Pestle Analysis

PESTLE Analysis

The PESTLE analysis will be conducted to examine the current external environment for P&G in the world market. Political With operations in more than a hundred countries of different continents, P&G has to deal with distinctive political patterns influencing its business operations. On one hand, the company has to deal with and adapt to political pressures in different nations. On the other hand, with regard to the corporation’s size, it plays integral roles to cooperate with and affect local government. Economic The world economy is presenting a pattern of rejuvenation from the recession and world demand is forecasted to grow in the next years. Hence, the company can have a relatively positive expectation on its sales performance. However, the development in different market may vary because unbalanced development situation in different regions. Social The company has to pay attention different social norms during overseas operations due to distinguished cultural background in different markets. For personal products, social need is evolving with time. For instance, the demand for men’s grooming is rising recent years. Technological As the market size of personal products is very large, major players in this industry invest significantly to gain technological advantage in order to maintain and expand market positions. As a result, technology applied in this industry develops relatively fast. Legal P&G has to comply with different national legislations on personal products, process of production, and business operations. Ethical Because personal products are essential for people’s daily life, the quality of productsare extremely important for brands. Any scandals about product can lead to significant damage on the brand image