Ryanair is the Irish airline and it is the low cost short haul airline, which is operating its flights on limited number of destinations. This airline has the vision to fly at the cheapest rates on their destinations and it is, perhaps, the most suitable airline from the passenger’s point of view. Due to economic recession in Europe, the airline was suffered badly and there was serious decline in their earnings during last year and it is trying to overcome the loss of previous year. Now it has started its growth at 3% in the first year and it will be stabilize at the 4.8% in the midterm.

The PESTEL analysis will help to understand the possibilities of market, the growth rate and the profit of the company in the current economic position within the country.

Political Factors

The political system in the country and their relationships with other countries has great impact on the airline industry. Ryanair is small and low cost airline and it has limited number of destinations, on which it is operating flights, so there is great effect on its business. Many airlines are flagship airlines and they have to abide by the political policies of the country. They think the free competition between the airlines can be threat to the state. The European Union has finished this trend as a result of liberalization of the airline industry. With this policy, the airline will make innovative pricing policy and product differentiation (Konstanty Kasprzyk, Lavinia Andrei, Marcel Reinders & Ruxandra Pana, 2009, P.48).

EU has issued directives for prohibition on subsidies by the government to airlines to establish level playing fields and this approach has shown the political developments in different countries (UK Essays, 2015).

Economical factors

The economic state of the country has great impact on airline industry. It has the direct relation with economy and trade cycles and the low cost airlines like Ryanair is less affected if compared with other airlines. When the business activities are reduced, then the number of passengers are reduced so the airline do not have enough passengers on any specific destination, which cause loss to airline (Konstanty Kasprzyk, Lavinia Andrei, Marcel Reinders & Ruxandra Pana, 2009, P.50)

The economic crisis result into downfall of the passengers to travel through their airlines and their revenues were also reduced and the passengers made booking of the seat at last time. The economic recession has bad impact on spending of the individuals and families. When the business activities are reduced due to economic recession, then the airlines observed the shortfall in their revenues (UK Essays, 2015).

Social Factors

The passengers look for the safety in the airline and if the passengers feel safe, then they will prefer to travel from the airline. In case of any mishap or fear of terrorist attacks, passengers will avoid getting boarding and the revenue of airline will decrease. There may be some health issues like avian flu or swine flu, it can shatter the trust of the passengers. If there is change in the demographics of the European Union, it can affect the airline industry. When the low cost flights are available then most of the people will like to travel by air and it will not remain a luxury for the people (Konstanty Kasprzyk, Lavinia Andrei, Marcel Reinders & Ruxandra Pana, 2009, P.51).

Ryanair is Irish airline and the staff of the airline is very polite and hospitable. The passengers impress with their habits and well beings. The airline provides excellent ground and in air services to the passengers. The passengers will surely prefer this airline due to their hospitality and low cost of their tickets and enjoy with this unique chance to travel through this airline.

Technological Factors

The emergence of internet and development in the technological innovations has created new change in industry. The video conferencing has provided the facility to people and especially to businessmen and they do not feel necessity to travel anymore and they can deal their business through this innovative technology. The airlines develop their webpage and they can get information on the internet about their flights and they can get booked their seats online (Konstanty Kasprzyk, Lavinia Andrei, Marcel Reinders & Ruxandra Pana, 2009, P.52).

The airline provides the facilities of audio songs and movies during the flights on their LCD screen and passengers can enjoy during their flight, so it can become great chance to enjoy with latest technology. The passengers can get complete information about any airline online and they can know the time and fair of the flight to any particular destination. The airlines have introduced new and latest software for providing information and providing services. With the advancement in technology, the business is spreading quickly and it provides more and more facilities and solve the issues of the passengers amicably.

Environmental Factors

Due to increasing awareness about environment, the airline industry has to face various problems from the environment protection agencies and also from the passengers. The governments have made policies for the protection of environment and introduce the EU Emissions Trading Schemes and it will control the CO2 emissions to encourage the industries to improve efficiency of CO2. The airlines will have to follow the environmental rules and they will help the governments to safeguard the environment by using latest technology and equipments (Konstanty Kasprzyk, Lavinia Andrei, Marcel Reinders & Ruxandra Pana, 2009, P.52).

Environmental issues have key focus for any global airline and the demand of the airline has been increased considerably to share in lowering impact of carbon footprint. Now it becomes the big airline as it has large number of airplanes and they fly to different destinations daily. With the increase in getting the goal of environmental awareness, Ryanair has to minimize the impact of carbon footprints on the environment (UK Essays, 2015).

Legal Factors

IATA is the international air traffic agency and it has made some rules and regulations to operate the flights across the world. The airlines have to follow these regulations and provide necessary benefits to the passengers. The airlines have to face the issue of airport ownership in which some of the airports are government owned and some are fully privatized.

They can give the monopoly to the management and it can give the competitive advantage but the privatized airports can have to face the operating cost. EU has issued the recent legislation to provide the better and sufficient rights to passengers, who travel from EU countries (Konstanty Kasprzyk, Lavinia Andrei, Marcel Reinders & Ruxandra Pana, 2009, P.49).

References

UK Essays (2015), PEST Analysis of Ryanair, available at https://www.ukessays.com/essays/marketing/pest-analysis-of-ryanair-marketing-essay.php
UK Essay (2015) (1), PESTEL Analysis of Ryan Air Management Essay, available at https://www.ukessays.com/essays/management/pestle-analysis-of-ryan-air-management-essay.php
Konstanty Kasprzyk, Lavinia Andrei, Marcel Reinders & Ruxandra Pana (2009) Page 47, Valuation of Ryanair, available at, https://www.scribd.com/doc/45679258/73/PESTEL-Analysis

The Republic of Union of Myanmar is situated in South Asia bordering India, China, Bangladesh, Thailand and Laos. The country is famous for ancient civilization remains and historical monuments. The women in earlier times used to wear rings around their neck since they were born and these rings are added with the passage of time. This does not alter their necks’ shape but definitely lowers the shoulder bone as a result of which their necks are exceptionally longer. The currency of this state is Kyat and most of the population is Buddhist. They serve rice with everything and judge health with level of fat a person has accumulated. The economy is mainly agriculture driven. It is a relatively safe country with low crime rate. People have to carry cash along as there isn’t proper banking setup in Myanmar with few ATMs and even fewer credit cards. (Interesting Facts about Myanmar)

Political Factors

The country started off as a democratic state but democracy was derailed in 1969 by General U Ne Win. His rule lasted for twenty six years in which the economic conditions became worse as corruption deteriorated the roots of every establishment and food shortage hit people badly. The protests began killing thousands of innocent people and finally another military coupe ended this regime. During this time Daw Aung San Suu Kyi rose as the prominent leader but she was jailed and then later house arrested for more than 15 years. She got freedom in 2010 and fought the presidential elections of 2016; however she lost to Htin Kyaw but she still will retain position in assembly and continue with her peace movement for which she won Nobel Prize as well. The new government will take charge on 1st April but army will still exert great force on governmental affairs since it controls the defense affairs of the state.

Economic Factors

Having established that Myanmar is an agriculture dependent country (59% of GDP), we know that weather conditions play a crucial role in determining each year’s produce. In 2015 Myanmar had floods and landslides in its peak agriculture months as a result of which crops were destroyed and economy received massive hit. Inflation shot up as prices of commodities went up due to shortage of supplies. The government called for support from international communities as it could not handle this all by itself. Myanmar is considered to be a relatively poor country with per capita income not increasing to a great pace. Industrial development has huge obstacles of power shortages and lack of credit resources as a result of which industries could not flourish and take over economy as the major source of income. The roots to all economic problems lie in the policies of 1960s when General U Ne Win took over and started isolation Burma from the rest of the world. These policies made country heavily agrarian and lack of completion and market failed to provide incentives to industries to develop. (Asian Development Outlook 2015 Update: Enabling Women, Energizing Asia, 2015)

Social Factors

The military regime oppressed people and did not give them freedom of speech not only this they also fueled ethnic violence and put a ban on teachings of other ethnic beliefs. The isolation policy also hid many of their social problems like hiring underage children in military due to insufficient man power available to suppress the nation, use of children in illegal occupations. In 2012 the ethnic violence erupted between Buddhists and Rohingya Muslims in which government failed miserably in protecting the rights and lives of minorities and even the Nobel Peace Laureate was silent on this issue, many Muslims were killed and so many others were made homeless. Education and health are undeveloped as major portion of budget is allocated to military and less on other social sectors. (Eimer, 2012)

Technological Factors

Since 2010 Burma’s/Myanmar’s economy started opening up and with that technology transfer began, although the mobile penetration is at 4% and internet at 2% but there is hope of that number increasing to a significant something. Apart from communication means development American company Cisco has paved its way to this country, many marketing and advertising agencies have identified this region as future growth driver. Foreign telecom companies have been allowed to transform government’s vision of “Smart and connected Myanmar” into reality. Myanmar was once the world’s largest rice exporter and centre for garment manufacturing but military regime and US sanctions took the status away from them. Now when the door to development and progress has opened once again then Myanmar should try to benefit as much as possible from the situation. (Bradford, 2012)

Environmental Factors

The most pressing environmental issue with the country is deforestation and illegal logging with the international companies coming in the issue is expected to soar up even higher. Environmentalists and protectionists have started raising the concerns in front of government so much so that President Thein Sein put a stop to a dam project not only this the increased economic activity has made other projects like Dawei Special Economic Zone and Letpadaung copper mine questionable. Literacy rate and ease of access to information have made people sensitive and aware about the rich heritage of their country and the danger it is in.

Law/Legal Factors

The legal and judicial system is corrupt to the core and in no state of protecting the citizens and foreign investors. They have been bribed in the past by military to feed their own interests and hence the whole institution has lost its credibility and soundness. Economy can flourish when people have faith in the system that whatever belongs to them will not be taken away by force or unfair means and they will be provided help and support to grow. Myanmar’s new government has to make sure that it takes steps and make policies that are necessary to win back everyone’s trust.

Bibliography

Asian Development Outlook 2015 Update: Enabling Women, Energizing Asia. (2015, September). Retrieved March 23, 2016, from Asian Development Bank: http://www.adb.org/publications/asian-development-outlook-2015-update-enabling-women-energizing-asia

Bradford, L. (2012, November). Looking Forward: Technology in Myanmar/Burma. Retrieved March 23, 2016, from Laurence Bradford: http://laurencebradford.com/looking-forward-technology-in-myanmar/

Eimer, D. (2012, September). Aung San Suu Kyi says Burma faces huge social problems. Retrieved March 23, 2016, from The Teloegraph: http://www.telegraph.co.uk/news/worldnews/asia/burmamyanmar/9553065/Aung-San-Suu-Kyi-says-Burma-faces-huge-social-problems.html

Interesting Facts about Myanmar. (n.d.). Retrieved March 23, 2016, from Travelling Myself: http://www.travelingmyself.com/2014/03/28/interesting-facts-about-myanmar-burma/

Introduction

Tesco is the world’s second largest grocery and generalized merchandize store which started its operations in 1919 in England. It is ranked after Walmart in profitability. It expanded from a grocery store to selling books, clothes, furniture, crockery, electronics etc. Jack Cohen, the founder of TESCO first purchased tea from T.E Stockwell and from there he got the idea for the name of his new venture TESCO which had three initials of his seller’s name and two of his. In 2012 it became the 15th largest listed company in London Stock Exchange.

TESCO entered into a partnership agreement with ESSO in 1997 by allowing them to open their petrol pumps on their retail outlets. It has been under investigation in the past for trying to form cartel with other big supermarket chains in order to influence and control the prices of various goods. (10 Interesting Facts about Tesco, 2014)

Political Factors

TESCO claims that it has no political affiliations and does not support any political party but the evidence suggests otherwise. In 2003 it made £44713 donations to different political parties. It is also alleged to influence government through its senior officials who also sit in some government regulatory board. It has been very prominent in many Labor party events. Supermarkets like Walmart and TESCO have been believed to influence government for reduction in taxes and expansion permission.

This is why these organizations support government financially and in their other political endeavors so that they can get their way in return. These giants do not accept openly about their political affiliations but in reality whenever they sense any strong contestant in politics they start funding his/her political campaign in return for favors. This is how they are able to sit in boards of most important government institutions, passing laws that are in favor of their businesses.

Economic Factors

In 2009 TESCO reported earnings for the first time that were under 10 percent growth that were because of the financial crisis that had hit the whole world and all consumers were cash stringent. But TESCO grew even slower than its rival chains that are of 3.5%. Some firms even reported losses but luckily for TESCO their earnings only slowed down and did not turn into a loss.

Then in 2011 it reported its worst six months in UK because of the rising unemployment, fall in income of people and overall shrinking economy made people to spend less on food, clothing, books and other things. (Kollewe, 2011)

Social Factors

People have changed their social habits and culture, now both men and women work in order to achieve a better lifestyle as a result of which now there is less time left for all activities like grocery shopping, meal preparation. Ready to cook and eat food has seen immense growth in recent years due to same reason and TESCO should develop its product line on the same lines if it wants to protect itself from becoming outdated.

Modern and flexible brands are sought after these days; consumers like to be associated with tech savvy brands. TESCO should develop its product lines keeping in mind the same social changes that have taken over the society.

Technological Factors

TESCO has invested heavily on technology like website development which has in turn increased its revenues by 10%. Apart from making investment in online experience TESCO has also improved its checking out system for the convenience of its visiting customers. There are now heat sensors installed in waiting queues area to measure the body heat and notify the staff when the queue is too long.

Also there are modernized and advanced scanners and bar codes readers to guard the store against theft and store lifting. CCTV cameras which can record the incidents for later evidence provision, they can also detect faces of last time offenders so the store staff can be careful about repeat offenders. (King, 2010)

Environmental Factors

TESCO in collaboration with Global Action Plan trained and gave employment to young individuals in order to help reinforce positive environment friendly behavior in them. These individuals became Energy Ambassadors of TESCO in order to reduce Carbon footprint of the company. Then TESCO has helped develop a Mushroom supply manufacturing facility which will help in recycling of waste and excessive waste through agriculture.

In 2010 TESCO was found to have been using shopping bags that were harmful for the living beings on Earth because they were built with lasting capacity of three months but the waste that was left was injurious to lives of birds and fish. It was asked to immediately replace its shopping bags to something environmental friendly.

Law/Legal Factors

The term TESCO Law was coined to give businesses permission to provide legal services to their consumers like they come for shopping in a supermarket and do one stop shopping they can do this in business too. But ironically TESCO never took part in this activity and does not provide legal services to its clients. So TESCO Law is not applicable to TESCO as many people confuse it as coming out from TESCO. However one situation that is TESCO is guilty of not abiding by Competition rules at Norfolk site.

The land bought by the owner actually gives it rights to handle the development according to his own desire and TESCO has been using these rights to prevent competition from entering the area. In 2010 it was allegedly doing so and could have faced heavy charges and fines if proven guilty.(Goodley, 2014)

Bibliography

• 10 Interesting Facts about Tesco. (2014, July 16). Retrieved February 02, 2016, from In Fact Collaborative: http://infactcollaborative.com/economics/facts-about-tesco.html
• Goodley, S. (2014, June 10). Tesco faces potential fines after failing to comply with 2010 competition order. The Guardian .
• King, L. (2010, January 01). Technology helps Tesco beat crunch. Computer Worl UK .
• Kollewe, J. (2011, October 2). Tesco feels economic squeeze with worst UK sales result for 20 years. The Guardian .

Introduction

Egypt is one of the most ancient countries in the world. The rulers of Egypt are famous for their unique and cruel traditions like in order to avoid mosquito sting they would move with naked slaves whose bodies were covered with honey. Both men and women used to wear makeup in ancient Egyptian culture and pharaohs used to cover their head all the time. When the king would die and has to be buried according to Egyptian culture, the slaves and wives would have to be buried along the dead body, alive!! The Egyptian queen Cleopatra which is so famous for her beauty was actually Greek. Egypt holds one of the Seven Wonders of the World; pyramids, which are a mystery till date as to how were they created in the age when cranes and heavy lifting machines were not invented.

Political Factors

Political instability and turmoil has plagued the roots of the country since long. Military rule is the major decision making force in the country and it has not allowed democracy to flourish. In 2011-2012 elections, for the first time democratic parties took part and it seemed as if Egypt has at last gained democratic vision and learnt from the past mistakes, but unfortunately the government couldn’t survive even a year and was dismissed and taken over by military coup. Since then, military, judiciary and political parties are struggling to gain control of power. This has fueled ethnic, secular and religious conflicts among Egyptians. Internationally Egypt and Ethiopia are in constant debate over the dam issue on River Nile, due to its heavy dependence on river water, international council has given veto power to Egypt to approve or disapprove any projects on this river and other countries who share the water source with Egypt are unhappy over this decision. Ethiopia wanted to construct dam on Nile in order to meet its needs of energy and export it to its neighbors too but Egypt is using its veto power against this project which has lead to conflicts among the two countries.  (Manfreda, 2014)

Economic Factors

Egypt’s economic condition is considerably better since July 2014 presidential elections but economy is still bleak due to a number of facts like high inflation rate of 10%, increasing unemployment rate from 10% to 13% (2010-2013), high debt servicing and debt to GDP ratio as high as 97%. Despite all these factors there are positive hopes regarding economy and faith of business community have been restored through reforms and expansion of Suez Canal. Since 2011 the economy had suffered as due to political instability tourism and foreign investment declined. Rising inflation increased class differences and made it difficult for poor to survive. Egyptian currency devalued against dollar which made imports even more expensive. There were oil shortages in the country due to lack of governmental support on providing subsidies on imported essentials. (Kingsley, 2013)

Social Factors

Unemployment rate is increasing and as a consequence the crime rate in Egypt has increased three times. The protests against government turns nasty at times where women get sexually harassed by men and thus a very unsafe society has formed there where women could no longer move about freely, alone. Women have to move around under protection especially in crowded areas where men would circle a single woman and assault her both physically and sexually.   Power shortage has hampered productivity of all fields of life, industries couldn’t fulfill their orders on time as a result of which they lost customers to more efficient foreign markets, equipment in hospitals malfunctioned due to frequent break downs. Fuel shortage leads to long lines of citizens waiting for their turn to get small quantity of oil just enough to run their vehicles.

Technological Factors

Ancient Egypt was technologically advanced; their pottery was sold all over the world. They invented small machineries which would carry out the construction work for them. They progressed in the fields of medicine, astronomy and mathematics. Egyptians used to write and keep records of events happening at that time and that is how we know about their culture. Their method of storing accounts of life was unique; stone carving, paintings etc. Egyptians invented paper and they used papyrus plant as a source. For trade and navigation purposes they created ships that would move through winds. Unfortunately all the glory and achievements is past now and modern day Egypt, due to lack of dedicated and honest leadership, is contributing nothing towards development of science and technology.

Environmental Factors

Major water source of Egypt is River Nile which is being polluted by industrial dumping. After the construction of Aswan Dam the flow of river water is reduced and farmers are forced to use chemical fertilizers in order to compensate for all the fertile silt and soil that was deposited by the river water. More importantly the storage of polluted water means high concentration of pollutants as a result of which marine life is in constant danger. Due to urbanization and heavy wind storms the agricultural lands have been reduced and thus a decreasing trend on agricultural produce.

Law/Legal Factors

Law and order situation in Egypt is never stable as it’s a constant tug of war between military rule and democracy, in 2011 protests and unrest lead to end of 30-year old tyranny of Hosni Mubarak and hence parliamentary elections were conducted but law and order situation again got out of hand when new elected President Mohamed Morsi was also dismissed by military coup followed by protests and showcase of displeasure by followers of Morsi. The ruling President has taken actions towards eradicating Islamic extremists from Egypt, many doubtful and unregistered mosques have been shut down and preachers have been arrested which clearly shows where this religious revolution is heading. Many religious scholars and critiques have blamed him for having and supporting the anti Islamic agenda which has been borrowed from the west. Therefore the unrest and politically instability continues.

Bibliography

Kingsley, P. (2013, May 16). Egypt ‘suffering worst economic crisis since 1930s’. Retrieved January 18, 2016, from The Guardian: http://www.theguardian.com/world/2013/may/16/egypt-worst-economic-crisis-1930s

Manfreda, P. (2014, November 25). Current Situation in Egypt. Retrieved January 18, 2016, from About News: http://middleeast.about.com/od/egypt/tp/Current-Situation-In-Egypt.htm

Introduction

Dubai is one of the most sophisticated and luxurious cities of the world, it is situated in UAE and has amazing sites to visit, all manmade. Like other Middle Eastern countries UAE isn’t gifted with anything but abundant oil and hence Dubai was made a tourist attraction all through government spending on its infrastructure. It is one of the safest cities in the world with literally 0% crime rate and that is why people feel so secure in visiting this city and roaming around on its streets even at the middle of the night. This was made sure through strict rules and regulations implementation. It also charges 0% personal income tax so although rents and property prices and inflation are all high there, ne could save the money due to no taxes. Local people now constitute only 15% of the total population rest are Indians, Pakistanis and Bangladeshis. Dubai itself is not rich in oil and its economy is all based on real estate and tourism. (22 Interesting Facts About Dubai That Are Larger Than Life)

Political Factors

There are no political parties in UAE but that doesn’t mean that it does not indulge into politics. It plays an important role in international politics. It is debated that oil producing countries because of getting oil rent, do not work to increase efficiency and hence productive efficiency is not there but that is not the case with UAE and Dubai. The political interests of rulers have not harmed the performance of the state. There is a dispute going on with Iran over three islands.

Economic Factors

Before the exploration of oil, Dubai’s economy was dependent on fishing and gold trading which was on decline, but with the export of oil the economy completely transformed itself and now is heavily dependent on tourism and commerce. Locals do not agree to perform laborious jobs and consider them beneath themselves that’s why Dubai is dependent on foreigners to join the workforce but the government has imposed strict restrictions on foreign labors and no one can stay in Dubai beyond the time period allowed by government. The city is a financial hub with trade free zones which lures investors and executives. Real estate projects like Burj Khalifa and Palm Islands are the centre of tourism and hence help the city earn profits. It is an open economy with no trade barriers and exchange controls. Foreign trade has been growing with an average of 11% for the last 27 years which shows that it has become a popular choice of businesses to open their head offices here, conduct annual conferences and meetings, and provide consulting services. (DUBAI ECONOMY)

Social Factors

Expatriates who arrive from third world countries solely for the purpose of earning well and send money back to their families find it very hard to survive there as living conditions thrust upon them are very tough with long working hours, uncomfortable living arrangements shared with so many others and tasteless food. They can’t even complain about these conditions as they will be asked to leave the state. For the nationals government has arranged for subsidized healthcare and education programs which will satisfy their needs and hence this is how peace is restored in the region despite of having so many people living there who belong to different ethnicities, cultures and races. Dubai is open and liberal in terms of other social factors like no strict policy on covering head or body for women and drinking alcohol is not prohibited as well unlike Saudi Arabia and other Gulf countries. (DeNICOLA, 2005)

Technological Factors

The profits earned through commerce and tourism are well spent on making technological breakthroughs for example Fly Dubai and Emirates are one of the largest airlines in the world having fleet of world’s latest technologically equipped aircrafts. Dubai International is claimed to be the busiest airport in the world. Use of technology has also aided Dubai in promoting tourism by creating apps that suggest the most attractive tourist places to visit, cuisines to try. Modern RFIDs are placed all over the city, driverless Dubai Metro can be seen which are ahead of times. However typical mentality of people with funds over there is to import from China rather than going through the pains of investing in R&D for years and coming up with the product themselves.

Environmental Factors

With rapid development, fiver star hotels and manmade island projects people tend to forget about environmental issues. Dubai’s biggest environmental sustainability issue is availability of clean drinking water, although water is present abundantly but it has to desalinated in order to be made drinkable, due to oil drilling and exploration activities of Dubai the salinity content in water has increased over the years. The carbon dioxide emitted from desalination plants pollutes the environment and also produces waste that is dumped into the sea. (ALDERMAN, 2010)

Law/Legal Factors

Dubai is considered to be one of the safest cities in the world with literally 0% crime rate, which means that the rules and regulations are strict and severe punishments are given to law breakers. Western clothing is allowed but one cannot go around exposing excessive skin in public nor public displays of affection and love are allowed, on beach the rules are slightly relaxed but topless bathing is strictly prohibited. The funny thing about law enforcing authorities here is they arrest the person and depot him/her…simple! Apart from this the custom laws are so strict that if someone is found carrying pills for flu or fever they can face four years sentence to jail, any sort of drug, inappropriate or anti Islamic material cannot be brought to the city. Although it is a tourism place but taking pictures need to be done very cautiously there, no local can be shot without asking for permission first and too many government buildings cannot be shot as well.

Bibliography

22 Interesting Facts About Dubai That Are Larger Than Life. (n.d.). Retrieved January 14, 2016, from Urban Cocktail: http://grabhouse.com/urbancocktail/interesting-facts-about-dubai-that-are-larger-than-life/

ALDERMAN, L. (2010, October 27). Dubai Faces Environmental Problems After Growth. The NewYork Times .

DeNICOLA, C. (2005). DUBAI’S POLITICAL AND ECONOMIC DEVELOPMENT:AN OASIS IN THE DESERT. Williamstown, Massachusetts: WILLIAMS COLLEGE.

DUBAI ECONOMY. (n.d.). Retrieved January 15, 2016, from dubai.ae: http://www.dubai.ae/en/aboutdubai/Pages/DubaiEconomy.aspx

Introduction

Lakme is a cosmetic brand of Hindustan Unilever and is doing really good. It is associated with fashion icons in India. Prime Minister Jawahir Lal Nehru observed that Indian women are spending fortunes on beautifying themselves but due to absence of any local brand all of this money is going in foreign brands’ pockets, therefore he personally requested Tata Oil Mills to establish a local cosmetic brand.

Later on it was bought by Unilever along with other ventures of Tata Oil Mills. Every year Lakme hosts Fashion Week twice a year which is the most popular and awaited fashion event. Its summer resort is run in February and Winter festive in August. Leading fashion icons and celebrities participate in this event.

Political Factors

Designers have used Lakme Fashion Week platform for various political protests many times. When violent events were taking place in India due to Hindu Muslim conflicts and many lives were taken for this reason than designers protested against lack of action from government. They made their models walk on the ramp with their face and mouth covered with blood. Then when the designers were subjected to censorship by the government they again protested it through their designs and attire in Lakme Fashion Week.

When Gujarat was under attack one of the designer went as far as depicting Chief Minister Modi as Hitler on the same platform. This Fashion Week is also a showcase for all Indian textile talent and art; many industrialists attend the show to know about latest trends and investment ideas and market their brands. (Deven, 2013)

Economic Factors

Indian cosmetic market was around 250 billion Indian Rupees in 2011 and was expected to grow annually by 17% due to increase in purchasing power parity and decrease in inflation, higher literacy rate and increasing awareness for fashion, all has accounted for this rapid growth in this market. Therefore whoever is thinking to jump on the train better do it now or forever hold their peace? Lakme is the market leader with around 18% market share and expectations to grow as the market grows.

Marketers have developed a segment of men in this category too by showing them over and over that their skin needs as much care and protection as women. Also Indian Muslims is a large untapped market with great potential to grow; their main concern is that the products that they use are carmine and alcohol free, which are prohibited in Islam. (King, 2013)

Social Factors

Just as designers were using Lakme Fashion Week as a platform to raise their voices on political issues they do the same for some social issues too. Manish Malhotra, India’s star designer, known for his wedding collections, promoted gender equality and raised his voice against any kind of domestic violence based on gender discrimination. Another young designer posted whole show on Instagram to include every follower, according to her whole of India cannot be invited to a fashion show but they surely can join the Inst show.

This has created the image of a brand which is liberal and social, modern and classy. This platform has also participated in social events and causes like raising money through Fashion week for flood victims and terrorist attack victims.

Technological Factors

Lakme is the category leader and this category demands high volume of R&D. every day new colors get I trend and old colors become out of fashion, companies have to keep up and even stay ahead of trends. In skincare customers demand high research driven products which are a better solution to their needs and problems, in order to maintain its leadership position Lakme has introduced its Radiance range. T

he technology infuses with the skin cells and protects the skin from any ham like tanning, discoloration, pimples, acne etc. Similarly in haircare segment it has developed advanced technology through which customers will get beautiful vibrant colors without damaging health of hair. Lakme understands the amount of research which is required by it being the industry leader.

Environmental Factors

As the awareness and need for cosmetics are increasing, the skin problems reported to doctors are also on the rise. No matter how lustrous this category is there are certain side effects attached to the daily and excessive use of cosmetics, like discoloration of lips and eyelids, uneven skin tone etc. women using lipsticks would be in taking minerals above their required range. In India use of Mercury in cosmetics is prohibited except for eye care products but when tested, fairness creams were found to have a dangerously high level of Mercury in them; Lakme Perfection Radiance was among them.

Lakme spokesperson later clarified that they do not use Mercury in any cosmetic products, however presence of Mercury might be because of its natural occurrence and air and traces can be absorbed by the products when exposed to air. (Chandra Bhushan, 2014)

Law/Legal Factors

Lakme is a public limited company therefore it has to follow rules regarding disclosure of true financial statements depicting the correct picture of the company to shareholders and also informing them about any major investment decisions that the company might undertake. It has to follow laws regarding mineral content and other ingredient level in their products. It is in a sensitive business, their products get in direct skin contact with customers, any fault on their part can lead to suits and defamation, loss of customers and revenue, and therefore they have to be highly careful in whatever new products they are launching.

They own intellectual and copyrights to many new technologies that they have developed over the years for which they have to pay royalties etc. in order to present themselves as ethical they also have to be socially responsible and portray themselves as a company who respects laws.

Bibliography

• Chandra Bhushan, K. P. (2014, January 31). Beauty and the beast. Retrieved December 28, 2015, from Down to Earth: http://www.downtoearth.org.in/coverage/beauty-and-the-beast-43255
• Deven, M. V. (2013). On the Runway: Lakme’s Protest Song. Sadie Magazine.
• King, M. (2013, January 24). Indian cosmetics market led by Lakmé. Retrieved December 28, 2015, from Companies and Markets.com: http://www.companiesandmarkets.com/News/Consumer-Goods/Indian-cosmetics-market-led-by-Lakm%C3%A9/NI6435

Political Factors

Kenya was considered most stable country in Africa until late 2007. The disputed elections that took place in 2007 gave rise to violent riots that took the life of six hundred people. As a consequence it was feared that Kenya would split into different tribes and would face the unending uproar every now and then. But these notions were discarded by the experts as the premature assumptions. Kenya is a young democratic state and its ethnic divisions are rooted in the political crises of Kenya.

The most influential rank of government is that of president in Kenya. The parliament and jurisdiction is sub subservient to the president. Parliament is elected by the general population by it holds little power over them. So when the voters realized that their elected bodies are in no condition to address their issues, they started to doubt their governmental institutions.  The elections of December 2007 add further to the fact that the political authorities in Kenya are not independent. The increasing corruption in the governmental institutions has damaged people’s faith in their ability. Kenya was ranked 150 out of 180 countries on Transparency International’s Corruption Perception Index. According to the Kenya Bribery Index, published in 2007 by Transparency International, Kenya paid twice as many bribes in 2006. (Hanson, 2008)

Economic Factors

Kenya’s growing economic progress shows its potential to move forward. The Kenyan economy registered its performance in 2102 by the growth of 4.6% in GDP compared to 4.4% in 2011. It has witnessed improved prices of good and exchange rate stability. However it still needs to increase its income growth per capita at a faster pace as compared to 1.7% in 2012. Kenya thrives on its agriculture when it comes to increase its economic growth

The World Bank has estimated a growth rate of 4.7% in GDP in 2014 and has launched a $4billion program under its new Country Partnership Strategy 2014-2018(CPS) to support Kenya’s development.

Kenya has the advantage of increasing its economy by mining and quarrying sectors. However a strong and coherent legal policy should be made to supervise its productivity. ((KIPPRA), 2013)

Social Factors

Socially, Kenya suffered a lot after a few prosperous years of its independence. The poverty increased from 49% in 1990 to 55% in 2001. The life expectancy declined from 57 to 46 years of age due to outbreak of HIV/ AIDS. Kenya is a highly unstable society which suffers from racism by class, gender and religion. (bank, 2006).Kenya inhabits more than 70 tribes among the Africans. Each tribe has a left a significant mark on Kenyan culture. However, Kenyan culture is westernized and has lost its true essence.
The literacy rate in adults is 87%. The annual population growth is 2%. Most of its population lives in villages.

The crime and drugs are major issues of the urban area. The government has institutions and hospitals which provide education and health aid to the poor free of any cost. Women are considered second citizens and men exercise the power and authority. Polygamy is common in Kenya and it is considered a normal act to acquire more than one wife.

Technological Factors

Kenya has taken a leap in the technology sector as compared to the 1990s, especially in the IT department. Kenya has managed to establish e-government services in collaboration with India. Kenyan schools are fully equipped with latest computer labs and instruments.KenGen is the state owned power generating company which is taking advances to increase its geo-thermal power reserves. Lake Victoria is being explored for potential gold mines.

UNESCO Regional Office for Science and Technology for Africa, situated in Nairobi, is a notable scientific institution. Coffee and tea research foundations, plant breading research stations and medical research for tuberculosis and leprosy are also in function in Kenya.

Information and Technology Africa (ICT Africa) was organized along with Nairobi-based African Telecommunications Union and the Union of National Radio and Television Organizations of Africa but the question of putting this technology within the reach of every Kenyan is still unanswerable.

Environmental Factors

Environmental sustainability is a significant issue in Kenya. Kenya has a work force of 75% and only 8% of land. As a result Kenyan farmers are facing soil erosion, deforestation etc. Different regions of the country cope with different climates with medium rainfall in the northern region to the higher rainfall in the central, western and coastal regions. The diversified climate and the escalating rural to urban migration are resulting in the varied cultural settings in the country. The climate in equatorial regions is suitable for the growth of flora and fauna. Kenya has an advantage of that and it has wonderful potential for tourism.The diverse environment has created many job opportunities for the people.

Law/Legal Factors

Kenya has the British law from the colonial times. It also practices the law of Arabs in different tribes two settle a dispute between two Muslims. The legal facilities are not free of cost in Kenya which results in jailing of a lot of Kenyan poor innocents due to lack of legal defense. Kenya has a bad reputation in regard of human rights.

The riots which occurred during elections have left the mass and communication sector in jeopardy. Even though the constitution of Kenya, the Common Law and the Statutory Law defines the rights of media, the press is not given the freedom of speech. The responsible authority is the legal framework which has failed to guaranty the safety of press due to its weaknesses. Corruption is also a milestone that legal system of Kenya has to face but for now, however, it has miserably failed to find a solution to it.

Bibliography

(KIPPRA), K. I. (2013). Kenya economic report 2013 Creating an Enabling Environment for Competitive ans Sustainable Counties. Nairobi: (KIPPRA), Kenya Institute for Public Policy Research and Analysis. bank, w. (2006). Republic of Kenya Country Social Analysis.

Hanson, S. (2008, January 25). understanding Kenya politics. Retrieved from council on foreign relations: http://www.cfr.org/kenya/understanding-kenyas-politics/p15322 kenya. (n.d.). Retrieved from infoplease: http://www.infoplease.com/country/kenya.html

Kenya country profile. (2015, December 17). Retrieved from BBC news: http://www.bbc.com/news/world-africa-13681341

Essays, UK. (November 2013). Pestel Analysis Of Kenya Economics Essay. Retrieved from http://www.ukessays.com/essays/economics/pestel-analysis-of-kenya-economics-essay.php?cref=1

Political

H & M has been under pressure by the international community for opening stores in Israel because Israel does not respect international laws. H&M denied taking any political or religious stance but Israeli officials stated that by opening a store H&M is helping them economically to establish peace in the region. The stores were also opened on controversial sites from where Palestinians were expelled, brutally killed and wiped off so they can never return again. 24 organizations protested against this action of H&M and many even boycotted them.

Second incident which made H&M controversial is the fact that they used to get their products made from Bangladesh due to cheap labor and cotton; most of the factories in Bangladesh are not socially responsible with safety rules being ignored completely. In 2006 alone there were 1100 deaths due to fire cases in Bangladesh and H&M used to source their merchandize from one of these factories. This made them realize that exploitation of underdeveloped market is destroying their image and leading to decrease in sales. Another such incident happened in Cambodian factory too. After that media started condemning them so they signed fire protection treaty according to which they will only work with factories who have proper equipment and safety measures implemented. (Nieuwhof, 2010)

Economic

They ensure best prices through efficient procurement by buying in bulk and from markets that offer the best rates, in house designing, and efficient inventory management system. Besides being able to maintain competitive pricing strategy, H&M is exposed to economic shocks due to expansion in so many countries. Interest rates, inflation and currency rates fluctuations make it difficult for an MNC to operate while maintaining a stable pricing scheme. Also taxes, import duties and other import laws changes in different countries make it difficult to source at the catalogue price. (H&M)

Social

It has catered to women participation in economic activities issue by employing more women than men in its offices and at board levels, thus providing women the equal chance to showcase their talent in an industry which concerns them the most. Secondly it has started working with International Labor Organization to provide better wages and ensure proper hygienic working conditions that are safe to work in. the idea is to help develop the third world markets by introducing them to modernized procedures of working and in the process secure profits, but ensuring that workers are not exploited.

H&M has realized that access to safe and clean drinking water is the most pressing issue in developing countries; therefore it has formed coalition with UN agencies and helped around 150,000 people until now in Pakistan, India and Bangladesh to access hygienic drinking water. H&M has also embarked upon the journey to save electricity in its retail outlets. Recycling of unwanted and wasted clothes and use of organic cotton in its products shows H&Ms efforts for safer and better world.

Technological

For H&M it is very important to stay updated as the world is changing as it is in the business of fashion and new trends are coming up every season, plus it is in the catalogue business which means that it stays one season ahead of what is offered in stores for example if it is summer then sourcing of winter collection would be in process due to the lead time for products. Considering the complexity involved in clothing business it has to embrace new technologies as they pave their path in this world in order to keep up with the current demand. Designs have to rapidly change and be in line with the fashion industry.

Environmental

H&M is a giant in retailing therefore it is always in spotlight one way or the other, it has to be really careful in whatever actions it takes. It makes sure that from whichever country it is souring its merchandize, there are no environmental hazards involved in the making of these products. The factories are following environmental law; there is no illegal dumping in the water.

Legal / Law

It makes compulsory to all its suppliers to follow the national laws of the countries in which they operate, and if any of H&M’s requirements are in conflict with the national law then they must be informed. No child labor is allowed in the manufacturing of company’s goods, in this case also national law will be followed. It will be ensured that the factory has safety and emergency exits, fire alarms, fire extinguishers and other relevant equipments. Other basic laws will be implemented regarding the hiring employee on his/her own free will and not making any forced contract, also not hiring any criminal. There will be equal employment opportunity for all genders, cast, race, culture and religion. All employees will be given wages, benefits and leaves that they are entitled to according to their position in the company. H&M also performs regular financial audits to maintain transparency in operations and business.

Bibliography

(n.d.). Retrieved December 09, 2015, from H&M: http://about.hm.com/en/About/Corporate-Governance/Other/Risk-management.html

Lo, D. (2013, March 21). Did You Know H&M is the Biggest User of Organic Cotton in the World + Other Fun Facts. Retrieved December 09, 2015, from Livingly: http://www.livingly.com/Shopping+News/articles/vnJF-jUcwyO/Know+H+Biggest+User+Organic+Cotton+World+Other

Nieuwhof, A. (2010, March 31). Swedish fashion chain H&M under pressure. Retrieved December 09, 2015, from The Electronic Intifada: https://electronicintifada.net/content/swedish-fashion-chain-hm-under-pressure/8759

Political

Government policies and regulations regarding agricultural products will affect the farmer’s decisions to keep livestock and extract milk out of them relative to other uses of livestock. If government policies and incentives are in favor of, for example, promoting beef or mutton, it would be more in farmer’s interests to slaughter their cows rather than draw milk from them. This is especially true in agrarian economies.

In certain countries which import agricultural products instead of producing its own, the dairy industry would also be affected by import laws as well as the government’s foreign relations. Similarly, a company that exports its dairy products must take care to comply with the regulations of its own country, but also of the country to which it wishes to export to.

Economic

The most obvious economic factor affecting the dairy industry would be purchasing power in the economy as a whole. Milk in its most basic form is considered an essential product and people still make an effort to purchase milk regardless of their cash position. As a result, the sales of milk would not be significantly hit in case of a reduction in a family income, unless the income is reduced to a bare minimum. On the other end of the spectrum, an increase in purchasing power will only boost the sales of milk up to a certain level after which it would taper off, as there is a limit to the amount of milk a family can assume.

Increase in purchasing power however can lead to an increase in the acquisition of pets such as dogs and cats and their spending on these pets will increase. This means they will be purchasing more milk to feed their pets, and this will lead to an increase in milk sales. A reduction in purchasing power, for example one which is caused by an increase in inflation, will have the opposite effect as people cease to acquire pets or abandon their existing ones.

In the case of dairy products other than milk, an increase in purchasing power will cause an increase in consumption, while a decline in purchasing power will have the opposite effect. This is because these products come under the category of luxuries and/or non-essential goods.

Sociological

A move towards vegan lifestyles will negatively affect the sales of dairy products. Vegans make it a point to shun all animal products, including milk and eggs, in their lifestyle including their diet. As this lifestyle gains more and more followers, the sales of milk and other dairy products, including ice cream and chocolate will decrease, negatively impacting the dairy industry.

Another factor that could affect the dairy industry is growing concerns over halal foods in regions where Muslims are in a majority. This is because Muslims do not consume products that they do not believe to be halal, so if a dairy product manufacturer is considering to expand into a Muslim-majority region it must take care of this issue before it considers entering such a market. Milk itself is generally considered a halal product, but other ready-made desserts for example ice creams will have to be halal-certified before they can expect to be successful in Muslim-majority parts of the world.

Attitudes towards obesity can also affect sales of milk and dairy products in the market. A general perception that full-fat dairy products contribute towards obesity can cause a shift away from full-fat versions towards healthier lower-fat or skim varieties. Similarly, other ingredients such as sugar and gluten may also trigger certain conditions such as diabetes or gluten allergies. A dairy manufacturer needs to take all this into account before launching a particular product or product line.

Technological

Technology has made it possible for dairy manufacturers to market several different kinds of dairy products, along with several variants of these products at a very low cost.A main factor in the upward trend of the dairy industry has been the pace with which technological  advances have been embedded into farming practices, often enough under the pressure of falling prices and the necessity to vindicate land values resulting from  excessive optimism in periods of rising prices.”

Environmental

The dairy industry is heavily dependent on the health and availability of livestock. Plagues, epidemics and other diseases affecting the livestock, more specifically cattle, will reduce the quality of milk and supply will be adversely affected if the livestock is killed off.

The climate in which a dairy manufacturer chooses to operate is another concern. In a warm climate, a dairy manufacturer will have to look into methods of preservation in order to be able to extend their product’s shelf lives without the items going bad. Similarly, in the case of refrigerated or frozen foods they will also have to look into ways of extending durability in regions where power outages are common.

The climate also influences the product lines the manufacturer will branch into. In warmer countries, for example, ice creams and frozen desserts may be more successful, while in a colder country cheese or tea whiteners would be more successful than ice creams.

Legal

Organizations such as the FDA in the United States and their counterparts in other countries heavily regulate food items in their respective countries. The dairy industry is no different as it too will be required to abide by any laws imposed by all food regulatory bodies in the countries in which they operate. While the specifics vary from country to country, many laws are similar across all countries. For example, most countries require all food and beverage manufacturers, including dairy manufacturers, to display complete nutritional information of all their products very clearly on the product labels. This includes calorie counts, serving sizes, number of servings per container as well as nutrient information.

Dairy manufacturers will also have to comply with all laws related to advertising and product labeling in their own country. For example, they will have to clearly mention any potential allergy-causing ingredient, for example nuts or gluten, on their product labels. Similarly, they will also have to refrain from false claims in advertising. For example, they would not be allowed to state that a particular product is “100 percent sugar-free” when there are traces of sugar in it.

References

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Factors affecting milk production in the smallholder dairy sector of Zimbabwe. 2015. Factors affecting milk production in the smallholder dairy sector of Zimbabwe. [ONLINE] Available at:http://www.lrrd.org/lrrd18/5/ngon18072.htm. [Accessed 13 December 2015].

Five Factors Affecting Dairy Markets | Agweb.com . 2015. Five Factors Affecting Dairy Markets | Agweb.com . [ONLINE] Available at: http://www.agweb.com/blog/dairy-market-fundamentals/five-factors-affecting-dairy-markets/. [Accessed 13 December 2015].

Factors affecting dairy farmers’ attitudes towards antimicrobial medicine usage in cattle in England and Wales . 2015. Factors affecting dairy farmers’ attitudes towards antimicrobial medicine usage in cattle in England and Wales . [ONLINE] Available at:http://www.sciencedirect.com/science/article/pii/S0167587715002093. [Accessed 13 December 2015].

The Dairy Industry contd. 2015. The Dairy Industry contd. [ONLINE] Available at: http://www.techhistory.co.nz/OntheLand/Dairy.htm. [Accessed 13 December 2015].