What is a PESTEL analysis and what is it about?

 

In the world of business and marketing, the environment is one of the main components of the market. And if you want to set up your own project in any country, you must first do a PESTEL analysis.

 

But what is PESTEL ANALYSIS?

 

PESTEL analysis is an analysis tool used to identify the overall external factors affecting an organization, and also the external factors that may change in the future; In order to exploit these changes, as opportunities or to find solutions to potential threats, better than your competitors. The word “PEST” comes as an acronym, which is the initial letters of the basic factors affecting the overall economy of countries, which are: Politics, Economics, Society, Technology, while the term (PESTEL) has two other criteria: the Environment, which is the focus of our topic, and the Laws. In order to conduct a PESTEL analysis, managers and CEOs have to gather as much information as possible about the company's external environment. As for earthquakes and natural disasters, they fall under the “ENVIRONMENT” category, which is the factor that will affect investment in countries, as it increases the risk of projects collapsing as a result of the impact of the natural environment surrounding the project. Recently, the political factor has been gradually increasing the risk of investment in Turkey, but the Turkish government quickly improved its policies and relationships with other nations which solved the problems that were an obstacle to bringing in investors. Now, if natural disasters are repeated, there may be pathways that hinder investment again

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How can we avoid problems if we want to invest in a

country that suffers from natural disasters?

 

In case we are working on offering a service, the best solution to avoid environmental problems and continue the project without losses, would be to strengthen our presence on the Internet. If our website and online presence are strong enough and we have a strong online brand, the environment is no longer a big problem because then we simply can move our project to any disaster-free country.

 

What if we were offering tangible products and services?

 

In the event that we provide tangible services at such as (machines - equipment), we have to deal with intermediaries and establish partnerships in a geographical area. We can also set up warehouses outside the area where we fear disasters. And the most important point to consider is being present and building up the brand’s presence on the Internet, because through this you can safely save your project digitally.

 

So should I be afraid to invest in Istanbul?

 

Of course not, you should have a line of defense that prevents you from collapsing, then rely on God, establish your project, and start working.

 

How affected is Istanbul at the moment?

 

The successful investor does not need to be afraid of the environment, as we mentioned above, there are steps they can take. As for investors outside the scope of leadership and who are afraid, they may withdraw their investments, and this constitutes a destabilization of the Turkish economy and investment in Istanbul.