IndexAbstractIntroductionPESTEL modelConclusionAbstractThis is a comparative document based on strategic management models. The research begins with an explanation of why the PESTEL model is given more weight than other approaches to SWOT analysis. The document takes into consideration the PESTEL model, which is among the various managerial approaches to SWOT analysis. The advantages of the model compared to other approaches are also analyzed in the document. The PESTEL approach to environmental analysis is also discussed in the document. Various factors affecting any business operation are categorically analyzed and discussed in detail. A clearer link between PESTEL analysis and SWOT analysis is also part of the discussion. The advantages of specializing in analysis of the external environment compared to the internal environment are discussed as the main elements that give the PESTEL model more weight than the others. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay IntroductionAccording to Gillespie (2007, pp.26), the success of any company is determined by its environment. The business environment varies from internal to external factors. To effectively manage a business without being compromised by its environments, a strategic management system is needed. Various models have been used by various companies to establish the strengths, weaknesses, opportunities and threats of the business (SWOT analysis). SWOT analysis helps to predetermine the environments that thwart the business and thus helps in strategic management. In this article the PESTEL model is considered. The PESTEL, also known as the PEST model, is preferable for use alongside SWOT analysis in strategic management. This is because the model takes into great consideration the macroenvironment also called the external environment. The internal environment is easily controlled by any company manager. However, in most cases, a major failure arises from the external environment, which ranges from political, economic, social, technological, environmental and legal factors revolving around the company. There is keen interest in the PESTEL model which attempts to manage the broader segment of factors influencing business organizations (Gillespie 2007, pp.45). PESTEL Model The term PESTEL is an abbreviation of the key elements that make up the PESTEL model. The term PESTEL stands for political, economic, socio-cultural, technological, environmental and legal factors. All these constitute the macro environment that influences the functioning of any business organization. Jurevicius (2013, pp.25-39) discusses the PESTEL model as a strategic approach that takes into account a combination of all these factors in order to establish the strengths, weaknesses, opportunities and threats encountered or could affect the company in the near future. The macroeconomic environment is unpredictable and most of its factors are uncontrollable by any business manager. Taking for example, company management can control workers and its resources, which constitute the internal environment of the company. However, corporate management cannot take control of the political situation or technological trend within its own nation, although these can influence the company. This explains why the PESTEL model is of great importance since the macro environment cannot be controlled from within the company. The overall advantage of this model is that management will employ measures that will counteract such political, environmental or technological factors, among others (Jurevicius 2013, pp.25-39). Any business organization operates in aenvironment surrounded by competitors and political, economic, socio-cultural, technological, environmental and legal factors. All these constitute the economic forces that the company must counteract. This requires strategic management which requires in-depth analysis, especially of environmental factors. Strategic management shapes the company to fit the industry and gain a competitive advantage over competitors. This brings us to the application of the PESTEL analysis model. The elements of the PESTEL model also determine Porter's five forces present in the business environment. These forces include the threat of entry, the threat of substitution, the bargaining power of buyers, the bargaining power of suppliers, and rivalry among business competitors. Taking, for example, the threat of entry and the threat of substitution, these can be caused by technological factors, the political situation and legal factors. The purchasing power and bargaining power of buyers and suppliers respectively may be influenced by economic factors, which may equally pose a threat of substitution. Legal factors, which are among the components of the PESTEL model, can influence rivalry between competitors. In general, business forces revolve around the external factors elaborated in the PESTEL model (Peng, GCA, & Nunes. (2007, pp.34). The PESTEL model stands out as the most effective tool for business analysis (Kaplan, R.S. , & Norton 2008, pp. 20).The PESTEL model takes into account political factors that can in some sense have an impact on business political instability, government policy, labor laws, taxation, foreign trade and other government-influenced policies Taking, for example, political stability, this is an external factor that simplifies the flow of business activities and therefore attracts investors foreigners Expanding business activities beyond national borders has been the modern trend in the field of business. This attracts more customers and creates larger markets for the company's products or services. However, all this will depend on the political situation and national governance . While government has a role to play in promoting business prosperity, there is a need for strategic management and analysis of the political factors that can help or undermine business operations in some way. Using the PESTEL model in any organization will give priority to the analysis of political factors that can influence the company (Peng, GCA and Nunes 2007, pp.54). Rothaermel (2015, pp.35) explains how the use of the PESTEL business analysis model will track the political trend. In cases of political instability, it is up to businesses to anticipate and take precautions. Using the PESTEL model will also allow the company to secure new opportunities outside the nation where international markets are opened by the government. Although the company cannot control the political trend, a thorough study of the political and governance situation will help companies discover new opportunities in the market, upcoming threats and necessary precautions. In this way, organizations will be able to respond to current and expected legislation from businesses, consequently adapting to policies in their favor (Yüksel 2012, pp. 23). Another element of the PESTEL model is the Economics factor of business. The economics of the business operating area is a key element that should be considered by the company. The economic situation determines the business income. The PESTEL analysis model takes into consideration some economic aspects such as interest rates, growtheconomy and exchange rates. Unlike other approaches, the Model employs an in-depth study of capital flows. While it may not have any control over aspects of economic growth, tax rates, customer income, and tax policies, it is important for the company to analyze these aspects because they determine the company's income. So economic factors such as taxation and customer income will directly determine the purchasing power of customers. A lower income will reciprocate with low purchasing power, thus culminating in a low business income. Tax rates and economic growth directly determine business income and capital. For example, low economic growth and high taxation will result in low corporate income and therefore it is necessary for the company to devise a strategy that helps its survival in such situations (Valentin 2001, pp. 54-69). factors influence product costs, prices and business investments. The PESTEL model provides an analysis of the economic situation surrounding the company. This may vary from the current situation to the future. After analyzing the economic factors, the company employs strategies to curb the situation and improve its survival. For example, the likelihood of economic decline and low income from customers that could lead to a decline in sales could push the company to venture into other markets elsewhere. The company may also consider adjusting its prices to match the customer's purchasing power, thereby or otherwise gaining a competitive advantage. Capital is a key component in a business and the sales and profit aspect is the steering wheel towards business prosperity. The PESTEL model is therefore important in managing the economic state of any company to ensure prolonged survival and competitive advantage over its rivals. Social factors are among the elements of the macroenvironment that influence every company. The PESTEL model analyzes them as beliefs, practices and socio-cultural attitudes present in the society within which the business takes place. In order for the company to understand its customers and suppliers, PESTEL analysis is used. This helps to understand the age distribution within the population, a factor that determines the type of goods the population is likely to purchase. Population growth and health awareness are among the social factors that a business can take advantage of to gain a competitive advantage over its competitors. Considering the aspect of beliefs and altitudes, the company is likely to understand the preferred products that customers in that region can purchase. This is considering the fact that some cultural beliefs and practices end up forming the society's lifestyle, what they eat and their way of living in general. This analysis should be employed prior to product introduction to determine the prosperity of the particular market segment. Modernization brought technology. All sectors of the economy, including businesses, have exploited the aspect of technology. This ranges from manufacturing, packaging, distribution and promotion of business products and services. The technology was also used in product acquisition. The technology itself has stood out as a product in the business world. PESTEL analysis guides a company towards defining the technology landscape. The model has helped the company be innovative in terms of new ways of producing, marketing and distributing its products. Unlike other analyses, the model takes into account the dynamic nature of technology and how laxity.