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a purseful analysis is a management framework and diagnostic tool the outcome of the analysis will help you to understand factors external to your organization which can impact upon strategy and influence business decisions Nestle is an acronym for P political II economic s social tea Technology L legal and E environmental lets look at each of these factors more closely political when looking at political factors you will need to take into account your countrys government policies and political stability other factors will include tax implications industry regulations and global trade agreements and restrictions economic these factors will include exchange rates economic growth or decline globalization inflation interest rates and the costs of living labor costs and consumer spending when looking at social factors look at trends such as lifestyle choices cultural norms and expectations such as career attitudes and work-life balance it also concerns itself with consumer tastes and bu