Strategy in Action Class Notes

PESTEL Strategy in action

1. PEST/PESTLE analysis

a) P: political factors

b) E: Economic factors

c) S: Social factors

d) T: Technological factors

2. Why do we have to use PESTLE

a) Have ability to analysis external environment, what is my position before I do anything with the strategy, I have to understand.

b) My opinions to the strategy planning

3. What is it, where is it used

a) The challengers of external environment

4. Political

a) Have to understand political effects

b) Lobbying limitations: change the way how I approach the strategies.

i. Definition: Lobbying - (also lobby) is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies.

5. Economic

a) Have to consider home economy

b) Interest rates

c) Stock market: up&down

i. E.g. Chinese stock market is rising recently, figure out why, watch time by time

6. Social

a) Income distribution

i. Baby xxxx: they are in the process of retire, means they have low incomes.

b) Demographics

c) Labor and Social mobility

d) Lifestyle changes

e) Attitude to work and leisure

f) Education: Have to understand the education of your target customers, the situation

g) Fashion and Fads

h) Health and Welfare

i) Living conditions

7. Technological

E.g. Pokemon

8. Legal: have to understand the legal issues to effect your ability to achieve your objectives

a) Employment law

b) Health and safety

c) Taxation both corporate and consumer

d) Other regulations

e) International trade barriers