MGT Notes

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

Legal Factors (L in PESTEL) are usually outcomes of political processes such as passing of laws, mandates, regulations (which can affect entire industries) and court decisions. In order to retain control over important industries, governments can exert political pressure and pass legal sanctions on firms. These can have immeasurable impacts on its operations but are necessarily done in the interest of the general public. Example government initiatives are the GDPR laws passed in Europe.