For example, to strengthen its market position

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In this case, the financial analysis would help estimate the revenue needed to cover the company's investment needs to adapt to technological innovations. Recommendations for a successful PESTLE analysis To develop a successful PESTLE analysis, companies can apply the recommendations below: Collaboration – multiple perspectives can identify different risks Use of expertise and resources in the organization Using PESTLE analysis along with other models like SWOT, Porter's Five Forces, Financial Analysis Incorporating this analysis into a process that monitors changes in the business environment Do not jump to conclusions about certain factors in the future based on past and present situations.



Example of PESTLE Analysis To better understand how this model works, we can create British Student Phone Number List the PESTLE analysis for Coca Cola, a well-known company around the world. Below you can find details about each factor that makes up the PESTLE analysis for Coca Cola: Political factors – Coca Cola depends on FDA rules to be able to distribute its drink to consumers. Any change at the political level regarding production rules, taxation or finance can affect the profitability of Coca Cola. Economic factors – the drink produced by Coca Cola is distributed in hundreds of countries.





So, the economic conditions related to customs operations or those related to taxes are factors that impact Coca Cola. Social factors – Coca Cola distributes its carbonated drink in various countries, each of which has different cultures. For example, to strengthen its market position, Coca Cola created 30 new flavors for the Japanese market. Technological Factors – Coca Cola is concerned with technological innovations applicable in production and uses them to improve its productivity. Legal factors – Coca Cola uses proprietary manufacturing recipes and owns all rights related to the use of its brand, including those for past or future products. Environmental factors – Coca Cola must comply with the environmental requirements imposed by the legislation of each country. Also, being a very large manufacturer, it has a responsibility to its customers to reduce its carbon emissions as much as possible and protect the environment through its actions.