The PESTEL model will be used as a guide to analyse the external environment changes such as political, economical, social, technological, ecological and legal aspectspertaining in a business. These changes will help to determine market trends.
The political structure of a country highly influenced the proper development of small and mediumenterprises. The promotion of SMEs is being done by offering various financial and non financial supports. The government is giving their full participation in the development and growth of SMEs byacting as a facilitator, regulator and arbitrator in settling disputes with employees and employers. However the political parties are not stable and can cause a threat to the business changing policies.This can be a threat to the business. Keep inform through media and entertain good relationship
The per capita disposable income is increasing so the population can now afford topay some luxury goods. People are working longer hours and have less time for leisure activities.
The level of unemployment in the island is quite alarming. The fact that there are more potentialworkers available is not reassuring because people lack technical skills to meet the job requirements.
More and more women are becoming financially independent. This change has apositive effect on the firm’s sales volume and profit. Another issue is that the younger generations prefer to have white collar jobs rather than blue ones. With higher level of education people are moreconcern about health and hygiene awareness. There is better understanding of advertisement and people are not easily influenced. These social changes can be both considered as an opportunity and athreat.
The environment refers to climatic changes and weather conditions which is unpredictable and can have irreversible aftermath on the business. People are becoming eco...