Predator Sports Nutrition (PSN) is a sports supplement manufacturer who are looking to set up a conglomerate (offering many products to consumers) business in the UK manufacturing industry. PSN will be faced by many factors that the firm will have to take into consideration whilst moving in to the sports supplement industry. They need to pay extra attention to the external factors (not under the businesses control) around them and will have to react to these factors and make strategic decisions in accordance to changes in the macro-environment. Every successful business will be able to create efficient decisions on how the company should move forward by using PESTLE analysis.
PESTLE analysis is a very useful tool embraced by firms to make strategic decisions based on macro-environmental changes and trends when entering a new market. PESTLE is divided into six main factors. Political factors, how changes in Government and their coercive power can effect a companies decision making. e.g. taxation, current legislation, trading policies and wars/ conflicts. Economical factors, these are factors which relate to the current economic climate such as unemployment issues, exchange rates and interest rates. Social factors, how cultural and ethical issues will effect decision making. E.g. Some countries have different cultures than others so Globalization will be limited to countries where your product(s) is of a socially acceptable standard. Technological, how companies continue on developing their infrastructure to compete with the rising demands of the consumer. Legal factors, focuses on how laws can effect how a company goes about finalizing their ideas. Such laws which affect the freedom of a company are; discrimination law, employment law and health and safety laws. Then a company will also have to focus on the Environmental factors, factors which could dictate how the company develops their products and market strategy such as; weather, climate change, In this essay I plan to use the PESTLE framework for PSN, looking to set up their firm in the UK sports supplement manufacturing industry and give recommendations on what decisions the company can make from the six dictating factors.
