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After recently studying PESTEL from OT video lecture i did manage to understand that it is about what macro environmental factors influence the organization and that they can change decision making of the organization.
my problem is that i tried to attempt Pilot paper Q1(a) which was about PESTEL and i did manage to figure out influences that may influence the company however i was still unable to answer the question because after identifying the influence for e.g government giving tax credits i did not know what to write, i mean what do we have to do after that?
Like do we have to identify the influence then write the impact on organization? Like government is giving tax benefits so the company can avail tax savings if it undertakes technological research?
Or do we have to say that there are possible opportunities or threats due to that particular influence?
Please help, reading the answer did not really help much, there should be a logical flow on how to answer questions, your video lectures are awesome i wish every topic had at least one answer being solved on the lecture 🙂
Since im asking about PESTEL at the moment, i am wondering if every model has different way of answering it, i mean like i am able to identify and relate to model but unable to give possible response in the shape of whether its an opportunity or threat or how it will impact, because i don’t know what the particular model wants?
i think every p3 student here have same wish….
but i think as it is PROFESSIONAL LEVEL, the guidance level is lower then the SKILL LEVEL…OR may be due to so much VARIATION in EXAM questions each time, even on the same topic,
One kind of technique wont work much in Every Question…there are many SOLVED PAST EXAM QUESTIONS in REVISION LECTURES…
HOPE they can HELP U…The purpose of a model is to help users to structure, understand and solve a problem. Generically, the problem is “What should we do?” For example: What subsidiaries should we invest in? Where should we expand/contract? What resources and competences are we strong in? How can we increase profits?
There is no point in using a model that gets you nowhere.
Exactly how you can respond will depend on the question. If tax rates in a particular country were going to rise, then that is a threat that will reduce retained profits. The response might be to withdraw from that country, no invest more in it or to simply to be aware that there will be less spare cash. Similarly, if a takeover target presents itself, that will be an opportunity for enlargement, but only if you have the resources to pay for and manage the acquisition, and there might be other ways to invest capital instead.
Generally, questions on strategic position are in two parts. (a) Carry out the initial analysis. These can be summarised on a SWOT: strengths, weaknesses, opportunities and threats (but say why things are categorised like this). (b) Based on the analysis, make a suggestion about what should be done.
So generally,in a question where examiner asked to use PESTEL where we have to identify influences firstly we have to identify the point/issue/influence? and then possibly state how it may influence/impact the organization and then how it should react/respond to situation?
If asked to do PESTEL state point and its effect on the organisation. Only suggest response if asked to.
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There are two steps to be followed 1;identifies the information related with pestel 2:effect on the organization currently and in future because normally in position analysis question time factor is given.efect might be positive or negative.
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