In considering the macro-environment, the importance of analysing the factors that can have an effect or influence the demand and supply of an organisation must be put into application (Kotter and Schlesinger, 1991). The PESTEL factors are those components that make up the macro-environment. These factors include political, economic, social, technological, environmental and legal factors. According to Kotler (1998), PESTLE analysis is an effective vital tool that is used in understanding the markets increase or downturn, organisation position, control and direction for their operations. These factors affect large companies like Tesco, Apple, Amazon, Honda, Primark, Mc Donald etc.
PESTEL MODEL TEMPLATE
POLITICAL ECONOMIC SOCIAL TECHNOLOGY LEGAL ENVIRONMENT …show more content…
This factor consists of their demography, culture, education, income distribution and age. The needs of consumers and the potential size of the markets can be affected by these factors. This factor can be observed in the Honda Motor Co ltd. Due to the fact that Honda is a Japanese made car, it is quite difficult for them to sell in the UK market as a result of the solid beliefs of the consumers in their regional produced car brands In the UK. Therefore Honda which is a Japanese produced car introduced their ego-friendly automobiles (Honda Civic Hybrid) in order to advance the knowledge of the customers in the UK. They have also solved the problem of language or communication barriers by trading in the English Language which is of better understanding to the customers, to enable them go worldwide (UK Essay 2013). This has led them into becoming one of the top 10 manufacturers by market share in the last year, this is as illustrated …show more content…
increasing demand. This factor comprises of tech transfer, communication, invention, emerging technology and R&D efforts. However, in McDonald’s, they involve themselves in incorporating technology in organizing their activities in order to be ahead of their competitors. For instance, in the supply structure, the management organisation of the supply chain to control their supply, ease in payment and order together with wireless network internet for their customers. The application of this technology can enable effectiveness along with cost savings for the controlling of the organization in a long term (Mr. Xp 2008). This will facilitate customer satisfaction which enables customer loyalty. This has however, increased McDonald’s revenue since 2005 as indicated
PESTEL MODEL TEMPLATE
POLITICAL ECONOMIC SOCIAL TECHNOLOGY LEGAL ENVIRONMENT …show more content…
This factor consists of their demography, culture, education, income distribution and age. The needs of consumers and the potential size of the markets can be affected by these factors. This factor can be observed in the Honda Motor Co ltd. Due to the fact that Honda is a Japanese made car, it is quite difficult for them to sell in the UK market as a result of the solid beliefs of the consumers in their regional produced car brands In the UK. Therefore Honda which is a Japanese produced car introduced their ego-friendly automobiles (Honda Civic Hybrid) in order to advance the knowledge of the customers in the UK. They have also solved the problem of language or communication barriers by trading in the English Language which is of better understanding to the customers, to enable them go worldwide (UK Essay 2013). This has led them into becoming one of the top 10 manufacturers by market share in the last year, this is as illustrated …show more content…
increasing demand. This factor comprises of tech transfer, communication, invention, emerging technology and R&D efforts. However, in McDonald’s, they involve themselves in incorporating technology in organizing their activities in order to be ahead of their competitors. For instance, in the supply structure, the management organisation of the supply chain to control their supply, ease in payment and order together with wireless network internet for their customers. The application of this technology can enable effectiveness along with cost savings for the controlling of the organization in a long term (Mr. Xp 2008). This will facilitate customer satisfaction which enables customer loyalty. This has however, increased McDonald’s revenue since 2005 as indicated