PEST(LE) Analysis Essay Example | Topics and Well Written Essays - 1500 words - 1

PEST(LE) Analysis - Essay ExampleIn UK market, there is further scope of growth for the company. UKs consumer market demand is well aligned with business strategies of IKEA. The company has been able to secure desirable market share due to its effective cost control strategies, continuous new product development and agonistical operational procedure. IKEA is inclined towards offering low prices to customers for its wide array of innovative products.According to Allen (2006), PESTEL analysis is a strategic shot that helps to determine key drivers of change present in the business environment. The main components of this tool are political, economic, social, technological, environmental and legal factors. Political factors stands for government policy which directly impacts workplace environment, technology quality, wellness and safety conditions, etc. Economic conditions include interest rates, rate of economic growth and taxation charges. hearty factors relate to all possible eve nts which are affecting community and market socially (Allen, 2006). As per das and Teng (2009), it comprises of population dynamics, cultural expectations, norms, health consciousness, etc. Technology factor states that new products or processes are highly-developed with the support of advanced technology. This factor facilitates quality enhancement, innovation and reduction in overall costs. Legal flavour corresponds to legislative and regulatory framework that governs countries of operations or respective product areas. Environmental factors encompass changes in climate and weather. Environmental awareness is an area of concern for all business organizations (Das and Teng, 2009).Research methodology lays the al-Qaida for any research study. Any study can be classified as quantitative or qualitative research study. Quantitative study deals with market related data which can be statistically analyzed. On the other hand, qualitative study is opinions or views of experts. There ar e two