Having a strategy for business comes under the aspects related to run a business smoothly. If there are no strategies then it will be difficult to set the objectives and goals for the business. The strategies concerning a business often get influenced by environmental factors. The analysis of these environmental factors is called PESTLE which involves Political Economical Sociological Technological Legal and Environmental factors.
Often there will be rules and regulations which are imposed by the local government bodies which affect the business. Certain rules regarding imports and export tariffs usually affect most of the business.
The strong and weak economic factors can give opportunities or threats depending upon the nature of the economy. Taxes and price variations are some of the economic factors that affect the business environment.
Finding and developing demographic profiles of the consumers is a tedious process. In such cases, it is essential to find the factors that motivate the consumers. Gender ethnicity and religion are some of the sociological factors that influence the business.
Technology is changing the scope of business every day. It has become essential for companies to keep updated with the latest technologies to perform above the competition. Communication methods through smartphones are an example of technological advancement which was not practical in the olden days.
Every business faces obligations and restrictions from governing bodies. Health and Safety Standards are examples of legal factors that restrict the business of manufacturing and marketing certain kind of products. It is essential for a business to know what the legislative law allows to start manufacturing and marketing the products.
Most of the consumers prefer environmentally safe products. Energy consumption and environmental impact are growing concern for any business in this millennium. It also benefits the business if the company is following environmental factors into consideration while doing business.