PESTLE Analysis of IOCL
Analyzing the business tactics of a company and different external business scenarios, PESTLE is the most useful tool. PESTLE Abbreviation is for political, economic, social, technological, legal, and environmental factors. They have a huge impact on a company’s business performance and decide the future. Managers at IOCL should utilize this tool to make effective policies and strategies for the company. Indian Oil Corporation Limited is an Indian gas and oil company with an extensive distribution system and a strong brand portfolio. Let’s begin the PESTLE Analysis of IOCL.
Political Factors | PESTLE Analysis of IOCL
IOCL is one of the biggest oil and gas organizations in the Indian industry, headquartered in New Delhi. It is under the Ministry of Oil and Natural Gas, India.
Political factors have a big impact on the profitability of the company that is not in its control. Any change in taxation rules or revenue policy from the government can put the company into trouble. Due to the increasing prices, people started consuming oil and gas moderately. The decreasing demand for these products can put IOCL into big trouble. Moreover, the government policies of other countries will also create an impact because it is operating in other countries too. The government of India is trying to subsidize people to increase the demand for oil and natural gas. It can be beneficial for the company.
Economic Factors | PESTLE Analysis of IOCL
The economic condition of IOCL is not so excellent due to Covid-19. It has reduced the demand for petroleum products. People now prefer public transport instead of a personal car. People love to stay at home due to the risk of coronavirus. If it continues, then it will hurt the revenue stream of IOCL. On the other side, the government is imposing heavy taxes and duties on petroleum products. It is another alarming thing for the company. The growing inflation rate is also a major thing to consider in this scenario. It is a major player in the Indian oil and gas market with 11 refineries.
Social Factors | PESTLE Analysis of IOCL
India is the most populated country globally. So, the oil and gas demand is really high in the country. The company has to import an immense amount of oil to fulfill the need. Nowadays, people don’t prefer to go outside, decreasing the demand for petroleum products. Once things become better, the company will earn huge sums. In short, the future of the Indian oil industry is very bright. Now, people prefer to have their own car and bike. They don’t prefer to use public transport. These are some positive signs that show the prosperous future of the company.
Technological Factors | PESTLE Analysis of IOCL
The involvement of new technologies will change the way of producing goods. IOCL can’t ignore these factors because its long-term profitability is based on the consumption and demand of oil and gas. The company spends a lot of money in R & R&D. These investments are crucial for developing the company and its profitability. On the other hand, the IOCL company is investing in renewable energy sources as well as pipeline networks.
Legal Factors | PESTLE Analysis of IOCL
Legal factors involve both external and well as internal factors. IOCL should follow the rules and laws to avoid any inconvenience. Before making any policy, they should analyze the laws of the country. The growing environment norms, taxation, and liability laws are some other important legal factors in this regard. They should follow safety laws to protect the health of consumers.
Environmental Factors | PESTLE Analysis of IOCL
The overall brand image of any company, including IOCL, depends on environmental factors. Being an oil and gas company, it is crucial for them to follow environmental regulations and waste management laws. They should keep a stringent check on carbon emissions.
The company can boost its brand image by working on renewable energy sources. They should participate in various cleanup programs to save marine life, water, and motherland.
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