This gives the group an advantage to produce more and better-quality products at a lower cost and serve the society better.īelow are the economic factors in the PESTLE Analysis of Nestle: A positive for Nestle happened when India reduced its corporate tax in its latest budget. This was witnessed in the case of Maggi, which has resurfaced with the same issue of lead content being present in it. When certain food regulations change, the organization must undergo rigorous brainstorming and extensive testing to recreate the product in newer forms and still meet customer demands. When such a move will happen, it will leave behind a lot of people jobless, further creating a tensed environment. The situations forced the company to rethink its decision of continuing in the country, in fact, the giant even thought of relocating to a new region such as Poland. An unstable phase happened during the Brexit period, where Nestle faced a high-pressure situation. Multinational companies like Nestle, perform well when the global scenario is stable. The change in labor laws, which prohibit/shun the use of child labor in cocoa farms are getting stringent, which according to reports will affect the operations of the company indirectly. These changes may sometimes be in favor of the organization, but sometimes are major bottlenecks to production in certain countries. A major task that the organization needs to perform is to keep a track of the various changes that are made in the various policies related to import, export, taxation, environmental regulations, etc. The political factors in the Nestle PESTLE Analysis can be explained as follows:Īccording to recent reports, Nestle operates across 190 countries and thus several political factors affect the day to day operations of the organization are many. Let us start the Nestle PESTLE Analysis: Political Factors: PESTLE analysis is also referred to as PESTEL analysis. PESTLE analysis is a framework which is imperative for companies such as Nestle, as it helps to understand market dynamics & improve its business continuously. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Nestle PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. This will help Potpourri to enter into the market of Dubai without any political restriction.PESTLE Analysis of Nestle analyses the brand on its business tactics. Dubai shares a close political relation with USA and China which will be an additional benefit for Potpourri. It is one of the most prosperous economies in UAE where people enjoy a decent standard of living. Political Dubai is a very stable economy and offers a very suitable environment for any new business to enter into their market. The pestle analysis of Dubai will be highlighted in this paper.
It will help the management to know whether the business will be profitable in that particular country where it wants to expand. PESTLE Analysis PESTLE analysis is useful for the business organization to get an idea of the various macro environmental factors. The macro environmental factors of Dubai are favorable and thus it will help in expanding the business of Potpourri ( Inhorn 2016.
Dubai is one of the fastest growing economies in the entire world. U.S and China will also help in the expansion of business. It is also one of the major tourist destinations which will also help in the business expansion of Potpourri. It is one of the major trading and export hub. Dubai enjoys competitive cost and market advantages which has helped to create an attractive and ideal business environment for the fashion industry. The economy of Dubai is based on the revenue earned from oil industry. 2 PESTLE ANALYSIS OF DUBAI Introduction Dubai is one of the most populous city and an important business hub of the Middle East.
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