PESTEL

The external factors which affect a companys planning and performance, and are beyond its control The acronym PESTEL is used to describe a framework for the analysis of these macro-environmental factors. Political Environment Government stability Taxation policy Foreign trade regulations Social welfare policies EXAMPLE: 1. Election in Cambodia 2. Political stand-off in Myanmar 3. Scandal-ridden opposition leader in Malaysia 4. Presidents legitimacy issue in the Philippines Economic Environment Business cycles GDP trends Interest rates Money supply Inflation Unemployment Disposable income

Socio-Cultural Environment Population demographics- age, sex Income distribution

Class and Social mobility Lifestyle changes Attitudes to work and leisure Consumerism Levels of education

Technological Environment Government spending on research Government and industry focus on technological effort New discoveries /developments Speed of technology transfer Rates of obsolescence Type of products or services Manner of production Method of service delivery Market identification Resource mobilization Means and extent of communication with external clients

Effects of Technological Change

Cut production costs Improve quality New product development Quicker and more effective customer response Creates flexibility in work

Environmental/Ecological Environmental protection laws Waste disposal Energy consumption

Legal Environment Competition law Employment law Health and safety Product safety