Question

In Case MIDEA REFRIGERATOR: THE “GO GLOBAL” ODYSSEY, Course Business Policy and Strategy MGT 4394

What is the PESTEL? and what's the magnitude of the impact of each factor?

Answer 1

Pestel is the PEST analysis of Midea Refrigerator The Go Global Odyssey.

PEST analysis is tool used to analyse the political, Economic, socio-cultural, technological, environmental and legal situations which can provide both threat and opportunities to the business. It is used by the companies as a guide to form strategies and policies for future and avoid the threats to the company.

PESTE factors incudes-

Political- Changes in Legislation and political elections effect on the company working. Political party views will affect the business organization through different rules and acts. Other political factors like difference in regulations will also impact the working of Midea Refrigerator The Go Global Odyssey.

Economical- Current economic trends and growing or declining rupee value will impact the financial situation of the company. Also, Exchange rate fluctuations will affect the profits of the company. Changes in unemployment rate, level of disposable consumer income and access to loans will also effect the customer final decision to buy the product which will ultimately effect the company.

Socio-Cultural- Change in population, standards of health, education and mobility, employment patterns, trends and attitude towards the work will impact the working as well as growth of the company. Religous beliefs and lifestyles reflects ones actions which will impact. Midea Refrigerator the Go Global Odyssey.

Technological – New technology in the market effect the company. The pressure comes up on the company to upgrade the technology. Changes in Technical Infrastructure, competitors’ technology will impact the company.