Most organizations wonder what structure that be used in the development or venturing of new regions. In other cases people would love to know what to consider when making the decision to start a new business. If you are considering expansion or would love to mitigate the risks that your organization faces, you should have sufficient knowledge on the specifics when you conduct a pestle analysis. This is the easiest method to capture all the required knowledge that will be necessary for your research paper.

What is a pestle analysis

A pestle analysis is a written paper that expounds on the factors expressed as a mnemonic in the word pestle. Through the use of the Pestle analysis, one can determine the dangers and opportunities present to your company. The pestle analysis is a system that is developed by scientist to understand the environment of an organization or business.

What are the components of the pestle

The pestle is a mnemonic that comprises of six factors as depicted in the alphabets that constitute the name. The factors are political, economic, social, technological, legal and environmental. Before conducting a pestle analysis, ensure you have data that is up to date to ensure no errors are made.  The source of your information should also be reliable.

1. Political factors

This factor is in relation to policies that are created by governments and would affect conditions of an organization. Governments are capable of making environments suitable or hectic for organization due to reasons like taxation and creation of policies that affect the stream of income of organization. A good example is the huge tension in the trade war between USA and China led to Huawei Company not being able to access the use of Google services. This in turn has led to Huawei developing another way but to the client it is hectic to download from external sources. This reduces the amount of sales that happen and in turn reducing the profits of the company.

2. Economic factors

Economic factors are in relation to the standards and conditions of living in the environment that the organization chooses. A good example is if the economic conditions of a region are really bad, it is highly unlikely to find high end goods being in sale in the same region. It is not a suitable environment to place a Gucci shop in the slums as no sale will happen.

3. Social factors

The relation between on human and another is important as we term humans as social beings. Factors in this section deal with the relation between humans in the targeted region. It is not advisable to create companies in that the relation is tense due to differences. On the other hand it is advisable to generate method to improve communication between humans in areas that will be accommodating to the service.

4. Technological factors

It is important to note that organization require technology to provide the goods and services offered in the portfolio. Technology eases the delivery of the said services. In the choosing of target environments, organizations have to consider the level of technology in the region. An example is the Tesla Company choosing markets for the electric cars that are produced. It would be unlikely for Tesla to have a show room in a third world country where advancements have not been made to ensure that electric cars can be charged.

5. Legal factors

This is basically reading and comprehending the constitution of the said region. Companies getting lawsuits creates a bad image and the stocks start to plummet. Different places have different laws and it would be advisable for organizations to abide by.

6. Environmental factors

Environmental factors can be viewed from two perspectives. One of the perspective is from mother nature to the organization and the second perspective is from the organization to the nature. Construction of production permanent companies in areas that have environments that are faced with tsunamis is not an advisable way to go. The losses will be unbearable to the organization in case of occurrence. The second is the organization should ensure that the goods and services offered are environmental friendly.

Post writing

After writing your pestle analysis, you should ensure that it is error-free and that punctuations are correctly marked. Ensure that the data you have written about is backed by reliable sources.

Ensure you get an outside opinion on what you have written to see if the paper has achieved all the goals that were set out to be completed. If you lack someone to give you an opinion, you can read the document aloud and get a glimpse what you have delivered before submission.

What is pestle analysis used for

1. Pestle analysis provides a scientific structure through which analysis can be performed.
2. Pestle analysis enables the combination of different skillset and department to conduct an activity that will provide the same goal.
3. Through the use of the pestle analysis, organizations can gain knowledge on the dangers in the horizon and develop mechanisms to mitigate the situations.
4. Enables employees and people involved in the performance of the pestle analysis to develop critical thinking attribute.
5. The use of the pestle analysis enables organizations to site possible opportunities that can lead to development and gain of profits.
6. The pestle analysis provides an easier method to prove that a step to made is efficient.

Pestle analysis example on Safaricom Company

Below is a pestle analysis why Safaricom Company is better suited to be in Kenya. Safaricom Company is a telecommunications company present in Kenya.

Political factors

The Kenyan government is very friendly to the organization. The symbiotic relationship is seen through things that the company promotes in the country i.e. the national rugby team and league. The government in turn lowers the taxes that the organization pays.

Another political benefit is when the organization wins tenders given by the government. This in turn provides a good situation for the company to earn more funds

Economic factors

The service that the company offers is affordable to the Kenyan population. The organization ensures that anyone can buy credit from as low as ten shillings from shops and five shillings via M-pesa. This ensures that the organization services are affordable and suitable to the economic conditions that are present in the region, unlike offering the monthly payment plan only that would be expensive.

Social factors

The company majors in telecommunications, this being the case it is involved directly in ensuring humans are in communication which is the basic need of humans social behavior. The organization gives offers to ensure people are in constant communication.

 Technological factors

Kenya is ranked highly in technological sector majoring on the communication sector. It is unlikely to get to a region in Kenya where the network for contacting would prove to be hectic. This technological environment has further boosted the profits the company acquires from the region. Almost all Kenyans are in possession of phones therefore the company views this as a benefit.

Legal factors

The constitution of Kenya has very accommodating laws for the development of the organization. The company is not involved in law suits thus boosting its customer view. The organization has an account of data and high end lawyers to defend it if need be. The privacy laws ensure the company is not answerable to anyone and in turn protecting the safety of the clients.

Environmental factors

The organization has permanent structures that have been placed all around the country. The region does not experience adverse conditions. This being the case, the material in place is safe and does not require constant change.

The second view on environmental factor is if the service being delivered has impact on the environment. It is safe to say that all the activities of the organization are environmental friendly as nothing negative has been proven.

Pestle analysis template

Pestle analysis templates are easy to create and are more of an illustration of the macro-factors that are present in the targeted environment. If you face difficulties with performing a pestle analysis, you should visit our site at eminencepapers.com and check out the templates already create and ready for use. The templates come at cheap prices.

You can get the service of the whole analysis being done for you. The service comes at an affordable fee and experts who have experience in the writing of pestle analysis.

Conclusion

You should understand and comprehend the above data and expounded information before you set out to write your pestle analysis. The main thing is to know what a pestle analysis comprises of. This will help you to understand what is expected to be present in the paper. You should not miss any of the factors in the mnemonic. Ensure that you check your document for errors and if it needs to have additional data after completion. Having an error free document goes a long way to show your focus when writing the pestle analysis. Purchase our reliable dissertation services  today and rest assured of top-notch assignment papers that will awe your professors.