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...WAITROSE IN CHINA PESTEL ANALYSIS An organisation (or) business effect or make the decisions depending on the factors in the macro environment.To analyse these external factors, the bussiness planners categorised to as PESTEL model.It is helpful strategic tool for understanding business position, market growth or decline, potential. PESTEL analysis is vital and used widely to understand the external factors affecting the organisation.It is a strategic external analysis used to evaluate (Political,Economic,Social,Technological,Environmental ,Legal) of a particular organisation or business.It is very important when you start operating in a new region or country.It also helpful to break your unconscious assumptions,and you can adapt to the reality of new environment. POLITICAL: political factors are how and to what degree a government interfere in the country economy.It includes areas like tax policy,labour laws, environmental laws,trade restrictions,political stability. ECONOMICAL:The factors include in economical are economic growth, interest rates,exchange rates,inflation rates.It is how government supports trading and business in the country. SOCIAL: Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. TECHNOLOGY: Technological factors include technological aspects such as research and development (R&D) activity, automation, technology incentives...
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...Pestel analysis Political factors 1. The Al Qaeda terrorist attacks of September 2001 influenced a decrease of tourists in the United States. 2. The Costa Rica’s government encourages diversifying economy and promoting non-traditional business, which including exemption income tax and duty-free for import machinery and equipment. 3. There is a low entry and exit barriers in the production and export of live pupae. Economical factors 1. The information for both suppliers and buyer are “fragmented and little” in butterfly industry, so there is a broad space for people to expand butterfly market. 2. According to the Table 1, there was an increasing number of demands in butterfly pupa from Costa Rica between 2001 and 2006, which means the demand might still growth in future. 3. The price of butterfly pupae decreased 40 percent by the mid 1990s, companies had to reduced their price as well. Social factors 1. Promotions could attract more children and adults who have the hobby of collection. People can buy encased butterflies in kiosks to complete their collections (in Exhibit 4 and 5). 2. The butterflies’ suppliers came from low-income backgrounds. 20 percent of them were living in poverty, and 5.8% were extreme poverty (Exhibit 2). Technological factors 1. The butterfly in farm must be bred in a circumstance with specific climate in order to away from those predators, viruses, or weather conditions. 2. The leaf for food also needs to be checked carefully without viruses and parasites...
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...PESTEL analysis for China Political Factors i.Constitutional System China or People’s Republic of China adopts socialist system or communism in their political system in their decision-making processes in governing the country. The country’s sole political party in power is known as the Communist Party of China. The government have the sole power to control all activities done by their citizen as what have been describe in how communism system worked in governing a country. In other words, the purposes of working in China are to contribute to the nation and also to the government as the government control on all activities in the country. ii. Stability of Government The stability of the China government is quite moderate and stable because the administration of the government are not publicize to the public either through the press or on the internet. So, the degree of the citizen involvement in the politics is low because of the heavy restrictions impose by the government. However, the policies impose and the law regulations are quite effective in terms of economy where China is one of the leading countries in the world. In the recent years (2001), China has joined the World Trade Organization and results rapid growth in industrial and manufacturing sectors because of the cheap labor in China. But still problems such as managing environmental degradation, demographic pressure and the extreme immigration from rural to urban area must be faced by the government...
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...PESTEL analysis | Political | | | | Economic | | | | | | Social | | Market overview Busier and higher- tempo lifestyles, regular marketing promotions, menu updates and the higher number of tourists contributed to this strong performance. Besides, players stepped up their delivery services to tap into the potential for consumption at home and in the office. For example, Tsui Wah launched Tsui Wah Delivery soon after listing on the Hong Kong Stock Exchange in 2013. Hong Kong consumers showed strong support for fast food chains selling Asian ‘comfort food’. With rising awareness of the harms of over-consuming Western fast food, such as burgers and battered chicken and fish, Hong Kong residents lapped up the offerings of Asian ‘traditional’ or ‘comfort food’. These include chains such as Fairwood, Maxim’s and Café de Coral, some of which feature “No-MSG” (monosodium glutamate) options in their menus. The restaurant trade has gained some momentum, helped by a growth in visitor arrivals in2000. Hong Kong remains one of the most densely packed countries in terms of retaurants with approximately one restaurant for every 700 citizens. Consumer characteristic be they eating habits, lifestyle changes, tourism spending or legislative issues. In Hong Kong is a city in which speed and efficiency are expected and demanded. This fast pace has also infected the food scene, most notably in Hong Kong-style teahouses and local fast food chains, which can serve Chinese...
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...PESTEL analysis – Political Factors • Increasing globalization, presents a challenge as well as an opportunity to Sainsbury's. The challenge will be to compete against unknown forces and to source the best quality/financially viable products from world over. Sainsbury's can enter the markets of emerging companies through joint ventures or partnerships to explore these new markets, although it does not have any plans on the horizon to do so. Development to the non-domestic market, means towards a "global localization" (Shanghai; Bangladesh) • The on-going investigation of price fixing amongst the big four retailers within the UK can have some negative impact to the industry in general and Sainsbury's in particular, as it is at the forefront of this allegation (Rigby 2008). Although Sainsbury's is very well established among consumers, these allegations can lead to a negative public image, as the consumers might feel cheated. • In the UK, the Government is to decrease the rate of corporation tax from 30% to 28%, which will save big companies like Sainsbury's significant sums of money (HM Treasury 2008). For employment legislations, the government encourages retailers to provide a mix of job opportunities from flexible, lower-paid and locally based jobs to highly skilled, higher-paid and centrally-located jobs (Balchin, 1994) aim to recruit and retain the best people, from backgrounds that reflect the communities we serve; “you can” program PESTEL analysis – Economic...
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...Ford Ford Motor Company is a famous brand in the world which is an American multinational automaker since 1903. Ford Motor Company focuses on creating a strong business that builds great products that contribute to a better world. Ford and Toyota are the first companies manufacturing hybrid system. Ford and Toyota agreed on a patent sharing accord which granted Ford access to certain hybrid technology patented by Toyota, in exchanging Ford licensed Toyota gain some of their own patents. PESTEL PESTEL analysis stands for "Political, Economic, Social, Technological, Environmental, and Legal analysis". It is used to describe a framework of macro-environmental factors used in the environmental scanning component of strategic management. Political Political factor means analyzing the local government policies that may affect your own business, which include law, tax, and guidelines. Firstly, taxation is the factor that can directly affect the price of the vehicles. Taxation is set by local government which is an amount of money that the citizen needs to pay to the government and it is set in a percentage. This money paid to the government is going to spend to maintain the social welfare, government department running and military affairs. For instance, import duty, license tax, and the fuel tax are the major tax of Hong Kong in that industry. Monetary policies is the policy of exchange rate in a country, this may affect income of Ford. For example, if the production line is set...
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...16/9/2014 Pest Analysis On GlaxoSmithKline (GSK) Home Sign Up Forums Projects Institutes Articles Blogs Videos Communities Events Jobs Login Search Forums.. Remember Me? Log in ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT > Principles of Management ( P.O.M) Login via Facebook? User Name User Name Password Pest Analysis On GlaxoSmithKline (GSK) Pest Analysis On GlaxoSmithKline (GSK) Pest Analysis On GlaxoSmithKline (GSK) You are currently logged in to Facebook. Would you like to autologin to the network? Autologin or Cancel » Login Discuss Pest Analysis On GlaxoSmithKline (GSK) within the Principles of Management ( P.O.M) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; GlaxoSmithKline plc often abbreviated to GSK, is a global pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London, United ... Forgot Password? New User? LinkBack Thread Tools Display Modes Log in Sign Up A dv ertisements Pest Analysis On GlaxoSmithKline (GSK) (1 (permalink)) » Ads Abhijeet S Pest Analysis On GlaxoSmithKline (GSK) - December 2nd, 2010 GlaxoSmithKline plc often abbreviated...
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...PESTEL ANALYSIS PESTEL is an analysis of the external macro environment in which a business operates. According to (2008), pestle stands for political, economic, social, technology, and environmental factors. A. Political Factors The international operations of McDonald’s are highly influenced by the individual state policies enforced by each government. (2001, 705) For instance, there are certain groups in Europe and the United States that clamour for state actions pertaining to the health implications of eating fast food. (2005) They have indicated that harmful elements like cholesterol and adverse effects like obesity are attributable to consuming fast food products. On the other hand, the company is controlled by the individual policies and regulations of operations. Specific markets focus on different areas of concern such as that of health, worker protection, and environment. All these elements are seen in the government control of the licensing of the restaurants in the respective states. For instance, there is an impending legal dispute in the McDonald’s franchise in India where certain infringement of rights and violation of religious laws pertaining to the contents of the food. The existence of meat in their menus in India is apparently offensive to the Hindu religion in the said market. There are also other studies that point to the infringement of McDonald’s Stores with reference to the existing employment laws in the target market. Like any business venture,...
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...9/9/2012 BY: MOMINUL PLABON GLOBAL MARKETING PROJECT A case study of Bangladesh and Malaysia | Mominul Plabon Executive Summary The following marketing plan forms the basis for introduction of a milk powder named Agora milk powder in two countries like Bangladesh and Malaysia. This study combines the selection of the countries based on their income level as the purpose of the study is to identify the distinctions of marketing strategies in developed, less developed and developing countries. During the analysis there are several remarkable trends found in two countries such as it seen developing countries have a large demand for foreign product while developed country have good level of self sufficiency. Furthermore, in developing country entry barriers are low as compared to developed country. The key opportunities found in Bangladesh are; a great demand of powder milk due the vast shortage of liquid milk production, low-cost labour force, increasing use of technology and so on. On the other hand, in Malaysia the social, economical and technological structure are very attractive for Agora milk powder while a few trade restrictions also exist. However, based on the analysis two different marketing strategies have been adopted with the reason that both country differ to each other in terms of their structure and culture. In this term, a careful design of the marketing mix have been considered for both countries so that Agora milk powder can be presented in way that...
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...Regarding the POLITICAL Aspects. The following chart is showing the likelihood that the government will be destabilized or overthrown by unconstitutional or violent means, including politically motivated violence and terrorism. As we can see, it has been remaining in negative figures, so this means that it is unlikely that Russian’s government will be destabilized. Moving on the ECONOMICAL perspective. This figure shows how Russia has grown and become more competitive in the last 5 years according to the World Economic Forum index, which is beneficial for IKEA. The Global Competitiveness index is composed of 12 pillars and some examples of these pillars are: Infrastructure, Macroeconomic Stability, Innovation, etc. Regarding the Russian’s GDP, as we can see on the Graph, it has decreased. This fact is beneficial for IKEA because lower income will lead the population towards companies that offer affordable prices such as IKEA’s. SOCIAL. People are savers not spenders: this means that generally Russians prefer affordable prices rather than high quality products that are too expensive. According to The Bank of Russia, these are the statistics of the share of money income in Russia. The total population of Russia is about 142 million people and according to this graph IKEA when targeting to middle class, can reach up to 85 million people and this chart shows us that 60% of the middle class in Russia has as much income as the top 20% (high class). Moving on the TECHNOLOGICAL...
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...Political The first element of a PEST analysis is a study of political factors. Political factors influence organisations in many ways. Political factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations. Political factors include the following types of instrument: - Legislation such as the minimum wage or anti discrimination laws. - Voluntary codes and practices - Market regulations - Trade agreements, tariffs or restrictions - Tax levies and tax breaks - Type of government regime e.g. communist, democratic, dictatorship Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and imprisonment. Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices. Economical The second element of a PEST analysis involves a study of economic factors. All businesses are affected by national and global economic factors. National (and global) interest rates and fiscal policy is set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organisational stakeholders such as suppliers and creditors behave within society. An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence. Conversely a “booming” or growing economy will have low unemployment, high spending...
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...QUESTION 1 You need to make a decision on whether to invest RM146300 in Project Y or Project Z that guarantees the following cash flow and annual relevant cost at the end of each year as indicated in the table below. PROJECT Y Year | Cash Flow | Cost | 1 | 40% of your investment | 2% of your investment | 2 | 42% of your investment | 2.3% of your investment | 3 | 38% of your investment | 3% of your investment | 4 | 33% of your investment | 3% of your investment | 5 | 22% of your investment | 2% of your investment | PROJECT Z Year | Cash Flow | Cost | 1 | 22% of your investment | 1% of your investment | 2 | 28% of your investment | 3% of your investment | 3 | 34% of your investment | 2% of your investment | 4 | 38% of your investment | 2% of your investment | 5 | 45% of your investment | 1% of your investment | a) Compute the annual cash flow and relevant cast in RM. b) Compute the annual net cash flow. c) Assuming the discount rate is 10%; find the Net Present Value (NPV) for each project. d) From your answer in part (c), what is your decision? Why? e) Plot the annual present value calculated from part (c) on the same graph. ANSWER A) Compute the annual cash flow and relevant cost in RM. PROJECT Y Year | Cash Flow | Cost | 1 | 0.40*RM146300=RM58520 | 0.02*RM146300=RM2926 | 2 | 0.42*RM146300=RM61446 | 0.023*RM146300=RM3364...
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...MANAGERIAL SKILLS A skill is an acquired and learned ability to translate knowledge into performance. It is the competency that allows for performance to be superior in the field in which the worker has the required skill. All managers need to possess technical, interpersonal, conceptual, diagnostic, communicational and political skills. While technical and diagnostic skills refer to the knowledge and ability of understanding the processes involved and scientifically analyzing problems and opportunities, all other skills deal with people in one form or the other. These “human” skills are the most important assets of any successful manager. It is the manager’s job to achieve the organizational objectives through the proper utilization of its human and material resources. However, since the material resources of equipment, capital, facilities, and information and so on can only be used by humans, the human resources are the most valuable assets of any organization. Accordingly, a manager must be highly skilled in the art of optimally utilizing the human resources. This art is universal in nature. In every walk of life, human skills are necessary for success. These various skills are briefly explained as follows: Technical Skills: These skills basically involve the use of knowledge, methods and techniques in performing a job effectively. This is a specialized knowledge and expertise which is utilized in dealing with day-to-day problems and activities. For example, engineers...
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...The macro- environment is an extremely influential factor when considering change dynamics within any company. Because of this, it is important that each company learns to adapt to any external changes in the macro- environment that become apparent. To do this companies must be aware of factors such as political, economic, social and cultural and technological that may influence their business and their internal processes. For McDonalds, these four factors are significantly influential. The correct way of dealing with the effects of these factors will ensure McDonald’s success both in the short term and long term. There are many political factors that have the potential to influence McDonald’s in the near future. One of the main things that can be influential is unemployment levels. McDonald’s currently help Australia’s high unemployment rate by providing people with jobs who may not have been given the opportunity to work otherwise. These people may or may not have disabilities, but do however have little experience and qualifications if any. This affects the unemployment rate in Australia as McDonald’s aim to give people opportunities to further their careers (Gould, 2010). For McDonald’s, Australia having a high unemployment rate would mean that more people would be applying and they would have a larger pool of people to choose from when hiring. This would in turn cause the quality of employees to rise within the company which can only improve McDonald’s as a whole (Gould...
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