MGT Notes

Reference: Strategic Management (5e) – Frank T. Rothaermel (Pg 80)

Ecological Factors (E in PESTEL) cover the relationship between an entity and the natural environment. They involve broad environmentel issues such as sustainable economic growth. Firms have a coexisting, interdependent relationship with the environment. These factors can provide lucrative business opportunities if addressed in a responsible manner. An example would be an initiative to use solar cell technology to power business operations.