This will help the company appreciate the influence of outside forces (Grant, 2002). Brainstorming will be effective in generating new ideas given a short time frame and effective in the evaluation of existing ideas by the group processes.
PESTEL political factors include government policies formulated that influence the type of goods or services it will allow from the company and the degree of intervention in economic sense. These political decisions will influence the company in many vital areas and impact on factors such as organisational learning, educating the workforce and health which further influences the quality of infrastructure of the economy.
Economic factors rotate around interest rates, economic growth, exchange rates and inflation which will impact the firm's behaviour. The growth of a national income may boost a firm's product demand (Finlay, 2000). Therefore the company has to draw its strategies to scour the external environment. Factors revolving around economy in foreign exchange and swapping should be observed keenly to take advantage of or be cautious when dealing with the economic markets.
Social factors will relate to social trends and changes which can impact the ...Show more