6 + Best and Real-World Pestel Analysis Example to Learn From

 

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Every company is affected by outside factors like government rules, economic changes, technology, and customer preferences. Therefore, they need to make various business strategies to build a strong brand identity. They check for various opportunities and threats before making any decisions. This is known as pestel analysis. It helps businesses understand the market trend and make better decisions. Read this blog to learn how to do pest analysis.

What is Pestel Analysis?

It is a method to study and check external factors that impact the performance of an organization. This in-depth study helps companies to make informed decisions. You should study pestel analysis example in business to learn the workings of this tool. However, the term PESTEL stands for:

P - Political

E - Economic

S - Social

T - Technological

E - Environmental

L - Legal

Writing these factors in PETAL paragraph helps you focus on individual elements. An organization consider all the above factors while conducting a pestel Analysis. A company can successfully increase its sales if it can monitor these factors. Reading pestel analysis example helps you build a deep understanding. Now let's explore each factor in detail for a clearer concept.

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Factors to Consider in Pestel Analysis

There are six external factors to consider in a pestel analysis. Read further to know about these factors in more detail.

Political Factors:

Many government policies and scheme affects the business environment of a country. It involves regulations, tax policies, business laws, foreign trade policies, political stability etc.

Economic Factors:

Economic factors affect the internal and external operations of businesses. For example, the government regulates interest rates, inflation and exchange rates. These are the main elements of a monetary policy.

Social Factors:

It involve different cultural and social aspects of a country. Examples of social factors are income level, age, lifestyle, population, education and career trends.

Technological Factors:

Technological innovations also help businesses to grow faster. Technology can be used in companies' operations, generating sales and expanding the business.

Environmental Factors:

It includes factors like weather, climate change, pollution, agriculture, health crises etc. These factors affects the smooth operation of the business sector.

Legal Factors:

Legal factors refer to laws that build fair business relations between nations. These laws are mostly created by international law bodies. For example, labour laws, intellectual property laws, license regulations, import and export laws.

Now, let's see how these companies analyse these factors with the help of pestel analysis example. It will widen your knowledge base and give you a different views.

Real-world Pestel Analysis Example

There are many pestel analysis example in business that will show how different factors affect famous companies.

Pestel Analysis of Apple

Apple Inc. is an American computer and electronics company. It is famous for creating iPhones, iPads and computers. Let's explore the pestel analysis of Apple Inc. and understand it better.

Political: Apple operates in China. The tensions between the USA and China impact the company's potential growth and global sales.

Economic: If China increases its labour cost then the manufacturing cost will also rise. Moreover, this company sells only luxury products. With the rise of inflation, it will be hard for the middle class to save money to buy these luxury items.

Social: With the rising use of mobile devices builds a wide customer base for this company. However, sentiment against Apple questions business practices. This can reduce brand image and consumer trust.

Technological: The growing technological capabilities of other firms can work as a threat to Apple. Countries like China and Japan are flooding markets with alternative options.

Environmental: The disposal of non-working devices is the biggest threat to the company. Moreover, unexpected weather conditions impact the supply chain.

Legal: Increasing tax on luxury goods serves as the main threat to Apple. Moreover, the concern regarding private data comes with many rules and regulations.

Pestel Analysis of Amazon

Amazon company is the most famous e-commerce brand in the world.  It also focuses on online ads, cloud computing, and digital streaming. Read further to get an idea of how these factors influence its growth.

Political: Political stability in the USA helped it to expand its operation across the nation. Moreover, rising competition with Chinese online retail firms can be seen as a threat.

Economical: Economic stability in developed countries works as an opportunity for the company. Moreover, increasing the income of the middle class can boost the company's revenues.

Social: The increasing gap between rich and poor can affect its sales rate. However, you can see a noticeable hike in online buying habits.

Technological: Increasing the efficiency of IT resources and technological obsolescence works as an opportunity for Amazon.

Environmental: Stress on adapting sustainable practices can increase the operational cost of the company.

Legal: Changes in import and export policies and rising environment protection regulations is a threat.

Pestel Analysis of Google

Google is the most popular search engine in the world and provides services like YouTube, G mail, and Google Maps. Pestel analysis example in business highlights how government policies and activities affect the economy of a nation.

• Political:Some governments, like China, have strict rules that limit Google's operations. Other countries may force Google to remove certain content from search results.
• Economic:Google earns money from ads. If companies spend less on ads during an economic downturn, Google's revenue decreases.
• Social:People care more about privacy, so Google needs to ensure that user data is safe.
• Technological:Google is improving AI-powered search, cloud storage, and voice assistants like Google Assistant to stay ahead.
• Environmental:Google is switching to clean energy for its data centres to reduce its carbon footprint.
• Legal:It must follow laws related to copyrights, user privacy, and fair business practices.

Pestel Analysis of Tesla

Tesla is a company that makes electric cars and solar energy products. However, use grammar checker before submitting your paper on pestel analysis.

• Political:Many governments support clean energy and give tax benefits to Tesla for making electric cars. However, if these policies change, Tesla might face difficulties.
• Economic:Tesla's cars are expensive, so if the economy is bad, fewer people will buy them. But as electric car technology improves, costs may be reduced in the future.
• Social:More people want eco-friendly cars to reduce pollution, which increases Tesla's demand.
• Technological:Tesla is a leader in battery technology and self-driving cars. It keeps innovating to improve car performance.
• Environmental:Tesla's electric cars help reduce pollution, but making car batteries requires mining, which affects nature. The company is working on better solutions.
• Legal:Tesla must follow vehicle safety laws and emissions standards to sell its cars worldwide.

Pestel Analysis of Starbucks

Starbucks is a famous coffee shop chain that operates globally. Pestel analysis example in business like Starbucks is most searched among students.

• Political:Starbucks must follow different food safety and labour laws in each country. Some governments may impose taxes on coffee imports, which can affect prices.
• Economic:If the economy is bad, people may stop buying expensive coffee. However, in wealthy areas, Starbucks continues to do well.
• Social:People are becoming more health-conscious, so Starbucks offers healthy drinks and plant-based options.
• Technological:Starbucks has introduced mobile apps for ordering and payment, making it easy for customers to buy coffee.
• Environmental:Starbucks is reducing plastic waste by encouraging reusable cups and using paper straws.
• Legal:It must follow food safety regulations, employee rights laws, and fair-trade coffee policies.

Pestel Analysis of Uber

Uber is a company that provides ride-sharing services and food delivery through Uber Eats. 

• Political:Many countries have different laws on whether Uber drivers should be treated as employees or independent workers.
• Economic:If fuel prices rise, Uber drivers may earn less money. If the economy is bad, people may choose public transport instead of Uber.
• Social:More people in cities prefer ride-sharing instead of owning a car, which helps Uber grow.
• Technological:Uber relies on GPS, mobile apps, and payment systems to function efficiently. It is also testing self-driving cars.
• Environmental:Uber encourages carpooling to reduce pollution and is investing in electric vehicles.
• Legal:It faces legal issues related to driver wages, passenger safety, and data privacy. 

Reading example of pestel analysis of a company like Uber helps you to learn the different risk management strategies.

Pestel Analysis of McDonald's

McDonald's is one of the biggest fast-food chains in the world.

• Political:The company must follow different food safety rules and labour laws in each country. Some governments may also limit junk food advertising.
• Economic:If the economy is weak, people may eat at home instead of dining out. However, McDonald's often does well because it offers affordable food.
• Social:People are becoming more health-conscious, so McDonald's has added salads, fruit, and low-calorie options to its menu.
• Technological:McDonald's uses self-order kiosks, mobile apps, and online delivery systems to serve customers faster.
• Environmental:The company is reducing plastic packaging and switching to paper straws to be more eco-friendly.
• Legal:It must follow food quality standards, labour laws, and advertising rules.

However, these are some of the pointers of each pestel analysis example, you can get more information about pestel analysis with the help of our experts.

Get Help from Our Experts to Learn Pestel Analysis

If you need help with assignments like PESTEL analysis or any other topic, Global Assignment Help Australia is here for you! Just like companies use PESTEL analysis to succeed, you can succeed in your studies with our professional support. Other than the above examples, our experts can provide you with small business pestel analysis example. Don't stress over deadlines—let us make your academic journey smooth and successful. Order now and get the best help for your assignments!

Are you facing any problem?

Call us: +61 483982483 Whatsapp: +61 483982483 help@globalassignmenthelp.com.au

Every company is affected by outside factors like government rules, economic changes, technology, and customer preferences. Therefore, they need to make various business strategies to build a strong brand identity. They check for various opportunities and threats before making any decisions. This is known as pestel analysis. It helps businesses understand the market trend and make better decisions. Read this blog to learn how to do pest analysis.

What is Pestel Analysis?

It is a method to study and check external factors that impact the performance of an organization. This in-depth study helps companies to make informed decisions. You should study pestel analysis example in business to learn the workings of this tool. However, the term PESTEL stands for:

P - Political

E - Economic

S - Social

T - Technological

E - Environmental

L - Legal

Writing these factors in PETAL paragraph helps you focus on individual elements. An organization consider all the above factors while conducting a pestel Analysis. A company can successfully increase its sales if it can monitor these factors. Reading pestel analysis example helps you build a deep understanding. Now let's explore each factor in detail for a clearer concept.

Factors to Consider in Pestel Analysis

There are six external factors to consider in a pestel analysis. Read further to know about these factors in more detail.

Political Factors:

Many government policies and scheme affects the business environment of a country. It involves regulations, tax policies, business laws, foreign trade policies, political stability etc.

Economic Factors:

Economic factors affect the internal and external operations of businesses. For example, the government regulates interest rates, inflation and exchange rates. These are the main elements of a monetary policy.

Social Factors:

It involve different cultural and social aspects of a country. Examples of social factors are income level, age, lifestyle, population, education and career trends.

Technological Factors:

Technological innovations also help businesses to grow faster. Technology can be used in companies' operations, generating sales and expanding the business.

Environmental Factors:

It includes factors like weather, climate change, pollution, agriculture, health crises etc. These factors affects the smooth operation of the business sector.

Legal Factors:

Legal factors refer to laws that build fair business relations between nations. These laws are mostly created by international law bodies. For example, labour laws, intellectual property laws, license regulations, import and export laws.

Now, let's see how these companies analyse these factors with the help of pestel analysis example. It will widen your knowledge base and give you a different views.

Real-world Pestel Analysis Example

There are many pestel analysis example in business that will show how different factors affect famous companies.

Pestel Analysis of Apple

Apple Inc. is an American computer and electronics company. It is famous for creating iPhones, iPads and computers. Let's explore the pestel analysis of Apple Inc. and understand it better.

Political: Apple operates in China. The tensions between the USA and China impact the company's potential growth and global sales.

Economic: If China increases its labour cost then the manufacturing cost will also rise. Moreover, this company sells only luxury products. With the rise of inflation, it will be hard for the middle class to save money to buy these luxury items.

Social: With the rising use of mobile devices builds a wide customer base for this company. However, sentiment against Apple questions business practices. This can reduce brand image and consumer trust.

Technological: The growing technological capabilities of other firms can work as a threat to Apple. Countries like China and Japan are flooding markets with alternative options.

Environmental: The disposal of non-working devices is the biggest threat to the company. Moreover, unexpected weather conditions impact the supply chain.

Legal: Increasing tax on luxury goods serves as the main threat to Apple. Moreover, the concern regarding private data comes with many rules and regulations.

Pestel Analysis of Amazon

Amazon company is the most famous e-commerce brand in the world.  It also focuses on online ads, cloud computing, and digital streaming. Read further to get an idea of how these factors influence its growth.

Political: Political stability in the USA helped it to expand its operation across the nation. Moreover, rising competition with Chinese online retail firms can be seen as a threat.

Economical: Economic stability in developed countries works as an opportunity for the company. Moreover, increasing the income of the middle class can boost the company's revenues.

Social: The increasing gap between rich and poor can affect its sales rate. However, you can see a noticeable hike in online buying habits.

Technological: Increasing the efficiency of IT resources and technological obsolescence works as an opportunity for Amazon.

Environmental: Stress on adapting sustainable practices can increase the operational cost of the company.

Legal: Changes in import and export policies and rising environment protection regulations is a threat.

Pestel Analysis of Google

Google is the most popular search engine in the world and provides services like YouTube, G mail, and Google Maps. Pestel analysis example in business highlights how government policies and activities affect the economy of a nation.

• Political:Some governments, like China, have strict rules that limit Google's operations. Other countries may force Google to remove certain content from search results.
• Economic:Google earns money from ads. If companies spend less on ads during an economic downturn, Google's revenue decreases.
• Social:People care more about privacy, so Google needs to ensure that user data is safe.
• Technological:Google is improving AI-powered search, cloud storage, and voice assistants like Google Assistant to stay ahead.
• Environmental:Google is switching to clean energy for its data centres to reduce its carbon footprint.
• Legal:It must follow laws related to copyrights, user privacy, and fair business practices.

Pestel Analysis of Tesla

Tesla is a company that makes electric cars and solar energy products. However, use grammar checker before submitting your paper on pestel analysis.

• Political:Many governments support clean energy and give tax benefits to Tesla for making electric cars. However, if these policies change, Tesla might face difficulties.
• Economic:Tesla's cars are expensive, so if the economy is bad, fewer people will buy them. But as electric car technology improves, costs may be reduced in the future.
• Social:More people want eco-friendly cars to reduce pollution, which increases Tesla's demand.
• Technological:Tesla is a leader in battery technology and self-driving cars. It keeps innovating to improve car performance.
• Environmental:Tesla's electric cars help reduce pollution, but making car batteries requires mining, which affects nature. The company is working on better solutions.
• Legal:Tesla must follow vehicle safety laws and emissions standards to sell its cars worldwide.

Pestel Analysis of Starbucks

Starbucks is a famous coffee shop chain that operates globally. Pestel analysis example in business like Starbucks is most searched among students.

• Political:Starbucks must follow different food safety and labour laws in each country. Some governments may impose taxes on coffee imports, which can affect prices.
• Economic:If the economy is bad, people may stop buying expensive coffee. However, in wealthy areas, Starbucks continues to do well.
• Social:People are becoming more health-conscious, so Starbucks offers healthy drinks and plant-based options.
• Technological:Starbucks has introduced mobile apps for ordering and payment, making it easy for customers to buy coffee.
• Environmental:Starbucks is reducing plastic waste by encouraging reusable cups and using paper straws.
• Legal:It must follow food safety regulations, employee rights laws, and fair-trade coffee policies.

Pestel Analysis of Uber

Uber is a company that provides ride-sharing services and food delivery through Uber Eats. 

• Political:Many countries have different laws on whether Uber drivers should be treated as employees or independent workers.
• Economic:If fuel prices rise, Uber drivers may earn less money. If the economy is bad, people may choose public transport instead of Uber.
• Social:More people in cities prefer ride-sharing instead of owning a car, which helps Uber grow.
• Technological:Uber relies on GPS, mobile apps, and payment systems to function efficiently. It is also testing self-driving cars.
• Environmental:Uber encourages carpooling to reduce pollution and is investing in electric vehicles.
• Legal:It faces legal issues related to driver wages, passenger safety, and data privacy. 

Reading example of pestel analysis of a company like Uber helps you to learn the different risk management strategies.

Pestel Analysis of McDonald's

McDonald's is one of the biggest fast-food chains in the world.

• Political:The company must follow different food safety rules and labour laws in each country. Some governments may also limit junk food advertising.
• Economic:If the economy is weak, people may eat at home instead of dining out. However, McDonald's often does well because it offers affordable food.
• Social:People are becoming more health-conscious, so McDonald's has added salads, fruit, and low-calorie options to its menu.
• Technological:McDonald's uses self-order kiosks, mobile apps, and online delivery systems to serve customers faster.
• Environmental:The company is reducing plastic packaging and switching to paper straws to be more eco-friendly.
• Legal:It must follow food quality standards, labour laws, and advertising rules.

However, these are some of the pointers of each pestel analysis example, you can get more information about pestel analysis with the help of our experts.

Get Help from Our Experts to Learn Pestel Analysis

If you need help with assignments like PESTEL analysis or any other topic, Global Assignment Help Australia is here for you! Just like companies use PESTEL analysis to succeed, you can succeed in your studies with our professional support. Other than the above examples, our experts can provide you with small business pestel analysis example. Don't stress over deadlines—let us make your academic journey smooth and successful. Order now and get the best help for your assignments!