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The PESTEL analysis

IntoTheMinds
March 18, 2021

The PESTEL analysis

PESTEL is an acronym which means Political – Economic – Sociological – Technological – Ecological – Legal. This acronym is, therefore, a mnemonic to remind you of the different types of factors that can influence your market.
The PESTEL analysis will, therefore, consist of evaluating the effect of these factors on your market, knowing that they are all beyond your control.

IntoTheMinds

March 18, 2021
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  1. PESTEL: Analysis of the influence of external factors
    1

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  2. ➢ What are the factors that
    influence my market positively or
    negatively?
    ➢ What are the consequences and
    strategic choices, given these
    influences?
    ➢ How can I highlight these
    influences concerning my
    resources and skills?
    Influencing factors
    1
    Credits: Photo by Elena Mozhvilo on Unsplash

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  3. The influence factors "PESTE"
    (macro):
    ➢Politico-legal
    ➢Economic
    ➢Sociological
    ➢Technological
    ➢« Ecological »
    Defining a market
    1
    Credits: "Monopoly" by elPadawan is licensed under CC BY-SA 2.0

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  4. The demography: essential for the
    international development of the
    company
    Example: Nokia's conquest of the
    Chinese market is essential to
    counter Asian competitors
    PESTE analysis, what
    questions?
    1
    Credits: Photo by Ryoji Iwata on Unsplash

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  5. The technology: which countries
    will provide technological
    leadership in the next ten years?
    Technology requires considerable
    and sustainable R&D efforts
    requiring partnerships in specific
    sectors to control costs.
    PESTE analysis, what
    questions?
    1
    Credits: Photo by Alexandre Debiève on Unsplash

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  6. The legal and regulatory
    dimension: the construction of
    Europe and the formation of a
    free trade zone (for example,
    ALNEA) have significantly
    changed relations between
    companies and States.
    PESTE analysis, what
    questions?
    1
    Credits: Photo by Tingey Injury Law Firm on Unsplash

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  7. The ecological dimension: the
    ecological concern is quite recent
    and reflects a desire on the part
    of the company's various
    partners to take responsibility
    together to develop their
    activities sustainably.
    PESTE analysis, what
    questions?
    1
    Credits: Photo by Richard Loader on Unsplash

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  8. Culture and ethics: this dimension
    has become very important in
    recent years.
    Can a company's policy be global?
    Example 1: If you were to develop a
    chain of restaurants in Lebanon,
    would you sell wine?
    PESTE analysis, what
    questions?
    1
    Credits: Photo by Kym Ellis on Unsplash

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  9. Culture and ethics
    Example 2: Mac Donald's in India,
    Halal in Belgium
    PESTE analysis, what
    questions?
    1
    Credits: Photo by Joshua Austin on Unsplash

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  10. The sociological dimension: it
    concerns the organisation of
    work in the company and the
    working conditions of employees.
    PESTE analysis, what
    questions?
    1
    Credits: Photo by Campaign Creators on Unsplash

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  11. The economic dimension: it
    concerns the organisation of
    work in the company and the
    working conditions of employees.
    It is mainly characterised
    nowadays by the globalisation of
    markets. The WTO was created
    to extend the scope of free trade
    to new areas through the
    opening of the negotiations, and
    it must ensure that these trade
    flows are consistent.
    PESTE analysis, what
    questions?
    1
    Credits: Photo by Sharon McCutcheon on Unsplash

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  12. Political: this dimension refers to
    the national and international
    political context that sometimes
    has a positive or negative impact
    on trade.
    Example : 11 septembre 2001.
    PESTE analysis, what
    questions?
    1
    Credits: Photo by Joseph Chan on Unsplash

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  13. • In the context of an external
    diagnosis, the influence of these
    various environments will be
    synthesised with the "PESTE"
    analysis tool, thus materialising
    the impact that exogenous
    factors can have on a market.
    • The analysis can cover a country,
    a geographical area or even the
    whole world.
    Scope of the PESTE analysis
    1
    PESTE
    Political
    environment
    Economic
    environment
    Social
    environment
    Technological
    environment
    Ecological
    environment

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  14. • What would the PESTE analysis of
    Mac Donald's restaurant be?
    PESTE exercise
    1
    Credits: Photo by Joshua Austin on Unsplash

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  15. Corrected PESTE McDonald's
    1
    PESTE
    Political Environment
    Anti-Americanism
    Anti-imperialism
    Alter-globalism
    terrorism
    Economic environment
    Globalisation of consumer
    habits
    Development of fast food
    restaurants
    Image of the Modern World
    Social Environment
    Temporary staff (CDD)
    Taylorism
    Working conditions, conflicts
    Cultural diversity in food
    Technological environment
    Mad cow
    OGM
    Ecological environment
    Health, obesity
    unhealthy eating habits
    Waste recycling
    Waste of paper and
    cardboard

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  16. 1. research successively in each of
    the environments the trends
    that could influence the
    company's activity
    2. globalise the analysis of all
    environments to apply the
    evolution factors to a specific
    sector or country
    PESTE analysis 3 objectives
    1
    Credits: Photo by Silvan Arnet on Unsplash

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  17. 3. starting from a problem
    (technology, marketing, skills,
    markets, and so on...) and using
    the filter of each environment
    to propose the most relevant
    significant evolutions.
    PESTE analysis 3 objectives
    1
    Credits: Photo by Silvan Arnet on Unsplash

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