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.
Just like any other organization, chick-fil-A is greatly affected by the external environment of the business. Often, the external environment is made up of all outside factors and influences that affect the way an organization conducts its daily operation. It is worth noting that an organization has no influence over its external factors and thus, it has to re-engineer and redefine its process, products and services to work under the influence of the external environment. Below are some of the external factors that affect Chick-fil-A. Consumer income Consumer income is in the wider field of economic factors that affect the sales level of the enterprise. Consumers with high income are likely to possess the power and the ability to purchase products from the company in large quantities.
Political Forces: The political stability is very important for the business to grow and last, according to that if the business has been operated in a politically unstable area, or in a country that is under a threat of wars that will lead to a loss for the business. Politics and governmental interferes is an important issue that is facing businesses and became a barrier in many situations. GAP Inc.
The Starbucks “Race Together” campaign has caused quite a kerfuffle. It was initially an effort to catalyze national dialogue about race in response to the killings of Michael Brown and Eric Garner, two unarmed black men, and subsequent civil unrest. This was done by writing “Race Together” on a cup which would encourage the customer and Barista to talk about the topic over the creation of the coffee, ultimately giving the impression that Starbucks cares and wants to promote the idea that everybody is racially equal. Despite the absolutely brilliant idea of a majorly white corporation, the campaign ended up in a downward spiraling rocket that concluded in more of a failure than the Challenger. Every time the company tried to set off and explore
Social Factors-Speaks to the level of care required based on the mental and physical status of the patient. The ability of one to take care of personal responsibilities such as feeding, bathing, dressing and caring for oneself is on a different social scale than one at the opposite end of the scale. Economic Factors-Speaks to the level of financial ability and affordability. This determines the ability of the family to either pay for the services, use insurance and or savings tools, or to seek financial assistance.
3.0 Value chain – primary activities 3.1 Value chain –support activities 4.0 PESTEL analysis of Levi’s Strauss PESTEL analysis module is which categories the environmental factors into key types. In this module Political, economic, social, technological ecological and legal factors are often
Next, the three crucial economic factors that affect the company include inflation, recession and currency. As Apple products are commonly viewed as luxury products, and with inflation and
Ethical issue in Starbucks Starbucks, an American coffeehouse chain based in Seattle, Washington, is the world largest coffee retailer chain in the world having more than 21,000 stores in 65 countries (Starbucks website, n.d.). In United States, Starbucks owned 12,973 stores (Starbucks Company Statistics, 2014), which is more than 73% of the market shares of the United States coffeehouse industry. Hence, Starbucks possesses monopoly power in the specialty coffee market. Enjoying monopoly position, Starbucks plan to completely dominate the market by eliminating competition. Starbucks engages in a range of anti-competitive activities.
Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.
Other Environment factors include Political, Legal, Economic, Socio culture factors etc. After Saudi Arabia, UAE is the second largest automobile Industry in the GCC. Cars account to 80 percent of the U.A.E. Trucks, vans and buses accounting the rest of the 20 percent. POLITICAL Government activities which influences the operations of an organization or business Entrepreneurs and managers give careful consideration to the political condition to determine how government activities will influence their organization.
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),
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.
are all the economic factors. The ability of people or purchasing power of Apple products is targeted from medium to high class. Economic factors effect Apple Company’s business process as Apple is recognized internationally. The products components that the company gets from foreign suppliers play an important role because of the exchange rates and currency differences.
POLITICAL Political factors can often give a big impact on the business of a company. Often this factor is not in the hand of the organization. Several aspects of government policies can make a huge difference. However, all firls are required to follow the law. It is the responsibility of the organization to find how upcoming legislations can affect their activities.
Part A Macro environment is important factor affecting the development of enterprises. A macro environment is the condition that exists in the economy as a whole, rather than in a specific sector or region.(Macro Environment n.d.) Cultures, politics, technology, nature, economy and demographic are the six major forces in the company 's macro-environment.(Kotler & Armstrong 2014, p96） Political factors Political factors include government regulations and legal issues and define both formal and informal rules.(PEST Analysis n.d.) All the companies have to follow these rules.
