ENVIORNMENTAL ANALYSIS

Submitted By:

VISHNU S

Business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations.

Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization’s performance. The analysis entails assessing the level of threat or opportunity the factors might present. These evaluations are later translated into the decision-making process. The analysis helps align strategies with the firm’s environment.

Types of Environmental Analysis

PESTEL

STEEPLED Analysis

SWOT Analysis

PESTEL Analysis

Political Factors

Economic Factors

Social Factors

Technological Factors

Environmental Factors

Legal Factors

Political Factors

• Pressure Groups & Lobbying • International Wars• Internal Conflict• Government Term

Economic Factors

• Interest Rate• Exchange Rate• Taxation• Availability of Credit Facilities• International Trade• Fiscal and Monetary Policies• Per Capita Income• Business Cycles• Level of Unemployment

Social Factors

• Media views• Tradition• Values & Norms• Attitudes & Opinions• Lifestyle• Religious beliefs

Technological Factors

• Technology maturity• Energy• Research & Development • Communication Systems• Manufacturing Capacity

Environmental Factors

• Climate • Clean Energy• Pollution • Green Branding Issues• Waste Disposal• Recycling

Legal Factors

• Employment Law• Health and Safety Law• Competition Law• Regional Legislation• Investment Law

STEEPLED Analysis

• Social Factors• Technological Factors• Economic Factors• Environmental (Ecological) Factors• Political Factors• Legal Factors• Ethical Factors• Demographic Factors

Evolution of STEEPLED Analysis

•Political•Economic•Social•Technological

PEST

•Social•Technological•Economic•Environmental

•Political

STEEP•Political•Economic•Social•Technological•Legal•Environmental

PESTLE

•Political•Economic•Social•Technological•Environmental

•Legal•Industry

PESTELI

•Social•Technological•Economic•Environmental

•Political•Legal•Ethical•DemographicSTEEPL

ED

Ethical Factors

• Responsibility to Host Community• Good Faith• Universal Rules

Demographic Factors

• Educational Levels• Age Distribution• Number of People Within Working Age Group• Net Inward Migration

SWOT Analysis

Strengths are positive attributes in the internal factor of your business.

Weaknesses are negative factors in your business that needs to be improved.

Opportunities are external positive factors which predicts the prosperity of your business.

Threats are external negative factors that may affect your business.

Businesses can make use of SWOT analysis to know high performing areas, explore new initiatives, make smarter decisions, identify the areas of improvement, know the opportunities and foresee the challenges.

Knowing the strength & areas of improvement, grabbing the opportunities and facing the challenges are essential factors to be considered in a business decision making process.

THANK YOU!