Pestle Analysis

What is PESTLE Analysis in International Business

PESTLE is an acronym for the Political, Economic, Social, Technological, Legal and Environmental factors that are likely to affect the growth of a business.

A PESTLE Analysis is a framework used to evaluate external factors affecting an organization’s ability to enter a new market or country.

The Philippines has its own unique set of challenges for businesses looking to expand into this market but with careful planning and by understanding how each factor may impact your company can help you optimize your chance at success in the Philippines.

PESTLE Analysis in International Business: A Case Study

PESTLE analysis is a tool for analyzing the external environment of a business.

It helps to identify the major forces that affect the business, and also helps to analyze the macroeconomic, political, social, technological and legal factors.

In this case study we look at PESTLE Analysis in International Business at Volvo Trucks North America (VNNA).

The company was acquired by AB Volvo (now known as CNH Industrial) in 2010 and has been operating since its founding in 1993 as Mack Trucks Incorporated.

The company operates through two segments: Commercial Vehicles with International Operations in Europe and Latin America; Construction Equipment with Domestic Operations in North America serving customers who design and build bridges/highways/railway projects etc.

Sample PESTLE Analysis for a Company in India

Pharmaceutical Company

Indian pharmaceutical companies represent some of the largest in the world and have made many contributions to medicine and disease research.

However, they face many challenges from changing government policies on patents and pricing schemes, as well as competition from generic drug manufacturers who want to take advantage of weaker patent laws outside India.

The importation of foreign drugs has also become an issue for domestic companies with their ability to compete on price being undermined by lower cost imports from abroad.

Retail Store

The Indian retail industry is one dominated by large conglomerates such as Reliance Retail Ltd., Bharti Walmart Ltd., Future Group Llc., Tata Group ltd., etc.

Although these large companies offer consumers convenience through their stores’ 24/7 operation hours along with access to millions items at any given time, there are many smaller retailers who offer customers more personal service while also providing low prices due to their modest size businesses which means they don’t need store fronts or warehouses like bigger chains do.

Information Technology (IT) Company

India has long been known as one country where quality IT jobs could be found because it had long been exporting its services overseas; however recent years have seen an increase amount outsourcing work done within India itself rather than sending work overseas due to increased demand for local talent which means less money spent paying foreign wages but more money saved overall thanks those saved costs being passed down onto customers through lower prices.

Sample PESTLE Analysis for a Company in China

The Chinese economy is the world’s second largest, with a GDP of over $10 trillion.

It has a population of 1.4 billion people, which makes it one of the most attractive markets in the world for international companies that want to expand internationally.

China’s economy is growing at an annual rate of around 6%, and its government plans on maintaining this pace in order to become an even more dominant player in global trade and economics.

China has a large middle class with disposable income to spend on consumer goods, making it an attractive market for many companies around the world.

Sample PESTLE analysis for an international business located in the Philippines

If you are an international business located in the Philippines and want to know how you can use PESTLE analysis to your advantage, it is important first to understand some of the key characteristics of the Philippines.

The population of this country is over 100 million people, which makes it one of the most populated countries in Asia.

This large population has allowed the country’s economy to grow into a strong and stable one.

They have a relatively low unemployment rate at around 4%, which means there are plenty of people who could potentially work for your company.

The government also plays an important role in supporting businesses because they offer incentives like tax breaks for companies that invest more than $1 million USD (or its equivalent).

Their legal system has been recognized as one of Asia’s best for years now because they truly care about their citizens’ right to own property or do business freely without fear from corrupt officials who may attempt extortion through illegal means (such as threats on their lives).

Bottom Line

PESTLE analysis has been a valuable tool in international business for many years, and with the increasing globalization of markets, it is more important than ever.

When used correctly, this tool can help you understand your company’s strengths and weaknesses as well as identify any possible threats to its sustainability.

We hope that this post has given you some insight into how PESTLE analysis can be used effectively by companies operating in foreign countries.


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