organization context part2

This week, I will talk about the Macro Environment, PESTLE Analysis.

PESTLE: (Political; Economic;Social; Technogical; Legal; Environmental)

Political

Political factors that influence business include:

1.The political changes at local, reginal, national, EU and international

2. The political integration of countries affect the business. For example: the grownth of the EU and lowering of trade bariers.

3.Changes in legislation For example: taxation and employmemt law, visas

4. Privatisation/Deregulation Policies

Economic

The economic factors includes the consumer activity- confidence, spending patterns, willingness to spend; Interest Rates; Inflation Rates; Exchange Rates; Unemployment; Fixed an variable business costs; Energy costs; State Investment; Effects of changes in labour and product market.

social-culture

People's lifestyle has changed in recent years, this suitation will affect the business.For example:

nowadays, people prefer the bicycles so that the car industries will loss many profits. There are many factors like this influnce the business: Shifts in value in culture;Changes in attitudes to work and leisure; Education and health; Deomographics eg, birth rate, life expectancy; Distribution of income.

Technlogical



1. Outcomes of changes in th technology that is used to design, produce or distribute goods or services

2. Production methods can go out of date quickly

3. Communication methods may be inefficient with IT developmenta

4. Government and EU investment policy

5.Indenrified new research initatives

Legal

The legal factors include the change in Law; Competition Law and government policy; Emplyment and Safety law; product safety issues; Laws to protect society and environment laws.

Environmental

Environmental factors include ecological and environmental aspects such as weather, climate changes, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

Example: Analysis the airline Indusry

 

• Political - Taxes that they get charged in different countries for landing, fuel taxation etc
• Economic -  Oil prices increasing, is this affecting their profits from increased fuel costs
•     Social - People are using more airlines to fly to their favourite holiday destinations because of the economic growth and therefore market has expanded and new opportunities for tourism have opened in previously frequently visited countries. 
•  Technological - high technology -cheaper
• Legal - Different legalities of different countries 
• Environment - The CO2 emission for 2 people traditional driving vacation will be around 20 Kg of CO2 which when compared with the emission caused by an airline would be around 1.4 tons. (add ref). There are reports that have warned that failure to limit greenhouse gases would lead to disastrous consequences. European Union will most probably imply tax aviation fuel on airline industry for their contributions to global warming.