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Learn Financial Freedom Step by Step

PESTEL Analysis

If you are studying Business Environment in your class, you will learn a term PESTEL Analysis.  With PESTEL analysis, businessman makes his strategy. Suppose, you want to start your new business in any other country. You have to analyze whole business environment. If we have to show a small term of analysis of business environment, we will say, PESTEL Analysis. Now, we explain this analysis.



P means Political Analysis 

In political analysis, company sees whether there is corruption in the political system. If yes, honest company will avoid to do the business with that country. Company will also see the tax policy and international barrier. If Govt. policy is very clean for promoting his business, company will start, otherwise, company will not come. Company will make the list of strength and weakness list of political and govt. policies. If weaknesses are very low, then company will do his business in that country.

E means Economic Analysis 

Except, political environment, company has to check the economic environment analysis. If there is big rate of GDP, there is chance for company to grow the market. If there is high inflation cost, company's product cost will also increase. Company also study economic policy, economic system. Only after this, it will start his business in that area.

S means Social Analysis

We are social animal. We never live separate from our society. Our social morel, our social value, our social culture and our religion is our power. Company will study the social environment before starting his business in any area. Suppose, we all Indian celebrate the Dewali festival. You see that all big MNC also celebrate because they understand our culture and want to become its part.

T means Technological Analysis

Fast changing in the technology has made company alert. Every company's engineers analyze the technological environment. Company sees whether people would like to changes in the technology or not. Whether people are against the technological changes. What is the trend of technological environment changes. All these factors are helpful for company to survive.

E means environmental

Environment means physical environment. Today, you are seeing winter in Northern India. But, the cities near sea are not affected from this. So, business corporate will watch this. Suppose, you are starting your new tourism business in any area but there is the routine of raining. It will not be suitable for your business industry. So, every type business has to study the climate of nature.

L means legal Environment Analysis

In legal environment analysis, company checks different laws. Some laws may be against the freedom of business of company. So, company will check it before starting his business in such legal environment.

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Svtuition: PESTEL Analysis
PESTEL Analysis
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