes environmentally friendly eg waste management , renewable sources of
energy , ect .. result in higher costs for business but also businesses who are seen to support
a more sustainable environment will benefit for good reputation in the market , increased
support from various stakeholder etc …

Minimum rate of pay increases costs for businesses

Smoking ban – Ireland big impact on pubs, restaurants , nightclubs … very evident with the
amount of pubs , nightclubs closing particularly in rural Ireland

Drink Driving Ban – resulted in more closures

Tax on alcohol – increased excise duties every yr has encouraged more people to drink at
home

Environment
The rising costs of environmental compliance for business

Greta Thurnberg influencer

More demands on businesses to been environmentally conscious – driving up costs for

businesses : Increased carbon taxes , investment in more energy efficient process such as
renewable energies, replacing fossil fuels : oil gas and coal with renewable energies solar
powered eg. Sun , wind and water ….

Bord Na Mona : Peat plants in the midlands due to closed in 2020 due to damage that it is
doing to the environment . Carbon emissions from burning peat , produces higher CO2
emissions than burning coal : global warming

https://www.irishtimes.com/business/economy/john-fitzgerald-tackling-climate-change-a-high-
wire-act-1.4106070

Positive

Irelands stable climate , not much extreme weather results in benefits for business

Port cities eg Dublin , ability to trade internationally easier due to access to ports

South American climates have a positive impact on businesses involved in tropical fruits , tea
and coffee

Negatives

No control over climate – results in food , ingredients and raw materials ( oil , sand etc )
need to be imported

Ecological factors eg extreme weather condition can result in very negative or a complete
full stop on business activities

No control over essential raw materials for the most part here in Ireland eg. Oil so we are
very vulnerable to changes in supply and demand which will the effect the costs of
importing into Ireland - industrial businesses very reliant on such raw materials

Greta Thurnberg influencer

More demands on businesses to been environmentally conscious – driving up costs for

businesses : Increased carbon taxes , investment in more energy efficient process such as
renewable energies, replacing fossil fuels : oil gas and coal with renewable energies solar
powered eg. Sun , wind and water ….

Bord Na Mona : Peat plants in the midlands due to closed in 2020 due to damage that it is
doing to the environment . Carbon emissions from burning peat , produces higher CO2
emissions than burning coal : global warming

https://www.irishtimes.com/business/economy/john-fitzgerald-tackling-climate-change-a-high-
wire-act-1.4106070