PESTLE analysis

PESTLE is a tool which through six ways to analysis the external (Macro) environment most related to a company and how they influence the company in the future. It includes political, economic, social, technology, legal and environment. http://www.youtube.com/watch?v=4mkVc6ZZtJw Link with the nearest post, I will use the smartphone industry (Samsung) for an example:

Political

Samsung is a global company born in Korea. there are  different regulations and taxation policy in different countries, it will affect to the manager decision making.

Economic

This factor influence company cost and consumer spending, such as interest rate, inflation rate and labour cost.

Social

There are huge numbers of people in the world, they change from using mobile phone into smartphone. Also, each people have at least one smartphone, this is a big market to Smartphone Company. However, the sense of protecting environment are increasing. The green issue, which is electronic waste, affect to the company. The reason that people buy a new phone is not because their old phone had broken, it is because a new smartphone launch. As the result, they will throw or sell their old phone, it increase the electronic waste and influence to our environment.

Technology

Nowadays, people are focus on technology and quality of life. Technology improve their life, such as access information and communication technology instantly no matter where they are. Therefore, crate a new technology and develop existing technology are more important to company. The Android system is a good example, Samsung using Android system on their phone, and they are keeping improve it. Smartphone company not only enhance the quality of software, but also the hardware to improve the battery life and faster response to meet customer’s needs.

Legal

Smartphone is very popular all over the world. Samsung sells their phone to many countries, such as UK, USA, Hong Kong and China. These countries have their own law, and they affect to Samsung operation.

Environmental

I have talk a little about green issue in social factor; the electronic waste is a problem in the world. Although some component in the phone can reuse, the other parts are going to landfill. It does not mean it is disappear, it cannot be decomposition and it will be under the landfill forever. The landfill will be full in the future, so it will affect to the company.