This chapter is all about analysing the internal environment and also external environment. Both the analysis is important for various reasons like for strategic choices and its selection, to gain competitive advantage and also to avoid strategic drift.
There are various models through which we can analyse the environment but first of all let’s start with an external analysis.
And the most important factor here in External Environment is PESTLE because here PESTLE carefully analyse the each external factors. It will be more helpful when you are starting a new business or business at a new place.
PESTEL Model:
PESTEL Model looks at the macro environment, using the following factors:
1) Political factors
2) Economical factors
3) Social factors
4) Technological factors
5) Environmental factors
6) Legal factors