The PESTEL Framework Essay Example for Free

The PESTEL Framework EssayThe PESTEL framework examines the six master(prenominal) macro environmental influencing factors of companies governmental, economic, social, technological, environmental and legal. These influences determine the future success or failure of the corporate strategies. The political influence include the role of the governments economics embraces the macro economic factors such as growth rate, qualify rates and business cycles the social component stands for changing cultures and demographics technological influences include innovations environment refers to the green issues including contamination and waste and legal entails legislative changes and constraints. Gerry(2008) argues that identifying the key drivers for change helps to focus on the important PESTEL factors. Based on those managers can make the optimal decision for effective action. Thus, the key drivers for change determine the success or failure of a strategy. For instance the clothing retailers are concerned about the social changes which drive consumer relishing and behaviour. When there is a high uncertainty in the business environment due to complexity or rapid change, it is unlikely to build a single vision of how the environment can affect companies strategies.