Professional Documents
Culture Documents
PEST Analysis
PEST Analysis
PEST Analysis
PEST Analysis
Macroenvironment and the PESTEL Analysis
When we talk about the 'macroenvironment', we talk about the external elements that
may influence an organization. A useful acronym to remember is PESTEL - the political,
economic, socio-cultural/social, technological, environmental/natural, and legal elements
that can affect the opportunities and threats an organization must be aware of. Watch
the video to learn more.
Related terms and concepts to external/PESTEL analysis may refer to 'industry analysis'.
As a bonus (especially when you take up strategic management courses in the future), a
more in-depth version of external analysis can cover Porter's Five Forces. You may
Google search for yourselves if you want to know more.
Legal
- Take account laws in the local market
- Example: (For cars) countries with Left hand drive
- Requirement different countries have
6) Consider challenges in logistics especially if your products are physical (vs digital).