5 Questions
What type of factors does a PESTEL analysis help businesses analyze?
Macro-environmental factors
Which of the following is NOT a social/cultural factor considered in the external environment analysis?
Gender
Which category does 'Satellite communication, internet, WWW, Wifi' fall under in the external environment analysis?
Technological
In terms of economic factors, which type of economies are typically considered in a PESTEL analysis?
All of the above
Which term represents emerging markets consisting of Brazil, Russia, India, China, and South Africa?
BRIC
Study Notes
PESTEL Analysis
- A tool used to analyze and monitor the macro-environmental (external) factors that impact a business.
Factors Influencing External Environment
Social/Cultural
- Language, religion, aesthetics, values, and attributes influence the external environment.
- Material culture also plays a role in shaping the external environment.
Governance
- Sustainability is a key factor, encompassing community, workforce, environment, and marketplace.
Economic
- Developed economies, emerging economies, and less developed economies have different characteristics.
- Currency movement affects the external environment.
Technological
- Satellite communication, internet, World Wide Web (WWW), and Wifi are key technological factors.
Legal
- International laws, regional laws, and home domestic laws influence the external environment.
Political
- Operational restrictions, discriminatory restrictions, and physical actions affect the external environment.
Emerging Markets
- Brazil, Russia, India, and China (BRIC) are emerging markets.
- BRICS includes South Africa.
- Mexico, Indonesia, Nigeria, and Turkey (MINT) are emerging markets.
- CIVETS includes Columbia, Indonesia, Vietnam, Egypt, Turkey, and South Africa.
Characteristics of Emerging Markets
- Specific characteristics define emerging markets, but not specified in the text.
Learn about the PESTEL analysis tool used for monitoring the macro-environmental factors affecting a business, including social/cultural, sustainability, and economic influences. Explore how factors like language, workforce, and currency movements impact external environments.
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