PEST(LE) Analysis Essay Example | Topics and Well Written Essays - 1500 words - 1

PEST(LE) Analysis - Essay Example In UK market, there is further scope of growth for the company. UK’s consumer market demand is well aligned with business strategies of IKEA. The company has been able to secure desirable market share due to its effective cost control strategies, continuous new product development and competitive operational procedure. IKEA is inclined towards offering low prices to customers for its wide array of innovative products. According to Allen (2006), PESTEL analysis is a strategic tool that helps to determine key drivers of change present in the business environment. The main components of this tool are political, economic, social, technological, environmental and legal factors. Political factors stands for government policy which directly impacts workplace environment, technology quality, health and safety conditions, etc. Economic conditions include interest rates, rate of economic growth and taxation charges. Social factors relate to all possible events which are affecting community and market socially (Allen, 2006). As per Das and Teng (2009), it comprises of population dynamics, cultural expectations, norms, health consciousness, etc. Technology factor states that new products or processes are developed with the support of advanced technology. This factor facilitates quality enhancement, innovation and reduction in overall costs. Legal aspect corresponds to legislative and regulatory framework tha t governs countries of operations or respective product areas. Environmental factors encompass changes in climate and weather. Environmental awareness is an area of concern for all business organizations (Das and Teng, 2009). Research methodology lays the foundation for any research study. Any study can be classified as quantitative or qualitative research study. Quantitative study deals with market related data which can be statistically analyzed. On the other hand, qualitative study is opinions or views of experts. There are two