PEST Analysis on Shell - 2267 Words

SECTION 1: PEST Analysis Royal Dutch Shell plc also known as Shell is an Anglo-Dutch multinational oil and gas company. It’s headquarter is located in The Hague, Netherland while its registered office is located in London, United Kingdom. Shell is the world’s second largest revenue company and it operates in over 90 countries and has 44,000 service stations worldwide. PEST analysis, â€Å"Political, Economic, Social and Technological analysis† is the external macro-environment in which a firm operates. This factors gives an impact to the organisation through the operating period. PEST factors are usually hard to control but the changes in the external environment created a new opportunities and so analysing these factors are easier. This†¦show more content†¦It is similar with other environmental audits such as PEST analysis but, it only forces one product or range of business itself and it is divided into five forces of key areas. Five Forces Analysis looks at five key areas: The Threat of Entry The power of Buyers Powers of Suppliers Threat of Substitutes Competitive Rivalry 1. Threats of Entry In general, new industries and companies would enter into the market and the output would expand, the prices would fall and the profits would be declined. The competitors always find a way to reduce new potential competitors by prosecuting strategies for barriers of entry. The barriers of entry are basically factors that are preventing new potential competitors to enter the market and compete with the firms that are already in the market. High entries of barriers are put to protect the current firms even when they are making profits. This is necessary move to reduce the number of new potential competitors in the market. Economics scale is the cost reduction which was caused by large output, represented by the important barriers of entry. The current industries or companies may enjoy the economics of scale and they may have the advantages over the lack of sales by the new competitors. This happens because the consumer has become loyal to the brand. Brand loyalty is when the consumer prefers the product from these companies thanShow MoreRelatedPest on Unilever1014 Words   |  5 PagesPest Analysis On Unilever - December 2nd, 2010 ________________________________________ Unilever is an Anglo-Dutch multinational corporation that owns many of the worlds consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever is a dual-listed company consisting of Unilever N.V. in Rotterdam, The Netherlands and Unilever PLC in London, United Kingdom. This arrangement is similar to those of Reed Elsevier and Royal Dutch Shell prior to their unifiedRead MorePestle Analysis867 Words   |  4 PagesCompiling and Using a â€Å"PESTLE† Analysis 1.1 A PESTLE analysis is a tool that acts as a prompt to the staff and governors involved in the analysis of the developments in the school’s environment that could affect its risk profile. It may help them carry out a more comprehensive analysis. The initials stand for: Political e.g. a new government initiative creates the risk that the school may fail to deliver the policy or be diverted away from local priorities etc. Economic e.g. central or localRead MoreSamsung Galaxy S6 And S6 Edge1299 Words   |  6 Pagesnext half of the year. External Environment The environmental analysis can be evaluated using PEST which is a valuable strategic tool for identifying the business positions, size, growth, feasible route for operations and to classifying the market development and decline. PEST Analysis To gain an understanding of Samsung galaxy s6 and s6 edge business potential, direction of operation and to know future market, we will use PEST analysis. 2.2.1. Political Factors There are many problems which areRead MorePest Analysis1689 Words   |  7 PagesPEST Analyses A PEST analysis (also sometimes called a STEP, PESTLE or STEEP analysis) looks at the external business environment. PEST stands for Political, Economic, Sociocultural and Technological. Technological factors in this case, include ecological / environmental aspects - the second E in STEEP and PESTLE, while legislative factors are included under Political (the L in PESTLE). The analysis examines the impact of each of these factors (and their interplay with each other) on the businessRead MoreShell Fracking1615 Words   |  7 Pages How has Shell s new business strategy of Fracking affected sales growth and how will it affect the profit growth going forward? (not done) Word Count:____ Introduction: Royal Dutch Shell or Shell, which it is commonly called, is a global company which seeks to be the leader in the gas and oil industry. Founded in 1907, Shell’s mission is to deliver the best value to its shareholders, while helping to meet energy demands all around the world. In addition to its roleRead MoreA Short Note On Galaxy S4 And Samsung Galaxy S61778 Words   |  8 Pagesreport in July 2015 that it would be adjusting the price of the S6 and S6 Edge. The company stated that sales of the two devices had a marginal effect on its profits. External Environment The external factors can be evaluated using PEST because PEST analysis is valuable strategic tool for identifying the business positions, size, growth, feasible route for operations and to classifying the market development and decline. 2.1. Basic Characteristics of the Environment - market definition, sizeRead MorePest, Swot And Porter s Five Forces Model Of Competitive Advantage1646 Words   |  7 Pagesimpact upon the organisation (Wendy,1997). Having presented a general overview of the renewable energy industry and some other background, a critical environmental analysis of the industry will be examined using PEST, SWOT and Porter s Five forces model of competitive advantage. 3.1 Political, Economic, Social and Technological (PEST) Analysis 3.1.1 Political Factors The continuing decline in the UK s oil and gas industries has led to an increasing need to import oil and gas (Keynote, 2010). ResultingRead MoreInvesting Analysis for Royal Dutch Shell vs. British Petroleum5483 Words   |  22 PagesINTERNATIONAL FINANCE INVESTING ANALYSIS FOR: ROYAL DUTCH SHELL amp; BP PREPARED BY: ARMI ARFIFI BIN AZMI ATMAN BIN KHAIRULFAZI MOHD NAZRUL BIN AGOS MUHAMMAD AMIRUL MUKMIN BIN NOR HIDAN CONTENTS PREFACE 3 1.0 INTRODUCTION 4 2.0 COMPANY DESCRIPTIONS 6 2.1 SHELL 6 2.2 BP 7 3.0 PROBLEM DEFINITION 8 3.1 Research Problem 8 3.2 Project Objective 9 3.3 Research Question 9 4.0 PEST ANALYSIS 9 5.0 SWOT ANALYSIS 11 6.0 FINANCIAL ANALYSIS 14 6.1 Pyramid Of Key Ratios 14 Read MorePest - Assignment3279 Words   |  14 PagesCONTENT PAGE 1. Question Paper 2 2. Introduction 3 3. PEST Analysis 4 (3.1) Political Legal Environment 4 (3.2) Economic Environment 4 (3.3) Social Environment 5 (3.4) Technological Environment 5 4. Industry Analysis 5 5. The Michael Porter Five Forces 6 (5.1) Threat Of New Entrants 7 (5.2) Rivalry of existing firms 7 (5.3) Threats of substitutes 7 (5.4) Bargaining power of buyer 8 (5.5) Bargaining power of suppliers 9 6. ConclusionRead MoreExternal Environment3104 Words   |  13 Pagesexternal environmental forces. The most common and popular techniques are the PEST analysis and Industry Analysis Pest Analysis It is useful to consider as a starting point, what environmental influences have been particularly important in the past, and the extent to which there are changes occurring, which may make any of these more or less significant in the future, for the organization and its competitors. PEST analysis (a mnemonic for Political, Economic, Social and Technological factors)