Pestele Analysis: Analysis Of Pestle In International Business

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International Business: PESTEL

Introduction of PESTILE analysis.
International business is influenced by economical, technological, political, socio-cultural, legal, natural and global factors. For analyzing the impact of these factors on business, environmental analysis is required. Environmental analysis is careful study of various factors influencing the business. It is the process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business. Environmental analysis helps to identify their opportunities and to plan to take appropriate actions to gain these opportunities. It also helps in developing an early warning system to prevent threats or to develop strategies which can turn
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Economic system, economic policy, nature of economy, trade cycles, economic resources, level of income, distribution of income and wealth, economic legislation, etc. Economic environment of business is very complex in nature. It is very dynamic. It keeps on changing with change in government policies, change in political situations etc. The business has economic relation with the government, domestic household sector, capita market and foreign sector, etc. These different sectors together influence the trends and structure of economy. The form and functioning of business units is affected by changes in economic systems, economic policies, economy, conditions, global conditions, etc. Thus, economic environment of business has reference to broad characteristics of the economic system in which business…show more content…
It is, to a large extent, an artificial construct that can be contrasted with the natural environment in which we live. Every society constructs its own social environment. Some of the customs, beliefs, practices and behaviors are similar across cultures, and some are not. For example, an American traveling to Britain will find many familiar practices but not so much if traveling to China. This social environment created by a society-at-large in which a business functions can be referred to as its external social environment. If a business operates in a multicultural society, then the social external social environment is even more complicated because the environment will consist of diverse sub-populations with their own unique values, beliefs and customs. A business also has its own social environment. We can refer to this as its internal social environment, which is simply the customs, beliefs, practices and behaviors within the confines of the business. A business has much more control over its internal social environment than it does with its external social

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