BU288 Lecture Notes - Lecture 22: Retail, Pest Analysis, Carbon Footprint
Document Summary
Pestel stands for: p political, e economic, s social, t technological, e environmental, l legal. Lets look at each of these macro-environmental factors in turn. These are all about how and to what degree a government intervenes in the economy. This can include government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on. It is clear from the list above that political factors often have an impact on organisations and how they do business. Organisations need to be able to respond to the current and anticipated future legislation, and adjust their marketing policy accordingly. Economic factors have a significant impact on how an organisation does business and also how profitable they are. Factors include economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on. These factors can be further broken down into macro-economical and micro-economical factors.
