Pestel Analysis

Literature review * policy-making factors Essentials of Marketing (2002) says that mevery of the legal, economic and kind developments in edict is nothing more than political decisions typeset into action. The political climate is of great signifi arousece to the selling firm and has a direct effect on m both aspects of the economy and society. Factors in the political milieu both national and international should be conservatively manageed. modern-day counselling (2006) forces how nation both last(predicate)y the judicature green goddess scratch line of merchandise by its policies in relative to industrial service development, tax incentives, capital grants and elaboration schemes that ar available. Internation each(prenominal)y it describes the influences the argumentation has through policies in relation to international trade and deregulation. The main rooms in which the giving medication influence international trade in through their input into the general agreement on trade and tariffs. Individual regimens net impose embargoes or sanctions on trade with any situation argona they wish.Developments in the European Union in new-fashi mavend years create believen the deregulation of financial markets, semipublic utilities and the airline indus judge. The aim is to remove protective restrictions on operations and to allow greater competition between countries. * frugal factors In Modern Management (2006) they describe the economic factors as macrocosm shaped by the state of the economy in a particular country and the economic policies that is implemented within that country. In Essentials of Marketing (2002) they describe economic factors as existence vital to merchandising firms because they influence cost, charge and demand.They can be viewed as opportunities or threats. Tieran et al, (2006) describes governments implementation of different economic policies which touch find areas such(prenominal) as taxation, inflation , sub order and economic growth. Interest rates determine the extent of an fundamental laws loans and investments. An growing in the inflation rate results in a demand for an increase in consorters wages. As inflation increases the purchasing power of consumers declines as they can no longer fall in products or function that they have been previously buying.Exchange rates have a huge shock absorber on beau mondes who export large amounts of their products. If the bills rises in the country that the art is exporting to, their goods bring ab step up expensive and in turn reduce their competitiveness. A business line enquires a firm exchange rate and low inflation rate to ensure that their business grows. As Ireland is a small move over economy an effectant development has been the emergence of spheric interdependencies between different economies. * Social factors Modern Management (2006) tells us that sociable factors are concerned with the demographics, attitudes and conduct of members in society.Lancaster et al, (2002) say peoples canonical beliefs, attitudes and values are shaped by the society they grow up in. Modern Management (2006) describes demographics as identifying characteristics of people hold within society, these let in work groups, organisations and countries. These characteristics can be measured in impairment of age, gender, family size, education and occupation. Buying behaviour is influenced by social conditioning. The social culture has an impact on the business environment. The attach to needs to be aware of the demographics when preparation recruitment, necessitateion and facts of life of employees.Demographics have an impact on human resource policies and on what kind of products and service are available within society. Developments in the social environment can have implications for a business in hurt of the behaviour and attitudes of their workforce and consumers organism more environmentally aware. * Technol ogy factors Affect the way goods are distributed and promoted. It increases efficiency on how products can be distributed. Tieran et al, (2006) states that no organisation is immune to the effects of engineering science.It can affect the high society in the copying slipway engine room innovation, production techniques, how the play along is managed and how communication takes station within the keep fraternity. Essentials of Marketing state that technology has a major impact on how market look is gathered and conducted. Sales forecasting is important and has receive easier to do with the technology that companies have. The laser checkout can record consumer purchases automatically and is employ to analyse sales, throw and re-order stock. Sales reps can use audio visual to entice people to buy their good or services.Technology has influenced developments in products such as genetic design and cameras. * Environmental factors Includes the weather and climate change. N o organisation can ignore environmental issue correspond to Mastering Marketing Management (2002). Their actions have sober consequences on land, ocean and air. In Principles of Marketing (2010) companies are expected to take measures to conserve and al order precisely resources mighty. They moldiness be seen to show active following in the welfare of the community and the people living within it.Consumers want to buy products and services from a political party that is seen to be environmentally friendly. * good factors Is related to to the legal environment in which the firm operates. Legal changes can affect a firms cost and demand. In Principles of Marketing (2010) organisations are affected by government monetary and fiscal policies such as import/export policies and custom duties. Anti-pollution laws impact on marketing plans and policies. Marketing policy-making is influenced by government policies and controls end-to-end the world.There are many laws that a friend ship must follow some of these are health and galosh, craft laws and consumer law to name a few. Introduction of company chosen The company chosen to carry out an analytic thinking of their macro-environment is Mc Ardle post Ltd Callenberg, Inniskeen, Dundalk, Co. Monaghan. According to Mc Ardle transport Ltd web site (www. mcardletransport. com). Mc Ardle bewitch Ltd was established in 1968. It operates one of the largest fall outs of street transport equipment in Ireland. It employs 80 people on their site.Mc Ardle transport Ltd has become one of the leading specialists in transport, logistics, entrepot and supply grasp centering. They genuinely operate a fleet of 45 vehicles and in excess of 125 trailers ranging from mega trailers, euro liners, case vans, box fridges and skelly trailers. They are committed to providing a well-organized, flexible service, operational integrated transmit track and communications solutions in order to ensure peace of mind for their guests. They try to deliver a reliable, efficient, cost effective and ad hominem service. Services offered by the company According to Mc Ardle exile Ltd website (www. cardletransport. com), they offer transport and distribution services which include national and international transport. This covers collection and actors line service, full load and part load service, container loads, unsteady cargoes and refrigerated cargoes. Their export and import service include food, pharmaceutical, engineered machinery, palletised cargo, affectous cargoes and chilled cargoes. They also offer a warehousing service, they have 5 separate warehouse units on site and 16 dock levelling loading ramps. It is a customs approved premises and department of gardening food and fisheries approved.Warehousing services include materials intake, good manufacturing practices (GMP), brushup of export containers, container loading and safe operation assort truck and pallet truck. . Finally they offer sate llite tracking on their fleets, this ensures that goods are delivered to the correct attitude, at the correct time, in the correct condition, thus customers are satisfied. PESTEL analysis of Mc Ardle pack Ltd For the following PESTEL analysis the author spoke to Micheal Mc Ardle of Mc Ardle Transport Ltd to ask how the macro environment affected his company. policy-making factors Government policies that have a major impact on Mc Ardle Transport Ltd are taxes such as duty taxes and regulatory policies relating to employment. In the true climate these government policies push cost up within the company. Mc Ardle Transport Ltd would like the current government to abolish green diesel in all and offer a rebate to essential users of diesel. For face farmers that use green diesel have them as essential users, and rebate them to lower the price of duster diesel. This would eliminate the problems relating to the laundering of diesel. companies within Ireland import all open invoke to Ireland, one of these import 80% of all fuel to Ireland. Revenue would benefit if this area was properly controlled and it would also boost their income on tax. The current government could change taxes that are charged on trucks regarding bell shape roads in Ireland. Trucks pay a disproportional amount of taxes compared to other road users. The government need to change policies with regards to how trucks are taxed. Currently trucks are taxed establish on weight instead of being taxed by emission, if this was changed it would entice companies to cut down emissions and to re-invest in their company. Economic factors In regards to exchange rates this area has pocket-size effect on this company. The Euro has eliminated this problem the majority of business is done in Euro, some in superior and very little in Dollars. Some of the costs are in dollars for example deep sea shipments outside Europe are usually quoted in dollars. pomposity rates over the last gallus of years have tended to be reasonably inactive which is positive for this company. Inflation was a problem in 2006-2008 in regards to wage inflation as it was grueling to get the right quality people for the business as they were drawn to higher paid jobs in other areas.Interest rates have been very static over the last couple of years, which has go toed this company in re-investing. Mc Ardle Transport has invested in their company this year with a new fleet of trucks and expansion of their warehousing. * Social factors Mc Ardle Transport Ltd encourages staff to up skill. They have some of their employees in DKIT courses ranging from management, logistics, health and guard and business admin. This is positive for the company as its a win/win for both sides. It helps the company and the employees to adapt to the current climate. Technology factors Mc Ardle Transport is very dependent on broadband and uses an run of technology within the company. Satellite tracking is used to track the posi tion of all trucks on the road and is used to send messages to and from the trucks. Engine management gives every detail of the truck, number of times the brakes is pressed, press forward of the truck, working time and fuel consumption. It is used to bemuse sure that working time directives are followed, management of fuel consumption, maintenance of trucks is kept up to precedent and also tracking temperatures of cargoes carried.The trainr sets the temperature of the cargo if the temperature goes up or down the company is notified by an alerting 24/7 through e-mail or text messaging. The company can give a full download of the temperature history of the cargo to the customer on arrival. Barcode scanning is used in the warehouses. altogether products received are scanned on arrival, this shows what the product is, how a lot of it there is and the batch number. This also is used to locate a position within the warehouse and it shows the location of each pallet. The company use s e-mail, telephone and internet on a daily basis. Environmental factors Mc Ardle Transport Ltd has all of their warehousing insulated as well as temperature controlled and monitored. There are very aware of fuel emissions and when upgrading their fleet, they look for fuel efficient vehicles. They use technology such as engine management to monitor fuel consumption of all vehicles. They have an environmental officer on site to report on energy usage on site and to assist drivers in any way possible. They work with their customers to select the best route to help them reduce their ascorbic acid footprint. They offer to track their customers ampere-second footprint from collection to delivery.One of the major problems during last overwinter was access from their site to the main road, it also impact on the efficiency of the schedule they could keep. Mc Ardle Transport tries to reduce their carbon footprint by assessing their fleet and the life cycle of their vehicles every year. * Legal factors As Ireland is part of the EU, Mc Ardle Transport Ltd must follow EU regulations such as employment law, drive time directives and authorised economic operators, this is recognised companies who are compliant with revenue. They received their department of agriculture surety and medicine board certificate from the EU.All vehicles must be DOE approved they must be passed and issued with a certificate of road worthiness. In terms of health and safety an independent consultant comes on to the site every week. Mc Ardle Transport Ltd provide training for health and safety, drivers who are working alone, first aid, fire safety, robbery response training and drivers who are carrying hazard material training. Conclusion As you can see from the above Mc Ardle Transport Ltd is affected by all of the macro-environmental factors particularly legal and technology factors.Being a part of the European Union has many returnss. It gives vulgar standards to similar companies like Mc Ardle Transport Ltd throughout the EU, customers can recognise these standards and can see who is compliant. In terms of technology the lack of broadband options in Ireland is putting Mc Ardle Transport Ltd at a disadvantage. They are very dependent on a good broadband system for the daily discharge of their business in terms of satellite tracking their trucks, taking orders, sending quotes etc.All of these macro-environmental factors need to be monitored in order for the company to move forward and be successful in the future. Bibliography Lancaster, G. , Massingham, L. & Ashford, R. (2002) Essentials of Marketing, 4th Edition, McGraw-Hill Education Tieran, S. , Morley, M. & Foley, E. (2006) Modern Management and practice for Irish students, 3rd Edition, gill & Macmillan Cartwright, R. (2002) Mastering marketing management, 1st Edition, New York, Palgave Dundalk launch of Technology E- library (2011) Principles of Marketing online, available from http//site. brary. com/lib/dkit lib/ atomic number 101? id=10415387&ppg=47 accessed 7 October 2011 Appendices McArdles Transport LTD 1) What government policies affect your company? 2) How has the current government affected your business? (i. e. any decisions they have made) 3) In terms of exporting your goods how has the following affected that a) Exchange rates? b) Inflation rates? c) Taxation changes? d) Interest rates? 4) In the current economic climate have you frame that staff are up skilling in your company? (i. e. going back to college, evening courses) ) What technology does your company use? 6) How does this technology benefit your company? 7) Does the technology used benefit your customer in any way? (if yes then how) 8) During last winter how did your company cope with the extreme weather? 9) Was it a fuss to keep on schedule during this time? 10) How have you prepared for this years winter? 11) Have you any pressure feeler from environmental groups in terms of your companys fuel emissions? 12) What measures have you taken to try and reduce your carbon footprint? 3) How has the price of fuel impacted on your company? 14) Do you find there is a pressure coming from your clients to be more eco-friendly? 15) Do you find that being a part of the EU gives your company an advantage when doing business? 16) What are the main EU regulations that your company must abide by? 17) How did you obtain government approval for your warehouses? 18) What regulations must all your vehicles go through in order to obtain a certificate of road worthiness? 19) Brief overview of the main safety regulations that must be abided by?