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💼 Business Context

🤔 PESTLE

PESTLE stands for Political, Economic, Social, Technological, Legal, Environmental factors.

How does each factor influence a business?

Political Factors​

  • Political stability
  • Corruption
  • Foreign trade policy
  • Funding grants
Example

There might be funding available to support your current business. A business start-up developing games could have access to indie funds, UK games fraud, creative funds or developer grants. These can have a massive impact on your business success.

Economic factors​

  • Economic growth
  • Interest rates
  • Inflation
  • Disposable income of consumers
  • Labour costs
Example

Consider the impace COVID has had on business. Has this beem a positive or negative impact? Although the COVID-19 pandemic saw many industries damanged the games industry saw increased sales suggesting people turned to video gaming to keep themselves entertained.

Social factors​

  • Population growth
  • Age distribution
  • Cultural barriers
  • Consumer views
  • Workforce trends
Example

Social media is very powerful and support many businesses in building their brand and generating sales. Consider the impact on a business following negative consumer reviews, or responding to posts in the wrong way.

Technological factors​

  • Emerging technology
  • Maturing technology
  • Copyrights and patents
  • Production and distribution
  • Research and investment
Example

Consider the mobile phone marketplace. Android and apple IoS both release yearly updates to their operating systems based around the technology that is available.

  • Regulation
  • Employment laws
  • Consumer protection laws
  • Tax policies
  • Anti-trust laws

Environmental factors​

  • Climate
  • Environmental policies
  • Availibility of inputs
  • Corporate social responsibilities
Example

Cloud computing can be a more agile, efficient and cheaper solution but it also has clear advantages when it comes to sustainability through lower energy consumption, optimisation of hardware compared to on premesies hardware and responsive allocation of on demand resources.

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