PESTEL Analysis of Smartphone Manufacturing Industry
Type: Discussion Board
Unit: Strategic Choices
Due Date: Thu
Grading Type: Numeric
Points Possible: 75
Points Earned: Points Earnednot available
Deliverable Length: 300–500 words
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Assignment Description
Primary Response is due by Thursday
Primary Response: Within the Discussion Board area, write 300–500 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
For this Discussion Board, please complete the following:
An external analysis of a company is another indicator for making strategic decisions. External factors are the general environment of an industry that strategic leaders most likely will not be able to influence. There are six external factors for a PESTEL analysis that influence all firms in a given industry. The PESTEL model groups these segments as: political, economic, sociocultural, technological, ecological and legal.
Review the following article:
Scanning the Environment: PESTEL Analysis
Explore the six PESTEL external factors: political, economic, sociocultural, technological, ecological, and legal.
Choose one industry (automotive, hospitality, manufacturing, high tech, etc.) and discuss the following with your peers:
Examine one of the six PESTEL factors in relation to your chosen industry. In your opinion, why do you believe this PESTEL factor is the most important to your chosen industry?
Describe one advantage and disadvantage of the PESTEL analysis for strategic planning.
If you were a manager in a global organization, how would you use the technological factor of innovation to gain a competitive advantage
PESTEL ANALYSIS
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An external analysis of a company is another indicator for making strategic decisions. External factors are the general environment of an industry that strategic leaders will most likely need help to influence. Six external factors for a PESTEL analysis influence all firms in a given industry. The PESTEL model groups these segments as: political, economic, sociocultural, technological, ecological, and legal. The industry of choice is the smartphone manufacturing industry. The political environment refers to the government’s intervention in business. It refers to how the local and international governments affect the business's everyday operations. Some governments do not allow specific types of smartphones in their locations for security reasons. Some of the political factors include taxation rates. Other government policies are also political factors and directly influence the business, whereby if the policies favor the business activities, they make more profits. An increase in corporate tax leads to a poor business environment, and in extreme cases, it leads to tax evasion. The economic environment refers to the broader economy and how it is performing. Some of the economic factors include the bank's interest rates and the rate of inflation. Some customers acquire smartphones through loans from financial institutions. Such loans have interest rates that the customer incurs. An increase in interest rates makes it hard for corporations to borrow, hence low investment leading to low profits. Changes in inflation rates translate to an increase or decrease in unemployment rates.
An increase in unemployment would result in low income per capita, demonstrating the customers' low purchasing power. People would rather spend on their basic needs than upgrade their smartphones. On the other hand, ...