Strategy Friday

January 25, 2019 Ali Comments Off

In today’s post, I’m going to resume the blogging which I was doing, but discuss another good presentation topic, which is a discussion about marketing strategy and some tools for this context.

Today’s tool is the classical tool for analysing the environment in which a firm operates, such a tool is really useful to be implemented for startups, but also for already running businesses.

Run along the SWOT (strength, weaknesses, opportunity and threats) analysis, is one of the main component for implementing a small strategy in business, but not only for business, it can be used also as a social tool for change.

This tool which I’m discussing about is a Political, Economical, Social, Technological, Legal and Ecological Analysis, or also known as the PESTLE.

This tool is a framework for analysing the external environment inside a firm, and is useful to check which influencing factors might influence a business from a Macro (external) perspective.

the macro forces influencing business

The Political factors influencing the firm can be the political parties and their standing toward the implementation of business.

The Economical factor is the perspective in which economics influence the possible outcome of a situation, for example, the economical situation of a country.

The Social standing is also important, as it is an enabler of perception toward the culture of the company.

The Technological factor can be the possible barriers which influence a possible new development and the opportunity to invest or to sell patents.

Legally speaking, we are speaking about the laws, rules and regulations within an industry, such as the International Commerce Law, or the maritime law influencing the shipment of goods.

To conclude, the Ecological aspect is one of the most discussed and important aspects discussed recently by media and businesses, in fact, implementing an ecological perspective facilitate the perception toward being more sustainable as a business.