PESTEL Analysis of AT&T

What does the term Political Factors hold in the Analysis?

These factors include governmental interventions in the business. The intervention may range from different levels ranging from local to national governments in the working environment of the business. Governmental policies and regulations play a greater role in the functioning and operations of any business.

Political Factors Impacting AT&T

• The governments in the US have faced immense pressure from international regulatory agencies to follow the World Trade Organization laid policy regarding the communication services.
• The government has improved the regulatory policies over the resources and the time frames. These policies can further enhance investments in communication services. The optimistic public response may increase the time frame of their effectiveness.
• The company has to devise policies based on the regulatory framework of the state in which the company is conducting its operations. AT&T has been operating in multiple nations, and given the contemporary trends of populism, the company may face unstable US markets
• The policies in the US have been based not only on the governments but also on the pressure groups. These pressure groups and non-governmental organizations can take part in policy development. Therefore, the company can also contribute to the policy-making process by adhering to these groups.
• Local Governments have a great role in the formulation of policies and regulations. Therefore, the company must follow these local trends to avoid any hustle in the future at any level.
• Altering governments tend to alter the existing policies. The new elections may bring new policies into practice. The communication sector and service are also prone to these trends; therefore, the company must advise its strategy accordingly.

How are the Economic Factors significant in this Analysis?

The economic factors are the prevalent economic conditions and factors relevant to the operations of the business. These factors include the labor market, economic condition of the state, the levels of inflation, taxation besides the disposable consumer levels, etc.

Economic Factors significant for the company

• The economic cycles play an important role in the economic condition of the company. The growth of the last two decades is based on the increasing trends of globalization along with the utilization of local resources to cope with the globalized trends.
• The economic performance of the company is dependent on the economic condition of the country. The US state’s economy is not fluctuating owing to the factors of stable expenditure, stable disposable incomes, and the enhanced trends of investment in business and industry.
• The inflation rate has been increasing due to the latest recession of the year 2018. Therefore, it may adversely affect the growth of the company.
• Infrastructural development has been enhanced in the last few years. This can be an opportunity for the company to increase the scale of business operations across the country. It is also helpful in the facilitation of the business environment.
• The exchange rates of the country for the past few years have been volatile. This can increase the risk of business volatility in the business environment of the company.
• Finally, governmental interventions in the business, particularly in telecommunication services, can affect the business of the company.

What role do the Social Factors play in the business environment?

Social factors play a significant role n the working of the business. These factors are prevalent in the sociocultural environment of the company. These factors include the attitude and behavior of people towards the services and products. The norms and traditions, along with the culture, health, demographics involving their prominent beliefs, etc., may affect the working of the company.

Imperative social factors for the AT&T business

• US citizens are found to spend their leisure time in empirical activities rather than performing boring traditional effects. The company can provide a product that can exploit this leverage of the UIS citizens.
• The increasing liberal trends have forced the attitudes of precaution and safety to rest in peace.; However, the company must adhere to the norms of concerns health and safety as it does not afford a failure cost.
• In today’s age, the media has played a vital role in shaping public opinion. Being a part of the telecommunication services, AT&T can play a significant role in exploiting this trend for its business growth and profits.
• Many essential services are based on communication services, and people in the US have developed their dependence on this sector excessively. The company can exploit this opportunity to enhance its business operations in the country.
• AT&T can expand its operations in the US as more and more people depend on their education. As the potential users of these products are educated ones, the company has another opportunity to leverage its business scales.

What crucial role do technological factors hold in PESTLE Analysis?

Technology is a great disruptive force to the traditional and conservatism practices in society. Technology factors are impacting the business of AT&T communications in many ways. The significant factors may include the penetration of mobile phones, access of technology to the masses, new and innovative services and products along with easier contact to information are some technological factors that are crucial to the business environment.

Significant Technological Factors

• The rivalry between the companies has no limit. Even more, the companies are reluctant to share the newer technologies or licenses with the other companies. This limit to the technology transfer has impeded technological and innovative growth.
• The company can examine the new technologies and trends released by the rival companies to get an insight into the latest trends and culture in the communication services.
• The governments, as well as private organizations, have a quest to invest in Research and Development in the United States. This spending of resources on R&D has a great potential to bring in another new era. AT&T can greatly benefit from these trends.
• The company must envision insight for the development and growth of its 5G technology. This can greatly enhance the customer experience. Moreover, this is the perfect way to ease the usage along with the improvement in the speed and access of the service.
• There is still a great gap in technological advancement in communication services. Most companies are undergoing excessive innovation and advancement quests to gain the profits of unexplored technological eras.
• Empowered supply chain partners have enabled the technology firms to reduce the gaps and fasten the product’s development cycle. Therefore, the company has to keep the supplier’s enthusiasm by offering them extra perks, so this process has added more pennies to the original cost of the product.

What is the necessity of Environmental Factors in the business environment?

The contemporary age is full of the mission to conserve and preserve the global environment from deterioration. This quest has enabled businesses to develop long-term sustainability and eco-friendly policies to promote the global wave. Public and private agencies have increased pressures to ensure some of the environmental factors, including long-term sustainability, waste disposal and management, treatment of hazardous material, climate preservation, restricting carbon footprints, checking on pollution, etc.

The significant Environmental Factors Affecting AT&T

• New environmental norms have greatly affected the product innovation strategy. Today, products are designed based on environmental considerations and their long-term sustainability.
• The company is facing severe scrutiny under the agreement reached under the title the Paris Climate Agreement. US companies have faced immense pressures to maintain environmental standards.
• The company has to take several steps to adhere to the settled principles of recycling. US citizens have started to view the recycling process as a norm.
• The rising awareness among the people about environmental conservatism has ignited a wave of customer activism. Therefore, the company must take this trend on a serious note to enhance its social responsibility.
• The scrutiny by the environmental agencies and the incidents of extreme weather patterns have increased the operational cost for the company.

How can the legal factors affect the business environment?

Legal factors are prevalent in the working of businesses. The communication services are regulated by the legal frameworks laid down by the governments.

Legal Factors impacting AT&T Business

• Data protection rules and laws have been a special concern of companies for the last decade. These data concerns encapsulate the significance due to privacy as well as intellectual property concerns. The company needs a vigorous mechanism to address these laws.
• Cases in business courts take a lot of time before the courts reach a final verdict. AT&T must consider the period of international cases and proceedings before entering the global market.
• Environmental laws, as covered in the previous section, have special significance as well as legal consequences. The company must meet the environmental requirements to avoid unnecessary legal consequences.
• Business laws and regulations that are passed by the International Business Organizations, by the World Trade Organization, have the importance if the company wishes to enter the global business zone.
• Employment laws, besides health laws and safety measurements, need to be followed carefully by the company. Thereby ensuring the smooth execution of business operations.