The apply the PESTLE analysis to their existing marketing

The assignment is about being employed as a
Marketing Account Holder by Mrs Gibbs who is a Managing Director. They want to
gain an understanding of your comprehension and depth of experience of the
PESTLE analysis and its application. I have to write an essay that uses the PESTLE
analysis by comparing and contrasting different authors views on the importance
of the enquiry to the business. One of the examples is Lego, they apply the
PESTLE analysis to their existing marketing environment. A PESTLE analysis is a
structure or implement to analyse and observer the macro-environmental aspects
that have an impact on an organisation. The macro-environmental is an external
marketing environment. This is used to recognise threats and weaknesses which
is then used in a SWOT analysis. PESTLE analysis is Political, Economic,
sociological, Technological, Legal and Environmental analysis is a method of
how they run the business environment.

PESTLE Analysis very vital for a business as PESTLE views for Political,
Economic, social, technological, Legal and Environment and how they impact on a
business. They can effect marketing and relationships that a business has
worked hard to advance. It can all change in a matter of time and this arising
will help the business in making better conclusions. Political factors have to
determine the range of how they may have an influence on the economy or an
industry. An example of this would be that the government may inflict a new tax
to which the whole revenue generating structures of organisations may adjust.
Some of the political factors are; tax policies and trade tariffs. Economic factors
are factors of the economy’s performance that directly impacts a company and
have control of the long term effects. An example of this would be when the
inflation rate rises and affect the companies of how to price their products
and services. In addition to this it would effect on persuading customers to
buy and change the demands they want for the economy. Some of the economic factors
are inflation rate, foreign exchange rates, interest rates etc. social factors
dissect the social environment of the market. It is vital for companies to be
mindful of these factors as they can change because it is one of the main
components in the marketing sector. An example of this would be the UK where
there is a high demand during the holiday season. Technological factors relate
to innovations that may affect the operations of the industry and the market
depending on what the circumstances are. This states to the amount of
technological awareness the market possesses. Legal factors have both internal
and external sides to it. There are some laws that affect the business
environment in a country although there are companies that have a certain polices
for themselves. An example of this would be labour laws, consumer laws, safety
standards etc. environmental factors have what influences or what is determined
by the nearby environment. This part of the PESTLE is vital for certain
companies. An example of this would be tourism. However, they are not
restricted to the climate, weather, global warming, environmental offsets etc.

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One of the advantages of pestle analysis is that it’s
very easy to understand, so this can be effectively applied and easier to
understand. For the political factor in the analysis you will have to watch the
government policies with regard to several areas of the economy and see if it
has a positive or negative impact on the company. Economic factors include
stuff like exchange, the interest rate in the economy. Social factors include
things like demographics of the country, environmental and legal factors and
population growth.   

One of the disadvantages of PESTLE analysis is that
all the factors do not remain same, they keep altering quickly and if the
company takes any action based of the analysis may not income for the company
if the factor due so this will have the company change the decisions and the
whole implementation of doing PESTLE analysis will be useless.

Lego are a company that manufactures and produces
toys. Lego is a family owned based company that has headquarters in Denmark,
Billund, USA, London, Uk, Shanghai and Singapore. It was founded in 1932 by Ole
Kirk Kristiansen. It is one of the world’s leading manufacturer of play
materials.

The name LEGO is an abbreviation of two Danish
words ‘leg godt’meaning play well. LEGO was founded by Ole Kirk Kristiansen in 1932.
LEGO has distributed from father to son and now to the grandchild who is Kjeld
Kirk Kristiansen. LEGO hasn’t always been one of the largest manufactures in
the world like it is today. It has taken them almost 80 years, from a small
carpenter’s workshop to a modern global enterprise.

The most important product in LEGO history was the
LEGO brick. the company has been named the toy of the century twice and have
been very proud of that. They have gone very much into detail with their
products but the foundation for the LEGO still remains the same

The LEGO groups has an executive leadership made up
of a board of director and seven members which makes them a top management
team.

The LEGO Foundation is a communal foundation that
shares a mission with the LEGO group. They want to encourage and develop the
next producers of tomorrow. The foundation work is about redefining and
reimagining learning. Redefining means changing how people think about how the
importance of play is. It is very vital because of the critical skills for this
day and age. Reimaging learning means to improve learning for millions of
children with the education system, in addition this would benefit the parents.