Let's have a look at the Pestle analysis for Rolls Royce.
Originally, we start with P-E-S-T and then we add the L-E,
and we look at that in more detail in a moment.
What you're about to see a) it's a non exclusive list of factors,
these are the ones that jumped into our minds initially
and b) note how many of them are of course interlinked,
they're not actually stand alone.
To remind us what we mean by Pestle,
P for political, E for economic,
S for sociocultural, T for technological,
L for legal and E for environmental.
If we start now by having a look at the political influences,
some typical political influences which might influence the Rolls Royce business,
would include, for example,
the aspirations of governments to improve
the commercial infrastructure and tourism through air traffic,
I think particularly in larger geographical regions and,
of course, governments taxing air travel.
A number of governments have put tax premiums upon air travel.
Indeed some of them linking them to the different classes of travel: economy,
premium economy and business class travel.
Economic influences. Well, of course,
there's the general economic circumstances in general.
What's going on, what's happening to the economy?
Is it at a boom time?
In which case people have more disposable income and also businesses,
organizations perhaps looking for greater activity,
and so there'll be more travel,
particularly air travel, but, of course,
it could be vice versa if it's not a boom time.
Also, they may have links with the tourist travel as well.
Additionally, if you're living in good economic times,
then more businesses are likely to be more willing to invest in new technologies and that
applies to airplane companies and aircraft manufacturers,
including engine designers and manufacturers.
In terms of sociocultural,
this is all about the demographics,
the changing demographics, and if you think about it,
we talk about a global world now.
We say the world is getting smaller so there
could be more people wanting to travel around the world.
The younger people, who maybe have a little bit of
time on their hands between school and university,
some people looking for gap years,
you've got too as what they refer to as silver-haired retirees,
who maybe have some disposable income in
their pockets and also more time on their hands and want to travel the world.
Having said that, another important aspect within the sociocultural element is
potential problems with anti-airplane pressure groups
that will link with the environmental elements as well.
Some technological influences, again, perhaps,
linking with the environmental aspect to show that they are interlinked.
There are pressures to have new technologies,
which certainly improve power, but also emissions,
reducing emissions, reducing noise, lower energy consumption.
All of those, if you get them right, could impact,
hopefully positively if you do it the right way,
upon competitive advantage. Something else.
Technology wise, well, e-communication modes,
the advancements that are taking place there.
Some business people in particular now might be saying,
do we really need to spend that money on air travel?
Could some of those meetings take place not face to face in person to person sense,
but through all sorts of e-communication modes?
Some legal influences.
Safety legislation, absolutely paramount,
increasingly noise legislation, power legislation,
and the emissions legislation.
Once again we're seeing that these aren't standalone.
They do link with other elements.
The environmental element, well,
emissions and noise legislation.
We've spoken about those. We've referred to those already.
You've got a number of environmental pressure groups growing now.
Then, because E in the environment also subsumes the word ethics,
very importantly and quite rightly so,
ethics in the conduct of business is becoming even greater.
We're looking here at a Rolls Royce Pestle analysis and Rolls Royce was
investigated in 2016-17 for alleged corruption,
but I'll say no more about that at this moment in time.
Now, what we've seen here is a non-exclusive list of factors and it may be,
in your considerations, that you came up with others and that's absolutely fine.
Do remember, of course,
that over a period of time, factors may disappear.
They may wane, they may have less influence, but, of course,
other ones may actually increase in the degree of influence that they have,
and also other new ones,
which weren't there before,
might actually appear in the future.
Over the last decade, Singapore has shown extraordinary economic growth. Today it is considered a high-income economy. The growth is driven by several factors. Some of them are private consumption expenditure, local and external demand, and investments.
Singapore’s leading sectors like as pharmaceutical and petroleum refining industry have the potential to attract other countries to invest. In this article, I will talk about the external factors that have an impact on Singapore. I have added a PESTLE analysis of Singapore. PESTLE is a business tool used to study the macro-environmental factors. It is an acronym for political, economic, social, technological, legal and environmental factors. Let’s see how each of these factors impacts the country.
The political risk in Singapore is quite low. In fact, the Political And Economic Risk Consultancy (PERC) states that the country enjoys the lowest political risk in the continent. It is a democratic country. The people elect representatives to lead the nation. Since its independence, they cherished relative political stability. Today, the stability has translated to peace and a better standard of living. Moreover, It has transformed into improved business opportunities for Singapore.
However, there have been reports about restriction of free speech for opposition parties in Singapore. It is said that the value of free speech for the parties is limited. The defamation laws require opposition parties to be careful that political comments do not lead to costly defamation suits or imprisonment.
The fear of legal suits limits the potential of free speech for opposition parties in Singapore. Another factor is limited dissemination of content. These discourage the opposition parties. As a result, the contribution to free speech activities and inter-party debates is low.
The economy of Singapore is a vibrant free-market economy. It is developing at a very fast pace. The country’s per-capita income is the highest in ASEAN. A corruption-free environment supports the business sector. It is among the most competitive countries. The educated and motivated workers strengthen it. The legal and financial business framework helps as well.
Recently, the government has invested in diversifying the economy. As a result, the tourism, pharmaceutical, and many other industries have flourished. One of the main reasons behind the success is its strategic geographic location. The government is an imperative and active player. It owns substantial productive assets. Cheaper labor cost from neighboring countries helps Singapore save a lot of costs.
Some constraints on Singapore’s economic performance are the following:
- Labor shortages
- Rising labor costs
- Declines in productivity
Socially, Singapore is like any other Eastern country. It still follows traditional family values. It is true that the younger generation has the tendency to follow western culture and values. The residents work hard and fulfill the materialism desire. This urge to do well has increased nation productivity. The business sectors can, therefore, expect higher purchasing power from customers. Reports suggest that most Singaporeans dislike blue collar jobs like construction.
Literacy rate in the country is very high. Primary schooling is compulsory in Singapore. Parents must ensure children’s regular attendance. Good command of English and Chinese languages gives Singaporeans an advantage. It helps to attract international trade and foreign investment.
I can assure that one of the main reasons behind the change in lifestyle and quality of life is the technological advancement.
As you might have guessed, the internet plays a role in Singapore’s advancement. It eased communication and increases connectivity. The cost and time of conducting business lowered. It also boosted the social networking. The residents could easily connect to the rest of the world.
The IT infrastructure in Singapore is praise-worthy. The penetration rate for household broadband internet is over 70%. E-commerce and eB2Cmodels have flourished in turn. More than 10Mbps of broadband internet service is available. The widespread IT infrastructure has encouraged multinational companies to set up regional operations in Singapore. The government is also moving towards an electronic government era.
The government thinks that growth of electronic commerce depends on transparent and market favorable legislations and regulations. Certain legal, regulatory and business settings are needed to support industry development and economic growth.
E-commerce program was launched in 1996. The aim was to develop the e-commerce services. Singapore has introduced some e-commerce policy initiatives. There are cross-border e-commerce laws and policies. Some basic legal and technical infrastructures to support secure e-commerce were available since 1998. Some of them are Electronic Transactions Act, Intellectual Property Rights, Amendments to the Evidence Act, Content Regulation, Tax Issues and Import and Export Procedures.
The Ministry of the Environment and Anti-Pollution Unit works relentlessly to maintain air quality and other environmental factors. Pollution from the transportation is the key problem in Singapore’s urban areas. There was a time when Singapore was among countries with the highest level of industrial carbon dioxide emissions.
Singapore lost almost 30% of its mangrove area. Many species are in danger of extinction.
The Water Pollution Control and Drainage Act helps control water quality. One of the major concerns for Singaporeans is that the country does not have enough water to support their needs. Pollution from the industrial byproducts like oil increases the problem. As a solution, water is recycled after desalination.
As there is a lack of water resources, Singapore is dependent on Malaysian supplied water. A local brand called NEWater supplies sewage water after purifying it using dual-membrane. More solutions to this problem are needed.
After analyzing all these factors, It is clear that Singapore is a remarkable country. It houses talented and motivated people. It also provides great business opportunities. I can conclude that its business success in both domestic and international platforms is highly benefited by government policies. Its enterprise friendly approach boosts business as well. Singapore’s continuing development has made it a major competitor in the international market. The compulsory primary education and hardworking citizen are contributing factors.