CIMA E2 Syllabus A. Business models and value creation - Pestel Analysis - Notes ^{10 / 10}

The macro-environmental level, analysing factors that cannot be directly influenced by the organisation itself.

It considers the demographic factors of a country. 

The output from it can be used to form the opportunities and threats part of the corporate appraisal.

It covers six areas:

1. Political - For example, the current government having a low reputation which means there may been an election soon OR government tax on the sale of a product.

2. Economic - For example, the level of disposable income of customers.

3. Social - For example, religious beliefs of the majority in a country OR popularity of a gold colored phone for a smartphone manufacturer

4. Technological - For example, the use of robots as an industry threshold competence.

5. Environmental - For example, increasing pressure to minimise carbon footprint.

6. Legal - For example, the government planning to change the labour law or impose stringent taxes.