How some of these factors can impact businesses
Posted: Tue Feb 11, 2025 9:10 am
The PESTLE analysis is a strategic tool used to gain information and insight into the external factors that can affect a business. It is an extension of the PEST analysis, which stands for political, economic, social and technological factors. This acronym is further expanded by adding legal and environmental considerations. As part of this process, businesses are keen to gain insight into various environmental factors in order to identify potential opportunities and risks that can shape their strategies.
The environmental analysis looks at the physical environment as well as climate change policies or government agency guidelines, energy availability or related price trends (for example, an oil shortage could lead to rising gas prices), animal-related laws affecting specific product categories, etc.
All of these variables can have a huge impact on both business operations and other vital aspects, such as the willingness of customers to purchase a product or the efficiency of employees. As such, it is imperative that business owners consider the implications associated with environmental factors when making key strategic decisions; failing to do so can prove disastrous for both short-term profitability goals and sustainability initiatives if not managed properly.
Contents
Environmental factors in business
Weather
Climate change
Pollution
Availability of certain renewable goods
Existence of certain biological species
Environmental related laws
Examples of environmental factors that influence business
Environmental Factors That Affect Coca-Cola
Environmental factors affecting the UAE
Conclusion
Environmental factors in business
Climate
Climate change
Weather
Pollution
Availability of non-renewable goods
Weather
Weather can have a significant impact on businesses because of the potential damage it advertising data can cause. Natural disasters such as floods, hurricanes, and tornadoes can all disrupt business operations or even damage valuable assets. Businesses that operate outdoors, such as construction companies or landscaping services, are particularly vulnerable to weather-related disruptions.
The environmental analysis looks at the physical environment as well as climate change policies or government agency guidelines, energy availability or related price trends (for example, an oil shortage could lead to rising gas prices), animal-related laws affecting specific product categories, etc.
All of these variables can have a huge impact on both business operations and other vital aspects, such as the willingness of customers to purchase a product or the efficiency of employees. As such, it is imperative that business owners consider the implications associated with environmental factors when making key strategic decisions; failing to do so can prove disastrous for both short-term profitability goals and sustainability initiatives if not managed properly.
Contents
Environmental factors in business
Weather
Climate change
Pollution
Availability of certain renewable goods
Existence of certain biological species
Environmental related laws
Examples of environmental factors that influence business
Environmental Factors That Affect Coca-Cola
Environmental factors affecting the UAE
Conclusion
Environmental factors in business
Climate
Climate change
Weather
Pollution
Availability of non-renewable goods
Weather
Weather can have a significant impact on businesses because of the potential damage it advertising data can cause. Natural disasters such as floods, hurricanes, and tornadoes can all disrupt business operations or even damage valuable assets. Businesses that operate outdoors, such as construction companies or landscaping services, are particularly vulnerable to weather-related disruptions.