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PESTLE ANALYSIS

Microsoft PESTLE
BusinessManagementMarketingSWOT & PESTLE Writing

Like to Know PESTLE Analysis of Microsoft

by Shamsul

PESTLE Analysis of Microsoft

Microsoft is one of the top business corporations in the world. It operates in over 100 nations. It is a popular consumer electronics and technology company that offers world-class software, cloud computing services, PCs, and desktop operating systems. While doing a PESTLE analysis of Microsoft, we noticed that the company is operating in an effective manner. The company has achieved colossal success because of the remarkable strategies of Bill Gates who is the most successful and richest man alive in the world.

With over 2 trillion in market capitalization, Microsoft is the most valued and 3rd largest company right now. In order to unearth its success story, you need to conduct its PESTLE analysis which is the best strategic analysis tool. It offers an excellent evaluation of the company’s external business environment.

In this post, we will conduct a comprehensive PESTLE analysis of Microsoft. So, let’s get started!

 
Political Factors | PESTLE Analysis of Microsoft
 
Political factors such as political system and political stability have a huge impact on the processes and operations of the company. The political system is highly stable in the United States, giving Microsoft a big edge. The business environment in the US is very welcoming for software companies as they have flexible and adjusting tax policies. As a software company, you must spend so much on getting contracts and maintaining your products and services. The government has given tax exemptions for software maintenance contracts. As a result, companies can easily save money and can spend it on other projects.
 
After the United States, India is another big consumer electronics and software market. This country is one of the fastest emerging economies right now. India and the US have favorable trading agreements allowing them to cooperate in developing innovative software and consumer electronics. This kind of trading between both countries will highly boost the software industry globally. According to the Indian government policy, anyone can make foreign investments in the software industry in India.
 
 
Economic Factors | PESTLE Analysis of Microsoft
 
The recent economic upheavals are affecting the economy worldwide. Due to this reason, the growth rate of every country has been decreasing since 2020 and the US economy is no exception. In 2021, the growth rate of the United States was 5.7 percent which decreased to 4 percent in 2022. Now, it has dropped to 2.6 percent in 2023. These fluctuations prevent investors from making new investments. These economic problems also affect the sales and profitability of the software sector, including companies like Microsoft. Last year, the companies raised the employees’ salaries, which also created a big difference between revenue generation and business expenditure. This would ultimately impact the consumers’ purchasing patterns and the companies’ sales would automatically decrease.
 
When compared to India, its economy is rising despite facing all the economic ups and downs. Companies in India are spending so much money on cybersecurity. That’s why the Indian software market has a great scope for software companies like Microsoft. In the United States, the software sector is worth 313.70 billion dollars which is going to be 733 billion dollars by the end of 2028. It is important for giant software companies to target the Indian market in order to capture more customers because it is a huge market. At this time, IT and business services have been dominating in the United States market.
 
 
Social Factors
 
The novel virus Covid-19 has greatly impacted companies and businesses in the United States. Many businesses have suffered great losses and some companies have been going out of business completely. This virus will also impact the long-term working and profitability of the company. There are no signs of improvement right now. However, this upheaval has given an enormous boost to digital businesses. Now, most people are working from home. It creates a big business opportunity for software and tech companies to innovate new services that can cater to the demands of remote workers. This will definitely create a positive impact on software companies and tech businesses.
   
 
On the other hand, several Indian businesses are adopting a digitalization culture. This will offer an awesome opportunity to software companies to expand their footprint. Plus, the growing consumer demand is another amazing opportunity for companies like Microsoft. People in India are becoming tech-savvy and it has the youngest population right now. Software and tech companies should exploit this break to grow further.
 
 
Technological Factors | PESTLE Analysis of Microsoft
 
The United States government encourages innovation and technological advancements in the software and tech sector. In 2021, the government invested over 157 billion dollars in research and development in this sector. Many companies have gained immense success using AI (Artificial Intelligence) for different operations. Moreover, UI/UX has also gained colossal popularity because it has improved the overall user experience and interface quality.
 
Serverless computing is also gaining popularity these days. Cybersecurity is another famous technology to prevent the danger of cyber threats. This is a big opportunity for cybersecurity companies to develop and introduce new cybersecurity tools. Data management has become easier with the emergence of innovative cloud computing that is used to store data. Then again, the other emerging technologies such as IoT, Automation, edge computing, blockchain, Robotic Process Automation, and 5G will create so many development opportunities in the software and tech sector.
 
 
Legal Factors | PESTLE Analysis of Microsoft
 
The intellectual property regulations encourage companies to invent new technologies and register their patents for twenty years. The privacy act of 1974 also allows businesses to use, store, and collect data from tech and software companies. So many other laws govern the industry, such as General Data Protection Regulation. These legal norms are made for the protection of the companies and the users.
   
 
Further, India is one of the largest markets for the software sector. But, their laws for the software industry vary when compared to the United States laws and regulations for the software sector. That’s why it is hard for international companies to get contracts in India. These factors can slow down the revenue stream and overall profitability of software companies like Microsoft.
 
 
Environmental Factors
 
Both the United States and India are taking initiatives to reduce their carbon footprint, air pollution, land pollution, and water pollution. According to the US government, their carbon emission footprint will decrease to 50 percent by the end of 2030. Also, India is also planning to cut its carbon footprint by 2070. The software and tech sector has a huge impact on the environment. For this reason, companies are manufacturing products that pose no harm to nature. There is a big opportunity for the software industry to enhance its profitability by taking environmental concerns into consideration.
 
 
Conclusion
 
From this PESTLE Analysis of Microsoft, it is clear from this analysis that political, economic, social, and technological factors are extremely favorable for the software sector. But, legal and environmental factors can hurt the industry’s business operations. It is essential for software companies like Microsoft to innovate new services and products in order to take a competitive edge.
 
 
 
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  UnitedHealth Group PESTLE  
 
 
BusinessHealthManagementMarketingSWOT & PESTLE Writing
 
PESTEL Analysis of UnitedHealth Group
 
 by Shamsul   
 
 
 
 
 
 
PESTEL Analysis of UnitedHealth Group
  
This PESTEL analysis of UnitedHealth Group will largely highlight the macro business environment of the company. PESTEL is the short form of political, economic, social, technological, environmental, and legal factors. They have a huge impact on the business performance of UnitedHealth Group. A slight change in these factors can directly impact the company’s business operations and processes. They can also hurt the entire healthcare and insurance sector in the world.
 
PESTEL is a great tool for analyzing all the aspects of a business. All these factors are external factors and help to find the external business environment of the company. Let’s have a deep look at it!
 
 
Political Factors
 
Without any doubt, political factors greatly impact how any organization does business. The overall profitability of UnitedHealth Group is dependent on this one factor. Being an international company, they face different challenges in different countries. In other words, the company depends on the political system and environment of the country in which it operates. A company like UnitedHealth Group can’t operate smoothly in a saturated political environment. It is necessary for UnitedHealth Group to closely analyze the following political factors before venturing into a specific market.
 
     
  • Don’t forget to analyze the political system and its stability in the country, plus, the importance of insurance and healthcare plans in the region.
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  • Level of exploitation in the country, especially in the healthcare industry.
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  • The intervention of healthcare institutions and bureaucracy.
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  • Legal structure or procedure for contract implementation.
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  • IPP (Intellectual Property Protection).
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  • Tariffs and trade regulations in the healthcare sector.
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  • Preferred trading associates.
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  • Anti-trust laws.
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  • Pricing strategies and regulations.
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  • Incentives and tax rates.
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  • Overtime and minimum wage policies.
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  • Work week limitations.
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  • Employee benefits.
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  • Safety regulations in the health and insurance sector.
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  • Labeling and other related complexities.
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Economic Factors
 
So many economic factors directly impact the business of companies like UnitedHealth Group. They are exchange rate, saving rate, foreign exchange rate, and inflation rate. They are responsible for the smooth working of the company. Competition standards are the micro business factors that influence the competitive advantage in the market. In order to predict economic trends, UnitedHealth Group should understand several factors such as growth rate, customer spending power, and inflation rate. We have summed up some economic points below:
   
 
     
  • What kind of economic system the country follows? Don’t forget to analyze its stability as well.
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  • Intervention from the government institutions in the healthcare and insurance sector.
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  • How effective are financial markets in the country? Should they raise capital in the market or not?
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  • What is the quality of infrastructure in the healthcare and insurance sector?
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  • What are the opportunities for host companies in the country’s economy?
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  • How skilled is the workforce in the industry?
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  • What is the literacy rate in the country?
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  • What are the labor costs and overall productivity level?
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  • Recession
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  • Recovery rate
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  • Prosperity rate
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  • Interest rates
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  • Economic growth rate
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  • Inflation
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  • Unemployment trends
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  • Flexible income
    •  
 
 
Social Factors
 
Population and culture are two crucial aspects of social factors. Society plays a huge role in making or breaking a company’s success. Customer preferences and shared beliefs are also very important for the company’s overall functioning in the competitive market. UnitedHealth Group should conduct surveys to understand the customers’ needs and pain points. As a result, they can make an effective marketing strategy to engage with the audience. The organization should incorporate the following social factors into this PESTEL analysis:
 
     
  • Skill level of the people and demographics.
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  • Power and class structure in society.
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  • Education standard in the country and education level.
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  • Gender roles.
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  • Social conventions.
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  • Spirit for startups and individual businesses.
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  • Attitude towards health and environment.
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  • Leisure preferences.
    •  
 
 
Technological Factors
 
Today, the thing that is disrupting businesses is technology. We want to give an example from the transportation industry. Lyft and Uber have completely transformed the concept of taxi service. Now, people prefer these innovative services over traditional taxis. Moreover, automotive companies are manufacturing electric vehicles and Tesla is one of the biggest examples. Being a healthcare company, it is imperative to constantly innovate by investing in the latest technologies and infrastructures. This is the only way to make your business relevant and profitable. Don’t forget to take the following technological factors into your consideration:
 
     
  • Technological advancements have been made in the health and insurance sector in recent years.
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  • Rate of technological advancement in the country, more specifically in the industry.
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  • Cost structure in the industry related to technology.
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  • Impact of technology on the supply chain and production units.
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  • Diffusion of technological advancements.
    •  
 
 
Environmental Factors
 
Every market has its own standards and trading norms. The case goes the same for the environmental standards. It is an important factor that can impact a company’s business operations. Before penetrating any country, UnitedHealth Group should understand its liability and environmental laws. The environmental laws in North America are quite different than European countries. We have summarized some key environmental factors that you should evaluate before entering new regions or countries:
 
     
  • Climate change.
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  • Changing weather.
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  • Recycling and waste management.
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  • Environment pollution.
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  • Approach towards green products and services.
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  • Efforts for manufacturing renewable energy sources.
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  • Air pollution.
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  • Water pollution.
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  • Rare species.
    •  
 
 
Legal Factors
 
In several countries, the legal system or framework is not so strong. Due to this reason, they fail to protect the IPRs (Intellectual Property Rights) of the companies. A company like UnitedHealth Group should carefully investigate these factors before making a big move. The company’s overall competitive advantage and profitability depend on this factor. The following are some important legal factors to consider before starting your business in a new market:
   
 
     
  • Anti-trust laws in the health and insurance sector.
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  • Discrimination laws (from the beginning of the career, promotion, and retirement).
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  • Intellectual property laws.
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  • Copyright.
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  • Patents.
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  • Employment laws.
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  • E-commerce and consumer protection.
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  • Customer service.
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  • Safety laws.
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  • Health laws.
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  • Data breaches.
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  • Data protection laws.
    •  
 
 
 
We hope this PESTEL Analysis of UnitedHealth will serve you for the study purpose. Keep reading this post to better understand the UnitedHealth Group business.
 
 
SWOT Analysis of UnitedHealthcare
   
 
 
 
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  Saudi Aramco PESTEL  
 
 
BusinessManagementMarketingSWOT & PESTLE Writing
 
PESTEL Analysis of Saudi Aramco
 
 by Shamsul   
 
 
 
 
 
 
PESTEL Analysis of Saudi Aramco
  
For a company like Saudi Aramco, making strategic decisions is not easy. PESTEL Analysis of Saudi Aramco can make this process easier because it helps to figure out all the perspectives of the company. The word PESTEL itself stands for Political, Economic, Social, Technological, Environmental, and Legal factors. This method also helps to unearth the other important aspects of the company that can impact the business of Saudi Aramco at a large scale.
 
In this article, we will conduct a comprehensive PESTEL analysis of Saudi Aramco. It is important to remember that this PESTEL analysis is only market specific. It mainly covers the external business factors of the company. These factors change with the passage of time when the market condition changes. So, let’s get started!
  
Political Factors | PESTEL Analysis of Saudi Aramco
 
 
1- Stability of the Government
 
 
     
  • A company’s growth depends on the stability of its country’s government. It is necessary for its constant development and improvement.
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  • This stability also enables the company to expand its business globally.
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  • It also allows the company to establish strong trade relations with other international companies. In this way, Saudi Aramco can manage its affiliations and offshore businesses effortlessly.
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  • On the basis of this stability, the government and the company can attract foreign investors and stakeholders. This is very helpful for the growth and development of the company’s infrastructure. Plus, it also boosts the international image of Saudi Aramco.
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  • Government stability can also bring so many growth resources for the oil and gas sector which ultimately helps Saudi Aramco. In this way, the company can maintain its competitiveness and performance in the market.
    •  
 
 
2- Tax Policies
 
     
  • When the government offers favors in tax, companies like Saudi Aramco get so many expanding opportunities.
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  • Tax relaxation from the government also enables the company to maintain its competitive position in the market by making its business operations cost-effective.
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  • The above-mentioned factor will enable Saudi Aramco to facilitate its consumers by offering affordable products and services.
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  • Tax policies that support companies are one of the biggest sources of growth and development in the business of Saudi Aramco. They can add economic value to their business and the country’s economy.
    •  
 
   
 
3- Competition Limitations
 
 
     
  • The oil and gas sector is very competitive in Saudi due to the presence of Shell, BP and ExxonMobil. 
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  •  
  • It is imperative for political as well as government institutions to monitor market conditions in order to maintain healthy competition.
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  • Make sure that every company is running its business fairly and transparently. Make sure that they are using the right business strategies and campaigns.
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  • This monitoring will help the government to regulate and restrict businesses in terms of imports and exports. It is necessary for the growth of local businesses.
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  • By regulating competition, the government can offer some kind of protection to stakeholders and investors.
    •  
 
4- Advantage of Trade Treaties
 
 
     
  • Saudi Aramco can exploit trade treaties and blocs in order to run and grow its business smoothly.
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  • Trade treaties can support Saudi Aramco in terms of lowering production and refining costs. It is also a big source of exchanging talented workers.
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  • With trade blocs, companies like Saudi Aramco can increase their sales by expanding their offerings in different locations of the world. As a result, more and more people can utilize their products.
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  • Industrial ties can be created and maintained under the trade treaties across boundaries. This will result in the exchange of technologies and skilled workers.
    •  
 
 
Economic Factors | PESTEL Analysis of Saudi Aramco
 
1- Inflation
 
     
  • Inflation rate is an important factor in any economy. In the case of Saudi Aramco, a moderate inflation is required so that it can flourish.
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  • A slight change in the inflation rate can also support the company’s business and grow its business positively because it increases customers’ confidence.
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  • This factor will give a much needed boost to the economy of the country and its disposable income will rise.
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  • However, the higher inflation rate can also hurt the business growth of the company because it decreases the disposable income which leads to lower spending.
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  • Similarly, the lower inflation rate causes an increase in disposable income. It increases competition and also affects the pricing strategies of companies like Saudi Aramco. It gives a huge advantage to consumers.
    •  
 
 
2- Interest Rate
 
     
  • A slight (or moderate) change in the interest rate can encourage Saudi Aramco to take loans from financial institutions like banks.
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  • These loans are used for development and growth purposes.
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  • These loans can also be used to improve the infrastructure of the company.
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  • It also encourages small businesses and individuals to take loans.
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  • A moderate interest rate is really useful for businesses and companies to grow at a large scale.
    •  
 
 
3- Customer Spending Behaviors
 
     
  • Being an oil and gas company, Saudi Aramco highly depends on consumer spending behaviors for its sales and revenues.
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  • If the consumer spending trend is higher, it will increase the sales and consumption of Saudi Aramco’s products.
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  • It also indicates the strong purchasing power of the people. This plays a big role in the strength of the economy.
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  • The higher purchasing power also leads to a better quality of the products and marketing campaigns.
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  • This factor is mostly influenced by several economic factors such as unemployment trends, inflation and interest rate.
    •  
 
 
4- Unemployment Issues
 
     
  • The lower disposable income is caused by higher unemployment rate. This could impact the business performance of Saudi Aramco.
    •  
  • Higher unemployment rate can also create a big gap in knowledge and labor skills. It is not good for the quality and quantity of the products. It also increases the cost of running business and increases the price of products.
    •  
 
 
Social Factors | PESTEL Analysis of Saudi Aramco
 
 
1- Demographics
 
     
  • Gen Z is one of the biggest strengths of Saudi Aramco. It helps the company to strengthen its customer base. This kind of population is responsible for purchasing and consuming its products.
    •  
  • A younger population can also provide a much needed boost to the company based on their knowledge and skill level. The company can hire skilled and educated people that can play their roles in enhancing the company’s position. It also provides an excellent opportunity for Saudi Aramco to boost its talent pool.
    •  
  • Lower and middle-class customers are incredibly beneficial for the company in terms of its sales and profitability.
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  • The younger population can act as brand ambassador for the company. When compared to other customers, they are one of the loyal customer bases.
    •  
 
   
 
2- Literacy Rate
 
 
     
  • The higher literacy rate is highly beneficial for the company in many ways.
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  • The literacy rate indicates that there is no shortage of educated and skilled people in the country. So, the company can find the best people that contribute their roles to its success.
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  • The higher literacy rate also indicates that people are very much aware of the purchasing and consumption trends.
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  • This knowledge encourages them to pay attention to positive consumption. It will give a huge competitive advantage to Saudi Aramco.
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  • They will prefer quality over quantity if they are enlightened. It will encourage them to become your loyal customer.
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  • As a result, the company will only focus on its quality.
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3- Population and Family Structure
 
     
  • The family structure and population size will help the company to determine the nature and frequency of purchase completed.
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  • By identifying this factor, the company can also find out the actual consumption pattern of the people.
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  • Based on the above factors, companies like Saudi Aramco can easily make its targeting policies and strategies.
    •  
  • The company can easily implement different strategies to figure out what works or what’s not.
    •  
 
4- Wellness Trends
 
     
  • A large number of people are adopting wellness trends because they are very health-conscious.
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  • Both health and wellness factors have changed consumers’ purchasing patterns and consumption decisions.
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  • The company has introduced new health aspects in its campaigns and marketing strategies.
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  • Saudi Aramco has collaborated with several health companies in order to promote mental and physical wellbeing.
    •  
 
 
Technological Factors | PESTEL Analysis of Saudi Aramco
 
 
1- Technological Developments
 
     
  • In terms of technology, the company’s overall structure is very strong.
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  • They are making technological developments and advancements on a regular basis.
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  • For companies like Saudi Aramco, it is important to have constant up-gradations and innovations in their business in order to make their operations efficient and effective.
    •  
  • The company can take a progressive lead by making technological advancements.
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  • Based on innovation, the company can easily attract major foreign investors and businessmen for further growth and development.
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  • This is the best opportunity for Saudi Aramco to gain a competitive advantage by making technological advancements. They should explore the latest technologies that can improve their business operation and cycle.
    •  
 
2- Penetration of Internet
 
     
  • In the country, internet penetration is very strong and consumer markets are enjoying a high rate of it.
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  • The internet is mostly used for personal and social purposes.
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  • They use the internet on their smartphones, laptops, and computers.
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  • This type of higher internet penetration represents the higher literacy rate in the country which is directly or indirectly beneficial for the company.
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  • The company is also exploiting the internet to reach customers, get feedback, and interact with customers.
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  • This higher internet penetration rate has allowed Saudi Aramco to improve its product quality and efficiency.
    •  
 
3- Social Media Trends and Its Usage
 
     
  • The population mostly consisted of youngsters in the country. However, the ratio of middle aged people is also growing.
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  • The youngsters are very well-connected with social media. This is the major source of connectivity in the country.
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  • Saudi Aramco is also using social media in order to collect consumer data and information in order to make marketing strategies.
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  • They also interact with the consumers, gather feedback, and discuss important topics through their social media pages.
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  • Saudi Aramco is using social media for different purposes such as recruitment.
    •  
 
4- Investment in Research and Development
 
     
  • Both local and international companies are investing in research and development. This makes the country highly innovative and ahead of other countries.
    •  
  • This investment allows the country to improve its industries and companies like Saudi Aramco. This helps them to streamline their business processes and operations.
    •  
  • This has enabled the company to increase its innovation rate in the industry.
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  • Companies like Saudi Aramco can utilize the latest technological advancements to grow their business globally.
    •  
  • It also enables the company to maintain its competitive advantage in the competitive market.
    •  
 
 
 
 
Environmental Factors | PESTEL Analysis of Saudi Aramco
 
 
1- Recycling
 
     
  • The growing environmental concerns are very healthy for the company and for the country as well.
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  • These days, customers are more enlightened than before about the environment.
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  • Consumers are likely to buy recycled products.
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  • The company is also reducing its carbon footprint as well as pollution.
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  • Saudi Aramco is also trying to develop greener products for eco-friendly consumers.
    •  
 
2- Waste Management
 
     
  • The country has strict rules and regulations for waste control and management.
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  • The company has collaborated with waste management companies to maintain waste management properly.
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  • Saudi Aramco has successfully developed ways to control and manage waste. Their approach to becoming a green company is quite commendable.
    •  
 
3- Green Approach
 
     
  • The growing awareness of sustainability has given a perfect opportunity to Saudi Aramco to adopt a green lifestyle.
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  • Customers in the country or across all nations prefer to purchase green products. They are adding it to their marketing strategies and production methods.
    •  
  • More and more companies are following this trend and trying to make green products and services for users.
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  • Saudi Aramco participates in all environmental-friendly CSR campaigns and activities.
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  • The company has launched a complete range of green products. It shows that the company is playing a significant role in saving nature.
    •  
  • They also collaborate with distributors and suppliers who strictly follow environmental laws.
    •  
 
4- Investment in Renewable Energy Sources
 
     
  • Saudi Aramco is trying hard to use renewable energies for business processes and operations.
    •  
  • The company is taking this initiative to decrease its carbon footprint.
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  • They are investing a considerable sum of money in solar energy and hydroplanes.
    •  
 
 
Legal Factors | PESTEL Analysis of Saudi Aramco
 
   
 
1- Health and Safety Laws
 
     
  • The company is very cautious about its employees’ or workers’ health and safety.
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  • Health and safety institutions regularly monitor the company to determine whether they implement these laws.
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  • It involves several things, such as the mental and physical wellbeing of the employees.
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  • Saudi Aramco is also working very hard to improve health and safety measures at the workplace.
    •  
 
2- Employment Laws
 
     
  • The company is highly concerned about employment laws such as legal contracts.
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  • The official bodies or authorities wholly authorize these contracts.
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  • These contracts are made to avoid the risk of misunderstanding.
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  • The company informs the candidates about the employment laws at the time of hiring.
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  • Saudi Aramco also conducts workshops and training sessions in order to train and engage new employees.
    •  
 
3- Anti-Discrimination Laws
 
     
  • The oil and gas company in the country is based on a diverse population.
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  • The number of immigrants is growing daily in the country because of the employment opportunities.
    •  
  • The company also likes diversity in its operations and workforce.
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  • In all its business processes and operations, the company follows all the anti-discrimination laws.
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  • The company offers employees equal recruitment and promotional opportunities without discrimination.
    •  
  • It has helped Saudi Aramco to develop a toxic-free and constructive work environment.
    •  
 
 
We hope this PESTEL Analysis of Saudi Aramco will serve you for the study purpose. Keep reading this post also for better understanding of the Saudi Aramco Company.
 
 
 
SWOT Analysis of Saudi Aramco – A Leading Oil and Gas Company in the World
 
 
 
Need Help or Advice in Content Management:
 
Would you like more advice? Do you have good practices to share? Express yourself in the comments.
 
Also, if you want help writing content to drive more traffic and boost conversions, please get in touch through Contact our team.
   
 
Do you want help writing quality content, driving traffic to your website, and boosting conversions? You can contact me through my Freelancer.com profile also. I always prefer to work through Wiselancer for smooth functioning. Here you pay safely and securely. 
 
 
 
 
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  Adventa PESTLE Analysis  
 
 
BusinessManagementMarketingSWOT & PESTLE Writing
 
PESTLE Analysis of Adventa
 
 by Shamsul   
 
 
 
 
 
 
PESTLE Analysis of Adventa
  
Adventa is an investment holding company in Malaysia. The company is known for its medical equipment and supplies services. The firm is headquartered in Petaling Jaya, Selangor, Malaysia. It was started in 2004, and now it has become a leading brand in Malaysia. The reason behind conducting the PESTLE analysis of Adventa is to cover its macro business factors that affect the medical equipment and supplies industry. PESTLE represents political, economic, social, technological, legal, and environmental factors.
 
PESTLE is essential to analyze the ongoing business environment and its impact on businesses like Adventa. Managers at Adventa can use this strategic management tool to make the right decisions. The PESTLE factors have a huge impact on the company that it operates in. The business environment in which Adventa operates is highly dynamic. Here’s the complete PESTLE analysis of Adventa:
  
Political Factors | PESTLE Analysis of Adventa
 
Political factors in a country can disturb its business environment and economy. Being a healthcare company, the company is highly exposed to political factors such as government policies, political parties, and political stability. The intervention of government and political parties in the company can destroy its economic environment and long-term profitability. Keep scrolling to read some critical political factors that can impact Adventa:
 
1. Malaysia’s new government is putting so much pressure on addressing government policies for different sectors, including the medical equipment and supplies industry. This is necessary to encourage investors to invest in new sectors and projects without fear. Companies are accepting these new policies to make the business environment safer and more productive. This kind of strategy from the government will support Adventa.
 
2. The political stability in Malaysia is directly linked to the strength of Adventa. Right now, the company operates in various countries, so it is exposed to the policies and regulations of these countries. Each country has different requirements in the medical and supplies industry. The rise in populism will bring instability to the country. This will impact the market position of Adventa.
 
 
3. The local government in Malaysia is powerful. For better local performance, the company should collaborate with the local government. So, Adventa can’t ignore the importance of local government. The local government is responsible for making critical decisions and roles for companies like Adventa. We recommend that the company closely work with the local authorities for smooth and continuous work.
 
4. The overall governance system of Malaysia is very robust. They are contributing to strengthening the business system in the country. This kind of solid system will not bring any negative change. This type of system is beneficial for companies like Adventa. The company should monitor government policies and decisions to predict trends.
 
5. Non-government organizations, pressure groups, political activists, and other stakeholders can play a significant role in policymaking. This is imperative for the organization to closely work with these stakeholders in order to achieve its business goals. By working with these stakeholders, Adventa can achieve its community as well as corporate purposes.
 
6. The Malaysian government has no threat from the military. This brings peace and prosperity to the country and its business environment. This will encourage investors to invest in the medical equipment and supplies industry. The healthcare sector of Malaysia has no imminent threats from the military and terrorists. But, the company has no experience running the business in difficult situations.
 
 
Economic Factors | PESTLE Analysis of Adventa
 
The exchange rate, taxation rate, consumer disposable income, interest rate, the economic condition of Malaysia, and labor market condition are some important economic factors in this PESTLE analysis of Adventa. We have highlighted some important economic factors that can affect Adventa in the future:
 
   
 
1. The presence of infrastructure in Malaysia is facilitating several businesses in the healthcare sector. The Malaysian government has revised its investment policy in the business sector to develop innovative infrastructure that can boost small and large industries. The company can use this infrastructure to drive its sales and growth.
 
2. Since 2018, the inflation rate in the country has increased. This is because of the liquidity in the market. This economic factor can hurt the business growth of Adventa in the long run.
 
3. The company can venture into other business segments because of the increasing liberalization trend. This will help the firm generate more revenue from different business areas.
 
4. The stability in consumer disposable income is a good sign for the company. But, it is creating pressure on Adventa due to the increasing inequality in pay. This will negatively affect the company, consumer sentiment, and customers’ spending behavior.
 
5. To expand the business globally, the firm should analyze Malaysia’s current economic condition and scenario. The company can target emerging markets to increase its market share if it is good.
 
6. At this moment, Malaysia has no shortage of skilled and talented workforce. The increasing trend of getting a degree in health and medicine is a good sign of growth. The company can take advantage of this factor by targeting a skilled workforce. They can help the organization target global markets.
 
 
Social Factors | PESTLE Analysis of Adventa
 
Every country has a different mechanism of doing business. In Malaysia, they follow all the rules of the World Trade Organization and the European Union. However, people’s impact is huge on a company’s method. Demographics, health and safety norms, entrepreneurial spirit, traditions, and societal norms are some important social factors. Here, we have mentioned some important social factors that impact the business of Adventa:
 
 
1. People support the brand because of its products and services in the healthcare sector. It means the majority of the demographic is on its side. However, Malaysia is a growing company with a young leadership. So, it is a big opportunity for the company to target different demographic segments to earn more revenue.
 
2. The overall literacy rate in Malaysia is high. They have no scarcity of educated people. The company can leverage it to hire educated staff that can work to grow the company’s revenue.
 
3.  If you compare the brand’s home market with Malaysia, you will see a huge difference. This is because of cultural and societal standards. The company needs to build a local team of employees in order to keep its supply chain network sound. In this way, Adventa can serve better.
   
 
4. These days, Malaysian people are more aware of the products they are using. They have access to information and essential services. Due to this reason, the Malaysian government is investing in public products and services.
 
5. The country’s consumers are prioritizing new and innovative products. They do not spend money on traditional and old products. The brand can use this to launch customer-oriented products to enhance the customer experience.
 
6. The rising migration rate is affecting the company. Educated people are getting opportunities from other countries, which results in a higher turnover rate. It is an alarming indicator of the Malaysian economy.
 
 
Technological Factors | PESTLE Analysis of Adventa
 
These days, the use of technology is disrupting every sector, including the healthcare industry. Technology can be used in so many different ways and for various purposes. Innovation in products, innovation in the supply chain, the internet, and the use of technology in customer service are some of the most crucial technological factors. Keep reading to learn some essential technical factors that impact Adventa:
 
 
1. Getting a business license in Malaysia is not difficult. They welcome new businesses and companies. However, the country’s culture of technology transfer is not so good. Due to this reason, companies do not collaborate with each other.
 
2. The competitors of Adventa are using the latest technology to innovate products and supply chains. These companies could be a threat to Adventa. But, the company can find out its strategies and plans using technology.
 
3. With the help of new technologies, companies like Adventa can lower production costs. As a result, they can invest money into new products. They can also restructure their supply chain network by exploiting the latest technologies. In this way, the company can fulfill the needs of customers and stakeholders.
 
4. The life cycle of a product has decreased due to technology. These days, companies can make new products quickly, which has reduced the demand for new products. This factor is putting immense pressure on companies like Adventa to stay up-to-date. It is hard for the company to keep its stakeholders happy by promoting a variety of new products.
 
5. Research and development are essential for constant growth. The company should invest in research and development to manufacture and design new products. Its competitors are investing so many resources into product development.
   
 
6. The Malaysian government fully protects intellectual property rights. They have a strong mechanism for protecting data, copyrights, patents, and IPRs.
 
 
Legal Factors | PESTLE Analysis of Adventa
 
Legal factors can ruin the whole business of a company like Adventa. These days, companies don’t have time for legal proceedings and actions. It is necessary for the company to know all the business laws and rules before venturing into any country. Copyrights laws, intellectual property rights, discrimination laws, data protection laws, and more are some essential legal factors that Adventa should consider. Here is the list of important legal factors:
 
1. Malaysia has a strong mechanism for protecting IPR rights. They provide legal protection of copyrights, patents, and intellectual property.
 
2. The Malaysian business sector follows the trade rules of WTO and EU. They strictly follow these rules to run the business smoothly.
 
3. The judicial system in Malaysia is sound, but their courts take so much to close a case. It is challenging for organizations like Adventa to face a lawsuit. To avoid the risk of lawsuits, the company should follow all the fundamental laws and rules.
 
4. The company is highly concerned about the environment. So, it follows all the environmental laws and guides. This will create so many great opportunities for Adventa in the future.
 
5. The company should analyze the country’s employment laws as an international organization. This is necessary for smooth and sound working.
 
6. The health and safety standards in Malaysia are very high. The firm should try to read all the employment laws in order to avoid the risk of inconvenience.
 
 
Environmental Factors | PESTLE Analysis of Adventa
 
Nowadays, sustainability and environmental norms have become very important for people. They are doing everything to make this world a good place to live. The role of environmental groups and activists is huge in this matter. They can affect the company’s business performance if it doesn’t follow environmental laws and regulations. Climate change, carbon footprint, water pollution, sustainability, waste management, and land pollution are some important factors to consider for the company. The following list highlights key environmental factors:
 
 
1.  Increasing customer activism is a big concern for the company. Customers are more aware of the environment and sustainability. It is hard for the company to keep them happy by adopting environment-friendly methods for manufacturing products.
   
 
2. The drastic change in weather is also a significant problem for the company. They are facing issues in the supply chain due to the change in temperature. The company needs to make its supply chain network more flexible using the latest technologies.
 
3. Waste management is another sign of worry for Adventa. The Malaysian government is imposing strict standards for waste management.
 
4. The recycling culture is getting more and more popular daily. By exploiting recycling techniques, the company can decrease its manufacturing costs.
 
5. The Malaysian government and Adventa fully follow the Paris Climate Agreement. If they don’t follow these rules, they can face strict regulations and scrutiny from environmental agencies. This will create a huge pressure on its working.
 
6. The increasing manufacturing cost of products is also negatively impacting the company’s economy. This is because of the strict scrutiny from the environmental agencies.
 
 
 
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  Petronas-Chemicals PESTLE  
 
 
BusinessManagementMarketingSWOT & PESTLE Writing
 
PESTLE Analysis of Petronas Chemicals (Malaysia)
 
 by Shamsul   
 
 
 
 
 
 
PESTLE Analysis of Petronas Chemicals (Malaysia)
 
 
 
Petronas Chemicals is one of the leading producers of integrated chemicals in Malaysia. The reason for conducting this PESTLE analysis of Petronas Chemicals is to identify all the macro business factors of the company that impact the overall manufacturing of chemicals in Malaysia. PESTLE is the acronym for political, economic, social, technological, legal, and environmental factors. It is also important to mention that PCGB (Petronas Chemicals Group Berhad) is listed on Kuala Lumpur stock exchange. This critical analysis of the company will give a clear idea to its managers about its working and performance.
 
Petronas Chemicals works in a highly competitive business environment. So, the influence of PESTLE factors is huge on its business performance at both local and international level. Today, we are going to discover these factors to understand the challenges that Petronas Chemicals can face. So, let’s get started!
  
Political Factors | PESTLE Analysis of Petronas Chemicals
 
A company’s success and failure is directly linked to one factor: the political factor. The level of political maturity is high in Malaysia as compared to other Southeast Asian countries. Government policies, governance system, and local government are some of the most crucial political factors in PESTLE that can impact the business of Petronas Chemicals.
 
1.            The political stability in the Asian region is not so good. Being a global brand, Petronas Chemicals is highly exposed to governmental rules and regulations. Each country or region has different laws for chemical manufacturing companies. However, the political system in Malaysia is very sound. So, it is a perfect country for doing business. But, the increasing trend of populism can lead to political instability in the country.
 
2.            The influence of non-government organizations, pressure groups, and other stakeholders is huge on the company. They can play a big role in the working of Petronas Chemicals. To avoid the risk of any conflict with these groups, the company should collaborate with them. They can help to achieve the company’s goals and targets.
 
 
3.            In Malaysia, the importance of local administration or government is huge. They can play a critical role in the performance of the company. When making policies, the local government can help a lot. It is imperative for Petronas Chemicals to work closely with the local government and stakeholders to achieve its goals.
 
4.            There is no risk of armed conflict in Malaysia. The military supports businesses and protects them as well. In short, the Malaysian government and the military are on the same page. But, in difficult situations, the company’s working could be impacted.
 
5.            The current governance system in Malaysia is fulfilling its duties by supporting the chemical industry. Their governance system is very robust and it is a good indicator for the sound working of Petronas Chemicals. It is necessary for the company to keep a close on the policies and strategies of the governance system.
 
6.            The current Malaysian government aims to improve the chemical industry’s infrastructure. They are providing resources to companies like Petronas Chemicals. They are taking good initiatives to enhance the company’s growth in other regions of the world.
 
 
 
 
Economic Factors | PESTLE Analysis of Petronas Chemicals
 
The inflation rate, exchange rate, the economic condition of the country, taxation rate, labor market condition, and consumer disposable income are the important economic factors. These factors can make or break the business performance of a company like Petronas Chemicals. Below, we have listed some crucial economic factors that Petronas Chemicals can face.
   
 
1.            The impact of the Malaysian economic condition on Petronas Chemicals is big. If the economic condition of Malaysia is good, the company will perform well, and vice versa. The recent growth of the brand is because of the strong economic condition of the country. For global expansion, the company should analyze the country’s economic condition before venturing into it.
 
2.            When it comes to the skill level of employees, Malaysia has a strong position. They have enough manpower and a skilled workforce required to run a company or business. The company can take advantage of this by hiring talented and competent staff. As a result, they can improve their manufacturing process and the overall quality of the products.
 
3.            The rising trend of liberalization in the Malaysian trade policy can help the brand to invest in other regions and countries. In this way, the company can earn more.
 
 
4.            The volatility in the exchange rate is a sign of threat for the company. This can impact the revenue and profitability of Petronas Chemicals. The company should analyze the exchange rate closely in order to make the right decisions accordingly.
 
5.            The current economic recession and inflation have destroyed the spending power of consumers. These factors are creating significant pressure on the customers and influencing their buying decisions. This is because of the growing inequality in Malaysia. They can also discourage them from buying expensive products.
 
6.            According to economic experts, the economic condition of Malaysia will become more robust in the next 5-10 years. This will give a huge boost to the business performance of Petronas Chemicals.
 
 
Social Factors | PESTLE Analysis of Petronas Chemicals
 
The business performance and policy of a company is highly based on the culture of the country in which it operates. By understanding the society and culture of a country, a company like Petronas Chemicals can perform well. The most important social factors are gender roles, societal norms, entrepreneurial spirit, leisure interest, health & safety attitudes, and traditions.
 
1.            Both traditional and modern media are so popular in Malaysia. They can use the brand to make their public image better using media outlets. The growing media industry can play a critical role in the success of Petronas Chemicals. The company can take advantage of media to enhance its brand image.
 
2.            When it comes to migration rate, it is huge in Malaysia and negatively impacts the growth of its economy. This leads to a shortage of skilled workforce in the country. As a result, the company has to hire foreigners and international managers to run the business smoothly.
 
3.            If we talk about societal norms, the country has different norms than the company. It is necessary for the brand to collaborate with the local staff and teams in order to build a powerful culture in the company. In this way, they can fulfill the demands of the customers easily.
   
 
4. Most people in Malaysia are fans of Petronas Chemicals because of its high quality and affordable services. The overall demographics of Malaysia are very young and growing. The company can take advantage of this segment to cater to the needs of other customers.
 
5.            In Malaysia, people love buying products that ease their lives. It means they prefer quality and comfort over quantity. Petronas Chemicals should invest in other areas and segments in order to build customer-oriented products.
 
6.            The overall literacy rate in Malaysia is high. It shows that they have no shortage of skilled and educated people. So many people in Malaysia want to be a part of the chemical sector. The brand can leverage it to grow its business in Malaysia and other parts of the world.
 
 
Technological Factors | PESTLE Analysis of Petronas Chemicals
 
The impact of technology on any business is big. It is disrupting every business. The use of technology for companies like Petronas Chemicals is a must. They can enhance their production and other factors with the help of technology. It is necessary for the company to take advantage of the latest technology to streamline its supply chain and logistics network. They can also strengthen their brand image and customer service using AI and other technologies. The following are some of the most crucial technological factors of Petronas Chemicals that can impact its business in the future.
 
1. Regarding the basic materials sector, the latest technology has affected it the most. It is bringing development in this sector. Petronas Chemicals can exploit the latest technology to innovate its product line. This will help the brand to stay ahead of the competition.
 
2.            Getting a license is easy in Malaysia. The company can venture into areas and segments by getting a license. Moreover, they can also transfer technology to other areas to build a strong culture in the company. This can aid the company to come harder in the competition.
 
 
3.            It is imperative for Petronas Chemicals to incorporate the latest technology in the supply chain and logistics network. The company can get the latest information quickly and easily with the help of technology. It can strengthen their supply chain and will boost the confidence of stakeholders.
 
4.            The role of technology in the empowerment of the supply chain is undeniable. Technology allows the company to produce innovative products. But, it creates a big pressure on Petronas Chemicals to keep its suppliers happy. They can produce a variety of great products without any hassle.
 
5.            The use of technology by competitors could be a threat to the brand. However, it also allows the company to identify the next move of its competitors. This factor can transform the whole business model of companies like Petronas Chemicals.
 
6.            If we talk about the maturity of the technology in the chemical sector, it will take so much time. Many companies in this sector are still not using the latest technologies. They should exploit new technologies to become a market leader in Malaysia.
   
 
 
Legal Factors | PESTLE Analysis of Petronas Chemicals
 
In PESTLE analysis, legal factors hold a special status. These factors can play a big part in the development of the company. Data protection laws, copyrights laws, discrimination laws, IPR, and the system of justice are some important legal factors that Petronas Chemicals should consider very carefully. We have listed some critical legal factors below that can impact the brand:
 
1.            The company should focus on health and safety standards. They should know how to improve them. As a result, they can achieve their desired business goals.
 
2.            It is the responsibility of the government to protect the data of every company in the country. The government is very strict when it comes to data protection laws. They have a strong mechanism for protecting data.
 
3.            Some countries follow international justice norms. The company should be careful about lawsuits and legal actions. They can take their time and money. Thus, not great for the company’s growth.
 
 
4.            Petronas Chemicals should reduce its carbon footprint. They should take proper initiatives to meet environmental laws to keep pressure groups and environmental activists happy.
 
5.            The Malaysian government safeguards IPR rights, patents, and copyrights. If a country doesn’t provide support, it can keep its business environment sound.
 
6.            Being a national brand, it is imperative for Petronas Chemicals to know the employment laws and how they can impact their business.
 
 
Environmental Factors | PESTLE Analysis of Petronas Chemicals
 
For businesses, sustainability and environmental norms have become very critical. The pressure from government and environmental groups is affecting the business of companies like Petronas Chemicals. Some critical environmental factors are water pollution, land pollution, climate change, hazardous material, and sustainability.
 
1.            Paris Climate Change has affected the business environment of Malaysia. The strict scrutiny from the environmental agencies is creating pressure on the businesses like Petronas Chemicals.
 
2.            The drastic change in weather is also a big problem for companies. This factor is increasing the cost of products. It is necessary for the company to make its supply chain and logistics network more flexible.
   
 
3.            Waste management is another big problem for Petronas Chemicals. Being a chemical company, they are polluting the land and water. Due to this reason, the government is imposing strict rules and taxes on chemical companies.
 
4.             Environmental standards are affecting product innovation. Products that do not meet the expectations of environmental standards will be rejected immediately.
 
5.            Nowadays, people are more aware of the environment and climate change. It is necessary for Petronas Chemicals to make a strong image by adopting green methods to produce chemical products.
 
6.            These days, every company is investing in renewable energy sources. The Malaysian government is fully supporting these companies. Petronas Chemicals can take advantage of this and invest in renewable energy sources.
 
 
 
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