Question

Describe:

Imagine a company

a) PESTLE analysis of the above company

Write down:
b) Vision, mission, objectives, strategies and activities.

Answer 1

PESTLE Analysis (Political, Economic, Social, Technological, Legal and Environmental) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market. As described by the acronym, those six areas are central to this model.

A comprehensive assessment of the major areas of influence that affect the sector in which an organization is positioned, as well as the organization itself, can facilitate more effective strategic planning. This planning can be undertaken to maximize the organization’s ability to capitalize on conditions as they exist, and to be forewarned of and better prepared for imminent changes, allowing the organization to stay ahead of competitors.

Let's take a hypothetical example of ABC Ltd. company headquartered in US which is thinking to expand its business to India. Before the company makes a hefty investment in the new area of expansion, it needs to do some research and analysis before venturing out to a new country. The company needs to analyze a number of factors before making the final decision of expansion.  

P - The Political aspect of PESTLE Analysis focuses on the areas in which government policy and/or changes in legislation affect the economy, the specific industry, and the organization in question. Areas of policy that may particularly affect an organization include tax and employment laws. The general political climate of a nation or region, as well as international relations, can also greatly influence the organization. For example, if it is the time of elections in India ABC Ltd should wait for the time until the new government gets elected. Because with every govt, new changes and policies are likely to happen. Your business should be effected due to political volatility.

E - The Economic portion of the analysis targets the key factors of interest and exchange rates, economic growth, supply and demand, inflation and recession. In the current scenario, there is a recession ongoing in the Indian economy, so the company needs to be aware of such factors but at the same time, govt is being lenient in taxation structure, this factor should also be considered.

S - The Social factors that may be included in a PESTLE Analysis are demographics and age distribution, cultural attitudes, and workplace and lifestyle trends. Sometimes, the natives are not very friendly towards MNCs and they do not let the company conduct their operations peacefully.

T - The Technological component considers the specific role and development of technologies within the sector and organization, as well as the wider uses, trends and changes in technology. Government spending on technological research may also be a point of interest in this area. If the company is highly technology-driven, it can make expansion or even have joint ventures in the technologically innovated country.

L- Legal scenario of a country also plays an important role, if the country observes stringent rules and complex time-consuming processes of permissions. It becomes a negative factor for the country as it becomes hard and costly for the company to sustain in such a country.

E- Environment has become a prominent factor from the last some decades and they have become important due to the increasing scarcity of raw materials, pollution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments. Rising global warming, pollution has arisen a new demand for pollution less manufacturing process which also entails less requirement of input resources. Environment factor came into existence with sustainable development. As India has recently banned all single use plastics and polybags.

b) Vision, mission, objectives, strategies and activities.

• What the organizations want to achieve – reflected by Vision, Mission, and Objectives. These are long term plans
• And how they are going to achieve the above “what”- reflected by the Strategies and Tactics. These are short-term implementation plans.

Vision (THE DREAM) serves the purpose of stating what an organization wishes to achieve in the long run. An organization’s vision describes what the organization hopes to become in the future. Well-constructed visions clearly articulate an organization’s aspirations. Google’s mission is to organize the world’s information and make it universally accessible and useful.

Mission (THE WHAT AND WHY) relates an organization to society. A mission states the reasons for an organization’s existence. Well-written mission statements effectively capture an organization’s identity and provide answers to the fundamental question “Who are we?” While a vision looks to the future, a mission captures the key elements of the organization’s past and present. McDonald’s brand mission is “to be our customers’ favorite place and way to eat.

Objectives (HOW MUCH OF WHAT WILL BE ACCOMPLISHED BY WHEN) state what is to be achieved in a given time period. Once an organization has developed its mission statement, its next step is to develop the specific objectives that are focused on achieving that mission. Objectives refer to specific measurable results for the initiative's broad goals.

Strategies (THE HOW) explain how the initiative will reach its objectives. Generally, organizations will have a wide variety of strategies that include people from all of the different parts, or sectors, of the community. These strategies range from the very broad, which encompass people and resources from many different parts of the community, to the very specific, which aim at carefully defined areas.

Activities (WHAT TO DO) are the specific action steps necessary to bring about changes in all of the relevant sectors, or parts, of the community. For example, in a program whose mission is to increase youth interest in politics, one of the strategies might be to teach students about the electoral system. Some of the action steps, then, might be to develop age-appropriate materials for students, to hold mock elections for candidates in local schools, and to include some teaching time in the curriculum.