Situational Analysis of Red Bull: PESTLE Analysis and Recommendations

This report provides a situational analysis of Red Bull through a PESTLE analysis, highlighting key factors with positive and negative influences on the business. Recommendations are also provided based on the analysis.

Individual Case Study
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................3
Part B...............................................................................................................................................3
Introduction.................................................................................................................................3
Conducting a situational analysis on the basis of case study which includes PESTLE analysis.
Key essential points which have both positive and negative influence on the business entity. .3
Key factors having positive and negative response...................................................................5
Recommendations on the basis of situational analysis. .............................................................6
Conclusion ..................................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operation and marketing is considered as business entity which plays very important role in
attaining goal and objective successfully. Moreover it is essential for business unit to develop
and implement proper strategies, plans and policies related to marketing as well as operation as
that will help in ensuring that work are conducted in best manner. The respective report is based
on case study of Peas as well as Red Bull. The report is bifurcated into two sections which
described according to the given case studies. Through these topics the analysis will be done
which help company in growing company at the workplace. Part A of the report include
information related to detail of objectives and constraints of production procedure as well as it
also include information of capacity management issues and capacity constraints. Moreover Part
B include situation analysis of firm through different models such as PESTEL, TOWS, and
marketing environment. Along with this it also include recommendations in order to conduct
effective situation analysis.
Part B
Introduction
The second part of this report is based on a case study which is on Red Bull. This is a n
organization usually provide energy drink to their customers which are in different flavours as
per the need and demand of the company. PESTLE analysis is going to be conducted in this
section for Red Bull which help in understanding the market situation in an effective manner. On
the basis of situational analysis various recommendations are given to the management team so
that they can modify their strategies and policies accordingly.
Conducting a situational analysis on the basis of case study which includes PESTLE analysis.
Key essential points which have both positive and negative influence on the business
entity.
For each and every business entities it is very essential for the higher authorities to conduct
situational analysis so that they will be able to develop or modify their policies as per the
changing situation and environment. It has been identified that PESTLE analysis is one of the
most effective framework considered as an imperative for business organisation like Red Bull, as
it will assist them in order to understand the market dynamics as well as improve the business
3

functions on a continuous basis. In reference to Red Bull organisation, higher authorities of the
company conduct PESTLE analysis which are going to be discussed as follows:
Political factor: There are different sort of factors which highly affect the overall
performance of Red Bull Politically, it has been identified that some of these factors are the
method in which government stabilizes, corruption level of the markets included, restrictions of
government on the usage of energy drinks, press freedom and many more. These are the factors
which can highly affect the imports as well as exports of the drink, which influences the overall
sales of the products offered by Red Bull. In addition to this, government policies might
influence the ease of both imports as well as exports of Red Bull, which is considered as an
opportunity for an organisation. On the other hand, it has also been said that threat for the
country consist of various health policies which affect the overall sales in an adverse manner.
Economic factor: It has been said that the economic condition of country will highly
affect the production as well as sales of Red Bull in both positive and negative manner. It has
been said that at the time of inflation rate is high it is concluded that organisation needs to pay
high cost for the raw materials, which as a result increases the overall selling price of the
product. If talking about Red Bull, it is a premium brand which says that any kind of economic
crises highly influences the overall sales. It has also been identified that the opportunity for the
organisation Red Bull usually comes from a well developed country whereas threat are mostly
witnessed by them when a country is facing economic slowdown.
Social factors: It has been said that the lifestyle of population, status, youth within a
country, income level of the generation are usually included in the social factors. It is said that
the modern culture is highly inclined towards usage of energy drinks, which is considered as one
of the biggest opportunity for organisation like Red Bull. Due to the hectic lifestyle of the new
generation, each and every person need energy drinks which is the opportunity for companies
like Red Bull. Apart from this threat for company is people become more health conscious which
will bring down the demand of such energy drinks at the marketplace.
Technological factor: For all the organisation deals in food and beverages businesses, it is
said that research and development is considered as one of the most effective opportunity. For
organisation like Ref Bull, adoption and use of the internet is the most important opportunity.
Most of organisation selling energy drink such as Red Bull adopt advertising strategies which
are modern and using internet. This as a result help in connecting with customers in two way

which is considered as the cheapest and most powerful method. Therefore it is considered that
technologies plays very essential role in the growth and success of an organisation at the
competitive market place which also attract large number of customers by adopting unique
techniques and tools in order to promote their offerings.
Legal factors: For a business entity deals in energy drink such as Red Bull, it has been
analysed that there are different sort of laws as well as regulations which is related to food and
regulation laws required to be followed by each and every organisation. For maintaining the
position of the company at competitive marketplace, it is said that managers of the company
need to implement every legal requirements in an effective manner. Along with this, all the
safety criteria needs to be followed by the organisation so that there workers get safe and secure
environment in order to produce high quality products. Furthermore, it is said that these are the
legal requirements which might restrict the organisation from its expansion in different
countries.
Environmental factors: Waste disposal refers to the biggest issues faced by usually each
and every company. It is said to for maintaining sustainability of the companies in their long
run, requires emphasis on the development of the environment. If talking about Red Bull it is
said that company faces ample number of challenges and issues in relation to environmental
factors, as a result this highly affect the overall brand name of the company which creates
negative influence on the sales and profitability. Therefore, manager of the company Red Bull
need to adopt environment law and legislation in order to enhance the overall environment and
reducing wastage in an effective manner.
Key factors having positive and negative response
It has been identified that there are various factors which have their positive and negative
impact on the growth and development of the company at the competitive market place. One of
the most essential element is the changing need and requirements of customer. Regular
modifications in the requirement of customers highly affect the overall functionality of the
company in an adverse manner which demand continuous modifications in their product. On the
other hand, adopting all the health and safety measures framed by government of the country
help in maintaining long term sustainability of the organisation at the competitive market place.
In addition to this, it has been said that the most essential factor is considered by the business
organisation is their workforce. With the help of trained as well as well qualified staff members
5

organisation like Red Bull will be able to accomplish their goals and objectives in an effective
and we’ll defined manner. Skilled employees of the organisation provide positive outcome to the
company but attaining their targets but on the other hand, if the employees are not well trained
than they will create negative impact on the company and reduce their sales and performance.
These are the essential factors which plays both positive and negative impact on the overall
functionality of the company which can aid them to grab opportunities whereas also leads to
reduce the sales of organisation at the competitive market place. Another key factor that has both
negative and positive impact is Technology, it is determined that technology is changing rapidly
that change the taste and preferences of customer. Adoption of innovative and new technology
will help company to provide an effective and quality service to customer and strengthen its
market performance. On the other side, it occur high cost to company and also take long time to
process that has negative impact on profitability and revenue level of respective organisation.
These are the factors which have both positive and negative influence on the overall performance
and functionality of a business entity which needs to be analysed by higher authorities in a well
defined manner. By effectively measuring and considering these factors a business entity can get
more positive outcomes which influence their performance and help them in order to gain huge
profitability.
Recommendations on the basis of situational analysis.
After conducting the PESTLE analysis in a detail manner of the company Red Bull,
various recommendations are going to be given to the higher authorities of the organization.
With the help of this, managers can enhance their performance and effectiveness at the
competitive marketplace in a well defined and effective manner. On the basis of above
discussion, some of the recommendations is given to the higher authorities of Red Bull is given
below:
 It is recommended to the managers of respective organisation to conduct market research
as it will help in gaining knowledge about requirements of customer and market trends by
which company can develop effective strategies and fulfil the needs of customer in an
appropriate manner. Moreover, it also help in retaining customer for longer time period
that has positive impact on its performance and productivity level.
 In addition to this, it is suggested to top level authorities of Red Bull to provide training
and development session to employees as it will help in offering quality and on time

service to customer that develop positive mind set of customers towards the brand. Along
with this, it also assist staff members to deal with customer queries in a proper manner
that enhance the number of loyal customer towards brand. This will help respective
organisation to strengthen its market and financial performance effectively.
 Another suggestion to company is to ensure that its employees feel safe and healthy at
workplace as it help in making staff members work with full potential for attaining
objectives in an appropriate way. Providing a healthy working culture to employees will
decline their level of mental pressure due to which they work with full potential in
attaining objectives within stipulated time period.
 Moreover, the managers and human resource department of organisation should focus on
adopting an effective recruitment and selection technique so that they can hire skilled and
talented candidate who has the potential to reach company towards higher growth and
success. Skilled and talented employees of the organisation provide positive outcome to
the company but meeting their targets and attaining objectives within given time period.
 In order to improve its customer base level and fulfil the requirements of customer, the
respective organisation can take feedback from its customer after purchasing and
consuming of products to them. This will assist company to gain knowledge about the
requirements of customer and make them feel valued by choosing brand. This help in
increasing number of loyal customer and raise the productivity and profitability of Red
Bull.
 At last, it is recommended to higher authorities of Red Bull to evaluate and monitor
performance of staff members with the set expectations as it will help in making
improvements on time and attaining objectives in an effective and timely manner.
Furthermore, it also increase the efficiency of staff members that directly leads to raise in
profitability and revenue level of Red Bull.
Conclusion
It can be concluded that situational analysis plays very essential role in the attainment of
organizational goals and objectives in an effective manner. With the help of doing examination
of new marketplace before conducting their functions, company will be able to gain positive
outcomes in an appropriate way. Furthermore, recommendations are also to the higher authorities
of Red Bull so that they can raise their performance and effectiveness at the competitive
7

marketplace. It has also been analysed that by adopting all these factors and recommendations in
an effective manner, top management team of the company will be able to get opportunities at
the competitive and new marketplace.
CONCLUSION
By conducting evaluation of above mentioned topic it can be summarised that in order to
attain the desire goal and objective a company need to conduct effective marketing as well as
operations practices. Through conducting proper marketing function a company able to conduct
marketing functions properly which help in attaining high customers support which leads to
growth of business. In respect of this, management of a firm need to conduct situation analysis as
that will help in understanding situation properly according to which strategies as well as plan
conducted in best manner. For this a company may adopt numbers of strategies, models or
theories such as PESTEL which help in evaluating external factors, TOWS which evaluate
internal environment and so on. Through conducting proper operations and marketing a company
able to attract more and more customers which leads to growth of business.

REFERENCES
Book and Journal
Alencar, M.H., Priori Jr, L. and Alencar, L.H., 2017. Structuring objectives based on value-
focused thinking methodology: Creating alternatives for sustainability in
the built environment. Journal of cleaner production, 156, pp.62-73.
Du, X., Wang, A. and Pan, Z., 2017. Clustering and Differential Evolution Algorithm for Solving
Multi-objectives IPPS Problem. DEStech Transactions on Computer
Science and Engineering, (iceiti).
Eleiwi, F. and Laleg-Kirati, T.M., 2018. Observer-based perturbation extremum seeking control
with input constraints for direct-contact membrane distillation
process. International Journal of Control, 91(6), pp.1363-1375.
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using PESTLE. Journal
of Atmospheric and Solar-Terrestrial Physics, 192, p.104901.
Kersting, S., Hüttel, S. and Odening, M., 2016. Industry dynamics under production constraints—
The case of the EU dairy sector. Economic Modelling, 55, pp.135-151.
Romero-Silva, R., Hurtado, M. and Santos, J., 2016. Is the scheduling task context-dependent? A
survey investigating the presence of constraints in different manufacturing
contexts. Production Planning & Control, 27(9), pp.753-760.
Shimizu, E., Paris, S., Fisher, M., Yumer, E. and Fatahalian, K., 2019, May. Exploratory Stage
Lighting Design using Visual Objectives. In Computer Graphics
Forum (Vol. 38, No. 2, pp. 417-429).
Widodo, A.K., Mahachandra, M., Widhiyaningrum, M. and Tahqiqi, R., Formulating a Strategic
Management of Social E-Commerce through a Combination of SWOT
and PESTLE Analysis: Case Study.
Hardie, B., 2020. Studying situational interaction: Explaining behaviour by analysing person-
environment convergence.
Xie, C., Analysis of the Current Situation and Countermeasures of College Students' Ideological
and Political Education in the New Media Environment. International
Journal of Social Sciences in Universities, p.64.
Yu, K., 2020, October. Research on the Integrated Situation Analysis of Ship Mariners Team. In
International Conference on Man-Machine-Environment System
Engineering (pp. 3-13). Springer, Singapore.
Jing, S. and Zhuhui, Y., 2020. Corpora-Based Comparative Analysis of Synonyms “Situation,
Environment and Circumstance”. International Journal of Literature and
Arts, 8(4), p.206.
Subhashree, N., Naik, P.R. and Nirgude, A.S., 2020. Swachh Bharat Swachh Vidyalaya
Campaign: Situation Analysis of Select Schools in Karnataka State, India.
Indian Journal of Community Health, 32(2).
Swanson, C., and et. Al., 2020. Situation Analysis Report: Albemarle County/City of
Charlottesville 2018.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence, 38(4),
pp.54-61.
Achinas, S., Horjus, J., Achinas, V. and Euverink, G.J.W., 2019. A PESTLE Analysis of Biofuels
Energy Industry in Europe. Sustainability, 11(21), p.5981.
9

Simões, E.N., 2020. A decision support system application module-for PESTLE analysis-
competitive intelligence algorithm (Doctoral dissertation).
Widya Yudha, S. and Tjahjono, B., 2019. Stakeholder mapping and analysis of the renewable
energy industry in Indonesia. Energies, 12(4), p.602.
Kanyarusoke, K., 2020. Problems of engineering entrepreneurship in Africa: A design
optimization example in solar thermal engineering. Engineering Science
and Technology, an International Journal, 23(2), pp.345-356.