PESTEL Analysis Project Copy
PESTEL Analysis
A pestel Analysis is looking at the external environment and how they impact on particular company’s activities. Each of these components has the potential to affect the firms industry and competitive environment; some will have a more important affect on others though. (Thompson et al, 2013)
Political The company will have to agree to follow all rules set out by the EU, in regards to the sale of food and drinks regulations. Our company will be able to pay a low tax rate to produce the drinks in Ireland, currently the tax rate in Ireland for corporations is 12.5%. We however need to concentrate on how much sugar we put in our energy drink, as all energy drinks require some kind of glucose, this is a concern at the moment, as leading doctors are calling for a sugar tax, and this could increase the cost of our product which could affect our sales. (reported by Hosford, 2014)
Economic
Ireland has been in a recession for several years and throughout those years we have seen a drop in consumer spending, however there is positive signs for Ireland as we have seen rises in what consumers are spending. The unemployment rate is also decreasing, and with Christmas coming up it will decrease again because of the seasonal workers getting jobs, so it would be a good idea to launch the product in the New Year.
Social
Ireland is seen as a quite active nation, with triathlons and marathons becoming quite popular, many women take to the streets for the Flora mini marathon, and it is seen as the biggest event of its kind in the world, with number increasing every year. There is also been an increase with gyms opening up, and many people taking to the fitness world, we have seen gyms such as Westwood, spend 1 million to enhance there facility and also David Lloyd has spent 4 million in the past 5 years on improving their facilities, as seen on (www.davidlloyd.ie)(www.westwood.ie)
Technology
With more people gaining access to the Internet, social network is
A pestel Analysis is looking at the external environment and how they impact on particular company’s activities. Each of these components has the potential to affect the firms industry and competitive environment; some will have a more important affect on others though. (Thompson et al, 2013)
Political The company will have to agree to follow all rules set out by the EU, in regards to the sale of food and drinks regulations. Our company will be able to pay a low tax rate to produce the drinks in Ireland, currently the tax rate in Ireland for corporations is 12.5%. We however need to concentrate on how much sugar we put in our energy drink, as all energy drinks require some kind of glucose, this is a concern at the moment, as leading doctors are calling for a sugar tax, and this could increase the cost of our product which could affect our sales. (reported by Hosford, 2014)
Economic
Ireland has been in a recession for several years and throughout those years we have seen a drop in consumer spending, however there is positive signs for Ireland as we have seen rises in what consumers are spending. The unemployment rate is also decreasing, and with Christmas coming up it will decrease again because of the seasonal workers getting jobs, so it would be a good idea to launch the product in the New Year.
Social
Ireland is seen as a quite active nation, with triathlons and marathons becoming quite popular, many women take to the streets for the Flora mini marathon, and it is seen as the biggest event of its kind in the world, with number increasing every year. There is also been an increase with gyms opening up, and many people taking to the fitness world, we have seen gyms such as Westwood, spend 1 million to enhance there facility and also David Lloyd has spent 4 million in the past 5 years on improving their facilities, as seen on (www.davidlloyd.ie)(www.westwood.ie)
Technology
With more people gaining access to the Internet, social network is