enables organisations to make effectives plans and decisions in terms of business growth and development in the future. The PESTLE framework helps to determine factors such as whether or not the political state of the country is affecting the industry, if there are any economic issues, new technological innovations, current legislations and environment concerns within the industry. The macro-environment of an organisation consist of all of these factors and these can have various long-term effects on each different industry as they have no control over them. However, it is vital for any company to analyse these aspects when developing future plans as the organisation will have a greater understanding of the external environment and will enable them to maximise opportunities while minimizing any threats that may arise against the organisation. 1. Political Political factors relate to the extent to which the government, or the policies brought about by the government, may impact a business, a particular industry or the …show more content…
Any governmental policies introduced that are related to the operations of a business or that affect the tourism industry, will affect Spike Island Adventure. For example, if new tax policies are introduced then it will have on impact on the adventure centre’s performance, profitability and other aspects of the operations of the business such as the transport, employees’ wages, etc. The biggest political factor that could affect Spike Island Adventure is Brexit as England is Ireland’s largest market for trade and is now no longer as easy to access. It can cause financial difficulty for Spike Island Adventure if they are trading goods to and from Britain as the exchange rate has increased. It can also have an effect on visitors numbers to Spike Island Adventure as it would be more expensive for the potential UK visitors to travel to Ireland in the
The Oxford Dictionary gives five different definitions of the meaning of “politics.” One definition is: “activities within an organization that are aimed at improving someone’s status or position and are typically considered to be devious or divisive.” Another definition is: “a particular set of political beliefs or principles.” For a long time, politics has shaped the way that people write and think about life. Politics has been a major influence on literary works, such as Dante’s Inferno, Don Quixote, and Corinne, Or Italy, and in these works you get the chance to understand the political beliefs from the author’s point of view instead of from another character in the novel.
Political factors that may impact on the business, as a sports club, would mainly include transportation.
A business can either take a step forward or a step back depending on the external and internal influences and how they handle them, they can either flourish or enter stages of degradation and cessation. External and internal influences on a businesses plays a part in the opportunities that arise in the industry the business operates in, otherwise the business may choose to venture out of it’s defined industry depending on the opportunities at hand. Businesses are affected by internal and external influences to a degree where they are either benefiting or suffering from the way they handle opportunities that arise. The five articles depict the problems encountered by businesses no matter their size or industry.
Political factors within Sony Political factors can have a direct impact on the way Sony operates. Decisions made by government affect every day businesses and can come in the form of policy or legislation. Political factors have a huge influence upon the regulation of business. The business is a business. Political factors effecting Sony can include the government laws such as the introduction to the minimum wage affects the employees of Sony as the hourly rate increases each year, every time the minimum wage increase, Sony will have to pay taxes.
The government influences the business and society to a vast level and can play as an internal or an external force or also, as a stakeholder. The government being an internal force can establish some strict rules and laws, which force businesses to follow ethical and acceptable approaches for doing business. Taxes and grants influence an organization as a great deal, which forces the organization to raise their costs, and allow customers to suffer the increased costs. It depends on the conditions, whether the government can aggravate things for
The deep analysis of the macro-environment is key to the organisations in order to understand which factors are impacting their operations. The main purpose of PESTLE analysis (Political, Economic, Social, Technological, Legal and Environmental) is to identify those factors that have an impact on the organisation but are outside its control area. Together with other frameworks (such as Porter’s ‘5 forces’), PESTLE framework is required to develop a comprehensive analytical strategic process.
The external factors can be divided into six broadly categories which are political, environment, social, technology, environment and legal (Johnson, 2005). Such external factors usually are out of the firm's control and sometimes present themselves as threats. In this case, political factor, environmental factor and technology factor will be used to analyse the computer technology industry.
In this step, factors such as interest rates, international trade, taxes, savings, inflation, subsidies, availability of jobs and entrepreneurship areconsidered. Environmental: Environmental developments involve ecosystem factors such as water, wind, food, soil, energy, pollution and environmental regulations. Political: The Political developments can highly influence individuals and organizations. It is important to be aware of likely upcoming shifts in power. Political developments can affect environmental, antitrust, financial markets, trade, and other kinds of laws.
Kotler (1998) claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The headings of PEST are a framework for reviewing a situation, and can in addition to SWOT and Porter's Five Forces models, be applied by companies to review a strategic directions, including marketing proposition. The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports. PEST also ensures that company's performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST is useful when a company decides to enter its business operations into new markets and new countries. The use of PEST, in this case, helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the new environment.
...lopment industry as well as the strengths and weaknesses within the company. The Business Strategy should reflect the main issues that determine the long-term
The political environment can affect organizations. Political components influence buyer certainty and purchaser and business spending. Stability of political environment is essential for organizations
In the political approach, political authority is divided between a central government and the provincial or state governments. This means that some provinces or states are accorded a substantial measure of constitutional or legal sovereignty, although they still remain subordinates of the central government in certain constitutional or legal respects. The political approach promotes the political values of military strength, economic development, union, and representation. In addition, it is characterized by three central features: state sovereignty, bicameralism, and multiple layers of representation.
Political problems or issues has to do with government or politics. This may include issues related to party politics or a political systems or social, environmental or other issues as determined by the voting
These are basically the laws and regulations that are imposed by the high authorities. It is noticed that government policies is the source of uncertainty for the company because it gives rise to different challenges such as imposing taxes, custom duty and restriction on the organisations. Changes in the rules and regulations related to taxes cannot be predicted by the company due to which they might have to suffer from significant losses. It is noticed that most of the time, higher tax rates are introduced by the government due to which the small organisations such as Ades Limited face the problem of decreasing revenues and increasing expenses. Therefore, this causes of uncertain impacts on the company, as the management has not planned actions for any such movements (Kew & Stredwick,
The scope of the product and its contribution, advantages, disadvantages can predicted or forecasted by having good knowledge of management and economics.