PESTLE Analysis: Benefits For Business Management (Essay).

1. Critically select and apply relevant marketing theories, conceptual models and frameworks in the development of marketing strategies within a dynamic business environment to produce superior marketplace performance.

2. Demonstrate knowledge applied to evaluate marketing practice in relation to the cross-functional aspects of business & management with the goal of enhancing long-term shareholder value 

The Six Major Components of PESTLE Analysis

In order to analyze the macro-environmental factors that have an impact on business, the PESTLE is the most useful framework. In respect to that Killeen, (2018) opines that by conducting an analysis through PESTLE model, the major influential factors are identified while evaluating the impact of the factors on business. Thus it is considered to be one of the most effective tools of marketing. The Political, Economical, Social, Technological, Legal and Environmental factors are evaluated in PESTLE analysis while giving a clear overview of the environment that controls the business of a company.Gupta, (2013)is of the opine that PESTLE analysis helps the strategy makers understand that which factors are in favor of the company and which factors need immediate attention in view of further growth of the company. However Hillson and Murray-Webster, (2017) argues that PESTLE analysis determines the future actions of the company while keeping the impact of the factors in mind. To be more specific, when a company uses a new product or expands its business, the marketers conducts analysis through the framework of PESTLE. By analyzing the controlling factors, they have a clear understanding of the factors(Zalengera et al. 2015). For example, through PESTLE analysis, the marketers obtain knowledge whether the political condition would be suitable for the upcoming product or the political condition of the country will bring benefits in which the company plans to expand. Moreover, Pestle analysis gives helps to obtain a deeper understanding of the business (Rastogi and Trivedi 2018). It is such a useful framework which assists the company to gain competitive advantages to a greater extent. In accordance with Ho, (2014), the major benefit that businesses receive from PESTLE analysis is that it identifies the major threats in terms of external environment.

As per Mahara, (2013), unlike other frameworks, PESTLE analysis requires nothing but time and a thorough research. Thus it is considered as the cost effective tool of business management. In this regard it needs to be mentioned that PESTLE analysis is the only mode through which it can be understood that whether the factors have a direct or indirect impact on business. For instance, it is generally seen that while developing prototype of a product, some impotents factors like safety or aspects of law are overlooked(Rastogi and Trivedi 2018). Agreeing with this Ho, (2014) states that while conducting the PESTLE analysis every minor aspect are identified and then evaluated which in turn assures that the strategy makers or marketers do not miss any important aspect while adopting strategies for further growth of the business. According to Gupta, (2013), a proper PESTLE analysis gives an overview of the potential threats in terms of the external environment that can have an adverse effect on business. On the other hand, Mahara, (2013), suggests that while conducting an analysis through PESTLE framework a clear idea of competitors’ position within the concerned industry so that the company can take actions or strategies accordingly. While developing a prototype of a product or expanding in a wide market, a company needs to be taken all the social factors under consideration in order to assure that the product can achieve maximum acceptance from the customers(Zalengera et al. 2014). Thus it can be apt to assert that all the above mentioned benefits are generated from PESTLE analysis which made the framework extremely useful for the company.

Benefits of PESTLE Analysis for Businesses

In order to discuss the PESTLE analysis in line with the launch of pollution eating bikes in the country of Canada, the three major components of the frameworks; political factors, economic factors and most importantly the social factors will be analyzed below.

The type of government that exists in Canada is democratic. Thus being a democratic country, Canadian government has been having a liberal approach I terms of trade rules and regulations (Zalengeraet al. 2014). Over the past two decades it has been evident that the growth of business sector in Canada is extremely considerable. The real GDP of country in the year of 2016 has been reported CAD 1795.56 while CAD 2026.83 was reported as the nominal GDP (GAC 2018). Due relaxed jurisdiction system, the industrial growth of the company has become remarkable. The cost of living in the country has been increased which created an opportunity of growth of the business sector. Unlike the neibouring countries like United Kingdom and United States of America, the political condition of the country is stable which is one of the positive aspects for further growth of the company. (Rastogi and Trivedi 2018) opines that growth of any company whether it is large or small in size, exclusively depends on political situation. It can be observed that in Asian countries where political condition is not stable, the economical growth is low for which most of the companies try to avoid the particular market while preferring the countries like Canada. The threat of drastic change of the trade laws and regulations is low which in turn helps the further growth of the company so that most f the companies look for economies like Canadian in order to assure smooth business process of the company. Since it has been observed that the political environment of Canada will be highly suitable for Pollution Eating bikes.

From the perspective of economy, it needs to mention that the Canadian economy is considered as one of the large economies all over the world. The rapid growth of economy over the past two decades has been attracting many giant companies in order to invest in the business sector of the country (Ho 2014). The company has been able to secure itself as one of top ten trading countries across the world. Several economic activities including different treaties were signed between the Canada and other countries in order accelerate the growth of business within the country. The US-Canada Free Trade Pact was signed by the governments of the two countries so that more business opportunities can be created (Ustr.gov 2018). Since the past few years, Canada has been eying on more business opportunities with US. However, the financial crisis affected the company while slowing down the pace of economic growth.

PESTLE Analysis and Pollution Eating Bikes in Canada

Due to the financial crisis major companies focused on cost cutting measures in order to increase sustainability within the industry. Because of the emergency, the overall revenue of the organizations brought and had down to take some cost decreasing measures, for example, limiting providers (Gupta 2013). As a measure of reducing the cost of the company, the companies instead of product development, focuses more on market penetration of the existing product range. Thus it has that in order to compete with rival companies most of the companies have reduced the product price so that sales margin can be increased. As per Hillson and Murray-Webster, (2017), factors identified with economy have real impact on the overall organization. The financial emergency all through the world has influenced the general business industry and a standout amongst the most unmistakable cost cutting measures is the minimization of works. These variables likewise prompt the bringing down of creation of the organization. However, the Canadian economy effectively dealt with the emergency, it can be said that the organizations rather dealt with the emergency in the meantime held its positions in the sphere of business. Being a unique product, the pollution eating cycles will be quite an expansive product. Since the cost of living has increased in the country there might not be desirable outcome in terms of sales and profit margin.

The social trend of saving the environment will play a vital role for the business of pollution eating bicycles (Collins 2018). There has been increasing trend of taking initiative of reducing the carbon footprint generated from industry. Since Canada is one of the most important international markets and there has been a demand of pollution control products within the country, the product will positively generate a large amount of revenue from it. On the other hand another social trend very much evident within the society of Country is that the trend of staying fit. Due to the health conscious trend, the countrymen prefer doing physical activities such as cycling, free hand exercises and so on. Thus it will be right to stay that the product will be able to meet the expectation of the customers.

The major issue is that in an economy where cost of living has been increase, the company needs to have proper integrated marketing programs in order to promote the pollution eating bicycles (Yeshin 2012). In order to make it effective the marketing strategy will include social media based strategy and traditional way of marketing.

Social media marketing is largely considered to be one of the most useful marketing strategies since it reach out to maximum customer base within less time (Mulhern 2013). Thus under the social media based marketing, several activities like posting video contents, audio contents, photograph so that most of the customer can be attracted towards using the product.

Beside of social media marketing the traditional way of marketing strategies needs to be adopted by the company so that the product can be promoted (Mulhern 2013). Even though this age is solely dominated by social media platforms traditional way of marketing is the easiest way to attract the customers (Belchet al.2014).

In order to promote the branding of the product, the company must organize some events featuring the product and its uniqueness (Porcu 2018). Beside of that social media marketing the traditional way marketing will need to sponsor big events like sports activities. Thus to conclude it will be right to state that the by not only event organization will help the product pollution eating cycles to be promoted. However, more focus should be given on social media marketing since social media marketing has been observed as blooming with higher rate of success.

References

Belch, G.E., Belch, M.A., Kerr, G.F. and Powell, I., 2014. Advertising: An integrated marketing communication perspective. McGraw-Hill Education.

Collins, R. 2018. https://users.ox.ac.uk/~kell0956/docs/PESTLEWeb.pdf. [online] users.ox.ac.uk. Available at: https://users.ox.ac.uk/~kell0956/docs/PESTLEWeb.pdf [Accessed 26 Jul. 2018].

GAC. 2018. Annual Economic Indicators. [online] Available at: https://www.international.gc.ca/economist-economiste/statistics-statistiques/data-indicators-indicateurs/Annual_Ec_Indicators.aspx?lang=eng [Accessed 26 Jul. 2018].

Gupta, A., 2013. Environment & PEST analysis: an approach to external business environment. International Journal of Modern Social Sciences, 2(1), pp.34-43.

Hillson, D. and Murray-Webster, R., 2017. Understanding and managing risk attitude. Routledge.

Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European academic research, 2(5), pp.6478-6492.

Killeen, J. 2018. [online] Available at: https://cdn2.hubspot.net/hub/170850/file-18473894-pdf/docs/understanding_your_business_environment.pdf [Accessed 25 Jul. 2018].

Kolios, A. and Read, G., 2013. A political, economic, social, technology, legal and environmental (PESTLE) approach for risk identification of the tidal industry in the United Kingdom. Energies, 6(10), pp.5023-5045.

Mahara, T., 2013. PEST-Benefit/Threat Analysis for selection of ERP in Cloud for SMEs. Asian Journal of Management Research, 3(2), pp.365-373.

Mulhern, F., 2013. Integrated marketing communications: From media channels to digital connectivity. In The Evolution of Integrated Marketing Communications (pp. 19-36). Routledge.

Porcu, L. 2018. How Integrated Marketing Communications (IMC) works? A theoretical review and an analysis of its main drivers and effects. [online] www.unav.es. Available at: https://www.unav.es/fcom/communication-society/en/resumen.php?art_id=415 [Accessed 26 Jul. 2018].

Rastogi, N. and Trivedi, M. 2018. PESTLE TECHNIQUE – A TOOL TO IDENTIFY EXTERNAL RISKS IN CONSTRUCTION PROJECTS. [online] irjet.net. Available at: https://irjet.net/archives/V3/i1/IRJET-V3I165.pdf [Accessed 26 Jul. 2018].

Ustr.gov. 2018. North American Free Trade Agreement (NAFTA) | United States Trade Representative. [online] Available at: https://ustr.gov/trade-agreements/free-trade-agreements/north-american-free-trade-agreement-nafta [Accessed 26 Jul. 2018].

Yeshin, T., 2012. Integrated marketing communications. Routledge.

Zalengera, C., Blanchard, R.E., Eames, P.C., Juma, A.M., Chitawo, M.L. and Gondwe, K.T., 2014. Overview of the Malawi energy situation and A PESTLE analysis for sustainable development of renewable energy. Renewable and Sustainable Energy Reviews, 38, pp.335-347.