Question

What is the PEST Analysis for the company of Home Depot

Answer 1

PESTEL Analysis stands for Political, Economic, Social, Technological, Environmental & Legal factors. Home Depot is a store for the house owners where they can find all goods.

Political Factors:

• The Home Depot expose itself to different kinds of political environment as they deal with different countries and they have different taxation policies which can affect Home Depot.
• Level of corruption
• Employee benefits.
• Policies of the government may differ from country to country.

Economic Factors:

• Economic factors such as employment, education, income will affect Home Depot as these factors make ability to spend.
• Labor cost and productivity.

Social Factors:

• Attitude and shared belief of the public will help the investors in the Home Depot about the type of customers they deal with.
• Education is the major factor for the company of Home depot.

Technological Factors:

• Technological factors show how people are technologically advanced.
• Transportation is a great example as we can see Organizations like ola and uber offer.

Environmental Factors:

• Before entering the market they should evaluate different environmental factors in the market.
• Environmental factors like weather, pollution, changes in the climate.

Legal Factors:

• Different markets have different legal policies. One should have a proper idea on the legal policies of the market before entering.
• Taxation differs from one market to another.