Policy and Pestle Analysis

Topics: Policy, Political science, Marketing mix Pages: 3 (833 words) Published: August 6, 2012
PESTLE Analysis

A PESTLE analysis for Mydin must consider all the important external factors impacting on the company. These factors may have political, economic, social and culture, technological, legal or environmental dimensions. These forces, although out of the company’s control, may have an impact on the success of any future plans. By considering them, a company can change direction, build contingencies, identify new opportunities or do nothing at all. It is an important part in the strategic decision making. 

Political analysis

The political analysis must include the impact of local and national government, and the international situation. The Economic analysis needs to investigate the influences of the stock market and tax increases, amongst many other monetary matters. Therefore, Mydin's performance is highly influenced by the political and legislative conditions of country. Government policy affects Mydin and water aid in so many different ways this include government spending, tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. For example, if the government spends more on schools, this will increase the income of businesses that supply schools with books, equipment etc. Government also provides subsidies for some business activity - e.g. an employment subsidy to take on the long-term unemployed. The government regularly changes laws in line with its political policies.

Economic Factors

Economic factors are of concern to Mydin, because they are likely to influence demand, prices, costs and profits. One of the most important influential factors on the economy is high employment levels, which increase the effective demand for many goods, adversely affecting the demand required to produce such goods. Besides that, keep going growing in international business also contribute greater amount to Mydin’s profits over the next news years, which may bring advantage for on their performance and the...
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