PESTEL analysis of Skoda


Vaclav Laurin and Vaclav Klement were the originators of the company named “Skoda” (Miller, 2011). They were professionally the cyclists and the design and production of their bicycles was used to be done by themselves and as the time passed they succeeded in laying the foundation of their own bicycles making company called ‘Skoda” (Miller, 2011). It is a European based company which expanded its production by not only producing bicycles but also manufacturing ploughs of farm, cars and airplanes as well (Bensoussan, 2008). They have a non-dependent system of dealers having certification with them, which is the most outstanding approach used by Skoda.

PESTEL Analysis:


The make exploration of a corporation’s external macro environment comes under the process of PESTEL analysis. In almost all the countries he commonly used analysis is the PEST analysis which includes the analysis of Political, Economic, Social and Technological factors affecting the external macro environment of an organization. In UK, the extended model of PEST is known as PESTLE analysis instead of PEST analysis (Miller, 2011). Now, the acronym of PESTEL is used for Political, Economic, Social, Technological and Legal factors of macro environment.  Now we are going to discuss the effect of each factor on an organizational external environment.

Political Factors:

The political factors are those factors which are comprised of the rules and regulations set up by the administration or government. This might include the government’s contribution to the economy of its country. These factors also refer to those products and services that are going to be manufactured and the primacies to support the business of an organization (Onkvisit, 2004). Those corporations which are directly related to building infra-structure, construction of public schools, universities or hospitals, are very much affected by the decisions made politically by the government. As far as the PESTLE analysis of Skoda is concerned, the alterations in the rules and principles for example the criterion of accounting, the requests for the taxation, the laws related to environment and the authority of the federations belonging from foreign specially in the international markets has a great effect on the business of Skoda (Onkvisit, 2004). So, it is mandatory for Skoda, to have a complete check and balance on the policies made by the government and also to take in consideration the effects of strategies of government on Skoda.