MGT Notes

Reference: Strategic Management (5e) – Frank T. Rothaermel (Pg 75)

The Political Factors (P in PESTEL) affecting an entity’s General Environment (where firms have little to no influence) are the result of processes and actions of government bodies. Firms often enact a Non-Market Strategy to try to shape the influence with initiatives such as lobbying, public-relations, contributions and through litigation.

Political Factors are closely related to Legal Factors (L in PESTEL) since political pressure often results in changes to legislation and regulation.