https://research-methodology.net Necessary knowledge to conduct a business research Sun, 18 Feb 2024 03:08:53 +0000 en-US hourly 1 https://rm-15da4.kxcdn.com/wp-content/uploads/2020/08/cropped-logoBRM-32x32.jpg https://research-methodology.net 32 32 https://research-methodology.net/byd-pestel-analysis/ Sun, 18 Feb 2024 03:05:19 +0000 https://research-methodology.net/?p=77532 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. BYD PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects of the electric automaker.    Political Factors in BYD PESTEL Analysis   Favourable government policies for EV and renewable energy In 2022, global EV sales soared by 68%, reaching a record 10.6 million units. This meteoric rise coincides with a wave of supportive government policies. China, the world’s largest car market, offers generous purchase subsidies and tax breaks for EV buyers. These incentives have propelled China to become the undisputed leader in EVs, accounting for over half of global sales. Likewise, European countries like Norway and the United Kingdom have implemented ambitious carbon reduction targets, coupled with EV purchase incentives and charging infrastructure investments, contributing to their impressive EV uptake rates.     The impact of favourable policies extends beyond the realm of personal transportation. Renewable energy sources, once relegated to the fringe, are now experiencing a golden age thanks to supportive government initiatives. In the United States, the Inflation Reduction Act of 2022 offers tax credits for renewable energy projects and EV manufacturing, a move projected to inject USD370 billion into clean energy over the next decade. Similarly, India, the world’s third-largest carbon emitter, has set a goal of achieving 50% renewable energy capacity by 2030, backed by ambitious solar power targets and financial incentives for renewable energy developers. These policy shifts are not driven solely by environmental concerns. Governments are increasingly recognizing the economic benefits of a green transition. EVs create new jobs in manufacturing, installation, and maintenance, with estimates suggesting that the global EV industry could create 30 million jobs by 2030. Renewable energy is also attracting substantial…]]> https://research-methodology.net/marriott-pestel-analysis/ Fri, 27 Oct 2023 04:44:16 +0000 https://research-methodology.net/?p=75969 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Marriott PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects of the international hotel chain.   Political Factors in Marriott PESTEL Analysis There are some political factors that may affect Marriott International. Such factors include political stability, security and the risk of terrorism in a given territory, US-China trade wars, the rise of nationalism and terrorism and others. Moreover, the level of bureaucracy and corruption, freedom of press and trade union activities are also political factors with the potential impact on Marriott and other international hotel chains.   Political stability Political stability is essential for international hotel business. It allows hotel chains to operate in a predictable and safe environment, which is necessary for investment and growth. When there is political instability, it can lead to a number of negative consequences. For example, political instability can deter tourists from visiting a country, which can lead to a decline in demand. It can also increase the costs of operations, such as the cost of security measures and insurance premiums. In some cases, political instability can even lead to Marriott having to close its hotels in a country. For example, in 2022, Marriott was forced to close some of its hotels in Ukraine following the Russian invasion.   Trade union activities Trade union activities can have a significant impact on hotel business, both positive and negative. Trade unions can help to improve the working conditions for employees. They can negotiate for higher wages, better benefits, and safer working conditions. This can lead to a more motivated and productive workforce, which can benefit Marriott’s bottom line. Trade unions can also help to improve the…]]> https://research-methodology.net/netflix-pestel-analysis/ Tue, 19 Sep 2023 04:14:09 +0000 https://research-methodology.net/?p=75456 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Netflix PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects of the popular streaming platform.   Political Factors in Netflix PESTEL Analysis There are many political factors that can affect the financial performance of on-demand streaming services such as Netflix. These factors include government stability, trade union activities, bureaucracy and government tariffs. Moreover, corruption, trade controls and the freedom of press also belong to the list of political factors with a potentially significant impact on entertainment services providers.   Leaving a market because of war Netflix was indirectly affected by Vladimir Putin’s invasion of Ukraine. Having entered Russian market in 2016, the largest streaming service in the world announced on March 6, 2022 the suspension of its services, projects and acquisitions in the country.  Leaving the country within 10 days after Putin declared war in Ukraine was an act of solidarity with Ukraine and other global brands suspending their operations in Russia. At the same time, Netflix had no other choice, because had the company remained in Russia its brand image would have suffered significantly with negative implications on the stock price.   Government restrictions Apart from Russia, China is the only country where Netflix is not available. Although they dress it otherwise, the Chinese government has banned the popular streaming platform because they don’t want their citizens to be influenced by western culture. In other words, Chinese authorities fear that a wide range of shows and programs available on Netflix may influence the population and they might become more difficult to control. Taking into account the massive size of Chinese market, not being allowed to operate in the market is…]]> https://research-methodology.net/apple-pestel-analysis-4/ Fri, 07 Jul 2023 00:38:11 +0000 http://research-methodology.net/?p=6522 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Apple PESTEL analysis (or Apple PESTLE analysis) involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects for the tech giant.   Political Factors in Apple PESTEL Analysis The extent to which Apple is able to achieve its primary objective of profit maximization depends on a wide range of political factors. These include government stability, level of bureaucracy, corruption, freedom of press, home market lobbying groups etc. Additionally, activities of trade unions can be mentioned as important external political factors for Apple.   Tax Payments The payment of taxes is a noteworthy political factor affecting Apple. The multinational technology company uses complex legal means to keep its tax payments as low as possible globally, especially in the US and Ireland. In the US, the tech giant holds the majority of its cash offshore so that it can avoid paying corporate income taxes in the US.[1] Any changes in government taxation policies may affect the bottom line for the iPhone maker. In Europe, European Commission concluded that Apple should have paid the Irish state at least €14 billion (USD 16.2 billion) in corporate tax for 2004-2014. However, in 2020 the General Court of the European Union ruled that European Commission was wrong, a decision that was welcomed by the Irish government.[2] Changes in taxation policies in general and the stance of governments and government agencies towards the iPhone maker in particular are external political factors that have implications for the business.   Dispute with US Federal Bureau of Investigations The most significant case that illustrates the potential impact of a political factor relates to Apple’s battle with US Federal Bureau of Investigations (FBI). Specifically, the…]]> https://research-methodology.net/nvidia-pestel-analysis/ Sun, 18 Jun 2023 05:05:29 +0000 https://research-methodology.net/?p=74383 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Nvidia PESTEL analysis involves the analysis of potential impact of these external factors on the bottom line and long-term growth prospects of the multinational technology company.   Political Factors in Nvidia PESTEL Analysis There is a host of political factors that can affect Nvidia. These include geopolitical tensions, government incentives and regulations, corruption, freedom of press, trade union activities and others.  Moreover, the extent of bureaucracy, government tariffs and trade controls, as well as, tax policies can also have implications on the performance of the multinational technology company.   Government intervention Nvidia had to experience the effect of an external political factor of government intervention into its growth plan. The company had to abandon the acquisition plan of chip technology company ARM for USD 40 billion from Soft Bank after an investigation from UK’s Competition & Markets Authority and the US Federal Trade Commission sued to block the proposed merger due to the concerns that combined firm to stifle competing next-generation technologies.[1]. The multinational technology company is not immune from such interferences in the future as well.   US-China Tech War Nvidia had to bear the collateral damage due to US-China tech war during the past few years. The world’s most valuable semiconductor company has been blocked from selling its most advanced chips — the H100 and A100 series — to Chinese customers since August when the US imposed export controls on technology used for AI. Nvidia has been forced to reconfigure some of its chips to comply with US rules limiting the performance of products sold in China. It is not the first instance where Nvidia and other major technology companies have been affected by so called tech war between…]]> https://research-methodology.net/wework-pestel-analysis/ Mon, 20 Feb 2023 11:28:12 +0000 https://research-methodology.net/?p=72632 WeWork PESTEL  analysis is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors affecting the global flexible workspace provider.    Political Factors in WeWork PESTEL Analysis Political factors that can affect workspace providers such as WeWork are multiple and include government stability, tax policies, lobbying and level of bureaucracy. Co-working providers are also affected by corruption, freedom of press, activities of trade unions and other factors.   Government stability Government stability plays an important role on the long-term growth prospects of WeWork. The global flexible workspace provider operates 756 locations in 38 countries[1]. Changes in government policies may impact WeWork’s ability to secure office space, enter in lease agreements and manage its workforce. Furthermore, government instability or war such us the one currently going on in Ukraine can result in the loss of WeWork properties with direct implications on the bottom line.     Tax Policies WeWork is subject to tax policies in all 38 countries it operates. The co-working giant is directly affected by corporate taxes. The higher the corporate taxes, the higher is the cost of doing business in any particular region. Moreover, favourable treatment of leases in some countries increases the company’s profitability, considering that the workspace provider leases the majority of its locations. Despite its huge size, in the past WeWork had benefited from tax breaks intended for small businesses. Specifically, by 2019 the company had received about GBP 2 million tax refund on property taxes it had paid in UK.[2]   Lobbying Lobbying can affect the performance and growth prospects of the global flexible workspace provider. It is an attempt by individuals or organizations to influence government decisions. Potentially lobbying can benefit co-working and flexible working sector through tax befits for leasing arrangements and providing other benefits…]]> https://research-methodology.net/starbucks-pestel-analysis/ Thu, 06 Oct 2022 00:12:06 +0000 http://research-methodology.net/?p=1489 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Starbucks PESTEL analysis involves an analysis of potential impact of these factors on the bottom line and long-term growth prospects.   Political Factors in Starbucks PESTEL Analysis Starbucks sales are affected by a wide range of political factors, directly and indirectly. The patterns of sourcing raw materials have evolved into a significant political factor that affects the business in a direct manner. Specifically, nowadays it has become compulsory for Starbucks and other global businesses to engage in sourcing of raw materials complying to environmental and social norms that are becoming stricter. Neglecting such norms intentionally or unintentionally are likely to cause political pressure on the business. Starbucks performance can also be affected by the level of relationships between the USA and countries that produce coffee beans, as well as, countries where Starbucks operates. Additional political factors affecting the business include political stability in the country, the impact of home market lobby groups and a wide range of non-government organizations.   Labour Union Issues Labour unionisation can be mentioned as a stark political factor within PESTEL analysis of Starbucks. The coffee chain has ongoing issues with unionisation of its workforce for many years, but this problem escalated last year with increasing numbers of employees willing to join unions. This was one of the main reasons for the return of Howard Schultz as CEO for the third time. The world’s largest coffeehouse chain strongly opposes unionisation of its workforce and occasionally engages in contradictory practices to express its opposition. For example, in May 2022 the company announced a pay raise for all non-unionized workers and in August 2022 Starbucks sent formal complain to National Labour Relations Board (NLRB) questioning the fairness of the…]]> https://research-methodology.net/ikea-pest-analysis/ Mon, 15 Aug 2022 01:05:47 +0000 http://research-methodology.net/?p=1557 PESTEL is a strategic analytical tool used to assess the impact of external factors on businesses. The acronym stands for political, economic, social, technological, environmental and legal factors affecting businesses. It is important to clarify that businesses have little and no influence over factors within PESTEL framework; however they can develop strategies to eliminate or at least to minimize negative effects of these factors. IKEA PESTEL analysis can shed a light into opportunities to strengthen competitive advantage of the business in various fronts.   Political Factors in IKEA PESTEL Analysis IKEA revenue is subject to political situation in the market and a wide range of political factors such as government attitude towards the brand and political stability. Other political factors that can affect IKEA’s business include the level of bureaucracy, degree of corruption, home market lobbying and import restrictions in markets where the global furniture retailer operates.   Use of Prison Labour in East Germany The company has been involved in a series of issues on political grounds.  In 2012, IKEA had to admit that the company used prison labour in East Germany in 1970s and 1980s to produce its products. It has to be specified that the use of prison labour took place at manufacturing sites of IKEA suppliers, not the sites managed by the retail giant itself. An independent report by Ernst and Young concluded that while IKEA had a policy of visiting production facilities to control working processes, access to East German suppliers had been restricted. Although IKEA offered formal public apology to those affected, the incident caused a significant political controversy around the globe.[1] Moreover, allegations that IKEA founder Ingvar Kamprad was an active recruiter for Swedish Nazi group has sparked controversy with negative effects on the brand image.[2]   Symbolic Role of Doll Lufsig Another…]]> https://research-methodology.net/mcdonalds-pestel-analysis/ Tue, 21 Jun 2022 00:33:04 +0000 http://research-methodology.net/?p=7327 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. McDonald’s PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects.   Political Factors in McDonald’s PESTEL Analysis McDonald’s revenues and long-term growth prospects are affected by a number of political factors such as levels of bureaucracy and corruption, government stability and the freedom of press. Moreover, activities of trade unions and home market lobby groups can be referred to as noteworthy political factors that may affect multinational corporations.   Exiting Russia On March 8, 2022 McDonald’s announced that it had temporarily closed restaurants in Russia and paused operations in the market due to Russia-Ukraine war conflict. The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald’s to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald’s values.[1] On May 2022 the fast food chain announced it starts the process of selling its business in Russia, meaning that the company is leaving the country permanently. Exiting one of its biggest markets where McDonald’s had more than 800 restaurants employing 62000 employees[2] due to a war conflict is a stark example for a political factor affecting the fast food chain.   Trade Unions Activities of trade unions and their implications belong to the list of important political factors affecting McDonald’s. Trade unions may succeed in their demands to increase employee wages and to improve working conditions and these will have negative implications for the profitability of the business. Accordingly, the fast food giant is known worldwide for its hostility to trade unions. For example, in 2021 it was reported that McDonald’s has, for years, spied…]]> https://research-methodology.net/amazon-pestel-analysis-2/ Wed, 23 Mar 2022 00:51:33 +0000 https://research-methodology.net/?p=7230 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Amazon PESTEL analysis involves the analysis of potential impact of these factors on the bottom line and long-term growth prospects of the e-commerce giant.   Political Factors in Amazon PESTEL Analysis The range of political factors that affect Amazon include but not limited to the political stability or instability in the country, the influence of home market lobbying and pressure groups and the attitude of the government towards e-commerce and retail industries in particular. Additionally, the freedom of press, trade unions and their activities and the extent of corruption belong to the list of political factors with potential implications on Amazon business practices. Due to the scope and scale of its business operations, Amazon plays an indirect role in politics in USA, Europe and some other regions. In other words, in markets where Amazon has a strong presence, the ruling government usually has a certain stance towards the e-commerce giant in particular among internet retailers.   Stance of governments towards Amazon Most people either love or hate Amazon and this extends to politicians and government officials as well. Former US President Donald Trump was vocal in his dislike of the tech giant and sometimes criticised the company and its then CEO Jeff Bezos on Twitter. The current President Joe Biden also criticizes Amazon for paying low taxes and its opposition towards formation of labour unions.  In February 2021 Biden “released the 2 ½-minute video. While he omitted the name of the powerful e-commerce giant, his remarks were seen as an unmistakable show of solidarity with a labour movement that failed to secure anything similar from his recent predecessors.”[1] The company has hired the former press secretary of the US President, Jay…]]> https://research-methodology.net/square-pestel-analysis/ Mon, 27 Sep 2021 01:39:11 +0000 https://research-methodology.net/?p=57937 PESTEL is a strategic analytical tool. The acronym stands for political, economic, social, technological, environmental and legal factors. Square PESTEL analysis refers to the analysis of potential impact of these external factors on the performance of the financial services and digital payments company.   Political Factors in Square PESTEL Analysis There are many political factors that can affect the bottom line for Square directly or indirectly. These include government stability, the level of bureaucracy, corruption, freedom of press and others. Moreover, activities of trade unions, government trade controls and tax policies, as well as, home market lobbying activities also belong to the list of political factors that can affect the business.   Custom tariffs Square works with manufacturers from China to develop its hardware products. In September 2018, the United States imposed tariffs on certain imports from China, including on some Square hardware devices manufactured in China. The tariffs on these products were initially set at 10%, but were increased to 25% in May 2019. On September 1, 2019, the United States imposed new tariffs at 15% on additional imports from China, including Square’s remaining hardware products manufactured there, but rolled back these new tariffs to 7.5% effective February 14, 2020. The tariffs negatively affect the gross margin on the impacted products, which only partially has been offset by adjustments to the prices of some of the affected products.   Bureaucracy Bureaucracy is one of the main political factors for Square. International market expansion for the financial services and digital payments company requires registering the business with local authorities in due manners. Business registration processes, as well as, the practice of conducting business can be highly bureaucratic, especially in developing countries and such a situation can have adverse effects on Square operations in respective markets. Particularly, bureaucracy can slow down…]]> https://research-methodology.net/uber-pestel-analysis-great-impact-political-factors/ Tue, 20 Jul 2021 00:19:40 +0000 https://research-methodology.net/?p=13459 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Uber PESTEL analysis refers to the analysis of potential impact of these external factors on the performance of the ride-hailing giant and its long-term growth prospects.   Political Factors in Uber PESTEL Analysis Generally, political factors affecting businesses include government stability, bureaucracy, levels of corruption, impacts of home market lobbying groups and others.  When Uber started its operations in 2009, there was no other ride-hailing taxi app. Accordingly, legislations related to the regulations of such services did not exist. Global disruption of taxi services: political implications With the advent of Uber, the following and other questions needed to be answered by local governments and authorities: Who is responsible in case of car accident: Uber or the driver? Does it need to be compulsory for Uber drivers to have taxi licences? Can Uber list thousands of its drivers as contractors, but not employees? Does Uber have to comply with minimum wage requirements? Dealing with above and other related questions in different countries and regions have caused charged political debates.  Moreover, it can be argued that Uber has caused political debates in the global scale in a way that few companies have done. Different stance by local governments While some local governments have been favourable towards Uber taking into account its modern business model, others demanded strict adherence to the rules and regulations making no difference between Uber and regular taxi companies. As a result, Uber has been banned in a number of countries and such as Bulgaria, Hong Kong and Germany and certain cities such as London and Brno. Lobbying as attempts to affect political factors Uber engages in lobbying activities to try to impact legislations in the US and worldwide to…]]> https://research-methodology.net/tesla-pestel-analysis-2/ Mon, 26 Apr 2021 00:19:40 +0000 https://research-methodology.net/?p=25774 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Tesla PESTEL analysis involves the analysis of potential impact of these factors on the long-term growth prospects of the alternative fuel vehicles manufacturer. There is a wide range of political factors that can potentially affect automobile manufacturers. Specifically, political factors for Tesla include freedom of press, corruption and bureaucracy in local markets and trade unions activities. Moreover, home market lobbying practices by governments and trade controls also belong to the list of political factors that can affect Tesla. Political Factors in Tesla PESTEL Analysis Political stability Political stability is one of the most important political factors affecting the company. Tesla uses cobalt extensively as a raw material to build its Model S, Model X, Model 3 vehicles. About 58% of the world’s cobalt production comes from the Democratic Republic of Congo (DCR).[1] According to a report by Amnesty International, cobalt rush has increased the cases of conflicts, corruption and child labour in Congo[2]. Accordingly, it can be argued that political instability and warfare in Congo can create supply chain risk for Tesla in relation to cobalt, an important component for electric vehicles.   Government incentives for electric vehicles Government incentives to promote vehicles run by alternative fuel due to negative environmental implications of CO2 emissions is a noteworthy political factor for Tesla. The impact of this factor is positive and so far Tesla was able to benefit to a maximum extent. For example, US government offers USD 7500.00 tax credits  to every buyer of new electric vehicles as an incentive, but there is a cap of 200,000 deliveries of electric vehicles in the US for each automaker. Tesla was the first manufacturer to hit the threshold back in 2018. Thanks to the new…]]> https://research-methodology.net/w-w-grainger-pestel-analysis/ Wed, 19 Aug 2020 00:43:01 +0000 https://research-methodology.net/?p=44150 PESTEL is a strategic analytical tool used to analyse external factors affecting organizations. The acronym stands for political, economic, social, technological, environmental and legal factors. W.W. Grainger PESTEL analysis comprises the analysis of potential impact of these factors on profitability and long-term growth prospects of the global industrial supply company.   Political Factors in W.W. Grainger PESTEL Analysis There is a wide range of political factors that can affect Grainger directly, as well as, indirectly. For example, government stability in international markets is one of the key political factors that can impact the performance of Grainger.  Specifically, the global industrial supply company may face difficulties to grow the business in countries where there is a lack of government stability. Furthermore, if any government where company operates faces stability issues due to strikes, war or any other reasons, this can impose risks to Grainger properties located in the country. Activities of trade unions can be mentioned as another type of political factor that can affect the bottom line for the B2B distributor. Trade unions can demand and achieve higher wages for Grainger employees with negative implications on profitability of the business. Additional range of external political factors for Grainger includes level of bureaucracy and corruption, the extent of freedom of press, government trade controls and others.   Economic Factors in W.W. Grainger PESTEL Analysis Grainger profitability and growth prospects are subject to a range of external economic factors.  Changes in currency exchange rate is one of the main economic factors for the industrial supply company, because in 2019 the company generated 28% of its total revenues from international markets outside of its home market US.[1] Inflation rate can be highlighted as another significant economic factor for the worldwide distributor of industrial products, as increasing level of inflation erodes buyer purchasing power…]]> https://research-methodology.net/airbnb-pestel-analysis/ Sat, 07 Sep 2019 04:50:53 +0000 https://research-methodology.net/?p=39327 Airbnb PESTEL stands for political, economic, social, technological, environmental and legal factors effecting the peer-to-peer lodging company. It is an important analytic tool used to analyse external factors affecting businesses for strategy development.   Political Factors in Airbnb PESTEL Analysis There are some political factors at the local and global scales that affect Airbnb revenues in direct and indirect manners. Issues with governments over the taxes and opposition from local governments and residents are the most important political factors for the peer-to-peer lodging company.   Issues with governments over the taxes In the US, there is a dispute between a number of local governments and Airbnb over the allocation of responsibility to collect and pay occupancy taxes. A number of local and foreign governments have criticised Airbnb for not paying housing and/or other relevant taxes and they have been trying to take action with varying levels of success. It has been noted that in the US, “from Nashville to New Orleans to Honolulu, Airbnb is battling local officials over requests to collect occupancy taxes and ensure that the properties listed on its site comply with zoning and safety rules.”[1] The company lobbies its interest hiring firms such as KDCR Partners and Fulcrum Public Affairs in attempt to decrease government oppositions to the business. As illustrated in figure  below, Airbnb annual lobbying budget is not massive though, compared to other multinational companies and in 2018 it amounted to USD 540,000.00. Annual Lobbying by Airbnb   Opposition from local governments and residents Airbnb has faced opposition from local governments and protests from local residents due to perceived negative impact of the global hospitality service brokerage company to neighbourhoods. One of the major points of concerns in local communities relates to negative impact of the travel industry disruptor on local housing prices. There…]]> https://research-methodology.net/microsoft-pestel-analysis-2-2/ Sun, 03 Feb 2019 00:35:01 +0000 http://research-methodology.net/?p=6574 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Microsoft PESTEL analysis examines effects of these factors on the bottom line of the multinational technology company.   Political Factors in Microsoft PESTEL Analysis There are many political factors within the scope of Microsoft PESTEL analysis at governmental, regional and international levels. Apart from the impact of a regular set of political factors such as political stability in the market, impact of activities of lobby groups and the government attitude towards the organization and the industry,  Microsoft activities during the past years have brought upon the company other set of political issues. Most notably, Microsoft has attracted the attention of governments and political parties due to antitrust-related issues. A recent probe by China’s State Administration for Industry and Commerce into the ways Microsoft distributes its Internet Explorer browser and Windows Media Player and sells its Office and Windows software in China[1] can be mentioned as a relevant example of impact of a political factor. Similar to major international corporations, Microsoft engages in political lobbying in order to contribute to the formation of political environment favourable to its business. As illustrated in figure below, the amount of annual political lobbying by Microsoft has ranged between USD 3,92 million and USD 7,25 million during the last 10 years. Annual lobbying by Microsoft Corporation[2]   Economic Factors in Microsoft PESTEL Analysis There is a range of economic factors that affect Microsoft revenues directly or indirectly. These include economic growth or recession in the market, changes in interest rates and currency exchange rates, changes in taxation rates and policies, inflation rates, changes of labour costs and costs of other resources and others. Particularly, the global economic and financial crisis of 2007 – 2009 had proved to…]]> https://research-methodology.net/xiaomi-pestel-analysis-2/ Sun, 27 May 2018 00:18:24 +0000 https://research-methodology.net/?p=22673 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Xiaomi PESTEL analysis involves the analysis of potential impact of these external factors on the profitability and long-term growth prospects of the mobile internet company. Political Factors in Xiaomi PESTEL Analysis There is a wide range of political factors that can affect the internet technology company. These include government stability, bureaucracy, corruption, freedom of press and others. On one hand, Xiaomi has benefited from political factors in China in general and protectionism policy of Chinese government in particular. The government of China protects local technology companies such as Tencent, Baidu and Xiaomi by imposing barriers to operate in the country to their international rivals such as Facebook, Twitter, Snapchat, YouTube and Google. The head of Xiaomi, along with the heads of Tencent and Baidu advice the government on international business policies.[1] This grants technology companies enviable opportunities to influence local political factors that affect their businesses to a certain extent. Xiaomi has even set up its Communist Party Committee in 2015[2] as a display of its support for the ruling government. On the other hand, while political factors benefit Xiaomi in its home market in China, the company is usually negatively affected from political factors outside of China. For example, the Taiwanese government has investigated Xiaomi on a cyber security threat in 2014 causing certain damage to the brand image of the company. There is a popular concern that the investigation was politically motivated because “China and Taiwan have been historical foes since defeated Nationalists fled to the island after losing a civil war to China’s Communists in 1949”.[3]   Economic Factors in Xiaomi PESTEL Analysis Economic factors affecting the internet technology company are diverse. These include macroeconomic climate in the country,…]]> https://research-methodology.net/samsung-pestel-analysis-2-2/ Wed, 04 Oct 2017 00:04:49 +0000 http://research-methodology.net/?p=6906 PESTEL is a strategic analytical tool used to assess the impact of external factors on businesses. Samsung PESTEL analysis involves critical analysis of political, economic, social, technological, environmental and legal factors affecting the multinational electronics company. Political Factors in Samsung PESTEL Analysis A set of political factors such as political stability in the country, government attitude towards the industry and the company, home market lobbying and pressure groups, international pressure groups, risk of military invasion of the country and others affect revenue and long-term growth prospects of Samsung Electronics in direct and indirect ways. Samsung Electronics is found to be involved in a number of political scandals in its home market in South Korea. Lee Kwang-jae, Uri Party representative working for South Korean President Roh Moo-hyun officially admitted the receipt of 50 to 60 billion KRW from Samsung Group in the forms of bonds to be used in the presidential campaign in 2002. Moreover, the prosecution found that the company has also funded the opposition, Grand National Party via 2.47 billion KRW before the election.[1] The instance mentioned above represents an attempt by the company to achieve positive impact of political factors via illegal means and methods with potentially severe detrimental impact on Samsung brand image. In August 2017, Jay Y. Lee, the former de facto head of the Samsung conglomerate, was given 5-year jail term  for his role in bribery and embezzlement, part of a series of scandals that led to the ouster of Park Geun-hye, South Korea’s first female president.[2] As it is illustrated in figure below, Samsung has increased the amount of its political lobbying significantly starting from 2012. It can be argued that these spending included controversial payments as discussed above. Annual lobbying by Samsung Group[3] Economic Factors in Samsung PESTEL Analysis Strong Korean currency is one of…]]> https://research-methodology.net/google-pestel-analysis-2/ Mon, 12 Jun 2017 00:03:51 +0000 http://research-methodology.net/?p=6652 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Alphabet (Google) PESTEL analysis involves the analysis of potential impact of these factors on the bottom line on long-term growth prospects. Political Factors in Alphabet (Google) PESTEL Analysis Google has been suspected of a political agenda a number of times with negative effects on its brand image. Particularly, Google has been accused by Chinese state media for “playing an active role in exporting culture, value and ideas”[1], thus pursuing political aims, rather than conducting appropriate business practices. Moreover, Project Loon, an initiative to provide internet in rural and remote areas via balloons and cell towels based on the ground is faced with geopolitical challenge in a way that the project is perceived as undercover by US intelligence services to conduct espionage activities[2]. Google is also criticized for interfering with politics and influencing political environment in the US and other parts of the world. It has been noted that “goggle nearly anything political and you’ll get a result that contains both legitimate news and partisan hackery, equally ready to be read. Better yet, clear out your search history, begin a search, and see what pops up to finish the search for you. Googling “Hillary” gave me “Hillary Clinton age” and “Hillary Clinton email.” So without even trying, I’ve gotten the impression of an old lady with an email problem”[3] A range of political factors that might impact Google range from political stability and government attitude towards the brand to the impact of home market lobbying and pressure group. Activities of international pressure groups such as One World Broadcasting Trust can be mentioned as an additional political factor that might affect Google in direct or indirect ways. Economic Factors in Alphabet (Google) PESTEL Analysis…]]> https://research-methodology.net/facebook-pestel-analysis-two-way-relationships-between-external-factors-and-social-media-giant/ Sat, 07 Jan 2017 00:39:30 +0000 http://research-methodology.net/?p=9252 PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors affecting business organizations. Facebook PESTEL analysis involves a critical analysis of the impact of these factors on the social networking website. Political Factors There is a wide range of political factors such as political stability in the region, the freedom of press, the state of human rights and others that affect Facebook revenues in direct and indirect ways. The social networking site is often used by millions of people as a platform to voice disagreement with government policies and corrupt practices all over the world.  This has caused the restriction of the social networking site in a number of developing countries with human rights issues, where governments are afraid that people can use Facebook to spread information and unite for their cause.  For example, access to Facebook has been or is currently restricted in whole or in part in China, Iran, and North Korea[1] for the same reasons. Moreover, along with being impacted by political factors, Facebook also has its own impact on the formation of political landscape in the US and elsewhere. “Ever since the so-called “Facebook election” of President Obama in 2008, the social media giant has been a political reference point for citizens, politicians and media alike”[2] In 2015, the social media giant established its own Political Action Committee as an attempt to strengthen its ties to Washington, D.C. and to be able to further influence the political climate in the US in its favour. Taking into account increasing popularity of Facebook and its increasing role as news source and communicated tool its influence and integration into political process in local, national and even international levels is expected to increase in the future. Economic Factors The implications of…]]>