The PESTLE analysis helps a business know the six forces that have huge impacts on its business in a particular industry. A PEST analysis helps companies measure current and future markets. The importance of each part in PEST Analysis will change depending on the various industry segments. For instance, particular companies will emphasize certain elements that pertain more so to there industry than others. Political/Legal Factors -Concerning the legal and political factors, all categories of laws have to be respected in every area the business is operating in such as employment law, import/export law etc. Zapp's potato chips have to adapt to modifications in laws by governments. The industry is extremely regulated, the following laws have to …show more content…
Zapp’s do not export to foreign countries, so exchange rates do not influence Zapps. An economic crash is a black swan event that affects the ways consumers will be able to spend their money, leading to negative results for the company compared to previous years. The economic recession can particularly affect the demand for Zapps’ because the savory chips are not one of the highest needs consumers value at a time when money is tight. These factors affect the supply of products Zapps’ will need to produce and expected return on products the company foresees for the future. Multiple economic factors are out of the companies hands that can heavily influence their industry; however, they cannot afford to overlook these factors because of the influence they have on the overall domestic market, not only potato chips. The biggest financial worry is the presence of its challengers in the business. Also, the company has to research the goods, business approaches, and other characteristics of all possible …show more content…
First, cuisine likings within numerous different cultures influence the industry. Secondly, personal health trends have been increasing which directly affects this particular snack industry. Certain aspects play vital roles in the industry, such as the amount of nutrition in each chip in the snack food market. It is known that Utz potato chips are better known on the East Coast than the West Coast, mostly due to the production facilities’ east-coast locations. The company's goal is to target older consumers along with younger ones using different marketing strategies. Age is an extremely important factor. Using environmentally friendly products has a positive influence on the perception of the company. Technological Factors -Technological factors directly influence the industry; new machines are being created to improve production and efficiency of potato chips. Zapp’s has to keep an eye on the technological advancements that the competitors are working on. The company is constantly looking for innovative technologies to expand their position in the market. Companies that have solid online charisma on Facebook, Twitter, and Instagram are extremely beneficial in a competitive market because most people are online and these social media sites are great networks to connect with
The way that companies choose who they will hire is based on popularity. One student who is a brand ambassador for H.P. laptops has “more than 1,300 friends” (841) on both facebook and twitter and uses both of these to promote
(P2.2) It is important that Nordstrom knows in what environment they work in when launching a new store therefore, an environmental audit gives an idea and figure in which the company operates or work. This can be done by a PESTLE analysis. Political Factors Political factors play a significant role in determining the factors that can impact Nordstrom 's long term profitability in a certain country or market. Nordstrom is operating in apparel stores in more than dozen countries and exposes itself to different types of political environment and political system risks.
2. Analysis of the Industry, market size, competition, etc. 2.1. PESTLE A market is the place or medium where specific activities are transacted between businesses and consumers. To study the macro-environment (i.e., external environment), PESTLE analysis is considered to be the most appropriate as suggested by Kotler and Armstrong (2010).
In addition to restaurants having low prices, consumers may look to get their high doses of glucose and fat from shelves in convenient stores. For example, a bag of chips cost $1, but yet a healthier snack such as a cup of yogurt ranges from $1.19-$1.99. The price difference is not much but after an extended period of time consumers will have to start considering their budget. Processed foods may be inexpensive but in the long run detrimental to consumers’
Porter’s Five Forces Porter’s Five Forces framework is to identify the level of competition within the industry and to determine the strengths or weaknesses which can utilise to strengthen the position. The framework consist of five elements: threat of entry, bargaining power of supplier, bargaining power of buyer, threat of substitutes and industry rivalry. Forces Analysis Implication Threat of new entrant Low Threat Diversified of product There are high demand of furniture and electrical appliance.
In this segment we will discuss about the external forces of the company that are not controllable (Keegan and Keegan, 1989). PESTLE analysis will be an effective tool here to analyze the factors. 2.1.1 PESTLE Analysis PESTLE is a very effective macro environmental tool containing six important factor. Political Factors In India political factor is very vulnerable.
Introduction DHL is one of the leading company worldwide in the logistics industry. DHL is based in more than 220 countries including Singapore, which will be the chosen country to be focused on in this essay. This essay will be looking into the company 's and country 's background, PESTLE analysis and Porter’s five forces. Also, at the end of the essay, recommendations and suggestions will be given based on the PESTLE analysis and Porter’s five forces. DHL is specialized in express delivery, from land, air to sea.
As a result of this, the manufacturers of this product may ask a higher price for their rice and the GNP per capita in Vietnam
We will now be doing a more detailed analysis on these six PESTEL factors. PESTEL refers to the Political, Economic, Social, Technological, Environmental and Legal forces,
Facebook, Twitter and Youtube are currently the top social media sites businesses use. The benefits to using any type of social media are that many of them are free to use, have a large audience, allows interactions with customers which can improve customer satisfaction and increases traffic to the company’s website. Costco using any of these types of social media networks would be greatly beneficial for their company if they are performed in a professional
When capital markets are enables to offer funds, increase the risk of competitive entrants. The industry will becomes a magnet to new if a firm have a very high profit. Unless got way we can solve this problem if not the competition and competitor will increase. Firms in an industry try to keep the new entrants low by barriers to entry, first is economies of scale. An economy of scale is when an industry is characterized by large economies of scale for new firms to enter and participate, if they are willing to accept a cost disadvantage.
Kraft Heinz Case Study Executive Summary Problem Statement The focal problem that Kraft Heinz Company (KHC) faces is the decrease in demand of packaged-foods, while trying to increase revenue. Analysis This analysis studies Kraft Heinz Company’s strategy, competitive position in the market, problems being faced, and the company’s financials.
Francis Aguilar (1967) is the first known reference to the origin of the PESTEL analysis. In his study known as Scanning the Business Environment, he studied the environmental factors that affect business environment and come up with the first acronym ‘ETPS’ which meant the Economic, Technical, Political and social factors (Aguilar, 1967). Later Arnold Brown (1967) focused on the study and came up with a new perspective towards the study of social-technical, economic, political, and ecological (STEPE) factors. In 1980, Porter among other authors scanned the business environment and came up with the current acronym PESTEL meaning political, economic, social, technological, legal, and environmental factors (FME, 2013). According to Collins (1997),
PESTLE analysis is include of political, economic, social, technological, legal and environmental factors. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. The first factor is political factor which include such as law of land, taxation policies, rules and regulation, trade restriction and so on.
2.0 PESTEL ANALYSIS A PESTEL Analysis is a marketing framework to analyse how an organisation is being impacted by a wide range of external imperatives. 2.1 Political Local political factor has a less significant impact on Starbucks Singapore due to strong political stability in Singapore. Singapore is consistently ranked as the lowest political risk country in Asia since 2002 (Corrupt Practices Investigation Bureau, 2015). However, the political stability in the global market is highly important as Starbucks coffee is certified as an ethically traded coffee.