PEST Analysis of Renewable Energy

The assignment delves into a PEST (Political, Economic, Social, Technological) analysis of the renewable energy sector. It requires students to examine the influence of these key factors on the growth and development of this industry. The text provides various sources related to renewable energy, competition within the sector, and environmental impacts, suggesting a comprehensive approach to the analysis.

Running head: MBA
MBA
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

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Table of Contents
Part A:........................................................................................................................................2
1. Outlining the main issues discussed in the article:.................................................................2
2. Depicting whether demand for energy will increased in near future:....................................2
3. Suggesting a better approach for dealing with supply of energy sources:.............................3
Part B:.........................................................................................................................................5
Question 1:.................................................................................................................................5
a) Elaborating the concepts of PEST analysis:..........................................................................5
b) Depicting how with the help of PEST analysis business environment could influence the
performance of hypermarket:.....................................................................................................6
Question 2:.................................................................................................................................7
a) Depicting the different between monopolistic competitive market and a monopoly market:
....................................................................................................................................................7
b) Describing the monopolistic market in Malaysia:.................................................................8
Reference:................................................................................................................................10

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Part A:
1. Outlining the main issues discussed in the article:
The main issue that has been discussed in the article is relevantly associated with the
rising demand of energy in the world. Furthermore, the demand of fuel is mainly estimated to
rise around 20% in the next 20 years which could directly affect the energy providing
companies. Moreover, can increase in the consumption of energy worldwide is expected to
rise by 40% in 2035. These all relevant data mainly indicate that a demand for energy is
going to rise in future, where energy producers need to adopt adequate measures for finding
new sources of Oil and Gas energy. Furthermore, the relevant issues that are discussed in the
article states that growing demand, Geopolitical pressure, and challenging resource landscape
is directly increasing the barriers in continuous production of Oil and Gas energy. Therefore,
energy producing organisations are directly investing in multi-billion dollar projects, which
could directly allow them to find relevant oil and gas deposits to support future energy
demands.
2. Depicting whether demand for energy will increased in near future:
The evaluation of the article mainly helps in identifying the overall demand for
energy, which could directly increase by around 45% in 2035. this is relevant increment and
demand for energy is mainly due to the rising population and progress that has been seen in
Asian countries. The demand of energy from China and India has drastically increased over
the period of 10 years, where standard of living of citizens has increased. This overall
increment in demand for energy has pushed the energy providing companies to improve their
current production system. The Geopolitical pressure is mainly conducted by countries,
where sustainable energy methods are being used to reduce the negative impact on

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environment. Furthermore, the new technology has allowed oil and gas companies to find
natural resources more accurately, while the extraction process is still being developed. The
overall global energy landscape has been changing for sometimes, where renewable energies
are in focus for different energy companies.
The growing demand of energy is mainly fuelled by rising population in Asian
countries where around 25% increment in population is estimated in next 20 years.
Furthermore, it is estimated that relevant energy demand would only be rising in emerging
economy such as India and China, where industrialisation is relatively increasing that directly
boosts the demand for energy (Glassley 2014). Moreover, demand for energy in China is
mainly expected to increase by 75% in 2035, as living standard of the citizens would
drastically increase.
3. Suggesting a better approach for dealing with supply of energy sources:
There are relevant better approaches to deal with the supply of energy source, which
could directly allow energy companies to increase their energy output. The renewable sources
such as hydroelectricity, wind electricity, and oceanic electricity could be advantages for the
energy producing companies. The use of hydroelectricity would eventually allow energy
companies to generate consistent energy to support the rising demand of the population.
Furthermore, the use of wind electricity and oceanic electricity also adequate, where
organisations could maintain a steady amount of energy output generated from these location.
The use of wind electricity and oceanic electricity is more prominent for the organisation,
where companies could adequately invest and generate a relevant study rate of energy. The
investments in the renewable energy sector could eventually allow the energy providing
companies to increase the capacity in your future and maintain the level of productivity. This
could eventually help in supporting the relevant demand in future. Nelson (2013) mentioned

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that relevant use of renewal energy could eventually allow the organisation to generate the
required level of energy to support the requirements of energy usage.
Furthermore, new and innovative measures need to be used by the energy producing
companies, where unlimited energy resources could be utilised adequately. In addition,
increased Energy Efficiency measures could also be used by energy producing companies,
where it could help in reducing the over expenditure on energy. This could eventually help in
improving energy efficiency of the energy producing plant, where relevant energy could be
seen. Moreover, the use of energy efficient equipments could also help in reducing the
demand for energy and support the energy producing companies. Omri et al. (2015) stated
that the use of CFL and Fluorescent lamp could eventually allow consumption of electricity
to decline in developing countries, as the consumption of energy would decline with the use
of increased Energy Efficiency equipment.
The energy producing companies could have also use adequate storing and
transferring equipments, which could help in reducing the transit loss of energy. this major
could eventually allow the companies to reduce the energy wastage and help in supporting
the rising demand of energy. Long et al. (2015) argued that wireless transfer of energy is one
of the technologies that are being used in the current years, which could only be used for
small ranges. The use of recommended strategies for increasing the energy output could
eventually help companies such as Chevron to support the rising consumer demand.

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Part B:
Question 1:
a) Elaborating the concepts of PEST analysis:
There are relevantly four components of PEST analysis, which could directly help in
analysing the overall external environment of the organisation. The Pest analysis mainly
consists of Political, Economic, Social, and Technological, which could be evaluated to
understand the impact of external factors (Gupta 2013). Relevant elaboration on the
components of PEST analysis is conducted as follows.
Political:
Political factors mainly consist of different government regulations that are imposed
on a specific country. These political factors directly help the organisation to understand the
impact of external environment, which could be conducted on its revenue generation
capacity. The relevant impact of government regulations can be seen on cost and tax that is
paid by the organisation (Barbara et al. 2017).
Economic:
The overall economic factor mainly states the exchange rate, economic growth,
inflation rate, and interest rate of the country. These identified economic factors mainly
influence the financial performance of an organisation. In addition, the economic factors
directly allow the organisation to accumulate relevant capital to increase its expansion
process or directly reduce profitability by increasing the rate of interest (Feng and Chunxiong
2017).
Social:

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The cultural aspect, age distribution, population growth rate, and safety measures are
mainly identified, as the social factors that regulate operations of the organisation. Social
factors mainly state overall quality requirements of the products produced by the
organisation.
Technological:
The technological factors directly involved advanced means of technological
activities that is conducted by the organisation. The use of high-end technology could directly
allow the organisation to increases productivity and profitability (Zhiguo and Li 2014).
b) Depicting how with the help of PEST analysis business environment could influence
the performance of hypermarket:
The relevant Hypermarket is directly affected by the PEST analysis, which states
different factors that influence organisations in Malaysia. However, there is no political
problem in Malaysia as the ruling party has been there for 25 years, which directly nullifies
threat from political change. In addition, Malaysia is also considered as one of the least
corrupted countries around the world and ranks 47th among 180 participants. Therefore, it
could be understood that no negative impact from political factors could contribute to the
Hypermarket. The overall economic factors of Malaysia are considered to be vibrant, where
the economy in last 10 years had an average growth of 7% per year. In addition, retailers such
as IKEA, Tesco and Carrefour freely operate in Malaysian economy, which depicts the
overall economic strength of the country. Furthermore, the overall exports mainly consist of
37% of the Malaysian GDP, which directly increases the purchasing power of the consumer.
Therefore, there is no immediate right from the economic condition of Malaysia to the
Hypermarket. Ab Talib et al. (2014) argued that economic condition of a country could

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drastically deplete during an economic crisis, which was what is during the 2007 financial
crisis.
The current social analysis of Malaysia mainly detects a mixed population race, which
consists of Chinese, Indian, and Malay. This mix in culture mainly boosts the overall social
factors and allows the Hypermarket to relevantly provide adequate services to the customer.
This difference culture mainly indicates that the overall Hypermarket needs to comply with
all the products and business practices that suit the needs of the population. Rasnan et al.
(2016) stated that evaluation of a social factors mainly allow organisations to identify the
relevant business practices that needs to be conducted in the country. Malaysia is considered
to be one of the reading ICT developed countries, which indicates that the technological
advancements used in the country are relatively high. This could directly allow the
Hypermarket to attract customers more adequately with the help of online measures and
techniques.
Question 2:
a) Depicting the different between monopolistic competitive market and a monopoly
market:
The overall difference between monopolistic and monopoly is depicted as follows.
 The number of players mainly identified as one of the differentiation factor between
monopolistic competition and Monopoly. In addition, monopolistic competition mainly
has 2 to 10 or even more number of players involved in the production of same product.
However, Monopoly mainly consists of only one major player that has authority to
produce only one product, which cannot produced by other companies (Lewis 2014).

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 The second difference is mainly the competition level that is faced in Monopoly and
monopolistic competition. Moreover, in Monopoly there is no competition involved in the
market, whereas in monopolistic competition there is stiff competition between the firms
(Kirzner 2015).
 The third difference is mainly identified as the barrier to entry and exit, there and
monopolistic competition market there is no barrier of entry and exit, where is in
Monopoly market there is relevant barriers in entry and exit of the new firms. In
monopolistic competition there is no barrier for entry and exit, as old organisation keep
the competition stiff, which does not allow them to obtain high profits from operations
(Hovenkamp 2015).
 The fourth difference is mainly identified as the demand curve in monopolistic
competition and monopoly. Therefore, in monopolistic competition the demand curve is
relatively flat, this is only due to the constant demand and arising supply provided by the
companies. The Monopoly had the demand curve steep, which is mainly due to the supply
provided by only one manufacturer (Park et al. 2015).
b) Describing the monopolistic market in Malaysia:
Malaysia is considered to be one of the economically stable countries, which host
different organisations all around the world. There are many International companies in
Malaysia that established their foothold in the market. This is mainly given rise to
monopolistic competition in the Malaysian market, which allows the consumer to get high
quality products at reasonable prices. In addition, due to the impact of monopolistic
competition companies in Malaysia are not able to manipulate prices and cheat the common
people. Nikaido (2015) mentioned that the monopolistic competition allows consumers to get
the real value from the product, as it provides both quality and price reliability.

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There is any relevant monopolistic competition in both real estate industry,
Hypermarket industry, and telecommunication industry. However, Malaysia still holds some
monopoly products, which are sold by only one company in the country. This division of the
overall monopolistic market and Monopoly has boosted the economy of Malaysia and
provided high quality products and services to its people. The monopolistic competition in
Malaysian market mainly includes goodies, discount, freebies and other facilities that is
provided to the consumer. This overall monopolistic competition mainly helps in improving
the services and goods provided to the Malaysian people. In this context, Nocco et al. (2014)
argued that monopolistic competition mainly/ reduces capability of the organisation to
generate higher revenue from Investments.

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Reference:
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Kirzner, Israel M. Competition and entrepreneurship. University of Chicago press, 2015.
Lewis, Ted G. "Booms." In Book of Extremes, pp. 51-67. Springer International Publishing,
2014.

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Long, Xingle, Eric Yaw Naminse, Jianguo Du, and Jincai Zhuang. "Nonrenewable energy,
renewable energy, carbon dioxide emissions and economic growth in China from 1952 to
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