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External Analysis

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Nurul Asyiqin
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15 views

External Analysis

Uploaded by

Nurul Asyiqin
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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External Analysis

PESTLE is a framework for analysing the macro-environmental factors that


affect online gaming operators.
PESTLE stands for Political, Economic, Social, Technological, Legal, and
Environmental factors that exist in the external environment.
These external factors have a greater or lesser influence on strategy
formulation for online game operators.
 Political Environmental
The political environment is made up of "laws, government agencies, and
pressure groups that influence or limit various organisations and individuals in a
given society". Politics has an impact on every aspect of daily life, so businesses
should make an effort to track trends and maintain good relations with elected
officials.
 Economic Environment
The four most essential macroeconomic variables are the economy's growth rate,
interest rates, currency exchange rates, and inflation rates. Price inflation stifles
economic development, whereas price deflation raises the real cost of fixed
payments (eg: debt payments), according to IMF.
 Social environment
refers to how societal norms and values influence industry and this dimension
spans a wide range of factors.
Some scholars add cultural aspects, while others distinguish between
demographic and social forces.
The demographic forces should accompany the social environment analysis in a
PESTEL study.
 Technological Environment
Variables in this environment include research and development investment,
patent protection, new goods, telecommunication infrastructure, product
developments, and knowledge applications.
 Legal Environment
The political environment is concerned with concerns that are closely related to
political events.
Business legislation has been created to protect firms from one another and
society's interests.
Tax rules, international trade restrictions, hiring and promotion legislation are just
a few of the aspects businesses should be aware of.

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