In this post, we will share with you practical examples of Pestle Analysis that will help you to boost up your grades. You can use these examples in your marketing assignment.
The companies that we have covered in this article are as given below.
1) Starbucks.
2) Samsung.
3) Pfizer
Introduction
Starbucks, Samsung and Pfizer are the multinational companies that operate their business in the sectors of the Coffee supply chain, Electronics products, and pharmaceuticals respectively. The PESTLE analysis of these companies is analyzed in this context along with the data of the factors. The factors that are analyzed in this context are such as – Political, Environmental, Social, Economic, Technological and Legal. The discussion of the factors has been done based on multinational business operations of the companies.
1) Pestle Analysis Of Starbucks
Starbucks is one of the biggest multinational chains in America that serves in the coffee industry along with roastery services. The headquarters of this country is situated in Washington DC and it operates its business in different countries of the world. This company represents itself on behalf of the United States as the second wave of coffee culture. The PESTLE analysis of this company has been done on the business operations below:
Political factors
The global expansion of the company is done through the current trend that is regional integration along with external factors. Infrastructures of the company are developed by the government of the country and opportunities are provided for meeting suppliers as well as its market (Achinas et al. 2019). Most of the countries have the bureaucratic red tape that makes the business expansion of the company more difficult and this is one of the external factors that treats the political business.
The Brexit event has affected the growth of this company as the corporation tax of the US coffee chain is decreased by 60%, i.e., £34m to £13m. This company owns an increased political awareness along with activism for following rules and regulations of the countries from where it is sourcing its raw material. There is also a factor that includes the pressure of regulations in the home market of this company that is in the US. There are some other factors such as – Employment laws and Tax policies.
Economic Factors
The external prime economic driver of this company is the recession of the present economy of Global. The profitability of Starbucks is dented through this factor and buyers have been convinced to consume cheaper products. Still, Starbucks has taken its position in the market as the consumers did not leave the consumption of coffee (Rastogi & Trivedi, 2016). The operational cost of the company is rising along with the labor cost that creates lots of stress in the profitability of the company. The other factors of the company in the field of the economy are Taxation level, Economic environment of different local markets, Exchange rates of the currency in the local market.
Social factor
Quality of the products of this company is sacrificed by its authority when it goes to offer cheaper products to the people or its consumers. This is one of the biggest challenges in the field of socio-culture of Starbucks. This also helps to include several kinds of buyers that belong from the lower tier of society to the middle-income tier of the society. The concerns of the company also developed of ‘green’ and ‘ethical chic’ where the environmental and social costs are fretting for the brand (Nandonde, 2019). The focus of the socio-culture of this company is on the factors such as – Changing of working pattern, Consumer preference, changing of lifestyle, Values changed within a population, Changes in the family pattern in Europe as well as USA.
Technological factor
Starbucks has a good partnership with Apple to employ technology-based services in its company. The discount coupons provided by this company for attracting customers through the app that is operated by the Apple and mobile wave provides facilities in an easier process.
The outlets of this company provide Wi-Fi facilities to its customers and this strategy is applied to attract customers as the internet services are important to the customers. Therefore, customers could enjoy their coffee when they are surfing the internet or completing their required tasks. This is an extra service that added value to its brand (Azriuddin et al. 2020).
Mobile payments have been enabled for the payment of the bills digitally and this facility has been enabled as a testing purpose in the US. Other technologies that are implemented in it are – Biotechnological development, Agricultural development, Implementation of innovative technology. Agricultural development would provide good quality of coffee supply and biotechnology would help in the sector for processing the coffee.
Legal factor
This company is required to maintain the laws and regulations of its home country as well as look forward as it does not violate those provisions of other countries where it operates its business such as buying raw materials. The health authorities have policies and regulations regarding the consumption and production of caffeine products. Starbucks needs to stay alert about the maintenance of the guidelines of the health authority (Khalid & Rahman, 2019). The other factors that might affect the company are – regulations for licensing of the industry, trade regulations of different countries along with striker customers.
Environmental factor
The Issues of the consumers have to be maintained by the company for keeping the trust of the consumers and it has business practices with the groups of legal advocacies along with activists. The threats of the company come from factors such as environmental regulations and rules, environmental disasters where the harvesting of the coffee business is performed and different kinds of issues at the global level along with global warming (Fozer et al. 2017). These impacts have to be maintained by the company and issues are required to be maintained as per the environmental guidelines.
2) Pestle Analysis Of Samsung
Samsung is one of the multinational companies in South Korea and the headquarter of this company is situated at Samsung Town. This company is the manufacturer of different kinds of electronic items such as – TV, mobile phones, home theatres, and other essential household things. The starting of the business had been done with the production of noodles and supplying them to China and around its city. This company now operates its business all over the world and has gained a revenue of 17% of South Korea. The Pestle Analysis of this company has been done below:
Political factor
Markets in which Samsung operates its business are most conducive to the political environment and these factors are benign for the foreign markets of the business operations. This company has recently faced some political issues and those issues have been seen in its home country. The political headwinds have been seen in South Korea as political instability has been seen in the field of North Korea where the Korean Peninsula has created the war breaking (Rastogi & Trivedi, 2016). Political pressures have also faced this company from the countries of Latin America as well as Africa due to their unstable political environment and changes in the structure of its governing body. It has strategic calculations for handling the political factors within its operation of different places.
Economic factor
The developing world is one of the critical dimensions for Samsung to secure its position in the market. Therefore, there are opportunities for the company to keep its footprint all over the world. The purchasing power of the consumers have been decreased due to the global economic crisis and this crisis has affected the market of Samsung (Clarke, 2019). Samsung operates its business in the macroeconomy of the world market with volatility along with uncertainty for the reorientation of the strategies. The emerging-market has been facing an aggressive push by Samsung to make up the business that was lost in this developing world.
Social factor
This is a multinational company and its headquarter is situated at South Korean Chaebol. Therefore, the footprints of the company on a global basis are operated by the social culture of South Korea. There is inclusion of some local conditions in its socio-culture for operating its business in different places of the world (Simões, 2020). The lifestyle preferences are influenced by the products that are offered by the company and this factor is seen differently for the different countries. Therefore, this company has presented itself as per the martlet requirements for the production of the materials.
Technological factor
This company is considered as one of the leading brands for technological innovations in the world market. The advantages of the company for acquiring the market could be seen in the field of driving innovation as well as the harnessing power in the field of its technology. There is a huge competition in the field of innovation of the technologies and its implementations within the electronics products (Wulff et al. 2019). The key success of the company is provided by maintaining the basic rights where the other companies are running to reach fast to the customers in the market.
Legal factor
Samsung had faced a huge penalty on the field of its technological implementation that was adopted from the strategies of Apple’s iPhone and iPad. The consumer approval and public perception of Apple had led this company to the adoption of its strategy and the penalty had been developed. The legal maze of different markets could wriggle out of the company and various lawsuits are there for different markets of different countries (Gardere, Sharir & Maman, 2018). Therefore, the service operations of the company are required to be maintained along with local lawsuits.
Environmental factor
The ethical consumers have been raised in the market who desire to source their brand along with the production of the materials in a responsible manner of environment and social space. Awareness of the ethical chic consumers should have to be within Samsung for the satisfaction of the customers (Pan, Chen & Zhan, 2019). There, it means that there should be no compromise in the field of quality of the products as well as the wages of the workers in the company who are providing laborers for developing the final product.
3) Pestle Analysis Of Pfizer
Pfizer is one of the multinational companies of America that operates its business in the field of pharmaceuticals and its headquarter is situated in New York City. This company has secured the second position for the settlement in the field of Justice in the united states department. It produces different kinds of essential vaccines in its company such as Xeljanz, Lyrica and Prevnar and it sells as well as manufactures generic drugs. PESTLE analysis of this company has been done in this context below:
Political factor
The long-term profitability of Pfizer could be determined by the factors that play a significant role in the political factor for certain markets of different countries. The political stability of the countries has to be assessed when the company is going to operate its business along with the importance of drug manufacturing. The manufacturing of the essential drugs could affect the economy of that country. Corruption level is to be maintained for maintaining the regulations of the Healthcare sector (Oesterreich & Teuteberg, 2016). Contract enforcement of the company is required to be done as per the legal framework of the country for the production of drugs. This company has to follow the regulatory framework of the countries and then there are several laws related to the drugs and governmental agencies.
Economic factor
The healthcare sectors consume a part of the spending of people along with the medications that become a trend. Therefore, the revenue gained by this company is greater than any other companies within its industry. The pharmaceutical industry plays a vital role in the field of creating the GDP of the country as this is operated all over the world. The Brexit has also impacted on the economic factor of the US as well as on the pharmaceutical company. The Brexit price of this company has been estimated to be nearly $ 100m (Paramadita, Sasongko & Candra, 2019). Structural schism of the company provides the economic discontinuity of the company and the contradictions within the riddles have been also observed for it.
Social factor
The rapid improvement could be seen in the field of healthcare all around the world and the global population is going to be issued in this present world. This portrays that more people became older than the previous situation. There are more health issues in the old people that seem to be serious cases and they have issued more than the younger people. Therefore, it creates more demand for the pharmaceuticals for the maintenance of the health of those people. The obesity rates are increasing every day due to the increase of disease and the poverty rate (Nong, 2020). The increase in the obesity rate is one of the current and vital issues of the countries that requires the help of pharmaceuticals critically. The sales of the drugs are increasing with the obesity rate and it provides growth to the pharmaceutical industry.
Technological factor
The growth of the biotechnological industry provides such opportunities to study the living organism and this could enrich our life by its culture. This technology plays a vital role in creating biological sources and it provides an opportunity for the companies for developing their revenue in a vast field by its implementation.
The market of this company could be adopted directly by using digital technology for its purpose of advertisement. I could also provide the space direct interaction with the customers of this company for the feedback of materials (Fosher, 2018). The customer’s acquisition cost is then lowered by this technological implementation and could reach a huge number of customers through a short time.
Legal factor
Legal matters of this country are required to be strictly maintained by the industry for the business operation as per the legal frameworks for the pharmaceuticals. As this company operates its business in several countries then it needs to maintain the local laws and regulations for the operations of the drugs along with the rules and regulations of the home country (LIU, 2017). The laws that are required to be maintained for the operation of the company are – Discrimination law, Employment law, Health and safety law, consumer protection law, Anti-trust law for Drug manufacturing, Data protection and so on.
Environmental factor
The multinational operations of the company provide different kinds of parameters for the maintainers of the environment as well as the profitability of the market. There are several kinds of liabilities and clauses for the operation in Florida and Texas of the United States. The environmental factors that are to be maintained for the operation of the company are such as: Regulations and laws regarding pollution of the environment, Recycling of waste products, Endangered species reservations, waste management, Climate change and so on.
Conclusion
The PESTLE analysis of the companies has been done in this context for multinational companies such as Samsung, Starbucks, and Pfizer. Samsung operates its business in the field of electronic goods and it is one of the leading brands of the world. Starbucks is an American company that faces several situations for operating its services to different countries. Pfizer is also an American multinational company that operates its business in the pharmaceutical industry. The Political, Environmental, Social, Economic, Technological and Legal factors have been discussed in this context for the analysis of the business and its data.
References List
Achinas, S., Horjus, J., Achinas, V., & Euverink, G. J. W. (2019). A PESTLE Analysis of Biofuels Energy Industry in Europe. Sustainability, 11(21), 5981. Retrieved from: https://www.mdpi.com/2071-1050/11/21/5981/pdf
Azriuddin, M., Kee, D. M. H., Hafizzudin, M., Fitri, M., Zakwan, M. A., AlSanousi, D., … & Kurniawan, O. (2020). Becoming an International Brand: A Case Study of Starbucks. Journal of the community development in Asia, 3(1), 33-43. Retrieved from: http://ejournal.aibpm.org/index.php/JCDA/article/viewFile/706/693
Clarke, C. (2019). Strategic planning in healthcare. In Textbook of Medical Administration and Leadership (pp. 31-46). Springer, Singapore. Retrieved from: http://library.akperhusada.ac.id/repository/e00544.pdf#page=42
Fosher, H. (2018). Understanding the Marketing and Management of trails using PESTEL Analysis. Retrieved from: https://scholars.unh.edu/cgi/viewcontent.cgi?article=2182&context=thesis
Fozer, D., Sziraky, F. Z., Racz, L., Nagy, T., Tarjani, A. J., Toth, A. J., … & Mizsey, P. (2017). Life cycle, PESTLE and multi-criteria decision analysis of CCS process alternatives. Journal of cleaner production, 147, 75-85. Retrieved from: https://www.academia.edu/download/51522169/1-s2.0-S095965261730063X-main.pdf
Gardere, J., Sharir, D., & Maman, Y. (2018). Consulting and Executive Coaching on Future Trends: The Need for a Long Term Vision with Apple and Samsung. International Journal of Business and Social Science, 9(3). Retrieved from: https://ijbssnet.com/journals/Vol_9_No_3_March_2018/1.pdf
Khalid, L. S., & Rahman, I. A. (2019). Measuring the Effect of the External Factors on Iraqi Construction Projects Performance USING PESTLE Technique. Retrieved from: https://www.researchgate.net
LIU, H. (2017). How information strategy and business strategy influence the organization’s. Retrieved from: http://dagda.shef.ac.uk/dispub/dissertations/2016-17/External/Liu_Hongbo.pdf
Nandonde, F. A. (2019). A PESTLE analysis of international retailing in the East African Community. Global Business and Organizational Excellence, 38(4), 54-61. Retrieved from: https://www.researchgate.net
Nong, T. N. P. (2020). A market analysis and marketing plan on Green Café Business: a case of Gwangju City, South Korea. Retrieved from: https://www.theseus.fi/bitstream/handle
Oesterreich, T. D., & Teuteberg, F. (2016). Understanding the implications of digitisation and automation in the context of Industry 4.0: A triangulation approach and elements of a research agenda for the construction industry. Computers in industry, 83, 121-139. Retrieved from: http://www.macs.hw.ac.uk/~yjc32
Pan, W., Chen, L., & Zhan, W. (2019). PESTEL analysis of construction productivity enhancement strategies: A case study of three economies. Journal of Management in Engineering, 35(1), 05018013. Retrieved from: https://www.researchgate.net/profile/Le_Chen6
Paramadita, S., Sasongko, A., & Candra, S. (2019). Using PESTEL Framework to Analyze User-Generated Content Usage on Social Media: The Case of Indonesian Tourism and Travelling Business on Instagram. In The 1st Workshop on Multimedia Education, Learning, Assessment and its Implementation in Game and Gamification in conjunction with COMDEV 2018. European Alliance for Innovation (EAI). Retrieved from: https://pdfs.semanticscholar.org/ae0c/04322e12e1e6aa0530dd82e2e3c814226ee3.pdf
Rastogi, N. I. T. A. N. K., & Trivedi, M. K. (2016). PESTLE technique–a tool to identify external risks in construction projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. Retrieved from: http://www.academia.edu/download/54685520/IRJET-V3I165.pdf
Rastogi, N. I. T. A. N. K., & Trivedi, M. K. (2016). PESTLE technique–a tool to identify external risks in construction projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388. Retrieved from: http://www.academia.edu/download/54685520/IRJET-V3I165.pdf
Simões, E. N. (2020). A decision support system application module-for PESTLE analysis-competitive intelligence algorithm (Doctoral dissertation). Retrieved from: https://run.unl.pt/bitstream/10362/94985/1/TGI0290.pdf
Wulff, E., Kee, D. M. H., Halttunen, E., Kara, H., & Pakarinen, N. (2019). An Analysis on How Samsung Can Improve Their Environmental Work by Adding New Ecological Transportation Method of Goods. Asia Pacific Journal of Management and Education, 2(3), 55-66. Retrieved from: http://ejournal.aibpm.org/index.php/APJME/article/download/628/620
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