Political stability will . The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. In fact, Sri Lanka has received the highest investment from China. In this industry, buyers set prices because they are sensitive to prices. Moreover, if the government of the country under consideration is not serious about protecting the intellectual property rights of business organizations, it will deter the entrepreneurs from investing in organizations due to high risk of ideas being stolen. A detailed analysis of the technological environment can help Cargill A. capture the technological trends to achieve certain business advantages, such as- increasing profitability, boosting innovation process and enhancing the operational efficiency. Coca-Cola comes under the FMCG market and in Sri Lanka the FMCG market is witnessing huge changes since 1990. Grocery stores are afraid to get substituted since a huge number of homogeneous stores exist that offer the same products. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. All retail stores need to meet the environmental requirements for consumer and employee safety. - Political stability and policy continuity is essential for economic and business growth. The number of international tourists who have arrived to Sri Lanka during the year 2019 is 1.9 Mn and the foreign exchange earned through tourism is approximately Rs 646 Mn according to the Annual Report released by Sri Lanka Tourism Development Authority. A stronger economy allows consumers to buy products they want. As more people join, the competition in the industry increases. So naturally, this causes rivalry among grocery stores. Total Sri Lankan oral care market share is approximately Rs. In such an environment, Cargill A. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. According to an estimate,74.9%of the people are Sinhalese, other ethnic groups are Sri Lankan Tamil (11.2%), Sri Lankan Moors (9.2%), Indian Tamil (4.2%), and others (0.5%). Understanding these two things helps to find items more likely to boost profits. Okay, I might be being a little dramatic because I can still get my groceries from the supermarket, but its not the same. Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . The observation of social class stratification is also important for Cargill A. Each country must abide by their political regulations. The economic and regulatory environment in a monopolistic or oligopolistic structure will be different from the monopolistic competition and perfect competition. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. Approximately more than 21 million people are populating Sri Lanka. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). The supplier power in the grocery industry is very low. Majority of the people live in rural areas and rely significantly on agriculture for their livelihood. 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. Cargill A. can benefit from it and invest in renewable technologies to ensure long-term sustainability. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. Likewise, some shops in other countries have to pay a tax for offering fatty foods. Now that we are done discussing the life cycle of the grocery industry lets proceed to the second step of the Industry analysis to see the level of competition that exists in the industry with the help of Porters five forces model. We work with our associate Global market research firms who are known leaders in their respective domains to obtain right market research solution for our customers needs, be it custom research or syndicated research reports. 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. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. Its non-negotiable. USD 300. In this PESTLE analysis, we'll look at the Political, Economic, Sociocultural, Technological, Legal, and Environmental factors affecting the food industry; in particular, we'll look at how both restaurateurs and food distributors might be affected by current trends. 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. Here you can find food products, clothing, and electronics, in large quantities. Via helps you navigate a fast-changing digital marketplace. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Cargill A. International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. Because we just dont know. International business. But even smaller shops can benefit from offering discounts and sales on products. Cargill A. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. 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. By doing so, the grocery industry can generate huge sums of money. However, Sri Lanka also faces some environment challenges e.g. 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. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. Strategy planning process often requires five steps -. Each society has distinctive norms and values that play an important role in shaping consumer behavior. These regulations impact the economy, consumer buying habits, and international trade laws. Posted by Zander Henry on A critical study on Various Frameworks used to analyses International Business and its Environment. Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. Subscribe now to get your discount coupon *Only As does data and copyright laws. However, the country has also developed very relations with regional countries likeChinaandPakistan. Imagine a world without grocery stores. Its basically a digital catalogue for their products. (2008, December). Developing a multi-criteria decision making model for PESTEL analysis. A retail store needs to meet legislative conditions before opening the shop. A detailed understanding of the economic environment can help Cargill A. estimate the growth trajectory of industry and organization. Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. (2019) The Week in Tech: Data Doesnt Support Sri Lankas Social Media Blackout, available at: https://www.nytimes.com/2019/04/26/technology/sri-lanka-social-media.html (accessed 01 March 2021), Hewage, K. and Munasinghe, D. (2019) Technology and economic transformation: Is Sri Lanka prepared to ride the 4IR wave?, available at: http://www.ft.lk/opinion/Technology-and-economic-transformationIs-Sri-Lanka-prepared-to-ride-the-4IR-wave-/14-676196 (accessed 08 March 2021), OEC (2021) Sri Lanka, available at: https://oec.world/en/profile/country/lka (accessed 07 March 2021), Peiris, G. (2021) Sri Lanka, available at: https://www.britannica.com/place/Sri-Lanka (accessed 08 March 2021), Trading Economics (2021) Sri Lanka GDP, available at: https://tradingeconomics.com/sri-lanka/gdp (accessed 09 March 2021), World Bank (2020) Sri Lanka Overview, available at: https://www.worldbank.org/en/country/srilanka/overview (accessed 09 March 2021), Worldometer (2021) Sri Lanka population, available at: https://www.worldometers.info/world-population/sri-lanka-population/ (accessed 09 March 2021). take time-critical decisions. Larger retailers can achieve this easier than mom and pop shops. Frequent changes in government policies harm business performance by increasing environmental uncertainty. Life expectancy is very good as evidenced from the fact that it is 72 years for men, and 78 years for women (BBC, 2019). Particularly, Chinese investment has been massive. This helps the grocery industry generate high revenue. We are here to help. Most companies have a business website. The sales of grocery stores depend upon inflation directly. At this stage, the industry is booming and has reached its peak. PESTEL. Cargill A. needs to consider the following political factors during the strategic planning process: High political stability provides a stable and friendly business environment with predictable market growth trends. Wall, S., Minocha, S., & Rees, B. 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. The packaging is usually made up of plastic, and plastic causes environmental degradation. P. - John Keells are known as the influential people. However, they are quite different. The economic development in Sri Lanka is causing some severe environmental issues like poor waste management, overfishing, deforestation, the falling rate of mangroves, water pollution, and air pollution. Grocery stores and supermarkets are interchangeable terms. Or when a certain industry is hit harder than others. Chat with us Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). Daidj, N. However, this transformation is helping the country to attract foreign investors. Not following these laws exactly as outlined will lead to legal troubles like bankruptcy and foreclosure. Theyll spend the bare minimum on food while the rest goes towards unpaid bills. Therefore, grocery stores and supermarkets may sound like synonyms. Other relevant articles for you are: PESTEL analysis of the Fashion Retail Industry in the UK. Today, well discuss the pestle analysis of Sri Lanka.
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