Pestle Analysis Essay example

Singapore: It has growing affinity for Western-products. The per capita GDP of US$28,100 and is 5th wealthiest in the world. It has 100% urbanization rate with third most expensive Asian country to live in. The existence of rival Morton's Steakhouse and its ability to survive there shows that the consumers have the liking toward this concept.

Tesco is an international or global business. Tesco is very successful as it is a global business. Tesco sells food as their main product but they have recently invested their money and started selling clothes as well as electronics. Tesco will use the different types of capital to help them with methods which affect them in either being successful or unsuccessful. Tesco would rely on Human, Social, Financial and Physical capital as it helps to ensure their business runs efficiently on a day to day basis. As a result, these capitals will benefit Tesco’s in many ways because it will help Tesco to improve their performance and satisfy their customers wants and needs.

Thus it provides jobs for all tiers of population and helps the government to reduce the unemployment levels in the general public. In a industry where the employee turnover is less talented to highly skilled exeptional workers, undergrats, students, incapacitated people & senior citizens are desirable employees for Tesco because they propose a higher level of devotion and loyalty therefore represents desirable work supply. In addition they are also prepared to work at a lower remuneration rate.. Those little associations close down or need to bring down their net incomes generously keeping in mind the final goal to make due around there. In any case that rival eventually benefits the overall public as an issue by virtue of lower costs.

As a business Tesco needs to be aware of the social markets around them as and when they arise. For instance in August leading up to the new school year in September they will have school uniforms, stationary and other school equipment in stock. If they didn’t then parents may choose to do other shopping such as groceries in competitors stores who do provide such merchandise or who are closer to specialist retailers to save on multiple trips. This could impact on the businesses profits, especially if the store was in an area which had a high, school age population.

An environmental analysis in plays an essential role in business management by providing possible opportunities or threats outside the company in its external environment. The purpose of an environmental analysis is to help to develop a plan by keeping decision-makers within an organization. The changes include exchanging of executive parties, increasing guidelines to decrease pollution, technological developments, and fluctuating demographics. An environment analysis helps the industries to improve the outline of their environment to find more opportunities or threats.

The purpose of this paper is to discuss the impacts of different environmental factors on the business operations of a company. The discussion has been made in the light of international accepted microeconomics concepts and practices.

These factors influence the internal environment of an organisation and they help in identifying the past and the present of the company, It also provides a frame work for reviewing strategy position and direction of the company.

It is also easy for many other companies to set up headquarter in Singapore as their starting point in Asia to make it possible to reach to its market point. In addition, Singapore is unique in different lifestyles and culture. It is also known for its capability of attracting sizable foreign investment, pro-business environment and entrepreneurs. Singapore focuses more on a knowledge based economy which can be seen in its education sysem. Furthermore, Singapore is located in the heart of Asia and it plays an important role in international

Singapore has a highly developed market which has historically revolved around extensive exports trade, in other words an export driven economy hugely dependant on export of goods to other countries.

International manager Mathew Barlow is quoted in reference to expansion of operation to Singapore that, "Singapore is a great export location for us at the moment

How can the environment influence the company? How can the current environment influence the company?

In today's world, no business operates in isolation without interacting with the environment where it operates. Irrespective of the nature of business whether public or private organization; manufacturing; service industry; local or international firm, its operations are inhibited by the environment in which it operates.

Singapore is an island that lies just off the southern tip of the Malay Peninsula between the South China Sea and the Indian Ocean. Its strategic location on major sea lanes has provided the country with an economic importance in Southeast Asia. Singapore is often considered as a base for global enterprises looking to expand into Asia and Asian enterprises looking for global connectivity. Located at the heart of Asia, Singapore is sitting at the centre of business opportunities. Having the four key attributes - Trust, Knowledge, Connected and Life, Singapore is being positioned as an ideal city to Work, Live and Play. Singapore was ranked first in Mercer’s Quality of Living Survey 2009.

The Republic of Singapore celebrated its 42 years of independence in year 2007. Situated at the southern tip of Malaysia, Singapore currently holds a population of 4.68 million as of June 2007. At 704.0km2, it is ranked 4th in the world for its population density. During the past four decades, the economy as measured by real Gross Domestic Product (GDP), multiplied by over 20 times (Ghesquiere, 2007, p.11). As a small and extremely open economy, Singapore long term survival is very much dependent on the ability to maintain its viable position and remain afloat in the sea of global competition (Mun Heng et al, 1998, p.14).

An organization is an open system; therefore it interacts with its environment. To manage the relationship with the environment, a large part of strategic planning is concerned. The environmental factors can be divided to 2 main categories, which is MACRO and MICRO .Macro environmental factors seriously affect an organization business practice, profitability and future progress. It can