Venturing through opportunities, threats, weakness and strengths only the strong succeed in the business world. In spite of the countless procedures and methods that a business can use to succeed, it would be easier for business to reach self-actualization by taking external factors under consideration. External factors “refers to external aspects of the surroundings of business enterprise which have influence on the functioning of business. The external aspects of the surroundings are by large, beyond the control of business” (Jain, Trehan, Threhan, 2009:3). PESTLE are the external factors that influence a business. According to the Oxford business dictionaries “PESTLE is the model that analyses external factors, it is defined as analysis
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PESTLE is the analytical tool that allows managers to identify macro-environmental factors that could affect business strategies, and how it can impact the future of a business (Businessmate,2015). CIPD (2015) explains that PESTLE provides a wider and clearer picture of the macro-environment that a business is surrounded by therefore making it easier for a business to make decisions as opportunities and threats would be exposed, consequently risks can be avoided and mistakes prevented or opportunities could be anticipated and taken advantage of. Additionally, using PESTLE to re-evaluate a business can inspire and set a light in decision making, the creation of new strategies, ideas and marketing …show more content…
The difference between legal and political factors is that legal factors are concrete legislations and regulation whilst political factors are attitudes and approaches (Oxford Learning Lab, n.d).In a PESTLE perspective legal stands as “what might be the impact of possible new laws”(Dooley, Guy, Goymer, Richards, Richards, 2006:52). A legal factor that has impacted business for example is the new National Living Wage— Wilkinson and Swinford (2015) a compulsory minimum wage pay raise from £6.50 to £7.20; additionally, due to the cut of corporation tax business will be able to afford this upcoming change. However, this is not the same for everyone as BBC (2015) explains that the legislation might negatively affect retail investors, small and medium size companies as this could potentially mean that their share price would fall causing loss in profit revenue which could lead to some businesses to close
PESTLE is the analytical tool that allows managers to identify macro-environmental factors that could affect business strategies, and how it can impact the future of a business (Businessmate,2015). CIPD (2015) explains that PESTLE provides a wider and clearer picture of the macro-environment that a business is surrounded by therefore making it easier for a business to make decisions as opportunities and threats would be exposed, consequently risks can be avoided and mistakes prevented or opportunities could be anticipated and taken advantage of. Additionally, using PESTLE to re-evaluate a business can inspire and set a light in decision making, the creation of new strategies, ideas and marketing …show more content…
The difference between legal and political factors is that legal factors are concrete legislations and regulation whilst political factors are attitudes and approaches (Oxford Learning Lab, n.d).In a PESTLE perspective legal stands as “what might be the impact of possible new laws”(Dooley, Guy, Goymer, Richards, Richards, 2006:52). A legal factor that has impacted business for example is the new National Living Wage— Wilkinson and Swinford (2015) a compulsory minimum wage pay raise from £6.50 to £7.20; additionally, due to the cut of corporation tax business will be able to afford this upcoming change. However, this is not the same for everyone as BBC (2015) explains that the legislation might negatively affect retail investors, small and medium size companies as this could potentially mean that their share price would fall causing loss in profit revenue which could lead to some businesses to close