In analysis. PESTLE analysis can also be

In this essay I will talk about PESTELE factors and what responses should be made according to them. Many companies that use this analysis as their strategic analysis tool on their brands to determine strategies for the future as well as to track the environment the company is operating in. Without considering dynamic process there is less to none chances for companies to survive for a long-term. “As a result, while carrying out its operations, a company must increasingly take into account the environment within which it operate. To meet such needs, company decision-makers should adopt a strategic approach to the management of macro environmental events, occurrences, and operations.” (Yüksel, 2012)

            In this essay I will provide the major macro-PEST trends that companies need to be aware of  and provide responses that should be made according  to these factors, as well as I will give some suggestions about investments that companies potentially should think about doing.  My suggestions in this essay will be supported by my found official articles that are published online. I will be using mostly online resources because it gives you the newest and most relevant information for political, economical, social and technological trends.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

            “All organizations need to identify external factors within their environment that could have an impact on their operations. Many of these will be things that the organization has no control over, but the implications of which need to be understood.” (Anon, 2018). One of the most popular tools is PESTLE analysis. PESTLE analysis can also be referred as PEST analysis. It is a useful method for understanding business environment as it gives a rigorous idea of the external environment of the organization, market growth or decline. PEST stands for: political, economical, social and technological factors.


Aware of (P/E/S/T):


A growing political trend is increasing demand for cycle lanes across big cities. Many people in UK support their taxes being spent on cycle lanes and they feel safer while cycling in segregated bike lanes. “Last year Transport for London reported a 50% increase in the number of cyclists using some roads where a protected cycle superhighway had been built.”(Pidd, 2018)



An economical trend cycling industry should be aware of is2017 government announced new set of vehicle excise duty bands, resulting in major changes for UK road tax, new potential buyers and car owners. “Only electric and other zero-emissions cars are now tax-exempt,with diesel and petrol cars on average costlier to tax.”(Auto Express, 2018).From April 2018 Buyers of new diesel cars will be charged with road tax that could cost a lot more for British driver every year. The changes were targeted mainly at diesel cars. “This could result in diesel owners paying up to £500 more a year to tax their vehicle.” (Smith, 2018)

Another factor companies should be aware of is due to brexit there is no longer going to be free trade between UK and EU and this will affect supply chain. “It is predicted that the UK will experience aloss of at least £4.5 billion a year, if they leave the EU without negotiating a new trade agreement with the EU.”(, 2018).However that means UK can do its own trade deals. According to, 2018 there will be a” New phase in Golden Era for UK-China relations.”



             A social fact that should be more aware of is affordability. “While only 10% of the world’s population can afford a car, an estimated 80% of people can afford a bike.”(, 2018). For many groups of population like young people or family’s with low income it would offer increased mobility.



One of the trend cycling industry should be aware of is a growing number of social media platforms. For companies to stay relevant and do good it is important to adapt and participate in the growth of this way of marketing for their business. The growth of mobile apps is good news for brands as it makes it easier to reach costumers. “More than 90%(93%) of smartphone users use apps.”(, 2018)







Investment 1:

The first investment the cycling industry should consider is share trade with China. Looking at business perspective what would mean to purchase bike details for lower price. A smart move would be to think about placing your own factory in China for highly skilled cheaper work force as well as expand their business there as China has one of the biggest consumer market in the world.”Cheap Chinese labour has been crucial to the building of “Factory Asia”, the name given to the region’s complex of cross-border supply chains.”(, 2018)


Investment 2:

            Another investment Evan Cycles company should think through due to big competition is to release a personal app that not only show bikes that you can purchase, but also create an opportunity to rent bikes for people who don’t want to invest in a good bicycle , but would like to enjoy cycling from time to time. As well as include a map where it shows their shop stations in the city they are in. Releasing an app is another way of reaching new potential customers and giving old customers a new platform. “Smartphone users are spending more time in apps than in years past, and now access over 30 apps on a monthly basis”(Perez, 2018)


Investment 3:

            The third investment Evan cycles should invest in over the next 5 – 10 years is electric bikes.It attracts a wider demographic of cyclist “In particular, there was a high representation of women amongst the riders, a group who areotherwise difficult to reach: 45% of e-bike riders were female”(, 2018).  As well as considering aging population this product would also appeal to older age people helping them to travel easier and be more active.

Due to new set of vehicle excise duty bands and increased tax people will consider new traveling ways and e-bikes are closet to a car as well as shifting from car to e-bikes Is a good way to reduce externalities of car use that cause air pollution and carbon emissions.


Investment 4:











It is very important for companies use pest as one of the tool to understand macro-environment and the changes that may happen within a given market. These changes can influence relationships and marketing that they worked hard for.  Pest analysis has a big part on influencing company’s future decisions. Those who have business in a foreign country this analyze is extremely valuable and the level of success they will be able to achieve.