1. Individual Assignment - PESTEL.Your mission is to identify the major factors influencing world affairs by performing a Macro Economic analysisusing PESTEL.You should consult at least 5 journal...

Individual Assignment - PESTEL
Introduction
The macro economic factors influencing competitiveness of any company or industry are
explained by Pestel analysis. Pestel analysis includes analysis of political, economic, legal,
social, technological and environmental factors influencing a business environment. The paper
identifies the major factors influencing world affairs by performing a Macro Economic analysis
using PESTEL and evaluates the factors to identify the most important factor. For the purpose of
the assessment, three companies in three different industries operating in three different countries
are chosen. The companies chosen are Apple Inc. (technology/ electronics industry), Singapore
Airlines (airlines industry) and Infosys (IT industry) operating in US, Singapore and India
respectively.
Identify the major factors influencing world affairs by performing a Macro Economic
analysis using PESTEL
According to Balaure (2003) macro-environment includes all the outside elements which
have indirect impact on the company. The macro economic factors influencing the world affairs
are discussed below with the help of the examples of the above mentioned companies.
Political factors:
The political environment of a country is evaluated by analysing the nature and
competence of the government. An understanding of Government intervention is important for
assessing the effectiveness of operations of a company in that country. It is convenient to operate
in a country where the government facilitates participation of different stakeholders, has pro-
business policies and regulations (Lam 2000). The government intervention entails the business
climate in a country (Lam 2000). In case of Apple, politically US is favourable for the company.
For Singapore Airlines (SIA), The political environment of Singapore is stable it is a preferred
tourist destination. For Infosys, Indian political structure is considerably stable except for the fact
that there is no clear majority in the parliament. In India public sector companies have decided to
give more work to the IT companies. But the US government has declared that US companies
will not gain tax benefits if they outsource IT work to offshore locations. This decision of US
government might impact the company negatively.
Legal factors:
Laws like antitrust laws, taxation regulations, labor laws, pricing policies protect the
interest of the employees, customers and the public at large. Apple must make sure it is well
update with all the regulations governing the business operations and perform its operations in
the most legal manner. In case of SIA, as the company operated across different countries it is
important for SIA to have an understanding of the politico-legal environment of different
countries. For instance, in expanding to Australia SIA faces problems as the policies and
regulations of Australian Government allows only Quantas Airways and UAL Corp to fly freely
on Australian routes. For Infosys, regulations for setting up IT companies set up SEZ to enjoy
tax benefits and fiscal benefits is one of the most favourable legal factors. IT Act, 2000 has been
strengthened to provide a sound legal support.
Economic factors:
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