Understanding PESTLE Analysis for Business: Identifying External Threats and Opportunities

The video tutorial explores the PESTLE analysis framework, which categorizes external threats and opportunities into political, economic, social, technological, legal, and environmental influences. It focuses on political, economic, and social influences, using case studies of McDonald's, Tesco, and M&S to illustrate how these factors can impact businesses. The tutorial emphasizes the importance of identifying and addressing these external factors to mitigate threats and capitalize on opportunities.

What is one potential impact on McDonald's if the national minimum wage is increased?

• Increase in total costs

• Reduction in restaurant numbers

• Increase in staff hiring

• Decrease in product prices

How might McDonald's mitigate the impact of increased labor costs due to a rise in the national minimum wage?

• By adopting technological solutions

• By increasing product prices

• By hiring more staff

• By reducing the number of restaurants

What challenge does Tesco face with a sharp fall in the value of the pound?

• Decreased domestic sales

• Increased export costs

• Lower employee wages

• Higher import costs

How can Tesco potentially turn a fall in the value of the pound into an opportunity?

• By increasing exports

• By reducing import volumes

• By lowering product quality

• By closing stores

What is a potential threat to M&S if they do not adapt to the fast fashion trend?

• Increased production costs

• Loss of market share

• Higher employee turnover

• Decreased online presence