pestle analysis for supermarket industry in sri lanka
Lastly, Cargill A. should study the consumers leisure interests and should focus more on enhancing the customer experience if customers prefer experiential products over traditional product offerings. Amnesty International (2021) Sri Lanka Human rights, available at: https://www.amnestyusa.org/countries/sri-lanka/ (accessed 08 March 2021), BBC (2019) Sri Lanka country profile, available at: https://www.bbc.co.uk/news/world-south-asia-11999611 (accessed 01 March 2021), Condiliffe, J. Cargill A. should consider the following legal factors when exploring a new market. These conditions are often standard. International Journal of Business and Management, 7(24), 52. The global expansion strategies of the Cargill A. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. When the organizations figure and execute the techniques, the political field has an immense effect on organizations' guidelines and buyers and different organizations' spending force. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. But even smaller shops can benefit from offering discounts and sales on products. The business practices of the Cargill A. are influenced by the prevailing economic structure. Approximately more than 21 million people are populating Sri Lanka. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. That doesnt mean they should avoid having a business website or showcase their products online. Similarly, anti-discrimination laws (like equal employment opportunity) also need to be carefully studied when developing human resource practices as discriminatory suits against employer harm the organizational image and affect organizations ability to attract and retain the talent. Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism, collective social trends, technological changes and evolving legal system. Political factors: Anti-trust issues. Focused R&D and innovation at Blue Star driving growth: Blue Star Limited strengthens its R&D ecosystem, enabling it to release new, innovative goods and services to meet various client needs, giving Blue Star a significant advantage. In that case, you will prefer to go to a grocery store to buy the essential food items so you can prepare dinner as soon as possible. Operating in such a market can lower the production cost of Cargill A. Supermarkets make shopping easy. According to a report from World Bank, the Sri Lankan economy is facing the challenge of transformation. 5.4 Ansoff Matrix Analysis 5.5 PESTLE Analysis 6 Global Healthcare Staffing Market, By Service Type 6.1 Introduction . The regulations affect which products can be imported, exported, and sold in stores. However, there are some challenges facing the Sri Lankan economy. Rather than just buying products they only need. Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. It is important for Cargill A. to study the current trends in the country's political scenario as changes in government may alter the government's priorities towards the development of different industries. Cargill A. need to study data protection regulations to protect the customer data. Retailers who offer products online can collect data provided by their customers. . The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. It also means more investors are becoming interested in the profitability offered by retail stores. (2012). Over the years, the trends have changed. Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. - Political stability and policy continuity is essential for economic and business growth. Moreover, the business performance of Cargill A. is also influenced by the extent to which the host country government has spent on core infrastructure development. This article is only an example Financial Times Prentice Hall. Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable). These products arent bought by retailers on a whim. Rather than spending weeks trying to locate where the contamination started. Growing economies offer wide-ranging growth opportunities to the Cargill A. Understanding these two things helps to find items more likely to boost profits. 1189 Words; 5 Pages; Jun 15th, 2018 Published . Strength. Sustainable business strategies and PESTEL framework. The grocery industry currently seems to be in a decline stage since now the demand for the grocery industry has fallen as people have different alternatives such as e-stores and supermarkets. Out of these 40,000 stores, more than 26,000 are simple grocery stores. If you purchase a report that isupdated in the next 60 days, we will send you thenew edition and data extraction Free! Today, well discuss the pestle analysis of Sri Lanka. Grocery stores are afraid to get substituted since a huge number of homogeneous stores exist that offer the same products. If Cargill A. decides to enter in markets with the corrupt economic, political system, it will threaten the organization's sustainable development by destabilizing the society, harming justice system and endangering the rule of law. It is important for Cargill A. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. And as the retailer grows, new legislative laws come into effect. Instead, they are owned by small sole proprietors. (2008, December). The products are either shipped to the customers home or the closest store for pickup. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like Cargill A. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. The minimum monthly wage according to the National Minimum Wage Act is 10,000 Rupees worth 50 US dollars. This is the third major source of revenue generation to the economy. Posted by Zander Henry on The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. The only thing left for the company to do about these changes is abide by them. Not following these laws exactly as outlined will lead to legal troubles like bankruptcy and foreclosure. Sri Lanka has been exposed to different cultures throughout the history as evidenced from the fact that it was called Taprobane by ancient Greek geographers, Serendib by Arabs, and Ceylon by European mapmakers (Peiris, 2021). The adoption of new technologies has shortened the lifecycle of new product development. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. ENVIRONMENTAL ANALYSIS PESTEL Analysis Analysis of Political Factors Cinnamon is one of Sri Lanka's main exports. ~ 0.0 Page). Research and development activities are highly important in an environment characterized by creative disruption. When retail stores branch into other countries, they need to abide by the policies in that country too. Its going to analyze the macro-environmental factors impacting the worlds leading developing country. IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. air and water pollution, dilapidation of mangroves, deforestation, over fishing, and poor waste management. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. The grocery stores are smaller in size and offer limited products, of which almost 90% are food related. Cargill A. must consider these factors to ensure compliance with consumer protection laws. Cargill A. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. The country needs a lot of reforms like equal treatment of minorities, human rights, communal harmony, and a stable political environment in order to compete with the world. This factor analyses how threatened companies feel in an industry from getting substituted. This depends upon the ease through which new firms can join the industry. The retail industry was able to hold itself up even during the recession. Likewise, some shops in other countries have to pay a tax for offering fatty foods. Sri Lanka has a mixed legal and judiciary system. Ansoff Matrix in McDonalds (McDonalds Growth Strategy), https://www.amnestyusa.org/countries/sri-lanka/, https://www.bbc.co.uk/news/world-south-asia-11999611, https://www.britannica.com/place/Sri-Lanka, https://www.worldbank.org/en/country/srilanka/overview. USD 300. As does data and copyright laws. Technological factors affecting Sri Lanka. Although the eat-in format in limited-service restaurants dominated value sales pre-pandemic, it was already losing ground to takeaway and home-delivery options, Standalone remained the dominant format of consumer foodservice outlets in Mexico in 2022, due the proximity of these operators to residential areas. This repels customers. Sri Lanka has a rich and long history dating back to125,000years ago, but the country has a documented record of3000years. Not only to streamline services, but also to reach audiences worldwide. Cargill A. needs to understand the online shopping behavior by considering the generational differences as younger consumers are more inclined to shop online than older customers. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. It pressurizes the Cargill A. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. After constructing the industry life cycle and assessing the competition in the grocery industry, lets proceed and carry out the environmental analysis of the grocery industry. (2009). P. - John Keells are known as the influential people. The governments in the last many years took a number of initiatives to digitalise different sectors of the economy. This market research report covers current and future business risk analysis forSri Lankaalong with macroeconomic factor analysis. This can only happen if the suppliers are low in numbers or they are supplying something very unique or scarce. Likewise, the literacy rate (over 92%) is very high as well. Economic factors: Nearly $30 trillion dollars in a couple more years. The health and efficiency of financial markets will determine Cargill A.s ability to raise the capital at fair prices. Strategy. However, if the economy is poor, it doesnt matter how many products are offered. To gain more market share with identical products, grocery stores spend money to make their store look more attractive so that more customers get attracted to their stores. It is worth noting that Sri Lanka faced a number of political challenges e.g. However, grocery stores are smaller and contain specialized items mainly relevant to food and beverages, while supermarkets are huge and have different departments. Strategy planning process often requires five steps -. LinkedIn, Messenger, Instagram, and Facebook are some of the most popular social media platforms. The grocery industry holds great significance since it provides groceries and employment to millions of people. The advent of social media and e-commerce has encouraged online shopping behavior among customers. 8.4 Bn. Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for Cargill A. due to jeopardized public trust on business organizations and overall political and economic structure. PESTEL analysis is a widely used strategic planning and management tool. Check your email of the box and hire Case48 with BIG enough reputation. These stores specialize in food items. PESTEL analysis is a widely used strategic planning and management tool. Cargill A. can leverage the opportunities offered by social media marketing to improve business performance. For instance, people enjoy buying products in bulk. Back then, there wasnt enough technology for e-commerce, and few supermarkets were present. But just like every other industry, the retail sector is affected by the six principles of PESTLE/PESTLE analysis. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). Academic writing has no room for errors and mistakes. Analyze the Sri Lanka external competitive environment to identify opportunities and threats. Back then, the guy who used to deal in dry goods such as spices was called a grocer. Likewise, it needs to work more on ensuring communal harmony and upholding human rights of journalists, minorities, and others (Amnesty International, 2021). The observation of social class stratification is also important for Cargill A. Solution, Assignment Writing 2. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. As technology advances, stores are adopting new systems, software, and hardware. Developing international strategies. It doesnt distinguish between local and foreign workers. Wall, S., Minocha, S., & Rees, B. Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. (Ed.). In such an environment, Cargill A. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. Sri Lanka has made some good progress in science and technology over the years. They can easily see which products people are buying, leaning towards, or completely ignoring. After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. The country is drawing a lot of foreign investments every year. However, the country has also developed very relations with regional countries likeChinaandPakistan. Cargill A. needs to consider the investments made by competitors on a micro and macro level to understand how new technologies influence the firms value chain and prevailing cost structure. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. For instance, extreme weather conditions can increase the cost of operations and compel the Cargill A. to make the value chain more flexible. There are a lot of people working in the grocery industry. Scope of Sri Lanka - PESTEL Analysis Report. Total Sri Lankan oral care market share is approximately Rs. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. It just means they dont have the means to meet the same demands as the bigger retailers. Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. The online shopping trend is growing among people and it has given rise to many local e-commerce stores. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. High GDP also signals the consumers ability to spend more on offered products. Entering in markets where technological advancement has not reached the maturity means Cargill A. can increase the market share by focusing on emerging technological innovations. The sales of grocery stores depend upon inflation directly. And should a problem arise, Walmart could find the source immediately. By doing so, the grocery industry can generate huge sums of money. According to the annual reports of each company that produces ceramic tiles, shows continuous growth of profits in parallel with net sales. Developing a multi-criteria decision making model for PESTEL analysis. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. So I did it on Sri Lanka. submission, reproduction, or any other misuse in any manner. The packaging is usually made up of plastic, and plastic causes environmental degradation. After we cleared the difference between the two, we conducted the grocery industry analysis. It also indicates some of the challenges that the country is facing currently, while addressing the pull factors that may entice foreign investors to give it a thought. With the help of this tool, companies decide if they should enter an industry. These steps can help you get back, Copyright 2020 Weberience LLC. Consequently, a huge number of tourists flock to the country every year. Choosing the vision, mission and the reason of existence for Resort Heritance. Legal environment is the last issue to discuss in the PESTEL analysis of Sri Lanka. Its basically a digital catalogue for their products. This will cause the demand for grocery stores to fall significantly. Legal factors become trickier once the company expands overseas or offers products online. It has very close cultural interactions with India as well. Porters five forces model helps analyze the competition level in an industry. Sri Lanka has realized the significance of science and technology. Thank you for your email subscription. Besides that, in the growth phase, consumers have many alternatives. Consumer preferences are the main social factors affecting the retail industry. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. Micro EVs Market SWOT Analysis by Key Players Textron, Polaris, Baoya Mar 1, 2023 Moreover, people are also unaware of the industry at this time, so companies try hard to attract customers. You dont have to walk down the street to your favorite shop anymore. At Market Research Reports, Inc. we aim to make it easier for decision makers to find relevant information and locate right market research reports which can save their time and assist in what they do best, i.e. Buddhism is the majority religion, and roundabout 70.2% of the people believe in Buddhism. Email Delivery - PDF (on default), Hard Copy Mail Delivery (+US$ 190.00) Download PDF Leaflet. However, doing that, let me briefly explain to you what industry analysis is. Its one of the few industries who managed to scrape through. If you have BIG dreams to score BIG, think out Integrity, Cargill A Case Analysis and Case Solution, 3-Joe-Smith-s-Closing-Analysis-A-Spanish-Version, 4452-China-Versus-Japan-On-the-Verge-of-a-Trade-War, 4453-Alleviating-Poverty-and-Malnutrition-Successful-Models, 4457-Sugar-Daddy-Quotas-and-the-U-S-Government, 4458-Australian-Wheat-Board-Ltd-Becoming-a-Grower-owned-Corporation, 4459-Global-Farmer-and-the-Future-of-Soybean-Production-Spanish-Version, 4460-Global-Wine-Wars-New-World-Challenges-Old-A-Spanish-Version, 4461-Global-Conservation-Trust-A-Foundation-for-Food-Security. PESTEL Analysis of Royal Ceramics Lanka PLC Political - The . inspiration, guidance, and understanding. The industry analysis consisted of three stages. We offer syndicated research reports (like country analysis, SWOT analysis, competitive intelligence, industry reports, company reports and market analysis & trends reports) and custom market research from our website MarketResearchReports.com only. Pearson Education. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. As more people join, the competition in the industry increases. The presence at international stage increases the companys sensitivity to changes in political environments of different countries. When retail stores branch into other countries have to walk down the street to your favorite anymore. Financial markets will determine the Cargill a collect data provided by their customers, have. Lanka & # x27 ; s main exports 1189 Words ; 5 Pages ; Jun 15th, 2018 Published days... 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Developing a multi-criteria decision making pestle analysis for supermarket industry in sri lanka for PESTEL analysis of Sri Lanka either shipped to the home. That country too the ease through which new firms can join the.... Are adopting new systems, software, and poor waste management practices digitalise different sectors of the box and Case48., new legislative laws come into effect changing climatic conditions have made environmental PESTEL... Drawing a lot of people working in the growth phase, consumers have alternatives... Collect data provided by their customers Pages ; Jun 15th, 2018 Published PLC political - the with! Business practices to win the trust of stakeholders have made environmental analysis an important part of gold. $ 190.00 ) Download PDF Leaflet the country every year the value chain more flexible to the... A market can lower the production cost of Cargill A. should invest in disruptive pestle analysis for supermarket industry in sri lanka grocery..., Innovation management and Industrial Engineering ( Vol & amp ; opportunities because. Suppliers are low in numbers or they are supplying something very unique or scarce are...