Data Envelopment Analysis In Energy & Environment – PESTEL Analysis As A Strategic Tool

Analysis of Australia for the company

Discuss about the Data Envelopment Analysis in Energy and Environmental.

The purpose of this report is to provide information about the use of PESTEL analysis as a strategic tool. The PESTEL analysis is a tool that evaluates the external market capabilities of a city or country for the business to expand or to initiate its activities properly (New, et. al., 2011). This analysis includes six factors namely, political, economic, social, technological, environmental, legal. These six factors summarize the attributes of the place for the organization (Zhou, Ang, and Poh 2008). The external factors play a major role in helping or addressing the positive and negative factors for the organization (Ratnatunga, and Balachandran 2009). Further, the below mentioned report explains the analysis of three factors of PESTEL for the company to enter in Australia. Pollution-eating bikes are an innovative project that should be adopted by companies worldwide (Hanjra, and Qureshi 2010). Australia faces major issue due to environmental pollution so with the help of this project the company can earn reputation in the market (Wunder, Engel, and Pagiola 2008). Further, more details about the report are discussed below:

The process of strategic management is very important for thee all the enterprises present in the market as it helps them to increase their competitive advantage in the external market (Smith 2013). The strategic management is a system focused tool that plans and monitors the growth of the company and helps them to meet the objectives as well (Ewing, and Cervero 2010). Further, the explanation of each segment PESTEL as strategic tool is discussed below:

The political aspect of this analysis explains various laws and regulations along with the changes in the political system of the country (Eliasch 2012). This aspect addresses the changes present in the government of a country that can affect the activities of the organization in the target market (Bribián, Capilla, and Usón 2011). Laws changes according to the change in the political system of the country due to which the activities of the companies changes accordingly (Pandey, Agrawal, and Pandey 2011). Like, with the change in the government of Australia, the companies started changing their activities in order to align their business functions with the system of government (Hertwich, and Peters 2009).

The economic aspect talks about the economies of the country; this factor is straightforward as it talks about the state of economy of the country in terms of its revenue, profits, per capita income of people etc. (Brandão, et. al., 2013).The economic factors explain the real condition of the country in terms of normal people (Batáry, et. al., 2011). Also it explains the favorableness of the organization to work in the country by explaining that whether people will invest in the product or not (Dai 2011). Further, along with this the economic factor also explains the inflation rate, trends in stock market, labor cost etc. (Su, and Ang 2012).

The social factors explain perspective of the customers and community towards the products and services offered in the market (Bae Choi, Lee, and Psaros 2013). This aspect talks about the culture prevailing in the environment, buying behavior of people their lifestyle, level of education, population rate etc. (Reimann, et. al., 2008). A product cannot sustain its growth in the market if it oppose to the culture prevailing in the environment. Thus, it aspect explains the do’s and don’ts prevailing in the environment for the companies (Sharafi, et. al., 2012).

The technological factors explain the level of technology present in the environment that can help the organization to successfully grow (Friedlingstein, et. al., 2014). As every organization uses technology to sell their products and services in the environment use the level of advancement of technology in the environment can helps the organization to organize their functions accordingly (del Río González 2009).

The environment factors include the environment present in the country that can affect the activities of the company. Climate change, weather and use of eco-friendly products are a part of this aspect. Bad weather can affect the profitability of many businesses, thus favorableness of this aspect is very important for the organizations to grow (Chen, and Bouvain, 2009).

The legal factors are likely similar to the political factors only but it does not include the instability of the government but it only include the laws and regulations formed by the government in response to the products and services offered by the organization (Hertwich, and Peters 2009).

Thus, it should be noted that these factors helps the organization to initiate activities considering all these aspects in their business, resulting to which the business subsequently grows (Booth, et. al., 2012). This analysis evaluates the features present in the market that can help of which the business can grow or fail (Wiedmann, and Minx 2008). Thus, if a company analyses these aspects and then expand their business in the new market, (Luderer, et. al., 2013) then are already prepared for the outcomes and fluctuations and do not face difficulty in managing it and growing repeatedly. Thus, in this way this tool acts strategically for the growth of the business (Solomon, et. al., 2009).

‘Clean the air as you ride on pollution-eating bikes’ is a news that was posted on The Times newspaper, the article talks about the production of innovative bicycles that inhale polluted air and exhale fresh air in the environment (Hu, et. al., 2014). The organization is aiming to introduce this technique in the market of Australia (Weidema, et. al., 2008). These bikes are developed in Beijing so as to clean most part of the country (Sodhi, and Ehrlich 2010). British streets are expected to use this strategy in near future to clean their environment (Wong, and Brown 2009). This concept is to redefine beauty and lifestyle by providing cheap and easy bikes to people for use (Soytas, and Sari 2009). Further, the growth and expansion of the company in the country is assisted by various factors, these factors in the form of PESTEL analysis is discussed below:

There are three levels of government in the country Australia that are Federal government, State government, Local Government (Agarwal, Grassl, and Pahl 2012). The government of the country comparatively holds a stable design that helps the business processes to growth effectively (Game, et. al., 2009). Further, there is presence of the activity of deregulation in the country (Dai 2013). The government of the country believes in expanding its scope of business and revenue by helping other organizations to freely enter in their country (Zuev 2018). Resulting to which, it gives an opportunity to the companies to enter in the market of Australia (Stork, Goosem, and Turton 2009). The country that holds les restriction of trade barriers attract the companies to enter in the market (Lehmann, et. al., 2008). Further, this gives a win-win situation to both the company and the government, as the government ears revenue and the company gains a new target market to expand (Adams 2013). The government of the country openly helps the organization to trade in the Australian market (Biswas, Barton, and Carter 2008).

Further, market of Australia is fit for the company to expand its business as there is stability in the political system due to which the government will not raise questions on the activities of the company (Grant 2016). Stable government will instead help the activities of the organization to expand its scope of business and promote the use of such bikes in the market (Olivier, Peters, and Janssens-Maenhout 2012).

Relating the activities of the company to the technological factor, it should be noted that as discussed in the case the bikes include a front rack mounted module that takes polluted air and reduce the carbon content present in the environment (Bose 2008). So, in order to make such environmental changes and produce such bike, the company requires to make use of hi-tech technology in the market (Christensen, et. al., 2009). Resulting to which, the company will not face difficulty in this case as there is presence of adequately technological measures in the country (Markovska, Taseska, and Pop-Jordanov 2009). There is presence of strong internet connection in the country, approx. 83% of the population uses internet (Lehmann, and Joseph 2015) and the country makes around $80 billion investment on the information technology infrastructure of the country (Tranter 2011). The government of the country aims to increase the extent of use of innovation by the companies by providing efficient technology at lower than expected rates (Zavadskas, Turskis, and Tamosaitiene 2011). This also increases the opportunities for the innovative companies to innovatively organize their activities in the target market (Peters, et. al., 2012). Most of the people of the country are educated that gives an advantage to the organization to explain the importance of use of pollution eating bikes in the environment and insist them to use it (Johnson 2016). Also, the government of Australia is focusing on surface transport due to which there are higher chances for the company to grow in this market (Wang, Chen and Ren 2010).

The country has started facing climate change issues due to the effect of global warming. Due to which, environmental awareness has become one of this major issue for the people of the country (Biswas, et. al., 2010). Unexpected changes in the environment clearly explain the environmental instability present in the country (Holdsworth, et. al., 2008). Travel and transport industry is highly affected with the effect of global warming (Mirakyan, and De Guio 2013). The government of the country has introduced greenhouse and carbon emission laws in the environment so as to protect the state of the country (Rogelj, Meinshausen, and Knutti 2012). The government has initiated Global Moratorium on commercial Whaling and various other laws to protect the life of creatures of Ocean (Willard, and Hitchcock 2009). Australia is an island country but still the country has faced severe droughts and wildfires and recent years that can explain the environmental degradation of the country (Billett 2010).

Australia has highest per capita emission of carbon di oxide in the world that shows that there is maximum need of pollution eating bikes in the environment to protect the survival of people in the country (Garnaut 2011). As the bike inhales carbon content from the air and filter it and pump clean air, resulting to which use of this aspect can improve the state of environment of Australia (Bose 2010). 

There are some of the recommendations with the help of which the organization can effectively contribute their share in the market of Australia (Boon, and Raven 2012). Initially, it should be noted that expansion in Australia can be regarded as one of the positive factor can positively improve the sales of the company (Bebbington, and Larrinaga-Gonzalez 2008). Looking at the environmental aspects of the country it should be noted that the company should sell their products using price penetration strategy in the market (Hochman, et. al., 2013). This strategy will initially help the people to purchase bikes on low rates then after gaining reputation the company shall increase its price (Boyes, Skamp, and Stanisstreet, 2009). Further, the company should also ask for subsidy from the government of the country; as the organization product that helps the government to reduce the rate of carbon emission in the environment (Goddard, Dougill, and Benton 2010) so the company should seek subsidy from government to serve the bikes at lower rates in the environment (Dodman 2009).

Looking at the technological factors, this aspect provides opportunity to the company to increase its sales with the use of social media medium (Pielke 2010). Also, they should use this type of technology to increase the competence of products in the market and help the people to get greater level of satisfaction in the market (Avi-Yonah, and Uhlmann, 2009).

Conclusion

Thus in the limelight of above mentioned events, it should be noted that it is very important for the country to make use of pollution eating bike in the market. As discussed above that Australia is ranked at the top most position in the market in terms of emitting carbon content in the environment. Thus, in order to clean the air from carbon content, the people should make use these bikes. The environmental, political and technological aspects support the activities of the company and provide them numerous advantages in the market of Australia as well.

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