The chapter mainly highlights the impact of the COVID-19 pandemic on the global economy, utilizing macroeconomic concepts and describing how organizations around the world can use the strategic management technique of drawing up a PESTLE analysis to provide focused attention to each factor and macroeconomic party. This ultimately comprises the entire economy, with special attention being focused on the expansion of the environmental factor. The key problem discussed in the following research chapter was whether healthcare should be considered as a separate dimension under the environmental category in a PESTLE analysis. The methodology used involved gathering data from online journals relating to the relevant ministries of healthcare, and an extended review was conducted based on existing sources. The scenarios that unfolded as the pandemic first broke out, the policies imposed by the governments, and their shortcomings as policymakers were discussed, and the current day policies utilized to make sure the brunt of the pandemic doesn't boomerang again were analyzed.
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Today's organisations confront difficult economic conditions, exacerbated by the recent global financial crisis and mounting evidence of catastrophic climate change occurring at an unprecedented and fast rate. International and domestic companies are being forced to rethink their strategy. They must evaluate their organization's expenditures and realign their objectives in order to strategically choose the most cost-effective method of cost reduction. (2010) (Issa, Chang, & Issa). However, throughout time, individuals have broadened their framework to include demographic, intercultural, ethical, and ecological considerations, resulting in variations such as STEEPLED, DESTEP, and SLEPIT (Administrator, 2016).
PESTLE analysis is a term that is often used and is sometimes abbreviated as PEST analysis. It is a notion found in marketing concepts. Organizations utilise this idea to keep track of the external variables affecting them. This kind of study is then contrasted to the company's internal strengths and weaknesses using a SWOT analysis, which assists in defining the future scope of action and creating strategic management strategies. A PESTLE analysis is often used as a wide fact-finding exercise that assists an organisation in determining the external variables that may affect internal choices. By recognising the effect that these external variables may have on an organisation, businesses can align their goals with their resources, all while allowing sufficient planning time to account for possible roadblocks to such strategies. They may devise ways to mitigate risks and enhance their own chances (Pathak R., 2021). Similarly to what was stated before, this idea may be used in a macroeconomic context as well.
Macroeconomics is the field of economics that examines an economy's behaviour and performance. Macroeconomists are interested in aggregate economic developments such as unemployment, growth rate, Gross Domestic Product (GDP), and inflation. Macroeconomics examines the economy's aggregate indicators as well as the microeconomic variables that affect it. Governments and businesses rely on macroeconomic models to assist them in developing economic policies and strategies (The Economic Times, 2021).
A PESTLE analysis report is a valuable tool to have on hand before beginning the company planning process. This kind of document offers the senior management team with a wealth of contextual information about the firm, such as the business's strategy, brand positioning, growth goals, and areas of concern that may result in a decrease in growth and productivity. A PESTLE study enables companies to detect potentially disruptive changes to their business models that may have a significant effect on the future employment environment. Organizations are undergoing significant personnel transformations. Increased skill gaps, the development of employment positions that did not exist a decade ago, such as the IT department, and job cutbacks or displacements are just a few of the most noticeable changes that have occurred in sectors over the last few years. PESTLE research elicits a wealth of data about external variables and critical market insights. Spending time developing a PESTEL study may assist in prioritising company efforts in order to achieve particular marketing goals within a specified period. Additionally, PESTLE research provides critical market insights into how consumers react to a product or service. This enables companies to make informed decisions about whether to join or exit a market, how to alter an existing product, and when and what to launch as a new product. A PESTLE analysis is an effective technique for determining the context for change and concentrating efforts on the areas critical to the success of that change. PESTLE analysis works well in conjunction with a SWOT analysis in this instance. This enables a company to assess possible possibilities and risks associated with labour developments, such as talent shortages and workforce skills (Pathak R., 2021).