Sustainable business strategies and PESTEL framework. Its standard for any store. Legal is the sixth factor of PESTEL analysis. of the box and hire Case48 with BIG enough reputation. In this stage of the industry life cycle, some companies emerge as larger and more financially stable than others. 1. Therefore, grocery stores should ensure that no workers rights are violated and treat their workers equally regardless of gender. please submit your details here. There is a variety of Herbal Toothpaste that rich in calcium and minerals. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. The Sri Lankan economy is going through a massive transition. Ignorance in this regard can cause undesired circumstances for Cargill A., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. Strategy. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis forSri Lanka. The application of PESTEL analysis can help Cargill A. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. The retail industry was able to hold itself up even during the recession. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. A stronger economy allows consumers to buy products they want. If you have BIG dreams to score BIG, think out Every industry has a different buyer power. Thank you for your email subscription. Strategy planning process often requires five steps -. Curious about how we partner with you to help you solve your complex modern-day business problem? However, buyer power represents the power of buyers to dictate the prices in the market. Check out our SWOT analysis of the food industry to find out the internal . Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. Sri Lanka has membership and alliances with the worlds top institutions like Asian Development Bank, World Bank, IMF, SAARC, the Colombo Plan, the Commonwealth of Nations, Non-Aligned Movement, G77, and the UN. The grocery industry currently seems to be in a decline stage since now the demand for the grocery industry has fallen as people have different alternatives such as e-stores and supermarkets. The revenue and profitability of any retail store are affected by government policies. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. There are almost 40,000 stores in the US that sell groceries. 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. 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. Area harvested for Cabbages and Other Brassicas, Area harvested for Cauliflower and Broccoli, Area harvested for Peaches and Nectarines, Area harvested for Tangerines, Mandarins, Clementines, Yield of Tangerines, Mandarins, Clementines, Production of Cabbages and Other Brassicas, Production of Tangerines, Mandarins, Clementines, Production of Household and Sanitary Paper, Terrestrial Protected Areas as % of Total Area, Marine Protected Areas as % of Total Area, Primary Production of Coal, Peat and Oil Shale, Primary Production of Crude Oil and Natural Gas Liquids (NGL), Imports of Crude Oil and Natural Gas Liquids (NGL), Exports of Crude Oil and Natural Gas Liquids (NGL), Primary Production of Solar, Wind and Other Energy, Final Consumption of Coal, Peat and Oil Shale, Final Consumption of Crude Oil and Natural Gas Liquids (NGL), Final Consumption of Solar, Wind and Other Renewables, Final Consumption of Energy by Other Industries, Electricity Output from Geothermal Generation, Electricity Output from Hydroelectric Generation, Electricity Output from Wind-Powered Generation, Electricity Output from Nuclear Generation, Electricity Output from Combustible Renewables and Waste Generation, Share of Electricity Output from Renewables, Share of Electricity Output from Non-Renewables, Ratio of Proven Coal Reserves to Production, Ratio of Proven Oil Reserves to Production, Proven Oil Reserves (Year-End, '000 Million Barrels), Ratio of Proven Natural Gas Reserves to Production, Investment in Energy with Private Participation, Residential Heating Oil Price per 1000 litres, Capacity of Nuclear Reactors in Operation, Capacity of Nuclear Reactors Under Construction, Rural Population with Access to Electricity, Urban Population with Access to Electricity, Population with Access to Clean Fuels and Technologies for Cooking, Environmental Resilience Ranking: Risk Index, Environmental Resilience Ranking: Global Warming, Forest & Biodiversity Ranking: Availability, Energy Ranking: Sustainability & Efficiency, Domestic Material Consumption of Metal Ores, Domestic Material Consumption of Non-Metallic Minerals, Domestic Material Consumption of Fossil Energy, Domestic Material Consumption of Other Products, Consumption of All Ozone Depleting Substances, CO2 Emissions from the Consumption and Flaring of Natural Gases, CO2 Emissions from the Consumption of Coal, CO2 Emissions from the Consumption of Petroleum, Greenhouse Gas Emissions from Agriculture, Waste Generated by Agriculture, Forestry and Fishing, Waste Generated by Electricity, Gas, Steam and Air Conditioning Supply, Waste Generated by Water Supply, Sewerage, Waste Management, Waste Generated by Wholesale of Waste and Scrap, Waste Intensity in Agriculture, Forestry and Fishing, Reliance (dependency) on External Water Resources, Exploitable: Regular Renewable Surface Water, Exploitable: Irregular Renewable Surface Water, Exploitable: Total Renewable Surface Water, Exploitable: Regular Renewable Groundwater, Rural Population Using at least Basic Drinking Water Services, Urban Population Using at least Basic Drinking Water Services, Rural Population Using at least Basic Sanitation Services, Urban Population Using at least Basic Sanitation Services, % of Agricultural Water Managed Area Equipped for Irrigation, Harvested Irrigated Crop Area as % of Full Control Irrigation Area Actually Irrigated, Analyse growth opportunities and assess market potential, Understand the likely path of economic growth, Examine risks and vulnerabilities of economies to support critical decision-making. 24-27). November 2022. The Grocery industry experienced growth in the 19th and 20th centuries when the food industry evolved and grocery stores started offering packaged food. Companies set targeted ads to customers most likely to visit their stores and buy from them. A PESTLE analysis is used in business to assess the industry which an organisation is in. 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. IEEE. For instance, people enjoy buying products in bulk. This is only possible when the economy is on the rise. So I did it on Sri Lanka. For instance, smaller stores are making the shift to computers or iPads at the register. The country imports it fromMalaysia,Singapore,UAE, India, and China. But even smaller shops can benefit from offering discounts and sales on products. 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. Wall, S., Minocha, S., & Rees, B. There is a growing trend towards the use of green/eco-friendly products. US$ 300.00. Approximately more than21million people are populating Sri Lanka. Growing economies offer wide-ranging growth opportunities to the Cargill A. In the grocery industry, buyers have great power. - If the company block logistics economic crisis then . Now that you know what an industry analysis is, lets move ahead and carry out the grocery industry analysis. However, the average life of men and women in the country is 72 and 78 years old. 11.12 Sri Lanka 11.13 Thailand Analyze the Sri Lanka external competitive environment to identify opportunities and threats. Help, Academic Each society has distinctive norms and values that play an important role in shaping consumer behavior. All rights reserved LCHW. Literally. (2014). Lets discuss what external factors impact the grocery industry. At Market Research Reports, Inc. we aim to make it easier for decision makers to find relevant information and locate right market research reports which can save their time and assist in what they do best, i.e. Hence, the grocery industry suffered. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. In some cases, this can be beneficial. Most companies have a business website. This report series allows you to understand the macro-economic environment as a basis for strategic planning. And as the retailer grows, new legislative laws come into effect. Whether their food is actually contaminated or not. Proposal, Question Academic writing has no room for errors and mistakes. Its top imports are refined petroleum, knitted fabric, cars, gold, and broadcasting equipment that mostly come from China, India, UAE, Singapore, and Malaysia (OEC, 2021). The shakeout stage is followed by the maturity stage. In fact, Sri Lanka is one of the biggest receivers of Chinese FDI. Organizational culture derives strong influence from the societal norms, values and trends. 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. The threat of substitution is really high in the grocery industry. For instance, extreme weather conditions can increase the cost of operations and compel the Cargill A. to make the value chain more flexible. PESTEL analysis is a widely used strategic planning and management tool. Social factors: Buying in bulk and collecting endless data. Rather than just buying products they only need. The country exports it toItaly,Germany, India,UK, and theUSA. Via helps you navigate a fast-changing digital marketplace. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability and profitability of Cargill A. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. 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. Operating in such a market can lower the production cost of Cargill A. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. The industry analysis consisted of three stages. Ansoff Matrix in McDonalds (McDonalds Growth Strategy), https://www.amnestyusa.org/countries/sri-lanka/, https://www.bbc.co.uk/news/world-south-asia-11999611, https://www.britannica.com/place/Sri-Lanka, https://www.worldbank.org/en/country/srilanka/overview. Country Profiles examine the economic and political trends in 210 countries and associated regions, serving as a one-stop-shop for data and analysis on the economy, political landscape and the business environment. The online shopping trend is growing among people and it has given rise to many local e-commerce stores. Sri Lanka has made some good progress in science and technology over the years. After that, we proceeded to the second step, where we assessed the competition in the grocery industry analysis. Research and development activities are highly important in an environment characterized by creative disruption. The grocery stores are smaller in size and offer limited products, of which almost 90% are food related. Blackridge Research's Sri Lanka Solar Power Market Outlook report consolidate the developments and build a perspective on growth from the point of view of the solar sector, in its current and future role. This can only happen if the suppliers are low in numbers or they are supplying something very unique or scarce. However, Sri Lanka also faces some environment challenges e.g. With the help of technology, retail is one of those industries that can survive post-economic destruction. This is the exact premise behind CostCo, a Canadian retailer. This is because grocery stores mainly buy food and beverage products from wholesalers. (2012). on WhatsApp for any queries. Demography. Because no one can afford or justify the purchases. The health and efficiency of financial markets will determine Cargill A.s ability to raise the capital at fair prices. 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