What are the current economic conditions?

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For example, during an economic recession, consumer spending tends to decline, which negatively impacts the financial position (capital) of companies that rely on consumer spending. On the other hand, economic growth can provide companies with opportunities for growth and expansion.

Some basic questions companies can ask themselves about economic factors:


Are we in a recession or growth period?
How do these circumstances impact our business?
Are there any economic trends that could impact our operations?
Social factors in PESTLE analysis
Social Factors Affecting Business - PESTLE Analysis
Social factors refer to the impact of societal trends, beliefs and values ​​on businesses. These factors include architect data demographics, lifestyle changes and cultural attitudes towards different products or services. Understanding social aspects is crucial for businesses because they can influence consumer behaviour.

For example, the increasing trend towards health and wellness has created a demand for healthier food options. Companies that capitalize on this trend can benefit from increased sales and commercial profits. On the other hand, companies that have to adapt to changing societal attitudes and trends avoid losing customers and market share.