Assignment on Impacts of PESTLE PDF

Grab company, Singapore
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Table of Contents
Introduction................................................................................................................... 2
PESTLE....................................................................................................................... 2
Impacts of PESTLE on Grab Company............................................................................. 3
Porter’s forces............................................................................................................... 5
Impacts of Porter’s five factors......................................................................................... 6
Strategic recommendations............................................................................................. 7
Conclusion.................................................................................................................... 8
References................................................................................................................... 9
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Introduction
Grab Company is a technology-based cab sharing company which is based in Singapore and it is
founded in 2012. They offer their services with the help of applications which offers their
customers to avail the facilities like ride-hailing, and ride sharing etc. The company has their
branches opened in more than 168 cities across 8 different countries. Their services include
GrabTaxi, GrabCar etc. among several other services. More than 5000 employees are working
in the different branches of the organization. Their net income is more than 82.8 million US
dollars in the recent years. Recently they are facing competition from other technology-based
cab-hailing companies like Uber. The purpose of this paper is to discuss the factors of PESTLE
analysis and their impacts on Grab Company. Moreover, the paper will also discuss Porter's five
forces and their impacts on the company. Furthermore, the paper will also discuss how these two
analyses can be used to increase the performance of the organization.
PESTLE
PESTLE analysis is an analytical tool used by the organization to analyze the macro-
environmental factors which can affect the business volume of the organizations. These factors
include political, economic, social, technological, legal and environmental factors which are
discussed below:
Political
Political factors are defined as a factor by which a government of a particular country can
influence the economic growth of the country. Political factors include tax policies, labor laws
and trade restrictions imposed by the government on the business organizations (Song et al.,
2017). These factors are evaluated to determine how the government policies can influence the
internal environment of the organization.
Economic
Economic factors of a country are defined as the factors which have a direct effect on the
profitability of an organization. Economic factors include interest rates, costs of raw materials
and exchange rates between the countries (Lamas Leite et al., 2017). These factors exert a
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significant effect on the operation of an organization. Interest rates of a particular country can
significantly affect the operational costs of an organization.
Social
Social factors comprise of cultural aspects of a particular country and other factors like health
consciousness, population growth rate, attitudes regarding career etc. Changes in the demand of
the customers can influence how an organization operates in a particular way (Dockalikova &
Klozikova, 2014). Higher satisfaction in the society can have a significant effect on the business
operations of a firm.
Technological
Technological factors include factors like research and development and other technological
advances of the country. These factors can be used to identify barriers to potential entry in the
market and it also has a significant effect on the business decisions of the firm (Balasopoulou et
al., 2016).
Legal
Legal factors of a country include the rules and regulations of a country and how it impacts the
business growth of an organization (Song et al., 2017). These include discrimination laws,
corporate laws and other regulations which can have a significant effect on the business
decisions of a firm.
Environment
Environmental factors include factors like climate, weather and other factors which can have a
significant effect on the business operations of a firm (Islam & Pattak, 2017). These factors palsy
a significant role in maintaining the sustainability of the organizations.
Impacts of PESTLE on Grab Company
Political
Singapore is a democratic country and the political conditions of the country are stable. The
government of the country is elected with the help of election (Song et al., 2017). These factors
have a positive effect on the business decisions of Grab Company.
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