How do we properly categorise some of the issues that might come up in the exhibits using PESTEL if they could fall under 2 or 3 of the different headings. Taxation is one example I can think of. If the questions refers to “the government is planning to increase corporation tax...”, then is that a political issue or an economic issue? Or what about a tax incentive for particular sectors or potential investments, e.g. , “the government of country X provides tax allowances for the implementation of Y technology.”
I’m also curious about the current issues in the US where members of the population believe it’s their right to protest and stop the democratic process by storming capitol hill. Is that a political issue or a social change issue?
For PESTEL, Political - It wil be more of the govt structure. Is the govt corrupted- is bribery normal in that country. so do u need to pay bribes to run a business in that country or state or to get your project approved by the govt. This is how you will look at it.
ie. your example above 'increase corporation tax' - this will fall under political and you can say your business may have to pay more tax and this may decrease your profit. same for tax incentive- this will help you to start a business. this new law is good opportunity for you to start that technology related business in that country. But you can also classify under legal- like new law and regulations introduced but more likely under legal you will speak about GDPR, employment laws.
Economic- This is if the country is in recession. Currency depreciation. I will not classify the tax example you gave above as economic unless you can show or structure it well to economic.
There is no right or wrong answer in SBL. Sometimes it can fall in both categories and you have to choose which way you want to classify it.
For the storming capitol issue, its Political-at least I will say Political. I will mention as unstable govt, & these frequent protests may hinder your business. as anytime the govt can be overthrown and a new govt can come in and the laws can be changed just over night.
Unlikely you will get this type of qn and also this is just like an ''one time event'' example.
SBL will probably give case study such as there are frequent workers' strike in the country and protests. then u can classify it as political issue.
Social issue more likely be the people of the country- maybe not enough talent pool and you need to hire foreign talents. education or aging population. like more into the demographics of the country.
It doesn't really matter, all these frameworks serve as checklist for you.
