Intel Pestel and Five Forces Analysis
1. PESTEL:
Strategic analysis is basically concerned with the structuring of the relationship between a business and its environment. The external environment which is dynamic and changing holds both opportunities and threats for the organizations. The organizations while attempting at strategic realignments, try to capture these opportunities and avoid the emerging threats. So it is very important for organizations like Intel to study and understand about the external environment. To do this, we can use the PESTEL framework.
P POLITICAL
E ECONOMIC
S SOCIO-CULTURAL
T TECHNOLOGY
E ENVIRONMENT
L LEGAL
In PESTEL framework, the external environment is classified into six broad categories: Political, Economic, Social, Technological, Environmental and Legal. Changes in these external forces affect the types of products produced, the position of them, market strategies, types of services offered and choice of business.
Political Forces:
Intel being a multinational company, it has to operate according to different government policies of different countries depending on the stability of the countries (Writer, 2006)
Politics has a serious impact on the economic environment of the country. Political ideology and political stability or instability strongly influence the pace and direction of the economic growth. Politics can consist government stability, political values and beliefs shaping policies…(Ho Chi Minh City, 2006)Therefore, the politics of a country affect the investment decision of organizations in this country strongly. Seeing Vietnam has socio-political stability, Intel were in serious discussion for chip manufacturing in India but the government was a bit slow on semiconductor manufacturing proposals so therefore it choose Vietnam. But it took Intel 4 years of negotiation until the Vietnamese government gave them the license (Rediff News, 2007).
Economic Forces:
The trends are the economic part of the societal environment can have an
Strategic analysis is basically concerned with the structuring of the relationship between a business and its environment. The external environment which is dynamic and changing holds both opportunities and threats for the organizations. The organizations while attempting at strategic realignments, try to capture these opportunities and avoid the emerging threats. So it is very important for organizations like Intel to study and understand about the external environment. To do this, we can use the PESTEL framework.
P POLITICAL
E ECONOMIC
S SOCIO-CULTURAL
T TECHNOLOGY
E ENVIRONMENT
L LEGAL
In PESTEL framework, the external environment is classified into six broad categories: Political, Economic, Social, Technological, Environmental and Legal. Changes in these external forces affect the types of products produced, the position of them, market strategies, types of services offered and choice of business.
Political Forces:
Intel being a multinational company, it has to operate according to different government policies of different countries depending on the stability of the countries (Writer, 2006)
Politics has a serious impact on the economic environment of the country. Political ideology and political stability or instability strongly influence the pace and direction of the economic growth. Politics can consist government stability, political values and beliefs shaping policies…(Ho Chi Minh City, 2006)Therefore, the politics of a country affect the investment decision of organizations in this country strongly. Seeing Vietnam has socio-political stability, Intel were in serious discussion for chip manufacturing in India but the government was a bit slow on semiconductor manufacturing proposals so therefore it choose Vietnam. But it took Intel 4 years of negotiation until the Vietnamese government gave them the license (Rediff News, 2007).
Economic Forces:
The trends are the economic part of the societal environment can have an