SWOT & PESTEL Analysis Help

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Any business cannot perform its operation in isolation. Organizations across the globe need to analyze the micro and macro environmental factors in order to sustain for the long-term. SWOT analysis and PESTLE analysis are two such marketing tools that help to analyze the factors impacting the performance and operation of any organization.

In most cases, students pursuing academic degrees in marketing disciplines are required to submit case studies with SWOT/PESTLE analysis on regular basis, to provide a deep insight into the concept. However, lack of time and resources puts students under a great burden to accomplish the same on their own, within the stipulated timeframe. For such issues, MyEssayAssignment has developed a special team of expert writers who have years of experience in composing case studies with SWOT analysis and PESTLE analysis in minimal time.

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What is SWOT Analysis?

Acronym for Strength, Weakness, Opportunities, and Threats is the most popular tool used for auditing and analysis of the strategic positioning of an organization and its environment. Here, strengths and weaknesses are the two internal factors under the control of a business, while opportunities and threats are two external factors that cannot be controlled by the organization. The main objective of SWOT analysis is to develop a strategy that is tailor-made to the specific business model and is effectively aligned with the firm’s capabilities and resources and the surrounding environment in which it operates.

A brief overview of the four factors:

  • Strength: They are the core competency or quality that lets the organization achieve its mission. They include human assets, financial assets, process capabilities, brand image, and loyalty.
  • Weaknesses: Weaknesses are the factors that hinder an organization from achieving success. They may include inefficient machinery, inadequate R&D facilities, limited product range, and ineffective decision-making.
  • Opportunities: Opportunities are prevalent in an environment in which an organization operates and it takes advantage of the same to gain a competitive lead
  • Threats: These are external factors that endanger the profitability and working of the business. They are uncontrollable in nature such as a change in regulations, a shift in technology, etc.

What are the advantages of SWOT analysis?

  • Provides insightful information for strategic planning
  • Help determine core competencies
  • Maximize the response to opportunities
  • Help overcome threats effectively
  • Helps in developing objective for strategic planning
  • Strengthen the organization’s capabilities
  • It helps analyze past, present, future trends and data

Disadvantages of SWOT analysis are:

  • It does not prioritize issues
  • It does not offer an alternative solution or course of action
  • Prone to ambiguity
  • It is a subjective analysis that is influenced by the biases of the participant of the study
  • Lacks in weightage factor
  • It generates a profound amount of information, which may not be useful as well.
  • The inclination of people towards low-carbon products & services (+)
  • The main aim of this project is to understand the external environment of Solar Tech Ltd. For this PESTLE analysis has been undertaken. This framework for environmental analysis helps in evaluating the macro-environment which extends beyond the industry environment. The analysis includes a critical evaluation of the political, economic, social, technological, environmental, and legal environment surrounding an organization (Allen, 2001, p. 54).

PESTLE Analysis Example by our experts

PESTLE analysis is a tool or a framework which are used by the management of an organization in order to analyze the macro-environmental factors. In other words, it is a tool that is used to track the environment in which a company is operating.

Often students have to conduct a PESTLE analysis of an organization, as a part of their assignments. Owing to a lack of knowledge and time, they seek online guidance or help to complete their PESTLE analysis assignments.

Our team of expert writers is highly experienced in submitting highly quality PESTLE analysis by conducting thorough market research and interpretation. For ensuring a clear understanding among the students, on how to conduct PESTLE analysis for a company, we have leveraged several PESTLE analysis samples for your review

PESTLE analysis for samples for Solar Tech Ltd.

  • Political Environment
    The political environment encompasses several factors such as the political situation in a country, government manifesto, and many more. The renewable energy industry is significantly impacted by the political environment prevailing in the region. This is because for the renewable energy sector to flourish government support is indispensable (Charters, 2001, p. 221). However, government policies depend on the party that is in power. For instance, Conservatives, which are in power at present, were against the onshore wind farm subsidies. So after coming to power, they took the decision to end subsidies to onshore wind farms from April 2016 (Huffington Post, 2015). They also reduced subsidies to the solar industry. Table 1 (Appendix) shows the impact of subsidies cut on the payback period of residential rooftop solar panels. It can be clearly seen that without subsidies, in the present scenario, the solar power industry cannot survive as the payback period is very long (29 years) even for the self-consumption ratio of 75% (Wynn and Reid, 2014, p. 12). Thus, it can be seen that the political environment can have a significant influence on the growth of the renewable energy industry. If the party in power has a favorable stance towards solar power it would be beneficial for the solar industry otherwise industry may suffer.
  • Economic Environment:
    The economic environment consists of several factors such as economic growth, inflation rate, interest rates, and taxes. All these factors have an effect on the cost of production and sales of products. The UK’s economy is expected to grow at 2.1% in 2016 and 2.2% in 2017 (Focus Economics, 2016). Economic growth in the UK has slowed down in comparison to 2014 (Monaghan, 2014), but it is expected to grow steadily as can be viewed from Figure 5 (Appendix). The disposable income of UK households is expected to rise due to higher wages and lower prices (Table 2 Appendix). In 2014/15, UK household disposable income was £25,600 on average (Robinson, 2015). Besides this, the inflation rate is not expected to change much in the near future as can be depicted from Figure 6 (Appendix). All these factors are favorable to the renewable energy industry. This is because owing to high disposable income customers will be willing to spend money on the adoption of such technologies, which requires high initial investments. In addition, some taxes such as ‘Carbon Price Floor’ and ‘Climate Change Levy’ (CCL) levied by the UK government may also contribute to the growth of the renewable energy industry as electricity generated from renewable energy sources is exempted from these taxes (Currie and Hedges, 2013; Ares, 2014, p.1).
  • Social Environment:
    The social environment is the combination of social trends, preferences of users, and cultural factors. Understanding of social environment is important for businesses to identify opportunities and develop successful strategies. People’s awareness about environmental issues and they will do something about it, is important for the growth of the renewable energy industry. The research by Carbon Trust revealed that “45% of shoppers would be prepared to stop buying their favorite brands if they refused to commit to measuring their product’s carbon footprint” (Morrison, 2011). The majority of people (70%) are ready to alter their lifestyles, if they don’t have to spend more, for reducing their carbon footprint (Morrison, 2011). According to Mintel (2015), 33% of UK shoppers’ buying decisions are impacted by environmental policies. All these figures indicate that people in the UK are looking for lower-carbon products and services and most importantly they are willing to do their part to help save the environment. This social trend is sure to have repercussions on businesses. This is because a shift in consumer demand toward lower-carbon products and services will require businesses to adopt renewable energy options that can help them in reducing their carbon footprints.
  • Technological Environment:
    The technological environment takes into consideration various factors that can have an effect on the manner in which the company delivers its product or services. These factors may include advancements in technology, the lifecycle of existing technology, government expenditure on research and development (R&D) of technology, and many more. Silicon PV cells have been subjected to great technological advancement. This is very much evident from the fact that the cost of solar panels today is more than 100 times lower in comparison to its cost in 1977 (Figure 4 Appendix). Scientists anticipate that future technological advances in the solar panel component manufacturing process will make solar power as economical as coal (The Week , 2015). There are many promising new technologies on the horizon that can harvest the sun’s energy more efficiently in comparison to traditional PV cells, but technical hurdles in their commercialization will require at least 10 years, given the present state of R&D (Katz, 2014). Taking all these factors into account and considering the fact that at present there is no other renewable energy source that can provide serious competition to solar energy, it can be said that solar power is here to stay. With further reduction in the cost of solar panel and improvement in its efficiency, its adoption rate is going to increase for sure as affordability is the most important concern from point of view of customers (Parkhill et al., 2013, p. 17).
  • Legal Environment:
    The legal environment comprises laws and policies relating to the operation of the industries. The legal environment plays an important role in the case of the renewable energy industry. This is because government legislation can have a significant positive or negative impact on the growth of this industry. The UK government, with a view to encouraging communities, homeowners, and businesses for investing in small-scale low-carbon and renewable electricity generation systems, started Feed-in-Tariff (FiT) program in 2010 (Ofgem, 2015). Under this program, the government offers them tariffs not only for generating electricity for their own use but also for exporting unused electricity to the grid. In addition to this program, the government introduced several other programs to accelerate the utilization of renewable energy. For instance, government, under the Renewable Heat Incentive scheme, offers financial incentives for use of heating systems based on renewable energy (Ofgem, 2016). The government also has a policy named Renewables Obligation (RO), under which it provides incentives to electricity suppliers that source a certain percentage of their supply from eligible renewable sources. Electricity suppliers who fail to meet obligations have to pay a certain amount into the buy-out fund (DECC, 2015). However, recently there has been change in government policies. UK government has drastically cut subsidies that it was offering to facilitate the adoption of renewable energy. In 2015, the UK government slashed Feed-in Tariff by 65% (Hill, 2015). “FiT for sub-10kW solar projects was reduced from 12.03p/kWh to 4.39p/kWh, while the tariff for PV systems with a capacity of 10-50kW was reduced from 10.90p/kWh to 4.59p/kWh” (Hill, 2015). Similar cuts were also incorporated in the Renewable Obligation scheme of government. As per Bawden (2015), in time to come, it is very likely that the UK government may further cut down upon renewable energy subsidies.
  • Ecological Environment:
    The ecological environment takes into account factors such as climate, geographic location, climate change, weather, and other such factors. Geographic location has a great impact on the yield of solar systems. In the UK, solar irradiance level measured in terms of kWm/m2 varies from 850 to 1300 (JLL, 2014, p. 11). The Southwest region in the UK is having the highest irradiance level making it the highest yielding geography (Figure 3 Appendix). Thus, solar system adopters in regions with higher solar irradiation will have a shorter payback period making solar systems more attractive in such regions.
  • Climate change is also an important ecological factor as the negative impacts of global warming are being considered as the greatest threat to human survival worldwide (Yee, 2015, p. 84). Due to global warming temperatures in the UK have increased by about one degree since the 1970s. The situation is expected to exacerbate considering the present level of greenhouse gas emissions in the UK. Some of the key threats identified by the UK government in a report on the impact of climate change include flooding, negative impact on biodiversity and natural surroundings, and availability of water (Hicks and Ranger, 2013). To mitigate the risk associated with global warming, it is important for the UK government to take immediate measures to cut greenhouse gas emissions. As shown in Figure 8 (Appendix), the UK government has set a target to reduce emissions by 80% with respect to 1990 levels of emissions. To attain this target government is taking measures to increase electricity generation by renewable sources. By 2020 the government wants to ensure that renewable energy sources meet 15% of the UK’s energy demand (Table 3 Appendix). Figure 7 (Appendix) shows the breakdown of capacity for each renewable energy source that will be required to meet the overall target of 15% by 2020. Such measures will not only help in preventing extreme impacts but also offers more time for getting ready and adjusting to impacts that are inevitable. Thus, it can be said that the ecological environment favors the adoption of renewable energy sources for meeting the energy needs of people of the UK and reduce dependence on fossil fuels.

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