PESTLE Analysis: Examining External Influences on Business Success

The video tutorial explains the PESTLE analysis framework, which helps businesses assess external influences in political, economic, social, technological, legal, and environmental areas. It highlights how companies like Microsoft, Apple, and Costa Coffee face threats and opportunities in these domains. The tutorial emphasizes the importance of not only identifying these factors but also strategizing to maximize opportunities and mitigate threats.

What is the primary purpose of conducting a PESTLE analysis for a business?

• To determine employee satisfaction

• To analyze financial statements

• To evaluate internal strengths and weaknesses

• To assess external threats and opportunities

How can technological advancements be both a threat and an opportunity for a company like Microsoft?

• They can reduce the need for marketing

• They can cause employee dissatisfaction

• They can lead to increased production costs

• They can result in outdated products and new market opportunities

What legal challenge did Apple face regarding its tax practices?

• A requirement to disclose trade secrets

• A ban on product sales in certain countries

• A crackdown on tax loopholes

• A lawsuit over patent infringement

Why are environmental influences becoming more significant for businesses like Costa Coffee?

• Because of lower production costs

• Because of increasing government regulations and consumer pressure

• Due to a decline in environmental awareness

• Due to decreasing consumer interest

How can Costa Coffee turn the challenge of non-recyclable plastic cups into an opportunity?

• By ignoring consumer demands

• By adopting environmentally friendly practices

• By reducing the quality of their products

• By increasing the price of coffee