Which are the appropriate elements business environment?
Answers
The six elements in the business environment are political, economic, social, technological, legal and environmental.
The PESTLE analysis is a concept born out of marketing principles and acts as a tool for companies to be able to track the environment in which they’re operating. It is especially important when a company intends to launch a new product or service or expand to a new area. PESTLE itself is a mnemonic where the letters stand, individually, for the following:
Political: What is the political state of the area in which the business is operating?
Economic: What are the economic factors at play in the market in which the business is operating?
Social: What are the socio-cultural factors to be taken into consideration in the environment in which the business is operating?
Technological: What technological trends are likely to be dominant in the business’s environment for the foreseeable future?
Legal: What is the legal environment like? Is there any legislation the business should take into account?
Environmental: Does the area have any particular environmental concerns the business should consider?