ECOLAB Situational Analysis Report

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author note

1MARKETING
Introduction
The report throws light on performing situational analysis of the ECOLAB organization
as to analyze the different factors which are affecting the growth of the company in competitive
business environment. Situational Analysis refers to collection of different techniques which can
be used by managers as to analyze the internal and external environmental factors of
organization. ECOLAB is the leading provider of the food safety, cleaning along with health
protection services and products for hospitality with $5 billion sales in the global market.
Answer to Question 1
External Situation Analysis of ECOLAB (PESTEL)
Political Factors helps in analyzing factors that can impact the marketing and operational
activities of Ecolab. Ecolab Inc is operating in cleaning products in more than 12 countries, and
there are various political risks and uncertainties (Baker and Saren 2016). In the Australian
market, the political economy is stable, and level of corruption is less which provides various
opportunities in managing the overall business efficiency (Bliss 2019). In New Zealand, the
labor laws are strict and the labor force is expensive in the government wherein the companies
have to pay more taxes and it reduces the overall profitability of the organization (The
Conversation 2019).
Economic Factors play a vital role in managing the different operations of ECOLAB in
different countries as the macro-environmental factors can determine the aggregate demand and
investment in the economy. In both the Australian and New Zealand economy, the skill level of
the workforce is sufficient, and this plays a significant role in managing the different operations

2MARKETING
successfully (Newzealandnow.govt.nz 2019). In the Australian economy, the rate of inflation is
healthy, and it is the broad service sector which will be beneficial for the overall growth of the
cleaning services of ECOLAB (Boeing.com.au. 2019). On the other hand, in NZ, the rate of
unemployment has been considerably low which shows positive sign for the economy along with
the company to generate profitability (Stats.govt.nz. 2019).
Social Factors plays a significant role as the culture of society and way of performing
things can impact the culture of the organization. As the government of NZ changes in every
three years, there will be strong political system for the country (Newzealandnow.govt.nz. 2019).
The rate of literacy is high which is the right sign for the growth of ECOLAB in the market
effectively. Furthermore, in the Australian economy, ECOLAB needs to struggle as the
employment rate if comparatively low which can affect the overall effectiveness.
Technological Factors plays a significant role as there are different competitors of
ECOLAB in both Australia and NZ economy which can disrupt their innovations negatively. The
cost structures of the countries are stable and these impacts on value chain structure and the rate
of diffusion in technology. However, in Australia, there are about 55% of the costs of R&D
which is being funded by government of Australia which affects the marketing of ECOLAB
(Missionaustralia.com.au. 2019). On the other hand, there is a considerable investment made by
the government of NZ on R&D which positively impacts the cleaning services companies
positively as there is no problem for the company to receive funding for introducing different
activities.
Environmental Factors play a vital role as the different markets have various norms of
environmental standards which impact overall profitability of organization in such markets. In