Pestle Analysis

Question 1

What is PESTLE ANALYSIS

Answer 1

• This is a business analysis tool that aims to look at external factors and how they may have an impact on the business
• This aids strategic and tactical decision making, objective setting and helps a business to reach its goals.

Question 2

Political

Answer 2

Impact of political change: A change in government
• Government laws; minimum wage
• Brexit and new trading blocs post-Brexit
• Tax rates (e.g. increase in VAT)
• Tariffs (when importing into the UK)

Question 3

Economic

Answer 3

An increase in interest rates here • An increase in inflation
• Unemployment rates video here • Recession
• The business cycle

Question 4

Social

Answer 4

• A change in demographics and its impact on products produced and markets
• Culture mix changes in the UK
• Social trends e.g. Vaping

Question 5

Technological

Answer 5

Automation, new robotics and how it can improve productivity
• Innovations in the industry
• Research and development in the industry • New computer systems
• Trading online

Question 6

Legal

Answer 6

Health and safety at work act in terms of PPE and regulations
• Data protection Act
• Sale of Goods Act
• Sex Discrimination Act

Question 7

Environmental

Answer 7

Climate change, caused by farming, see article here
• Weather (e.g. in farming and tourism) •Sustainable production and CSR
• Disappearance of wildlife,