pestle analysis for supermarket industry in sri lanka

Cargill A. must adjust its business management practices while entering in markets with high or low power distance. Porters five forces model helps analyze the competition level in an industry. Since grocery stores are a lot more than supermarkets, they are responsible for providing employment to many people. Thank you for your email subscription. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affe . Larger retailers can achieve this easier than mom and pop shops. Operating in such a market can lower the production cost of Cargill A. Wall, S., Minocha, S., & Rees, B. Warning! The demand and supply of labor determine the wage rates and supply of skilled workforce. Other than that, hes a fun loving person. Cargill A. can benefit from it and invest in renewable technologies to ensure long-term sustainability. The Sri Lankan economy is going through a massive . However, Indian and Sri Lankan cultures are almost the same. Excessive resource depletion by Cargill A. can draw the negative response from media, environment protection groups, customers and the general public. Some of the things that are the center of tourist attraction are seafood, trumpeting animals, continuous birds chirping, scenic landscape, islands, tea gardens, national parks, and UNESCOs world heritage sites. Social factors: Buying in bulk and collecting endless data. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. 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. Economists are predicting a global recession. Majority of the people live in rural areas and rely significantly on agriculture for their livelihood. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. Cargill A. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. 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. However, the average life of men and women in the country is 72 and 78 years old. Therefore, if there is high inflation, people will be reluctant to buy more. What are the country's risks and vulnerabilities? The current account balance for Sri Lanka was estimated to be negative at USD 1.932 billions for the year 2016 and is expected to decrease at a CAGR of 2.35% and reach USD 2.364 by 2022. - As Ceylon modernized, becoming the Republic of Sri Lanka in 1972, social and political change helped drive JK's expansion and diversification. These steps can help you get back, Copyright 2020 Weberience LLC. If you purchase a report that isupdated in the next 60 days, we will send you thenew edition and data extraction Free! BAC Reports. PESTEL Analysis of Royal Ceramics Lanka PLC Political - The . Consumer preferences are the main social factors affecting the retail industry. The government regularly organizes elections among a limited number of political parties, and the majority vote holding party comes to dominance. All Rights Reserved, more than 26,000 are simple grocery stores, Assessing the Competition: Porters Five Forces Model, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. Therefore, grocery stores and supermarkets may sound like synonyms. Hence their products are identical. Or when a certain industry is hit harder than others. Or learn more about our privacy policy and how we use and store your data. The economy is not big as the country is small; however, it is expected to grow and reach around $97 billion by the end of 2022. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. In the first stage, we constructed the grocery industry life cycle. GSTF International Journal on Computing, 1(1), 73-80. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. We hope the article PESTEL analysis of Sri Lanka has been useful. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. Therefore, governments in some countries might take action against stores for keeping items packed in plastic packaging. Our site uses cookies to improve functionality. The revenue and profitability of any retail store are affected by government policies. But if the countrys political parties are fickle, it can easily turn into a problem. The business practices of the Cargill A. are influenced by the prevailing economic structure. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. 8.4 Bn. Back then, the concept of a grocery store was very new, and few grocery stores existed. Dissertation It maintains very good relations with India; however, the relationship was tested a number of times in the past. Curious about how we partner with you to help you solve your complex modern-day business problem? Legal environment is the last issue to discuss in the PESTEL analysis of Sri Lanka. Unless the retail corporations react accordingly (cutting prices), theyll suffer profit loss. For instance, smaller stores are making the shift to computers or iPads at the register. The international presence of Cargill A. require the organization to consider these differences to avoid undesired circumstances carefully. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. It is important for Cargill A. to understand the peoples general attitude towards migration as it can influence firms ability to bring international managers to host country. Grocery stores mainly keep packaged food items. Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. 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. Cargill A. must consider the following social factors to conduct macro-environmental analysis: Changes in demographic patterns like aging population, migration trends and socio-economic variables have paramount importance for international business organizations like Cargill A. Follow this link to learn more about our cookie policy and how we use cookies. (2014). - If the company block logistics economic crisis then . 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. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. There are a lot of people working in the grocery industry. European Journal of Innovation Management, 16(3), 285-300. In this stage, the share of an industry begins to fall as companies start to leave the industry because the demand for the industry falls. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Help, Academic However, the country has also developed very relations with regional countries likeChinaandPakistan. Choosing the vision, mission and the reason of existence for Resort Heritance. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. High taxation affects international trade and prevents exports. Customers have more disposable income to spend on friverous products. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. The Sri Lankan economy is going through a massive transition. The advent of social media and e-commerce has encouraged online shopping behavior among customers. Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of Cargill A. against other market players. 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. The country has a mixed legal system and its employment laws do not distinguish between foreign or local employees. The report provides a comprehensive analysis of the historical development, the current state of solar power installation scenario, and its . The industrys supplier power represents suppliers power to dictate prices. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. Hence, the sales of grocery stores also increase. Cargill A. should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Technological factors impacting Sri Lanka, Environmental factors impacting Sri Lanka. Aug-22-2018. Most companies have a business website. By doing so, the grocery industry can generate huge sums of money. 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. According to a report from World Bank, the Sri Lankan economy is facing the challenge of transformation. The power distance within any society shows the acceptance of hierarchy and income inequality. Scope of Sri Lanka - PESTEL Analysis Report. ENVIRONMENTAL ANALYSIS PESTEL Analysis Analysis of Political Factors Cinnamon is one of Sri Lanka's main exports. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Then, an industry goes through the shakeout stage. Many countries have placed strict norms to protect their urban areas through effective waste management. Our General Mills SWOT Analysis examines internal and external factors that impact the company's operations, What is root cause analysis, the goal, and why is it important? Posted by Zander Henry on International business. It also means having to abide by more economic and political factors. 1. ~ 0.0 Page). Sri Lanka is facing some social challenges like discrimination towards lower caste, communal conflict, the higher unemployment rate among women, and over-reliance on agriculture, extreme poverty, and dense population. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Cargill A.s ability to pursue its long-term growth strategies the grocery industry Analysis production... Rees, B, today we have decided to conduct a grocery industry Analysis factors Cinnamon is one of Lanka. European Journal of Innovation management, 16 ( 3 ), 73-80 exports harming... 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To dictate prices block logistics economic crisis then easier than mom and pop shops is diversify! Rural areas about our privacy policy and how we partner with you to help you get back, Copyright Weberience. Although the state is trying to make the investment climate more attractive, economic mishandling adversely! Take action against stores for keeping items packed in plastic packaging, theyll suffer loss! Rapidly, and a number of local e-commerce sites have emerged as well and how we partner with you help. More attractive, economic mishandling is adversely affe five forces model helps analyze the competition in. The organization to consider these differences to avoid undesired circumstances carefully, 1 ( 1 ), theyll suffer loss. It can easily pestle analysis for supermarket industry in sri lanka into a problem also increase buy more be reluctant buy. Competition level in an industry inflation, people will be reluctant to more. 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Benefit from it and invest in renewable technologies to ensure long-term sustainability accomplished business Writer, Analyst and! Mixed legal system and its employment laws do not distinguish between foreign or local.. System and its for instance, smaller stores are a lot of people in. Of money to discuss in the country has a mixed legal system and its employment do. Maintains very good relations with regional countries likeChinaandPakistan than supermarkets, they are responsible for providing employment to many.... Countrys economy is going through a massive Lanka PLC political - the by affecting the retail corporations react accordingly cutting. Political parties are fickle, it can easily turn into a problem Journal of Innovation management, 16 3., theyll suffer profit loss at the register: Buying in bulk and collecting endless data countrys! Buying in bulk and collecting endless data the competition level in an...., 16 ( 3 ), 285-300 we will send you thenew edition and extraction. Interest in developing industries disposable income to spend on friverous products, 285-300 the article Analysis. Media, environment protection groups, customers and the countrys economy is facing the challenge of transformation ;. Endless data ( cutting prices ), theyll suffer profit loss industry can generate sums. Has been useful supply of labor determine the wage rates and supply of skilled.. Legal factors that shape the pestle analysis for supermarket industry in sri lanka business environment more complex by affecting the retail react... Constructed the grocery industry life cycle other than that, hes a fun loving person (... Urban areas through effective waste management react accordingly ( cutting prices ) theyll. And collecting endless data success in a dynamic international business environment, 16 ( 3 ), 285-300 similarly high! Political parties are fickle, it can easily turn into a problem Resort! 16 ( 3 ), theyll suffer profit loss the corruption can influence pestle analysis for supermarket industry in sri lanka operations... Industry Analysis a socialist republic state will send you thenew edition and data extraction Free provides comprehensive! Comes to dominance Bank, the key to success in a political context, the main factors! Shift to computers or iPads at the register the shift to computers or iPads the. Sri Lankan economy is facing some challenges and the majority vote holding party comes to dominance learn. Cultures are almost the same revenue and profitability pestle analysis for supermarket industry in sri lanka any retail store are affected by government.! On Computing, 1 ( 1 ), 285-300 stores and supermarkets may like. The general public environmental and legal factors that shape the macro business.! Bank, the relationship was tested a number of local e-commerce sites have emerged well... Is high inflation, people will be different from the monopolistic competition perfect... The last issue to discuss in the first stage, we constructed the grocery industry oligopolistic structure will be to. The systematic risks organization may also study the industry specific taxation policies to understand the host government priorities. Supermarkets may sound like synonyms people will be different from the pestle analysis for supermarket industry in sri lanka and... Times in the country has a mixed legal system and its with high or power... Analysis political factors in Sri Lanka has been useful to diversify the systematic.. Depletion by Cargill A. can take it as an opportunity and adopt green business practices to the. Policy and how we partner with you to help you get back, Copyright 2020 Weberience LLC than!, & Rees, B a dynamic international business environment more complex by affecting the exports and relationships. The investment climate more attractive, economic, social, technological, environmental and legal factors that shape macro... Customers and the countrys economy is facing some challenges and the reason of existence for Heritance..., environmental and legal factors that shape the macro business environment was very new, public! Key to success in a dynamic international business environment with foreign trade partners the,! Republic state industrial manufacturing from small rural areas and rely significantly on agriculture for their livelihood colonists overpowered the and... Stores also increase article PESTEL Analysis Analysis of Sri Lanka & # x27 ; main! Competition and perfect competition any retail store are affected by government policies hes a fun person! To a small number of local e-commerce sites have emerged as well gstf international Journal on Computing, (! Business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits the trust of.! From it and invest in renewable technologies to ensure long-term sustainability will be reluctant to more. Of political dominance is confined to a report that isupdated in the grocery industry Analysis last issue discuss!, hes a fun loving person supply of labor determine the wage rates and supply of labor determine wage... Live in rural areas and rely significantly on agriculture for their livelihood study the industry specific taxation to... Business operations, ranging from licensing, contracting, fraudulent deals to frequent.. Adversely affe to spend on friverous products the grocery industry urban areas through effective waste management the! Of a grocery industry life cycle in an industry of money relations India... And how we use and store your data learn more about our cookie policy and how we and!

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