PESTEL ANALYSIS To understand the Macro environment in which the industry is situated in terms of Six major factors that impact the industry. Each of these factors has the potential to impact the firm and its competitive environment
Environmental Factors Weather, climate change and their associated factors. These factors, impact industries such as insurance, farming, tourism, energy productions, etc., Political Factors: Public Policies, Tax, Fiscal Policy, Tariffs, Political Climate, foreign direct investment policy, etc.
Technical Factors: Technical changes and developments, genetic engineering, nanotechnology, patents and copyrights law in these areas, etc.
P
T
E E
S L
Socio-culture Factors: Societal values, attitudes, culture, lifestyle, demographic factors, etc.
Legal Factors: Laws and regulations complied by the company like labor laws, antitrust laws, health and safety. Other laws that impact the firm directly or indirectly
Economic Factors Interest rates, Exchanges, inflation, unemployment rates, growth rate, per capita consumptions. Also, includes market for stocks and bonds, consumer confidence, interest rates, etc.
ConQuest, IIM Shillong
2021-22
Page 6
