Peslte Analysis of Gujarat

Topics: Economics, Investment, Marketing Pages: 4 (766 words) Published: February 20, 2013
PESTLE Analysis of Gujarat

PESTLE analysis is the analysis of macro external environment in which business is operates. These factors which are beyond the control of business however are the important to be aware of when doing product development, business or strategy planning. PESTLE means:

P- Political
E- Economical
S- Social 
T- Technological
L- Legal
The PESTLE subject should be a clear definition of the market being addressed, these are the followings:- * A company looking at its market
* A product looking at its market
* A brand relation to its market
* A local business unit or function in business
* A strategic option , such as entering a new market
* Political acquisition
* Investment opportunity

(1)POLITICAL: - It refers to government policy such as degree of intervention in the economy what goods & services do a government provide? What are the priorities in terms of business support? Political decision can impact on many vital areas for business such as education of workforce, health and quality of infrastructure. In Gujarat BJP rules since 18 years, and communist party is INC. the major factors effect of political environment. (1) Taxation policy

(2) Privatization
(3) De-regulation
(4) Government policy
(5) International policy

(2)ECONOMICAL: - It includes rates, taxation changes, economic growth & exchange rates. Economic change can have major effect on firm’s behavior. For example: * Higher interest rate may deter the investment

* A strong currency may make exporting more difference because it may raise the price in terms of foreign currency. * Inflation may make higher wage demands from employees and raise cost. * Higher nation income growth may boost demand for firm’s product.

For its improvement the government has made some improvements:

* The government investment reduced the number of industries under compulsory licensing system *...
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