External Analysis: PESTEL Framework | Strategic Management

As we know, a firm’s operation and performance is inevitably influenced by its external environment. When mangers decide to start a new business or enter a new market, they should coherently evaluate firm’s external environmental factors. A PESTEL analysis is a framework or tool used by managers to analyze and monitor the macro-environmental factors that have an impact on an organization, company, or industry.

PESTEL is an acronym that stand for Political, Economic, Social, Technological, Environmental and Legal factors. Generally, the PESTEL analysis focus on a big-picture and long-term changes of firms ‘external environment. So let us take a close look at each individual element in the PESTEL analysis.

[everythingjulia]

I have never heard of PESTEL before this video. This video was very simplistic on explaining how the macro-environmental factors impact the markets and companies around us.

[turnerprewitt]

What I find interesting about this video is how it breaks down many important factors to consider when doing international business. The PESTEL framework is great guide when considering an option to do internal business for reviewing its external qualities because it segments the factors into neat groups for individual review. When analyzing a country's external qualities without PESTEL, it can become overwhelming since many of the mentioned segments are directly related, which I why I find the PESTEL framework so interesting and useful.

[isabellewandres]

This video helped me gain a better understanding of the PESTEL Framework. I believe this will help me in my future career because when I eventually become a manager, I will now have a better understanding on why it is so important to run a PESTEL analysis at least every six months in order to help keep my strategies both fluid and current.

[lillianspeicher]

This video was super insightful for me on how complex being a manager is and what all goes into a firm's performance. Bringing a new product into the market is one of the hardest things a business can do, and market analysis is super important to project what could happen with the product and when the right time would be to present it.

[blakelabuda]

After watching this video, I had a much better understanding about the political, economic, socio-cultural, technological, environmental, and legal factors that go into the PESTEL framework of strategic management. I highly recommend this video for all who want to learn about this topic.

[landonchaney]

PESTEL framework is very important to understand because it is very difficult to get a new product into the market. This video does an excellent job of explaining it and breaking it down to make it easier to understand.

[hayden]

I was unaware how much the external environment affected a new business coming into the market. The PESTEL analysis does a great job in outlining what is needed to know when entering the market.

[karmaelwell]

Often, we underestimate the challenges and myriad elements involved in launching a new product in a market. My knowledge has significantly expanded this term through studying international business and marketing, which has highlighted that introducing a product to a fresh market isn't a simple task. These elements are intriguing and effectively showcase the intricate nature of what truly entails when debuting a product or service.

[DayBreaker_]

This video shows just how incredibly difficult and complex bringing a new product to market can really be. PESTEL framework shows just how much analysis it takes in order to be prepared to bring a new product to market. While using PESTEL Analysis can make your business more likely to succeed, it isn't a guarantee. Thank you for this in depth video.

[kenyaflores]

This video gave me so much knowledge and information about the PESTEL Framework. PESTEL stands for Political, Economic, Social, Technological, Environmental, Legal. This is helpful for when starting a new business, it is helpful for a business to run this analysis at least every six months and if need to do changes do so.

[pakorasonia]

I enjoy this video because it helps me understand the different factors you need to know before entering an international business. I learned that a firm success is inevitably influenced by its external environment. The video explains how the system works in the Business world; how customers behave according to the country's economy. I also learned that a PESTEL can be crucial in analyzing and monitoring macro-environmental factors.

[irielamontoya]

I was so glad to learn about the PESTEL Framework because I know that I will be utilizing this at work when there is an advancement. Basically, this focuses on long term changes in a company’s external environment and PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal factors. All these are important for managers of a firm to conduct external analysis.

[cheyennepage]

I didn't know anything about PESTEL until now. This is interesting because it deals with real companies.

[carlosguerrero]

Knowing that I will be using the PESTEL Framework at work whenever there is an advancement made me very happy to learn about it. When I eventually manage or own your company, I think this will help me in my future career.

[isaccsaucedo]

what i gather and from what i see from day to day life is that everthing has a motive to its action . So when business are bulding up their product there must be able to fullfill people motive . i saw i comment stating that you cant add a product to the market because of what this video showcase but also you must fulfill a motive to have your product grabbed from the market .

[dane_adams]

This video was very insightful to the functionality of the PESTEL Framework. This analysis seems to be very integral for a corporation, and has macroeconomic and social issues within the basis of its framework. I never thought of these factors being used together when reviewing internal and external attributes of a business model.

[kmeyer-dsuo]

This was the first time I have heard of PESTEL analysis, I read about it in the book but did not get a good hold on the topic. The graphics and explanations throughout the video helped me understand how it is put in action.

[laurengardner]

It makes sense that different external factors determine how well a product will do. I wasn't familiar with PESTEL framework, but after watching the video it confirms that there are more factors than just the product itself to determine its success.

[brianshine]

This video described the challenges of managing a business. Every day, the world changes, and we have to adjust. The video was fascinating and did a great job of illustrating the significance of the PESTEL framework.

[haydencollins]

I found this video very informative. I like how you talked about companies finding ways to make money. Your Microsoft example in India was a fantastic example of how companies will outsource to different countries to make money.