The PESTEL model will help identify the opportunities and threats that exist in a country for a new or existing business. For example, in a country with no proper government there would be rampant corruption and people would not follow protocols and rules as there is the lack of a governance and enforcement system. A business established in such a state cannot expect the consumers or its suppliers or distributors to adhere to any established behaviour. Where a defined legal system with fair trade laws and legislation supporting businesses to operate does not exist, then the business might not be able to protect itself against consumers or other grievances that could be settled only through a legal system. On the other hand, a country with very supportive political system and defined legal system would have a good chance to run a clean business.
A healthy economy in the country holds opportunities for the business as that would mean more consumption rate within the country. Similarly, the social and environmental aspects would help the company connect better with the society and improve its own sustainability policies etc. Technology support is also a necessity. If a business decides to enter into a country then it needs to have technology support in the country. However, if the country is lacking in technology support or has outdated technology then the business organization’s strategy might not really work here. Despite any other opportunity that might be in the country, the lack of a technology support will lead to issues for the company.