Pest Analysis for Rdb
PEST Analysis for Royal Danish Bearings (RDB)
PEST analysis provides a framework for decision makers to consider factors in the external business environment that affect business operations. These factors can be categorised into four sections: political, economic, social and technological factors which can present opportunities and threats as outlined in the case study.
Political
* International quality standards to enhance the ease of exporting to different regional trading blocs (lines 29-30) * Legislation and government incentives to support environmentally-friendly products, such as ball bearings produced using green technologies (lines 117-118) * Public-private partnerships with the Swedish and German governments (line 131) * Dealings with the local urban planning authorities (line 139)
Economic
* Huge growth of the automotive sector in Brazil, China and India (ball bearings are widely used in the auto industry) * Positive outlook for the ball bearings industry, with growth expected over the next few decades (lines 6-7) * Ongoing uncertainties in Europe, such as the debt crisis of Portugal, Italy, Greece and Spain * High unemployment in Europe – both Greece and Spain have record unemployment rates of over 26% (Greece 26.8% and Spain 26.6%, as at January 2013) * Germany has its own economic problems, with Angela Merkel (the German Chancellor) announcing that 2013 will be an “even more difficult” year for Europe’s largest economy especially as the Eurozone debt crisis is far from being over * Financial crisis (line 61) still affecting many parts of the world, including Europe * Brazil’s high interest rates makes it an attractive location for foreign investment, but this has led to an appreciating currency which hurts the competitiveness of manufacturing in Brazil * Demand for ball bearings slowing down in Europe (lines 76-77) * Economic prosperity and industrialisation in Brazil, China and
PEST analysis provides a framework for decision makers to consider factors in the external business environment that affect business operations. These factors can be categorised into four sections: political, economic, social and technological factors which can present opportunities and threats as outlined in the case study.
Political
* International quality standards to enhance the ease of exporting to different regional trading blocs (lines 29-30) * Legislation and government incentives to support environmentally-friendly products, such as ball bearings produced using green technologies (lines 117-118) * Public-private partnerships with the Swedish and German governments (line 131) * Dealings with the local urban planning authorities (line 139)
Economic
* Huge growth of the automotive sector in Brazil, China and India (ball bearings are widely used in the auto industry) * Positive outlook for the ball bearings industry, with growth expected over the next few decades (lines 6-7) * Ongoing uncertainties in Europe, such as the debt crisis of Portugal, Italy, Greece and Spain * High unemployment in Europe – both Greece and Spain have record unemployment rates of over 26% (Greece 26.8% and Spain 26.6%, as at January 2013) * Germany has its own economic problems, with Angela Merkel (the German Chancellor) announcing that 2013 will be an “even more difficult” year for Europe’s largest economy especially as the Eurozone debt crisis is far from being over * Financial crisis (line 61) still affecting many parts of the world, including Europe * Brazil’s high interest rates makes it an attractive location for foreign investment, but this has led to an appreciating currency which hurts the competitiveness of manufacturing in Brazil * Demand for ball bearings slowing down in Europe (lines 76-77) * Economic prosperity and industrialisation in Brazil, China and