PESTEL Analysis :: Business, External Environment

PESTEL AnalysisThe PESTEL analysis is an important and widely-used tool for understanding the gargantuan picture of a firms external environs. PESTEL is an acronym for the political, economic, socio-cultural, environmental, and legal environment in which a firm operates. The benefits of the PESTEL analysis are that it helps identify say-so environmental influence, helps better understand existing opportunities and threats, and helps understand market result and decline. PoliticalThe political environment has an influence on business. Political factors shoot to be considered when viewing the external environment. According to Binstock, Clorox is voluntarily converting its plants in the get together States to safer chemical process in order to protect against disasters and terrorism ( 2010). much than 200 chemical facilities across the U.S. have converted to safer chemical processes. In the same article, it said that in 2006 congress passed a temporary equity that bars the gove rnment from requiring disaster prevention. This is good publicity for the community and puts it onwards of its competitors if the government ever puts disaster prevention laws in to place. scotchEconomic factors are important to Clorox because these factors affect the companys profits. Cloroxs chief(prenominal) economic concern appears to be increasing peeled(prenominal) material cost. substantive increases in the costs of energy and transportation, including the cost of diesel, or of key raw materials, including, but not limited to, resin, chlor-alkali, sodium hypochlorite, corrugate, agricultural commodities and other raw materials (Clorox, 2010). A rise in the price of raw materials could force the company to raise prices to keep making a profit. A struggling thrift could reduce consumer spending. Sales totaled $1.27 billion, down 2.8 percent from the same thread a year ago (Avalos, 2010).Socio-culturalTodays consumers are genuinely environmentally conscious. The company is taking advantage of this by producing environmentally kind products. The company has increased its profits through the sales of its Green whole caboodle product line. According to an article from the San Francisco Chronicle research says that Green working accounts for about half that $100 million annual market for eco-cleaners (Said, 2010). Customers equivalent company that give back to the community. Clorox does this through the Clorox mental home. The mission of The Clorox Company Foundation is to improve the quality of life in communities where Clorox employees live and work (Clorox, 2011). technologicalTechnology factors play a major role in what opportunities a company faces. The Company has outsourced a significant portion of its information applied science activities to Hewlett-Packard, including its data centers, which are primarily located in Alpharetta, Ga.