PESTLE ANALYSIS FOOD INDUSTRY
PESTLE ANALYSIS
1.0 INTRODUCTION
Deepkamal Exports Pvt Ltd is a 100% export oriented company. We are a government recognized Star export house and deal in Spices, Oil seeds and Dehydrated vegetables. Our main markets are Russia, Eastern Europe and The Middle East. We plan to expand our business into Brazil, Ukraine, Poland and Taiwan. Through the analysis we will try to look into several factors that we think will have an impact on our future investment plans.
2.0 INDUSTRY ANALYSIS: PESTEL FRAMEWORK
2.1 Political Factors:
(a) Internal factors
In India as in elsewhere politics and economics get intertwined quite often. Sudden ban on exports of products such as onion, rice etc. have an adverse effect on our business. Many a time these policy decisions (Bans) are more of a knee jerk reaction to sudden crises rather than a well thought out strategy. This leads to disruption of supplies to the markets that traditionally the Indian exporter’s supply to and eventually gives an opportunity for other countries to get into the market. Also, NCDEX although is a tool for better price realization what it is actually leading to is more speculation leading to abnormal fluctuations in the commodities market.
(b) External factors:
The west is looking towards Asia for new markets. But wants to continue to subsidies its farm produce while at the same time it expects concessions from the developing nations. Many a times instead of putting bans they put non-tariff barriers which is an indirect mode of trade protectionism.
Hence today most of the countries have their own Free Trade Agreements with other nations. The ability of a nation to have a balanced trade negotiations and in return get special access to markets leads to economic as well as political benefits. For example there are special trade incentives given by governments for doing business with lesser known and more risky regions such as the CIS countries under the Focus Market scheme.
War and political unrest also effects
1.0 INTRODUCTION
Deepkamal Exports Pvt Ltd is a 100% export oriented company. We are a government recognized Star export house and deal in Spices, Oil seeds and Dehydrated vegetables. Our main markets are Russia, Eastern Europe and The Middle East. We plan to expand our business into Brazil, Ukraine, Poland and Taiwan. Through the analysis we will try to look into several factors that we think will have an impact on our future investment plans.
2.0 INDUSTRY ANALYSIS: PESTEL FRAMEWORK
2.1 Political Factors:
(a) Internal factors
In India as in elsewhere politics and economics get intertwined quite often. Sudden ban on exports of products such as onion, rice etc. have an adverse effect on our business. Many a time these policy decisions (Bans) are more of a knee jerk reaction to sudden crises rather than a well thought out strategy. This leads to disruption of supplies to the markets that traditionally the Indian exporter’s supply to and eventually gives an opportunity for other countries to get into the market. Also, NCDEX although is a tool for better price realization what it is actually leading to is more speculation leading to abnormal fluctuations in the commodities market.
(b) External factors:
The west is looking towards Asia for new markets. But wants to continue to subsidies its farm produce while at the same time it expects concessions from the developing nations. Many a times instead of putting bans they put non-tariff barriers which is an indirect mode of trade protectionism.
Hence today most of the countries have their own Free Trade Agreements with other nations. The ability of a nation to have a balanced trade negotiations and in return get special access to markets leads to economic as well as political benefits. For example there are special trade incentives given by governments for doing business with lesser known and more risky regions such as the CIS countries under the Focus Market scheme.
War and political unrest also effects