PESTEL MODEL IN STRATEGIC MANAGEMENT

PESTEL model in strategic management

PESTEL model in strategic management

1-General discussion

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macroenvironmental factors used in the environmental scanning component of strategic management. In investigating the macro-environment, it is significant to recognise the components that might in turn sway a number of crucial variables that are probable to leverage the organization's provide and demand grades and its charges (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The “radical and ongoing alterations happening in humanity conceive an unsure natural environment and have an influence on the function of the entire organization” (Tsiakkiros, 2002). A number of checklists have been evolved as modes of cataloguing the huge number of likely matters that might sway an industry. A PEST investigation is one of them that is only a structure that categorizes ecological leverages as political, financial, communal and technological forces. Sometimes two added components, ecological and lawful, will be supplemented to make a PESTEL investigation, but these topics can effortlessly be subsumed in the others. The investigation examines the influence of each of these components (and their interplay with each other) on the business. The outcomes can then be utilised to take benefit of possibilities and to make contingency designs for risks when organising enterprise and strategic designs (Byars, 1991; Cooper, 2000).

Kotler (1998) assertions that PEST investigation is a helpful strategic device for comprehending market development or down turn, enterprise place, promise and main heading for operations. The headings of PEST are a structure for reconsidering a position, and can in supplement to SWOT and Porter's Five Forces forms, be directed by businesses to reconsider a strategic main headings, encompassing trading proposition. The use of PEST investigation can be glimpsed productive for enterprise and strategic designing, trading designing, enterprise and merchandise development and study reports.

PEST furthermore double-checks that company's presentation is aligned positively with the mighty forces of change that are influencing enterprise natural environment (Porter, 1985). PEST is helpful when a business concludes to go in its enterprise procedures into new markets and new countries. The use of PEST, in this case, assists to shatter free of lifeless assumptions, and assist to competently acclimatize to the truths of the new environment.

We analyzed the strategy of British Airways to see if their objectives have changed in the past, and to identify what is their main objective. We also discussed what the company wants to achieve and offer to their customers. We are researching the company's strategy for the next three years to observe the guidelines for the future and that further improvements will be implemented to maintain and attract consumers. They also discussed the environment in which works with British Airways PEST analysis. In this section, we emphasized political, economic, social and technological environment, positive and negative areas that should be carefully considered before starting and operating companies chosen in this case, the airline industry. The correct position of the company in the market, each company must ...