The business and marketing strategies are also influenced by migration. Wall, S., Minocha, S., & Rees, B. He is a lecturer in Management and Marketing. Larger retailers can achieve this easier than mom and pop shops. The only thing left for the company to do about these changes is abide by them. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Cargill A. Total asset base amounts to Rs. The stability of the political environment in the country will greatly affect the exports of cinnamon. Its important to understand the laws long before the store is open for business. The supplier power in the grocery industry is very low. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. November 2022. (Ed.). Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. and cannot be used for research or reference purposes. Via helps you navigate a fast-changing digital marketplace. Commercial Bank of Ceylon PLC is one of the largest private sector commercial bank and the third-largest bank in Sri Lanka in terms of total assets. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. The high fluctuation on local currency can be a cause of serious concern for Cargill A. 5 Market Analysis 5.1 Regulatory Scenario . Excessive resource depletion by Cargill A. can draw the negative response from media, environment protection groups, customers and the general public. Its a never-ending process. Amazon and Walmart are going head-to-head. People save their money for products of necessity. At this stage, the industry is booming and has reached its peak. Rather than spending weeks trying to locate where the contamination started. This PESTEL/PESTLE analysis reflects a number of opportunities and threats that Unilever must prioritize in its strategies for growth and global expansion in the consumer goods market. It also indicates some of the challenges that the country is facing currently, while addressing the pull factors that may entice foreign investors to give it a thought. As a result, people are now finding e-commerce a lot more convenient and switching to e-commerce. Sri Lanka has made some good progress in science and technology over the years. 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. Today, well discuss the pestle analysis of Sri Lanka. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro . Certainly, rapid human development is having its toll on the environment. The data protection has become an important issue due to consumers privacy and security concerns. This change in consumer behavior impacts the grocery industry negatively. It also means more investors are becoming interested in the profitability offered by retail stores. Grocery stores and supermarkets are interchangeable terms. This PEST country analysis report on Sri Lanka provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis. As well as cash registers to manage money after a sale. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. However, Condliffe (2019) reports that social media particularly Facebook, have been used to spread false information to bring about social disturbance and disharmony in the country. 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. Hence all the suppliers have identical products. However, there are some social issues challenging Sri Lanka today. Consumer preferences are the main social factors affecting the retail industry. Our premier, award-winning syndicated market research database provides detailed data and analysis on industries, economies, countries and consumers across 781 cities, 210 countries.. However, when there is political chaos, it deters the investors and harms the stakeholders' trust in economic and consequent organizational performance. Theyll spend the bare minimum on food while the rest goes towards unpaid bills. Aug-22-2018. Which countries are moving up the value added chain away from primary sectors? November 2022 | 35 pages | ID: S0B95217862AEN. Dissertation PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. Because when contamination happens, every store in the chain has to get rid of the product. Moreover, considering the development and maturity level of technology in the respective market is also important. Its not only physical retail stores under scrutiny. Following economic factors need to be considered by Cargill A. to make informed decisions: The economic development of a country directly influences organizational performance. There is a variety of Herbal Toothpaste that rich in calcium and minerals. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. The retail industry is everywhere. Cargill A. should also carefully analyze the availability of skilled human capital as a shortage of skilled labor can affect business efficiency and make talent attraction and retention more challenging. A framework for PEST analysis based on fuzzy decision maps. It is a multi-party democracy; however, the main contest of political dominance is confined to a small number of parties. Understanding the impact of technology on firms business models. Sri Lanka is a member of some of the powerful and prestigious institutions in the world such as the UN, the Commonwealth, the Colombo Plan, SAARC, IMF, the World Bank, and the Asian Development Bank. - Political stability and policy continuity is essential for economic and business growth. PDF | On Jun 2, 2020, Poh-Chuin Teo and others published Analysis on Competitiveness of the Handicrafts Industry: A Case of Sri Lanka | Find, read and cite all the research you need on ResearchGate 8.4 Bn. The retail industry has greatly benefited because of the internet. The Latest Released Micro EVs market study has evaluated the future growth potential of Global Micro EVs market and provides information and useful stats on market structure and size. If not, select "Manage Preferences" to learn more about managing your cookie preferences. on WhatsApp for any queries. These conditions are often standard. Retailers who offer products online can collect data provided by their customers. Its always there, even when buyers dont have the funds to buy their products. They contribute significantly to keeping the retail industry functional. USD 300. Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. Operating in such a market can lower the production cost of Cargill A. 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. In some countries, recycling has almost become a business norm. The hospitality industry needs to worry about . Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis forSri Lanka. In the grocery industry, buyers have great power. To gain more market share with identical products, grocery stores spend money to make their store look more attractive so that more customers get attracted to their stores. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. Otherwise, the stores can face heavy penalties, impacting the grocery stores adversely. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Micro EVs Market SWOT Analysis by Key Players Textron, Polaris, Baoya Mar 1, 2023 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. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. inspiration, guidance, and understanding. Cargill A. should carefully consider the on-going technological innovations to stay ahead of the competition. Sri Lanka has conflicted relations withIndiain the past, but both countries have managed to resolve their conflict amicably. Consumer Foodservice By Location in Mexico, Analysis of the country's political and macroeconomic stability, An overview of the economic structure and major industries. Thats when shops began to establish. Strategy planning process often requires five steps -. The international presence of Cargill A. require the organization to consider these differences to avoid undesired circumstances carefully. With the help of technology, retail is one of those industries that can survive post-economic destruction. 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. PESTEL Analysis of Royal Ceramics Lanka PLC Political - The . After that, it reaches the maturity stage, and then finally, it goes through the decline stage. However, Indian and Sri Lankan cultures are almost the same. Social factors: Buying in bulk and collecting endless data. Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism, collective social trends, technological changes and evolving legal system. . Lets discuss what external factors impact the grocery industry. The country needs a lot of reforms like equal treatment of minorities, human rights, communal harmony, and a stable political environment in order to compete with the world. In such an environment, Cargill A. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Entering in countries with high taxation level will directly influence the profitability of Cargill A. Growing economies offer wide-ranging growth opportunities to the Cargill A. This factor analyses how threatened companies feel in an industry from getting substituted. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. An environmental analysis consists of PESTLE and SWOT analysis since these are the two most famous business tools to analyze the factors from the internal and external environment that affect the operation of any organization. You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. Copyright 2017 2025. Particularly, Chinese investment has been massive. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affe . Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. This stage of the industry life cycle represents growth in the industry when more people begin to join. More retail shops are offering food products. Read More. 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. The competition in this market is increasing and the small and local players are facing difficulties in survival. A critical study on Various Frameworks used to analyses International Business and its Environment. Mobile adoption is very strong, but innovation potential is lacking. The advent of social media and e-commerce has encouraged online shopping behavior among customers. 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. Cargill A. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. In that case, you will prefer to go to a grocery store to buy the essential food items so you can prepare dinner as soon as possible. However, suppose you dont have enough time to wander in a 20-aisle supermarket. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. Unemployment is particularly high for women and youth. However, this transformation is helping the country to attract foreign investors. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. Warning! academic writing services at least once in their lifetime! However, the country has also developed very relations with regional countries likeChinaandPakistan. Cargill A. need to study data protection regulations to protect the customer data. A PESTLE analysis is used in business to assess the industry which an organisation is in. This is costly for the companies. The geographic location of the island played a significant role in history from a strategic point of view. Whether their food is actually contaminated or not. 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. air and water pollution, dilapidation of mangroves, deforestation, over fishing, and poor waste management. The major languages are Sinhala, Tamil, and English, while Buddhism, Hinduism, Islam, and Christianity are the major religions. After that, the growth stage arrives. All rights reserved LCHW. 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. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. The grocery industry experienced the startup stage between the 11th and 14th centuries. I cant even imagine how difficult my life would be. please submit your details here. This helps the grocery industry generate high revenue. Research and development activities are highly important in an environment characterized by creative disruption. GSTF International Journal on Computing, 1(1), 73-80. Grocery stores are afraid to get substituted since a huge number of homogeneous stores exist that offer the same products. Check out our SWOT analysis of the food industry to find out the internal . In fact, Sri Lanka has received the highest investment from China. Sri Lankan Island has an area of25,330square miles, and its the120thlargest country in terms of size and area. Issa, T., Chang, V., & Issa, T. (2010). Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. For instance, corporations fear a soda tax; its an increased tax for selling soda in stores. Its standard for any store. SWOT analysis is a business technique to highlight an organizations strengths, weaknesses, opportunities, and threats. Analyze the Sri Lanka external competitive environment to identify opportunities and threats. This is the third major source of revenue generation to the economy. A close eye should be kept on analyzing the 5G and determining its potential to deliver positive business outcomes through enhanced user experience, increased speed and expanded access. Email Delivery - PDF (on default), Hard Copy Mail Delivery (+US$ 190.00) Download PDF Leaflet. Pearson Education. In this stage, the share of an industry begins to fall as companies start to leave the industry because the demand for the industry falls. Although, Limited-service restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from 2021s continued decline.. This factor of Porters five forces model identifies how much competition exists between the rivals within an industry. Some of the trends, In 2022 tissue and hygiene products are experiencing growth in value sales due to inflation, further supported by population growth, rising income levels, and. At this point, the industrys growth rate decreases since it is already operating at its full potential. take time-critical decisions. The political environment of a country comprises multifaceted factors. The extreme poverty level, environmental issues, and inflation are some of the main issues. Help, Academic As the population is increasing over the years, the grocery industrys customer base increases if they can attract new customers. Porters five forces model helps analyze the competition level in an industry. Access and download reports and data purchased through Euromonitor.com. This detailed PESTEL analysis of Sri Lanka aims to explore some of the powerful macro factors that impact on Sri Lanka today and may continue doing so in the future. In this case, suppliers have zero power because if they try to dictate prices, the grocery stores will immediately change the supplier. Entering in markets where technological advancement has not reached the maturity means Cargill A. can increase the market share by focusing on emerging technological innovations. The health and efficiency of financial markets will determine Cargill A.s ability to raise the capital at fair prices. Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. If you are looking for a market research solution for your research requirements, please begin your search using the search box on top of this page or use our chat system to speak to our market research consultants or directly write to us. A retail store needs to meet legislative conditions before opening the shop. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. Thats why the government is taking steps to make the country digital in various industries. IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence 1,143 Trillion . Other than that, hes a fun loving person. Pestle Analysis on Sri Lanka. Out of these 40,000 stores, more than 26,000 are simple grocery stores. ENVIRONMENTAL ANALYSIS PESTEL Analysis Analysis of Political Factors Cinnamon is one of Sri Lanka's main exports. Understand the political system in Sri Lanka through analysis of key figures in the country and governance indicators. Political - turmoil, Economy - shambles, Social - upheaval, Technology - fallout as no power, Environment - distraction due to poor policy implementation, Legal - politicised hence no consistency. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. Supermarkets make shopping easy. 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%). Cargill A. should also attempt to understand the degree of consumer ethnocentrism and consider the country of origin effect to determine local consumers evaluation of foreign products. Cargill A. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. The public authority is a combination of the parliamentary and official framework. This affects the retail industry, particularly big names like Wal-Mart and Amazon, who provide products online. The power distance within any society shows the acceptance of hierarchy and income inequality. Unless the retail corporations react accordingly (cutting prices), theyll suffer profit loss. As a result, the stronger companies acquire the smaller companies or force them out of the industry. Demography. Follow this link to learn more about our cookie policy and how we use cookies. Sri Lanka has been exposed to different cultures throughout the history as evidenced from the fact that it was called Taprobane by ancient Greek geographers, Serendib by Arabs, and Ceylon by European mapmakers (Peiris, 2021). 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. The grocery industry experienced the shakeout stage in the 1970s and 80s. Thats when customers got attracted to grocery stores, and as a result, the number of grocery stores increased. Moreover, the business performance of Cargill A. is also influenced by the extent to which the host country government has spent on core infrastructure development. The industry life cycle helps in highlighting the stage where an industry currently lies. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns.

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