International Business - Pestle Analysis

PESTLE analysis is a process to help understand the overall market environment such as market risks, market growth or decline for a particular industry, business, product, or project. It is often a key part of strategic, marketing, and business planning.

The political factors refer to the degree of intervention of government in the economy. For an example, if the government taxes increase, it will cause the selling price of Nestle increase, and therefore the number of customers and the sales of stock will also decrease.

The economic factors have large impacts. Income distribution or interest rates can seriously affect the bottom line of a company like Nestle. For an example, if the income of the consumer increases, the demand of the product of Nestle may also increase.

The sociological factors are cultural aspects and demographic variables which are closely linked to the market potential and customers need. For an example, the Nestle will make a marketing strategy according age distribution or gender role before produce a new product.

The technological factors have had a great impact. For an example, the technology of Nestle reduces costs and the quality also improves, the sold of the goods will also increases.

The legal factors are related to the legal environment of an organisation and impact its demand and cost. For an example, Nestle was provided health and safety law for their members. Nestle will pay the compensation for their members via their free legal help scheme with personal injury specialists Thompsons Solicitors.

Any large organisation has an environmental impact. For an example, Nestle respects the environment and is committed to environmentally sound business practices throughout the world, thus taking into account the need to preserve natural resources and save energy.