PESTLE Analysis

Question 1

What is a PESTLE Analysis?

Answer 1

The framework for analyzing the conditions in a particular country
Politic, economic, sociocultural, technological, legal, environmental

Question 2

Political conditions

Answer 2

Policies of the government in power
government stability (Venezuela is unstable, socialist)
trade agreements (NAFTA, NATO -Trump, TPP)

Question 3

Economic conditions

Answer 3

Economic indicators
Value of the dollar, how that can impact doing business with another country

Getting more for your dollar

Value of a currency is determined by these things:

Political conditions —> communist, stability/unrest, type of leadership, free trade
Balance of payments —> how much money do they bring into their company? What does their debt look like? Money going in and out

Question 4

Socio-cultural conditions

Answer 4

Languages, beliefs, customs, holidays, ways of life, business practices, etiquette, education levels, age distribution, eating times, hours

power distance / hierarchy or a company (plant to CEO)

individualism (climbing the corporate ladder) vs. collectivism (work together, collaboration, less competitive)

uncertainty avoidance (how much is risk taking valued in that country?)

short vs. long term orientation (US short term up down of markets, Asia long term values)

Question 5

Technological conditions

Answer 5

Access to internet, cell phones, new technologies, chip technology, outlets

Question 6

Legal conditions

Answer 6

Employment (minimum wage), any laws that relate to business, corporate tax rate, waste disposal laws, advertising laws, health and safety regulations, competition

Question 7

Environmental conditions

Answer 7

Anything related to the environment, energy consumption, waste disposal, natural disasters