PESTEL or PESTLE analysis for introduction of DollyMoo Body, an American oil com
ID: 373714 • Letter: P
Question
PESTEL or PESTLE analysis for introduction of DollyMoo Body, an American oil company into the Chinese Cosmetics industry can be as follows-
Political - it usually refers to the actions taken by the government to intervene in the economy like laws and regulations of the country. Different tariffs introduced by the government will affect the product offerings of the company because it has international trade. Various taxes imposed on foreign companies will also affect our company. The people in China are usually very heavily influenced by the government policies.
Economic - economic factors include interest rate, exchange rate, inflation and other economic growth elements. To understand this, let us assume that the Chinese economic interest rates decrease, people would we draw more money from banks and subsequently increase their spending. This will help the company increase sales. The cost will increase if the exchange rate increases therefore currency exchange rates will also have a significant impact on the company finances.
Social - social parameters include different age distribution, career attributes, population and different cultures. Chinese people not only concentrate on the necessities of life but also focus on enjoying their lives like caring about their appearances. They consume more on the cosmetic industry as they are willing to look more beautiful and younger. Therefore, social factors in China will have a good impact for the company.
Technological - Technology would be useful for the company like using SAP system to operate its products. They can use technology to better manage the company in a cost effective manner. Technology can also be used for faster customer feedback and complaint resolutions which will help in better design of products.
Environmental - the environmental aspects decide how the company affects the environment. China has been very cautious about its environmental challenges, especially with rising pollution in its major cities like Beijing and Shanghai. So the company needs to be careful about its effects on the environment like setting up eco friendly factories and offices, avoid any animal testing for its products.
Legal - the legal aspects of China can effect the very existence of the company in the country. The consumer protection laws, employment regulations, cosmetics safety regulations and the various laws involved in starting an Operating business in the country can greatly effect them. If the company struggles in acquisition of land or office, hiring of people, interacting with the different government Agencies, the company would be at Pain to operate the business there. However, if the business environment is friendly the company can have it as a boon for its advantage.
Explanation / Answer
please write a 1000+ words PESTEL (political, economic, social, technological, environmental and legal) analysis introducing Dolly Moo Body Oil (an american Cosmetics company) into the Cosmetics industry in CHINA.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.