Session on PESTLE Analysis

1. Session on PESTLE Analysis Presenter: Maurice Ajabba Otieno Cavendish University Uganda JULY 2011

2. After this lecture participants will be able to identify and undertake PESTLE analysis LEARNING OUTCOMES

3. This analysis is essential for an organization before beginning its marketing process PESTLE is an analytical tool which considers external factors and helps you to think about their impacts What is PESTLE Analysis?

4. The factors in PESTLE analysis P � Political The current and potential influences from political pressures E - Economic The local, national and world economic impact S - Sociological The ways in which changes in society affect the project T - Technological How new and emerging technology affects our project / organization L - Legal How local, national and global legislation affects the project E - Environmental Local, national and global environmental issues

5. This is the most important influence on the regulation of any business. How stable is the political environment? Influence the Government Policy / Law on your business Government�s position on Marketing Ethics Government�s policy on the economy Government�s view on culture under religion Political Factors

6. Political System is responsible for Law Making. Immediate laws which affect any business in general are Central Excise, Sales Tax/ VAT, Corporate Income Tax, Personal Income Tax & Service Tax Environmental Protection Law Controls if any on Marketing Strategies Like Marketing / Advertising of Cigarettes, Tobacco, Alcohol etc. Political Factors - Contd.

7. Control on Pricing like sugar, drugs etc. Government Policies on the Economy Role of Public Sector Role of Private Sector Role of Joint Sector Political Factors - Contd..

8. Government outlook towards Bank Financing Interest Rates Exchange Rate Mechanism Incentives for Exports Restrictions for Imports Inflation Labour Policies Economic Factors

9. Level of Government Spending Avenues for Capital Creation Size of the Capital Market Role of the Regulator Type of the Instruments Nature of the Investors Energy availability and costs Economic Factors - Contd.

10. Socio-Cultural Factors Demographics Distribution of Income Social Mobility Life Style Changes Consumerism Educational Levels Demographics & Distribution of Income Division of population - Male / Female Age Group of the Population Education Level of the Age Groups Disposable Family Income Disposable Income in the hands of the different Age Groups

11. Life Style Changes & Consumerism Attitude to living Different Age Groups In tune with available disposable income Thrust on taking care of present needs by spending than saving for the future. Joint living and nuclear families Availability of various media tools Reach of the media to the population Social Cultural Factors - Contd.

12. 1. Does technology allow for products and services to be made more cheaply and to a better standard of quality? 2. Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? 3. How is distribution changed by new technologies e.g. books via the Internet, flight tickets, auctions, etc? Does technology offer companies a new way to communicate with consumers e.g. banners, Customer Relationship Management (CRM), etc? Technological Factors