Forces in the wider world also tend to shape management policies. This is where a PESTEL analysis comes in which stands for political, economic, socio cultural, technological, environmental and legal help to identify these.
Lets see how each of these factors will effect Sony.
Political and legal would be that political factors of Sony can be changed anytime which could effect it at any time of change. Instability in a political situation of a country will effect the business.
Reduction in recession could cause Sony to speed up its change, meanwhile same thing can happen with the competitors of Sony which may effect Sony negatively. Sony needs to follow the rules and regulations set up by the government. By change in the politics of a country the condition of the business environment may stay the same.
For economic factors it is the essential factor by which the growth of an economy could be assessed.
It would cover the major aspects like unemployment and wages. However the economic condition of Sony was not reported in good condition because of the economic shrunk. Due to this the exchange rate was effected which could be related to Sony because it is a international business.
For social even though Sony has gained reputation cause of the quality goods and services they provided they still need to be well aware of the customer demand and changes in the lifestyle of the people. Sony needs to consider most of the educational factors and must have social involvement in the most needed things for the people.
One of the four important factors which is essential for the company to assess its external environment are the technological factors.Sony works around the technology everyday. For this they should use new and upgraded technology in productivity which may give Sony competitive advantages making it the market leader. By using the new technology it can do research by which it can respond to the demand of its customers.
You completed four blogs, well done. You discussed a number of theories and applied them to organisations. This is good stuff. Be careful - some of the text has different English to others - in other words, it is easy to see where information has been borrowed from other sources. By applying the model. this reduces the risk of this. Try to extend your writing also - more analysis. What do the tools mean for the businesses? What does it tell them? What could they do with the information? Can you think of any strategies they could use? 58%
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