Economic Factors
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These issues include: assessing potential changes to an economy's inflation rate, taxes, interest rates, exchange rates, trading regulations, and excise duties.
In terms of your operational efficiency you would also need to consider such factors as unemployment, skills levels, availability of expertise, wage patterns, working practices, and labor cost trends. When trying to determine the economic viability of a market you would also look at such issues as the current cost of living for your target market as well as the availability of credit or finance.
Organizations seek to create strategies that can be modified to fit changes in the economic situation and in particular the financial aspects of the macro-economic situation. This would include such things as the impact of globalization, taxation issues, and potential implications of profitability, as well as any trade tariffs or embargoes.
An economy with rising inflation would have an adverse effect on your pricing and the purchasing power of your customers. The rate of growth or the market's confidence in the economy could also be significant factors for your organization.
Official economic indicators, most of which are available online, such as GDP (Gross Domestic Product), GNP (Gross National Product), and consumer-based indices often highlight areas where more detailed information is required. In your PESTLE Analysis such indicators would only be highlighted so that further investigation could take place before a conclusion could be drawn.
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You may also be interested in: Introduction to PESTLE Analysis, PESTLE Factors, Political Factors, Economic Factors, Social Factors, Technological Factors, Legal Factors, Environmental Factors and Advantages and Disadvantages.
