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PESTEL Analysis

PESTLE of Berkshire-Hathaway
BusinessManagementMarketingSWOT & PESTLE Writing

Want To Read PESTEL of Berkshire Hathaway

by Shamsul

PESTEL Analysis of Berkshire Hathaway

This PESTEL analysis of Berkshire Hathaway will highlight the macro business factors that influence its performance. The full form of PESTEL is political, economic, social, technological, environmental, and legal factors. Berkshire Hathaway is a prominent conglomerate holding company. It is headquartered in Omaha, Nebraska, United States. It is basically an insurance company that invests in various portfolios.

 
What is PESTEL and Why is it Important?
 
PESTEL is a strategic management tool that helps companies to make informed decisions. Berkshire Hathaway managers can use this tool to benchmark the company’s position by making the right moves. The impact of PESTEL factors is grave on businesses including Berkshire Hathaway. They have to face different challenges on a regular basis because it works in a very saturated business environment. Factors like political stability, economic upheavals, social norms, technological advancements, environmental concerns, and legal tensions can easily disrupt the profitability of the company. Keep reading to learn more!
 
 
Political Factors | PESTEL Analysis of Berkshire Hathaway
 
Political intervention and political stability are two important factors that can impact the company’s business. Both local and national governments are responsible for the smooth functioning of Berkshire Hathaway. The governance system and government policies also play a big role in the smooth working of the company.
   
 
     
  • The company operates in several countries so it has to manage and maintain regulations and laws in those countries. The United States and other countries have changed their regulations for multinational companies regarding venturing into other countries in the insurance sector.
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  • The new policies from the US government can strengthen the insurance sector by favoring investors. The development of the financial sector is totally dependent on government policies and strategies.
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  • Berkshire Hathaway has exploited several policies in its favor such as lower taxation policies. Based on this move, the company has earned maximum profits in recent years, enabling it to invest in research and development. Any change in taxation policies can impact the company drastically.
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  • The current US governance system is suitable for the financial sector and investors. It is quite stable which is ultimately good for businesses like Berkshire Hathaway. They should predict trends by closely monitoring the governance system and its policies.
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  • The change of government also has a huge impact on the working and business of the company. A new government always brings new policies to facilitate local as well as national businesses. Such policies from the government can make or break the company’s revenue.
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  • Pressure groups, protests, and other non-government groups can also create trouble for Berkshire Hathaway. They play an important role in the policy-making of the financial sector. The company can contribute well by fulfilling the needs and demands of the customers. As a result, it can easily achieve its corporate as well as community goals.
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Economic Factors | PESTEL Analysis of Berkshire Hathaway
 
Economic factors such as exchange rate, disposable income, labor conditions, interest rate, taxation rate, and inflation rate have such a huge impact on companies like Berkshire Hathaway.
 
     
  • In the United States, the financial sector or market is highly efficient. It gives Berkshire Hathaway a perfect opportunity to grow and expand internationally.
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  • The economic condition is very stable in the United States and will stay stable in the future. This kind of stable economic environment gives expansion opportunities to the company. The United States government also supports investors investing in new ventures and markets.
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  • The skill level in the United States is very high. It strengthens the company’s financial position because they hire skilled and qualified workers that play their roles in achieving the company’s goals. Berkshire Hathaway can exploit this factor in order to improve its services and business efficiencies.
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  • The US economy is quite stable after facing the tough era of recession. However, any fluctuation in the inflation rate can make or break the company’s overall performance.
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  • The strong financial position of Berkshire Hathaway allows it to invest in new markets and industries in order to gain a competitive edge.
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  • A volatile exchange rate can also hurt the company’s investment plans in the future. It can impact its short as well as long-term investment plans.
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Social Factors | PESTEL of Berkshire Hathaway
 
Every country has its own regulations and culture for running businesses. However, the social factor can’t be ignored in any condition. Social factors help to identify Berkshire Hathaway’s customer preferences and spending patterns. Moreover, laws related to health, safety, and employment are also some of the crucial factors in this matter. In other words, the company should understand the societal norms of the country in which it operates.
 
     
  • The increasing liberalization in society regarding health and safety is very concerning for companies. Berkshire Hathaway should stay away from them because they can damage the image of the company at a global level.
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  • People in the United States love to use essential services. This shows that their leisure interests are very high which is good for the company’s growth. It will give a perfect opportunity for Berkshire Hathaway to invest in other customer-centric products and services.
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  • In order to improve the brand image and change public opinion, the company should consider social media and mainstream media. They can help to change the company’s image in a smooth and easy way. Berkshire Hathaway can exploit this factor to market its company and services globally.
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  • Migration factors can create a nuisance for the company in the future. The overall migration rate in the United States is very high which is alarming. It increases the risk of brain drain. It is imperative for Berkshire Hathaway to make an effective policy regarding migrated workers.
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  • The majority of people in the United States have a good perception of the company. The population in the US is a combination of young and old people. Berkshire Hathaway can make effective services in order to cater to different segments of customers.
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  • The education or literacy rate in the United States is high. It means they have educated and skilled people. The company can take advantage of this factor to hire qualified people. In this way, they can expand their business operations in other markets or countries.
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Technological Factors | PESTEL Analysis of Berkshire Hathaway
 
With the passage of time, technological advancements are growing and disrupting industries. Being a financial company, the company should stay up-to-date with all the technologies in order to enhance its operations. Using the latest technologies, the company can streamline its customer services, manufacturing processes, and supply chain networks.
   
 
     
  • The company can boost its supply chain network using innovative technologies. It will strengthen its market position and competitive advantage.
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  • The US government fully protects intellectual property rights and patents. This factor attracts other companies to invest in the financial sector of the United States.
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  • Berkshire Hathaway should not ignore 5G and its impact. They can speed up their business operations using 5G technology. In this way, they can enhance the experience of users.
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  • The trend of the transfer of technology is not so favorable in the financial sector. This is because of intense competition in the industry.
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  • The rising use of smartphones is another big advantage for the company. It can enhance its online offerings to cater to tech-savvy customers. This factor will allow the company to stay ahead of the competition.
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  • Berkshire Hathaway can invest in new technologies that can help them to manufacture low-cost products. As a result, they can earn more profits, ultimately boosting their financial position globally.
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Environmental Factors | PESTEL of Berkshire Hathaway
 
Environmental factors and sustainability have become very important for companies in recent years. Pressure groups and environmental institutions are putting pressure on companies to reduce their carbon footprint. Berkshire Hathaway is also trying to follow environmental laws and regulations. Climate change is another big concern. If the company does not follow these laws, it can upset eco-friendly people.
 
     
  • Steady pressure and scrutiny from the environmental agencies are causing extra expenditure that is hard to maintain for Berkshire Hathaway.
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  • The company should focus on recycling in order to reduce its carbon footprint.
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  • It is necessary for the company to make an effective policy regarding waste management. The government has designed strict rules and regulations in this matter.
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  • Berkshire Hathaway should include the Paris Climate Agreement in its environmental policy. This will help the company to avoid unnecessary pressure from environmental agencies.
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  • Customers in the United States have become more aware of the environment and climate change. They should show professionalism in this matter by following environmental norms.
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  • More and more businesses are investing in renewable energy technologies. Berkshire Hathaway can also invest in renewable energy sources to get the attention of climate-conscious customers.
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Legal Factors | PESTEL Analysis of Berkshire Hathaway
 
Being a multinational insurance company, Berkshire Hathaway is highly susceptible to lawsuits, controversies, and legal actions. Before venturing into new regions, the company should closely understand that country’s legal system.
 
     
  • The US government safeguards intellectual property rights and has a complete mechanism for it. So, it is a favorable working environment for companies like Berkshire Hathaway.
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  • Data breaches and protection are also very crucial. The country has a strong mechanism to protect companies against hackers and data breaches.
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  • The judicial system in the United States is very powerful. It makes the country a perfect place for businesses and investors.
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  • The employment laws of the country can impact the business of Berkshire Hathaway. However, every country has different employment laws and trends.
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  • It is imperative for Berkshire Hathaway to follow all the health and safety laws in order to run its business operations smoothly.
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  • The company should follow the trading rules of different trading organizations such as the European Union and the World Trade Organization.
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Now, The PESTEL of Berkshire Hathaway is completed. You are requested to share with your friends.
   
 
 
 
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  AstraZeneca PESTEL Analysis  
 
 
BusinessCoronavirusHealthManagementMarketingSWOT & PESTLE TrendingWriting
 
PESTEL Analysis of AstraZeneca – Innovative Medicines Producer
 
 by Shamsul   
 
 
 
 
 
 
 
PESTEL Analysis of AstraZeneca Plc
 
 
The PESTEL analysis is an excellent strategic planning tool to review the external business factors of an organization such as Political, Economic, Social, Technological, Environmental, and Legal. These factors affect the macro business environment of a company like AstraZeneca Plc. Let’s read the PESTEL analysis of AstraZeneca.
 
These factors can also impact the other players operating in the healthcare sector. A company like AstraZeneca Plc can take a competitive advantage in the market by analyzing these points. They are also helpful for boosting the overall level of profitability.
 
PESTEL analysis of AstraZeneca Plc provides complete information about current challenges present in the healthcare sector. The company is highly exposed to these challenges and competitors. For example, a profitable company can’t produce encouraging results in those regions where the political system and economic situation are unstable.
   
 
Without further wait, let’s start the PESTEL analysis of AstraZeneca Plc.
 
 
Political Factors | PESTEL Analysis of AstraZeneca
 
In determining the factors that can affect the long-term growth of AstraZeneca Plc, political factors like corruption level, political stability, and political framework can play a huge role. It is crucial to analyze the political factors of a specific country or market in which AstraZeneca Plc is operating. Currently, the healthcare company is operating in more than a dozen markets/countries, so it is open to different challenges and threats in the region. These systematic risks can disrupt the overall functioning of the company in a particular region. The following factors should be analyzed thoroughly before entering a new market,
 
  • Importance of political parties in the country and influence of these parties on the healthcare sector.
  • Political stability.
  • Risk of invasion from the military.
  • Corruption levels in the government departments, especially in the healthcare sector.
  • Interference of influence of government officers on healthcare business.
  • Legal proceedings regarding contract enforcement.
  • Tariffs, trade restrictions, and other limitations.
  • Protection of intellectual property rights by legal institutions.
  • Preferred trading countries and their political system.
  • Laws related to healthcare, especially antitrust laws.
  • Price wars and regulations in the country.
  • Tax rates.
  • Minimum wage and overtime legislation.
  • Working hours and timetable in the healthcare sector.
  • Employee benefits.
  • Safety regulations in the healthcare sector.
  • Labeling of products and related requirements.
 
 
Economic Factors | PESTEL Analysis of AstraZeneca
 
The impact of economic factors is also big on the company. There are several risks associated such as inflation rate, foreign exchange, savings rate, and interest rate. These factors determine the average investment and average demand in a country or business environment. Economic factors also increase competition in the market. AstraZeneca Plc can exploit different economic indicators like purchasing power of consumers, growth rate, and others for determining the economic growth of the company in a specific region, market, or country. Here are some vital economic factors that must be analyzed,
 
  • Type of financial and economic system in the specific country or region.
  • Economic stability.
  • The intervention of government.
  • Stability of currency and exchange rates.
  • The efficiency of economic markets in the country.
  • Infrastructure standard.
  • The competence level of employees.
  • Comparative advantages.
  • Literacy level in the country.
  • Overall productivity and labor costs.
  • Economic recession.
  • Interest rates.
  • Inflation.
  • Economic growth.
  • Unemployment rate.
 
 
Social Factors | PESTEL Analysis of AstraZeneca
 
The way of doing things and overall culture of the society can also upset the business operations of AstraZeneca Plc in a particular country. People’s leisure interests, attitudes, and beliefs also have a huge impact on the business. AstraZeneca Plc must understand the market dynamics by analyzing the behavior of customers or demographics in the region also. Being a healthcare company, AstraZeneca Plc should review the given social factors,
   
 
  • Skill level of people.
  • Demographics.
  • Power composition, hierarchy, and class structure in the country or society.
  • Education level of people.
  • Culture such as social conventions and gender roles.
  • Entrepreneurial skills.
  • Attitudes toward environmental consciousness and health.
  • Leisure interests.
 
 
Technological Factors | PESTEL Analysis of AstraZeneca
 
It is slightly difficult for companies to stay technological advance all the time. Technology is an ever-evolving thing and it requires a lot of investment. We are taking the example of transportation here. It has been growing with the passage of time and several transportation services such as Uber and Lyft have disrupted the business of common taxi business.
 
Indeed, every company is moving towards automation and there is a lot of scope in the healthcare segment for new technology and automation. This fast-changing technology can affect the business of AstraZeneca Plc in the long run. By exploiting the latest technologies, AstraZeneca Plc can take a competitive lead and can also make its business profitable. Below, we have curated imperative technological factors,
 
  • Latest technological advancements by the competitors of AstraZeneca Plc.
  • Product offering and impact of technology on this factor.
  • Cost structure and impact of technology on it.
  • Value chain structure and impact of technology on it.
  • Technological diffusion rate.
 
 
Environmental Factors | PESTEL Analysis of AstraZeneca
 
Every country has specific norms and environmental standards. Today, people are highly conscious of environmental factors. Any violation of climate laws can impact the revenue stream and overall reputation of the organization in the market. Being an international healthcare company, AstraZeneca Plc should evaluate the liability and environmental laws of every country in order to run the business smoothly. Many countries are giving a tax break to companies that produce renewable energy sources.
 
Before launching a new business in the market or venturing into any market, AstraZeneca Plc must scan the environmental standards, needed to run the business in that country. Some of the standards that AstraZeneca Plc should study,
 
  • Climate change.
  • Renewable energy sources.
  • Recycling.
  • Weather.
  • Air pollution.
  • Water pollution.
  • Laws regarding environmental pollution.
  • Waste management, especially in healthcare.
  • Attitudes toward eco-friendly and greener products.
 
 
Legal Factors | PESTEL Analysis of AstraZeneca
 
   
 
 
In numerous countries, the legal institutions and frameworks are not so influential. So, protecting intellectual property rights, copyrights, and patents is not easy in those countries. Companies like AstraZeneca Plc must review these factors carefully in order to run their business operations smoothly. By evaluating such factors, a company can enhance its competitiveness as well as profitability in the market. The managers at AstraZeneca Plc should consider the following legal factors before entering a new region,
 
  • Data protection.
  • Employment laws.
  • Safety and health laws.
  • Copyrights.
  • Consumer protection.
  • E-commerce.
  • Antitrust laws.
  • Discrimination laws.
 
 
 
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  HDFC Bank PESTEL  
 
 
BusinessManagementMarketingSWOT & PESTLE 
 
PESTEL Analysis of HDFC Bank Limited India
 
 by Shamsul   
 
 
 
 
 
 
PESTEL Analysis of HDFC Bank Limited India
 
 
To investigate the business tactics and macro environment of a company, PESTEL is a superb strategic tool as it helps to identify political, economic, social, technological, legal, and environmental factors. Similarly, The impact of these factors is huge on the business performance of any company. Thus, people who take decisions at HDFC bank must utilize this strategic tool to take future decisions in favor of the business. Moreover, there are so many other players in India’s banking system. So, HDFC Bank can take competitive advantage by taking help of such strategic tools. Today, we are going to conduct PESTEL analysis of HDFC Bank Limited.
 
 
Political Factors | PESTEL Analysis of HDFC Bank 
 
The impact of political factors is always huge on the overall business working of a company. If a company is just at the national level, then the political situation of that country will definitely impact. Being an international organization, you are susceptible to political scenarios of different countries. HDFC Bank is currently operating in more than 12 countries and in the Foreign Regional Banks system. So, it is highly exposed to political risks. So, HDFC Bank should keep its eyes on changing political scenarios to gain a lead in the competitive market. Similarly, political stability is ideal for the ultimate growth of the company and its profitability. Here are some important political factors that HDFC Bank should analyze before taking any risky or bold step,
 
  • Importance of political stability and Foreign Regional banks segment in the region.
  • Military invasion.
  • Corruption level.
  • Decisions makers or bureaucrat in Foreign Regional Banks.
  • Contract laws and its legal structure.
  • Intellectual property protection.
  • Tariffs and trade regulations of the country.
  • Antitrust laws.
  • Pricing policy in the country from the government.
  • Incentives and tax rates.
  • Minimum wage laws.
  • Work week regulations.
  • Employee benefits.
  • Safety and health regulations.
  • Labeling of products in Foreign Regional Banks.
 
   
 
Economic Factors | PESTEL Analysis of HDFC Bank 
 
Numerous economic factors have a huge effect on businesses like HDFC Bank. For Example, the inflation rate, currency rate, economic cycle, savings rate, and interest rate are some important economic aspects that HDFC Bank should keep in mind to work seamlessly. Investors can take investment decisions just because of these factors. HDFC Bank should also check the country’s economic factors such as growth rate, economic indicators, and inflation rate to take future decisions. Moreover, customer spending power also indicates the economic strength of the country. Here are some economic factors that they should see,
 
  • Structure of economic system of the country.
  • Economic flux.
  • Exchange rates and currency rate stability.
  • Performance of financial market.
  • Economic framework of Foreign Regional Banks.
  • Competency of the workforce.
  • Overall education level.
  • Productivity and labor costs.
  • Interest rates.
  • Economic growth.
  • Inflation.
  • Unemployment.
  • Disposable income.
 
 
Social Factors | PESTEL Analysis of HDFC Bank 
 
Societal norms and ways of doing something also have a big impact on the working of any company. HDFC Bank must make policies by keeping social factors in minds such as gender, age, and preferences. Moreover, the role of people or population is very crucial in the success of any business. The company should analyze the behavior of customers, their spending patterns, and other related things. In this way, you can target them accordingly by offering appropriate products. The following are some crucial social factors,
 
  • Efficiency of workforce and demographics.
  • Power structure in the country and class framework.
  • Level of education.
  • Gender roles.
  • Social norms.
  • Culture.
  • Leisure preferences.
  • Attitude towards environment and health.
  • Entrepreneurial skills.
 
   
 
Technological Factors | PESTEL Analysis of HDFC Bank 
 
Technological advancement is necessary these days to become efficient and competitive. It is hard to stay fully tech all the time, but so many things need abrupt changes. For example, transportation sector is ideal for this example. People used to consider taxis for traveling from one place to another within the city. But, Uber has changed the concept of transportation as you can order a cab with just a few clicks. This is only happened because of technological change. In the banking system, they can offer several tech-based things like e-payment, online money transfers, etc. With the help of technology, HDFC Bank can increase its profitability. Plus, new technology also helps to attract new customers. Here are some major technological factors,
 
  • Recent tech advancement by HDFC Bank rivals.
  • Impact of technology on offerings.
  • Technology’s impact on cost structure.
  • Technology’s impact on value chain.
  • Technological diffusion.
 
 
Environmental Factors | PESTEL Analysis of HDFC Bank 
 
These days, environment-related factors are growing at a very fast pace. Environmental factors differ from one region to another. Hence, it may impact the earnings and business performance of the company. So, HDFC Bank should follow liability laws and environmental laws as an international company. Moreover, renewable energy sources can create all the differences in this regard. Before venturing its business into new countries or markets, HDFC Bank must evaluate its environmental regulations and standards. It is necessary for prosperously running a business in that market. Some key environmental factors are given as,
   
 
  • Climate change.
  • Weather.
  • Attitude towards green initiatives on one hand and renewable energy sources.
  • Laws regarding pollution on the other hand.
  • Air pollution.
  • Water pollution.
  • Recycling priorities.
  • Waste management.
  • Endangered species.
  • Eco-friendly products.
 
 
Legal Factors | PESTEL Analysis of HDFC Bank 
 
In some markets or countries, the legal structure and companies are not powerful, creating trouble for the company. They failed to protect IPR (intellectual property rights). Companies like HDFC Bank must evaluate these factors before entering new markets. Also, legal factors like lawsuits can destroy the whole image of the company. So, try to minimize the risk of any legal proceedings against you. here are some important legal factors that HDFC Bank must study,
 
  • Patents, copyrights and intellectual property rights.
  • Data protection.
  • Employment laws.
  • E-commerce and customer protection.
  • Health & safety laws.
  • Discrimination laws.
  • Antitrust laws in Foreign Regional Banks.
 
 
 
Need Help or Advice in Content Management:
 
Do you want more advice? Do you have good practices to share? Express yourself in the comments.
 
Moreover, if you want any help to write content to drive more traffic and boost conversions, get in touch through Contact our team?
   
 
Do you want any help writing quality content, driving more traffic to your website, and boosting conversions? You can contact me through my Freelancer.com profile also. I always prefer to work through Freelancer.com for smooth functioning. Here you pay safely and securely.
 
 
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  Disneyland Hong Kong  
 
 
BusinessManagementMarketingSWOT & PESTLE 
 
PESTEL Analysis of Hong Kong Disneyland Fantasy and Adventure
 
 by Shamsul   
 
 
 
 
 
 
 
PESTEL Analysis of Hong Kong Disneyland
 
 
What is PESTEL? How you can use PESTEL Analysis of Hong Kong Disneyland?
 
PESTEL is an excellent tool for analyzing businesses by evaluating macro-environment factors like political, economic, social, technological, environmental, and legal. The impact of these factors is really big on a company’s overall business. The effect of geographical situation, socio-economic environment, and industry environment is also huge while doing PESTEL Analysis of Hong Kong Disneyland. Managers at Hong Kong Disneyland must examine the above factors to develop better business ideas and strategies.
 
 
Case Study of Hong Kong Disneyland:
 
This case study highlights the struggle of Disney throughout the years in different countries. Disney started its theme park in 1983 with the inaugural of Tokyo Disneyland. It was considered the most famous amusement park. After this enormous success, Disney tried to replicate another Disneyland in France. Disney opened Disneyland Resort in Paris, which gained more success than Disneyland in Japan. After that, Disney opened its third in Hong Kong, popularly known as Hong Kong Disneyland. They successfully adopted the Chinese cultural environment to make Hong Kong Disneyland successful in that region.
 
 
Importance of PESTEL:
 
The importance of PESTEL in the strategic planning process is immense, and it often requires five steps,
 
1- I am selecting the reason for Hong Kong Disneyland’s existence and mission, and vision.
   
 
2- Examine the Hong Kong Disneyland external competitive factors to investigate threats and opportunities. PESTEL is the most suitable tool for analyzing the external macro factors and gives a great chance to Hong Kong Disneyland to build a sustainable competitive lead.
 
  1. Identify the weaknesses and strengths of Hong Kong Disneyland.
  2. Making effective strategies that help to maximize its strengths and reduce weaknesses.
  3. Learn how to execute a strategy in the development of Hong Kong Disneyland.
 
 
Read Also: DISCOVER WHAT PESTLE ANALYSIS IS? ITS USES, AND APPLICATIONS
 
 
PESTEL Analysis of Hong Kong Disneyland
 
   
 
Political Factors – PESTEL Analysis of Hong Kong Disneyland
 
The impact of political factors in the overall business operation of Hong Kong Disneyland is huge. This factor is directly linked with investment strategies. It also has a crucial role in the cost of running a business to achieve long-term sustainability. Factors like armed conflict, law & order, governance, military coup chances, and democracy are some important political factors.
 
  • The governance system of a country indicates its stable political condition. In this kind of environment, it will be easier for Hong Kong Disneyland to make strategies and policies.
  • The overall record of Hong Kong is really great in signing treaties and agreements with global partners. It shows the consistency in rule and regulation, which creates a better opportunity for Hong Kong Disneyland.
  • After the incident of 9/11, companies like Hong Kong Disneyland are operating under the shadow of fear, such as terrorist attacks. It is necessary to invest in security and insurance in order to mitigate the loss.
  • Currently, Hong Kong is dealing with armed conflicts of neighboring countries. But, Hong Kong Disneyland has no connection with such armed conflicts.
  • Government regulations and deregulations impact the performance of Hong Kong Disneyland. Sometimes, government policies can benefit the company and sometimes not.
  • Change of government and policies are also important factors that fall under the political scenarios. If a government follows the rules and policies of the previous government, then it is really suitable for Hong Kong Disneyland.
  • In Hong Kong, plenty of government agencies works really hard to reduce the risk of nuisances. But, it also increases the operational costs of the company and getting clearances.
  • Both national and local governments can enhance the company’s growth in the short term. The company can employ it in its favor by taking advantage of the current political scenarios of the country.
 
 
Economic Factors – PESTEL Analysis of Hong Kong Disneyland
 
Besides political factors, economic factors have a significant impact on Hong Kong Disneyland. It involves various factors such as GDP, disposable income, inflation rate, etc., that directly impact Hong Kong Disneyland.
 
  • Due to forex risk, many companies like Hong Kong Disneyland have faced losses in the last few years. Hong Kong Disneyland must understand the forex risk in order to avoid big losses.
  • The stagnant household income and increasing consumption is leading to several problems in the United States. So, the concept of saving is totally diminished because people don’t have much to save. It is important for Hong Kong Disneyland to make useful strategies according to customer purchasing power.
  • The rise in disposable income also has a massive impact on companies like Hong Kong Disneyland. Hong Kong Disneyland can exploit this trend by creating various marketing campaigns.
  • In today’s era, people are more experienced and skilled. It gives an excellent opportunity to Hong Kong Disneyland to hire a skilled workforce in order to remain competitive in the market.
  • The increment in employment rate will affect Hong Kong Disneyland in two ways – it will increase its customer base, and secondly, it will create problems for the companies to hire skillful workers.
  • The change in the inflation rate can affect the need for Hong Kong Disneyland products. In case of a high inflation rate, Hong Kong Disneyland must increase the price of its products, which impacts its customer base. In such a scenario, cost-based pricing could be fatal for the company.
  • If the GDP growth rate is high, it indicates the growing demand of products in the country. Hong Kong Disneyland can utilize this trend and expand its business. It is essential to understand customers’ purchasing behavior before making any policy or strategy.
 
 
Read Also: EMIRATES PESTLE ANALYSIS | FLY EMIRATES, FLY BETTER
 
 
 
Social Factors – PESTEL Analysis of Hong Kong Disneyland
 
The importance of social factors is considerable in PESTEL analysis. It involves various factors like demography trends, gender equality, societal norms, etc. These elements have a bigger impact on the country’s economic condition and the company’s performance too.
   
 
Hong Kong Disneyland
 
  • Hong Kong Disneyland needs to conduct ethnographic research to fully identify customers’ attitudes towards comfort. By identifying such things, Hong Kong Disneyland can make strategies accordingly to stabilize its business.
  • The focus on the health and safety measures indicates the manufacturing process and cost structure of products. Hong Kong Disneyland has strict standards for safety and health in emerging as well as developed economies.
  • Before stepping into a specific country or region, Hong Kong Disneyland must identify the social relation between society and government. For example, it is very tough for US-based health companies to make a place in the UK health system.
  • It is necessary to evaluate the education level of society before entering into it. If the education level is high, it means the chances for jobs are high, and you can easily hire a skilled workforce.
  • Before entering any country, Hong Kong Disneyland must identify its level of social awareness and social concerns. If it is high, then you will face immense pressure from pressure groups, individuals, and non-governmental organizations.
  • The birth rate is another good sign for the company for future demand.
  • By evaluating the level of societal issues, liberal nature, women’s rights, etc., you can easily decide whether this market or country is suitable for work or not.
 
 
Technological Factors – PESTEL Analysis of Hong Kong Disneyland
 
Having the latest technology enables you to gain a competitive edge over competitors in this modern era. It involves artificial intelligence, machine learning, analytics, and other tools. These things are necessary for the constant growth of Hong Kong Disneyland.
 
  • Hong Kong Disneyland should assess the production costs in which it operates. Technological innovation is a must for constant growth. Otherwise, you will lag in every segment.
  • It is essential to evaluate the intellectual property rights and patents protection before going to any country for doing business.
  • If a country is highly advanced in technology, then Hong Kong Disneyland should evaluate whether they can go with this fast pace of technology or not.
  • For the business model of Hong Kong Disneyland, e-commerce is one of the most critical factors. Due to this reason, they should see the e-commerce infrastructure before going to a new region or market.
  • Companies like Hong Kong Disneyland need to assess the legal position of intellectual property rights and other property rights.
  • China is leading in mobile payment services. Hong Kong Disneyland should evaluate a country’s local mobile payment process and the business model.
  • In order to deminish the risk of corruption at the local level, Hong Kong Disneyland should pay attention to the digitalization of several processes.
  • The penetration of the internet and mobile phone indicates the business model of that country. It shows the local business needs because small businesses are based on these two factors nowadays.
 
 
Read Also: SWOT AND PESTLE OF LENOVO – GET TO KNOW ORGANIZATION’S VISION
 
 
Environmental Factors – PESTEL Analysis of Hong Kong Disneyland
 
Climate change, carbon footprint, ecosystem, and other eco-related concerns really matter nowadays. People are now more aware of the environment.
   
 
  • Before entering a new market, Hong Kong Disneyland must analyze the role of environment norms enforcement agencies to avoid any controversy in the future.
  • It is crucial to know the per capita carbon emission of the region or country. It will help Hong Kong Disneyland identify the country’s eco-related policies.
  • The influence of climate change can make or break the business performance of Hong Kong Disneyland. Sudden climate change will lead to problems in the supply chain and distribution.
  • It is necessary to identify the government policies regarding Paris Climate Agreement. If they are following the rules and regulations of the Paris Climate Agreement, then it is a great place for doing business.
  • To follow all guidelines, Hong Kong Disneyland must identify a country’s waste management policy. It will save Hong Kong Disneyland from many troubles and nuisances.
  • The impact of the environment will also affect the production cost of the products.
 
  
Factors like entering the market, laws, and resolving any issue, fall under the legal category of PESTEL. If the legal system of a country is strong, then it provides plenty of opportunities for growing business.
 
  • First of all, uncover the employment laws of the country in order to run your business smoothly.
  • It is important to identify how much time a country takes to resolve a court case. It will save the company from several legalities and challenges.
  • Health and safety laws are also important for operating in a specific country. It requires to follow all the safety and health laws in order to prevent the risk of trouble.
  • In order to make effective and consistent decisions, Hong Kong Disneyland must evaluate how transparent is the judicial system of a country.
  • Hong Kong Disneyland must identify the security laws of the country.
  • Data laws are also crucial in order to work safely in a country.
 
 
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  Pestle or Pestel  
 
 
SWOT & PESTLE 
 
Difference Between PESTEL or PESTLE Analysis
 
 by Shamsul   
 
 
 
 
 
 
PESTEL Analysis OR PESTLE Analysis
 
 
 
PESTLE analysis! What does this acronym denote? When you look it up on the internet, you may also find the spelling variation as PESTEL or PESTLE analysis.  The variation will probably confuse you stirring many different questions in your mind. You may find yourself wondering whether both of these terms are the same. If the same, which is the right version of the two? If both are the same thing, which is more popular than the other? In case, you cannot find any similarity, you will surely feel restless to figure out the difference between these two.
 
Well, stop worrying. In this article, I am going to touch upon all these points and besides this, I am going to explain the following as well.
  
I will discuss in detail this framework and how can it benefit you. This lucid article will be helpful for anyone even with no idea about this subject.
 
 
 
What is PESTEL and PESTLE Analysis?
 
I would like to clear the confusion about these two variants.  Both the terms are used to indicate the same concept with the slight switch of the last two letters and there exists no other difference between the two. Legal is the last letter in the first and the environment comes last in the second. This switch is not based on any logical reasoning, it just involves what the need of the hour is for the researcher.
 
A PESTEL analysis or PESTLE analysis is a strategic framework that develops the understanding of different macro-environmental factors and their effects on the products, countries, business, and trade. It will be helpful if you intend to start a business or plans to invest in the foreign market.
   
 
The term was formerly known as PEST but over the years it has seen many variations. Sometimes, the letters have been jumbled resulting in a totally new acronym when few more factors were added to it like Demographics, Intercultural, Ecological or Ethical. This rearrangement, subtraction or addition of the letters representing different factors have brought to surface different versions of the term such as STEEPLED and DESTEP of the same acronym.
 
The purpose of this tool remains the same as it was in the beginning. However, these changes do not define any individual version of the term to be valid or invalid. It depends on the researcher’s agenda. In some cases, a legal factor might not hold great value but in other, the Environmental factor might not be necessary. But in some cases, both these factors might be of utmost importance for a full fledge examination. You just need to determine your purpose.
 
 
 
Acronym PESTEL & PESTLE
 
You won’t be able to find any other logic regarding this difference. The only reason can be the exclusion or inclusion of certain factors according to the requirements of the research.
 
This term is, in fact, an acronym and each of its letter represent an individual domain.
 
Below, I would like to highlight the independent domains of each letter in the PESTEL analysis.
   
 
 
 
P political
 
E economic
 
S social
 
T technological
   
 
E Environmental (also called Ecological)
 
L legal
 
 
 
But Should you Even Bother with PESTEL Analysis?
 
You should only use it when there is no better option left. As I have already explained that PESTEL analysis is a strategic tool that keeps its focus on the influence of macro-environmental factors. The nature of this analysis is external and objective and its authenticity depends on the extensive study.
 
It reveals the following points:
 
     
  • What can be the reason behind the market decline?
    •  
  • What measures can you apply to develop a product or business set up in a competitive setting?
    •  
  • Which direction might be fruitful for the business?
    •  
  • Why a locality or a country has a particular scenario? (given these six sectors)
    •  
  • How can you break free from the problems that might occur in the future?
    •  
 
 
   
 
PESTEL or PESTLE is for you if you are curious to learn about any of these above-mentioned points. This comprehensive analytical tool helps you in good decision-making. If you want to tread a new path or move to a new direction, you must have all the knowledge about where this path started from and why and where it has lost its mark. That makes easier for you to pick the thread and start your journey. PESTEL is the strategic analysis that helps you achieve it easily.
 
 
 
 
 
 
 
 
 
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