PEST Analyses

PESTEL analysis helps to analyse external macro-environmental factors and assesses their impact on organisation. The PESTLE analysis framework is made up of Political, Economical, Social, Technological, Legal and Environmental factors.   Political Given the company’s international operations, political factors for Sharp can vary from country to country. In addition, these factors can change dramatically at any time as governments have the power to introduce any new regulations, impose tariffs or taxes. This shows that the company does not have any control over these factors or has a very little influence as they are usually exist at national level. However, almost all political factors that affect the Sharp have the same effect on its competitors. Hence, the company must be prepared for any possible changes that affect its trade in order to stay ahead of it competitors by incorporating existing political factors into its business strategy and constantly review the effects of these political factors.   Economical Without doubt the macro-economic factors are one of the most important external factors for the company as they have profound effect on the company’s business. Moreover, considering the nature of products the company manufactures and sales, the economic indicators such as GDP growth rates, the level of disposable income and employment rates have strong impact on the company (Mintzberg et al, 2002). Furthermore, given the company’s international operations, Jonson and Scholes (2006) point out that the changes in interest and exchange rates is another important economic factors as it affects company’s income from foreign countries.   Social Although Sharp has a strong brand associated with reliable and quality products, the company must ensure that its products reflect the changes in social and cultural trends and in particular able to attract new generation of consumers. Moreover, given that the products the company manufactures and the…

Vodafone PEST Analysis. PEST analysis is a strategic tool used to analyse external factors affecting the business and stands for political, economical social and technological factors (Lancaster et al, 2002). The main political factors affecting Vodafone include EU Roaming Regulation that aims to decrease charges for mobile phone usages abroad by 70% (Preissl et al, 2009) and increasing level of consumer rights within Europe, and decisions made by European Union Regulatory Framework for the communications sector. Moreover, any government intervention through legislation or otherwise in the markets Vodafone operates can be considered as political factors. Economical factors also affect Vodafone main of which are the growth of GDP and the level of inflation rate within markets where the company operates. Furthermore, global economic issues like the global financial crisis of 2007-2010 are also economic factors affecting Vodafone. Generally any external economic changes affecting Vodafone can be classified as external economic factors. There is a range of social factors as well that affect Vodafone. For instance, changing work patterns that are becoming very popular make people work from home increasingly relying in communication technologies. Also, there are issues like people going ‘green’ and ageing population in developed countries that are going to affect Vodafone directly or indirectly. The impact of technological factors on Vodafone is without any doubt due to the nature of the telecommunications industry. Specifically, a technological innovation in communications and emergence of alternative means of communication such as online chatting, and Yahoo! Messenger are going to affect Vodafone strategy in a way that the company is left with a choice of either to form strategic alliances with above companies or to commit to considerable amount of research and development in order to introduce innovative products and services to the market. References Lancaster, G, Massingham, L & Ashford, R, 2002,…

Orange PEST Analysis Political, economical, social, and technological factors effecting Orange are summarised on the table below, followed by a detailed explanation of each of them: Political Stronger consumer rights within Europe Roaming regulation EU regulatory framework for communications industry Strategic collaborations Economical Fluctuations of GDP exchange rate Global economic crisis of 2007-2010 Inflation France – biggest contributor to the revenue Social ‘Green’ issues Ageing population Changing work patterns Technological Technological innovations 3G generation Emergence of alternative technology   1  Political Factors A)    Stronger Consumer Rights Within Europe Stronger consumer rights within Europe compared to most of the other parts of the world can be considered to be the most important political factor for Orange due to the fact that the largest number of company’s client base is situated in Europe. This fact makes it compulsory for Orange to follow all the rules and regulations in any European country it operates, including rules and regulations concerning the rights of consumers.   B)    Roaming Regulation. EU Roaming Regulation proposed by European Commission in 2006 aims to reduce charges for mobile phones usage abroad by 70% from June 2007 (Saplista, 2008). The implications of the current regulation for Orange are direct, due to the fact that the company obtains a specific percentage of its revenues through Europeans using their mobile phones abroad.   C)    EU Regulatory Framework for the Communications Sector. Most of the European Union member states have implemented European Union Regulatory Framework for communications sector adopted in 2002 (Dimireva, 2010). The aim of the framework is to encourage the competition in telecommunications sector, and Orange is one of the main players in this market, therefore the framework has direct implications for Orange   D)    Strategic Collaborations Orange announced a new everything everywhere initiative in 2009, according to which company was…