Company's External Environment ( PESTEL analysis & Porter's Five Competitive Forces )

Assalamualaikum....ok today i want share about PESTEL analysis & Porter's 5 Competitive Forces

Originally known, pestel analysis is a macro environmental that used to understand of external factors of organization. PESTEL stands for:

1)POLITICAL

for example:

  - Political stability

  - Tax policy

  - Employment and labor law

  - Environmental regulations

  - Trade restrictions

   -Tariffs etc

2) ECONOMY

for example:

 -Economic growth

 -Interest rates

 -Inflation rate

3)SOCIOCULTURAL

for example:

-Age distribution

-Population growth rate

-Emphasis on safety

-Career attitudes

4) TECHNOLOGICAL

for example:

-Basic infrastructure level

-Rate of technological change

-Spending on research & development

-Technology incentives

5) ENVIRONMENTAL

for example:

-Weather

-Climate change

-Laws regulating environment pollution

-Air and water pollution

6)LEGAL

for example:

-Employment law

-Health and safety law

-Data Protection

  PESTLE analysis can be very effective for understanding market and business position. The PESTLE analysis alongside SWOT can be used as a basis for analyzing the business and environmental factors of a project.

Porter's 5 Competitive Forces

Porter has identified 5 basic forces that collectively described of competition in an industry

1- intensity of rivalry among of competitors

2- threat of new entrants to the market

3- bargaining power of buyer

4- bargaining power of supplier

5- new substitute