Organization strategy and stakeholders

What is PESTLE analysis ?
PESTEL analysis is a technique for identifying and listing the apolitical , economic , social , technological , environmental and legal factors in the general environment most relevant to an organization .

PESTEL analysis is a simple and effective tool used in situation analysis to identify the key external (macro environment level) forces that might affect an organization. These forces can create both opportunities and threats for an organization. Therefore, the aim of doing PESTEL is to:

• find out the current external factors affecting an organization;
• identify the external factors that may change in the future;
• to exploit the changes (opportunities) or defend against them (threats) better than competitors would do.

In addition PESTEL analysis is also done to assess the potential of a new market. The general rule is that the more negative forces are affecting that market the harder it is to do business in it. The difficulties that will have to be dealt with significantly reduce profit potential and the firm can simply decide not to engage in any activity in that market.

Case

Political : stability of political environment , law, taxes , policies on economy , trading agreement . Starbucks had tax evasion .

Economical  : the currency rate will affect the cost and profit , because Starbucks had many opening stores in other countries overseas . Also they have some raw material from other countries . So , the currency rate will affect the cost of Starbucks .

Social : the Starbucks' store should be a goos "neighbours" . In addition , Starbucks should make the trade is fair .

Technology : customers can download Starbucks' app from app store . Moreover , the customer could order by this app , and sending the address to sales . And then the customer just need waiting the delivery . 

Environmental :Starbucks reduce energy consumption by 25% in 2010 , and purchase renewable energy equivalent to 50% of the electricity used in 2010 .

Legal : initially , Starbucks need fallow the employment law - working time , age and  minimum wage rate . For example , Starbucks CEO announcement that he's cutting his own salary from £1.2million to £10.000 per year.

Organizational Context

The organization context can be grouped as three parts -- internal , competitive(micro) and external (marco) environment .

In terms of competitive (micro) environment that is the most important knowledge in this part , a competitive environment is the industry - specific environment comprising the organization's customers , suppliers and competitors ( Boddy 2011). In addition , there is a porters which has 5 forces - a tool to help us analyze the micro environment . That is the power of buyer and supplier , threat of new entry and substitution , and competitive rivalry .

Case

Celine is a one of famous brand in the world . This company is focus on the clothe , bag and shoes . Moreover , it had become more popular since 2010 .

As regard the 5 forces of Celine , the first part is suppliers power . Celine has some suppliers , such as handmade company or studio . That mean's the supplier of Celine is fixed . However , that also mean's the company is difficult to change the supplier . In addition , the product of Celine is not similar with other brands' , because that has different design . The second part is buyer power .  The luxury market is a large market . Also , it had become more bigger . Celine  has many loyalty customers . There is a certain amount of order every year . In other side , the customer is fixed , and the target market of Celine is middle and upper class . Moreover , it is difficult to attract the new customers . The third part is threat of substitution . Due to the design and style , the threat of substitution of Celine is low . Further more , the fourth part is threat of new entry . It is expensive to enter this industry , because the experience needed , but training easily available . In addition , the luxury market is full . There are many famous and popular brands in the world  . So , new entry quite difficult . Finally , the last thing is competitive rivalry . Celine has many competitors , such as Chanel , Prada , Hermes and LV . Also , the switching cost is high , and the costs of leaving market also is high. However , there is high customer loyalty  .