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In the PESTEL analysis, technology plays a crucial role in shaping the macro environment of a business. It can influence how products are made, distributed, marketed, and sold. Technological factors can include technological advancements, automation, research and development activity, technological change rate, and the impact of emerging technologies. Businesses need to stay aware of technological trends and advancements to remain competitive and innovative. They should also consider the impact of technology on their operations, supply chain, and customer interactions.
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Because trends can be hard to quantify, it helps to have a framework that organizes them into categories. And this is where the PESTEL analysis comes in, or sometimes its also spelled as PESTLE or simply PEST. PESTEL is an acronym that stands for Political, Economic, Social, Technological, Environmental, and Legal. This suggests a more structured way to break down and assess the vast spectrum of macro environmental factors. Now, let's go through each of these components.
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How to respond to the current economic shifts of tariffs and geopolitical changes? Use this Macro Environment Analysis deck to examine the frameworks ...
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