Aside from the four dimensions of service management that I have discussed in my previous article, I want to look at how the PESTLE Model can affect service management. The PESTLE model stands for Political, Economic, Social, Technological, Legal and Environmental factors that can affect service management. Follow me as we look at some of the impacts of this model in this article.
#1 POLITICAL FACTORS
The political situation in a country to a large extent will determine how businesses operate in a particular country. This is to say that the ideology of the government of the day will determine the policies that will be made in such a country. This will ultimately affect ways of doing things. Take for example, if the leaders believe the local industry should be encouraged ahead of foreign competitors. It will tell on the business outlook of that particular dispensation.
One of the factors that can affect the business or service management environment of the government is the taxation policy in the country. To a large extent, if there had been or there would be an increase in taxation for some goods and services, it will definitely affect the price of such goods and services. The business may not have options than to increase the price of such goods and services.
#2 ECONOMIC FACTORS
The economic situation in any country is another factor that will affect service management in a country. Take for example before you can produce any product or service for the general populace, you have to consider whether the consumers can afford such products and service. There are some products that are not affordable to ordinary Nigerians because of the level of poverty in the country. Such products and services might be seen as peanuts to someone in the United States. The overall spending limit of the customer or what we can refer to marginal propensity to consume of certain customers will determine the type of products and services that can be offered to them.
#3 SOCIAL FACTORS
As part of the service management strategies of any organisation, you have to consider the lifestyle trend of your customers. What are they interested in? Some of them will purchase certain products because they matched their lifestyle and manner of living. The average lifestyle of your customer will also determine whether they will choose a certain product or service over others.
Another version of it is the demographics of your customer. The part of the country where they are living will also determine what type of products or services will interest them. If you look at Lagos State, for example, it is assumed that the rich lived on the island while the poor lives on the Mainland. Obviously what will interest the rich people on the Island will not be of interest to the poor people on the Mainland.
#4 TECHNOLOGICAL FACTORS
Under the technological factors of the PESTLE Model, we have to look at the current as well as future technology innovations. What one offers its customers as part of service management to a large extent has to do with what is in vogue now as well as what customers will demand in the future. It is a well-known fact that technology is transient in nature. You need to put this into consideration when you are developing technology infrastructures.
#5 LEGAL FACTORS
Under the legal factors, we have to consider government legislation as regard employment, welfare, health, production of goods and services when planning service management. Take, for example, telecom companies in Nigeria have to consider regulations as regard sim registration and activation. In Nigeria for example, it is unlawful to sell pre-registered sim. No matter how much telecom companies in Nigeria want to satisfy their customers, they have to obey this rule regarding pre-registered sim cards.
#6 Legal factors
When an organisation is planning to satisfy its customers, they may have to consider the degree of pollution created by their products. They have to make sure there is a balance between their product packaging and environmental sustainability drive of the government. They must put recycling into consideration when packaging their product. In Nigeria for example, there has been a wide condemnation of the use of polythenes and plastic bottles because of the level of harm it does to aquatic lives.