Macro Environment Analysis for Tessa Company in England and Japan

The report provides a PESTEL analysis of the macro environment of Tessa Company in England and Japan. It analyzes the political, economic, social, technological, environmental, and legal factors in both countries. Based on the analysis, Japan is found to be a more suitable and attractive target market for Tessa Company.

Analysis

Table of Contents
INTRODUCTION...........................................................................................................................1
Analysis of macro environment.......................................................................................................1
Country A: England................................................................................................................1
Country B: Japan....................................................................................................................2
Micro environment...........................................................................................................................2
Market (Country) Selection.............................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................3

INTRODUCTION
The current project is based on the Tessa company which is an Australian based
processed meat company the many operations and services of which include the Meat, fish,
poultry and game; meat extracts; preserved, frozen, dried and cooked fruits and vegetables;
jellies, jams, compotes; eggs; milk, cheese, butter, yoghurt and other milk products; oils and fats
for food. The current report consists of having environment analysis of two countries (England
and Japan) to compare the opportunities and threat to decide the one that is more attractive and
profitable.
Analysis of macro environment
Country A: England
PESTE analysis
Political factor- The political environment of entire UK as well of the England is tend to
be very stable thus gives a higher business expansion opportunity. However, the recent Brexit
issues has brought certain uncertainty that is creating threat for success of multinational
company. But still a positive relationship and trade of England is seen with the Australia with
some regulations on open foreign trade (Owebor, Diemuodeke and Briggs, 2022).
Economy- England tend to be have a stable as well as fast growing economy that suits
and leads to better expansion of business organisation. But the recent covid-19 has created a
slowdown in its economy creasing many issues such as reduction in customer buying power.
Social- The society of England is quite rich and dynamic in nature along with the people
of England are also habitual and likes eating meet product that is leading an opportunity for
Tessal. Further, the size of people and population is also considerable as it supports higher sales
and productivity for meat company based on their religion and ethics which comprise of higher
number of people who are fond of eating meat.
Technological- The technological environment of England is quite dynamic in which
continuous improvement are keeps on going thus it is quite expensive and challenging to keep a
pace and have continuous improvement in technology that require higher investment and cost
(Shoeibi and et. al., 2022).
Environmental-The people as well as government of England has become more
conservative and are about protection of environment thus, it is needed by Tessal to focus and
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have sustainable as well as eco-friendly way of production and packing to have higher expansion
opportunity in England.
Legal- England tend to have strict legal rules and legislation for protection of healthy of
customers as well as for maintaining and leading a safe and healthy working environment for
workers that is leading a higher chances of legal consequences.
Country B: Japan
Political- Japan tend to have positive and very close trade relationship with other countries
and build and maintain positive foreign trade with countries like UK, France and Australia
(Wang, Wang and Li, 2022).
Economic- Japan tend to be the 3rd largest economy in world along with most stable and
growing GDP level that depicts the higher demand level in its economy that is accreting many
opportunities for expansion of multinational firms.
Social factor- Japan is tend to the 10 most populated country with a high majority of
Shintoism and Buddhism. Further, it has bene seen that the Japan society and customer are more
likely to buy products and services from local companies thus there are only limited successful
multinational company in Japan.
Technological- Japan is one of the most technologically advanced country of world that
push random technological innovation and creativity thus carets higher opportunity for business
in terms of gaining enhanced efficiency and productivity based on better use of technology
(Shobande and Ogbeifun, 2022).
Environmental- Japan is tend to be a relatively clean as well as very environmentally
responsible nation that have effective waste management and modern society in control
environmental pollution and degradation.
Legal- Japan tend to have a limited legal regulation such as registration of company and
other comprises of unemployment insurance, health insurances for worker, etc. thus offering a
flexible environment to have business expansion.
Micro environment
England- A high demined of meat product is being seen England and with larger size of market.
Further, a constant supply and effective distribution system for meat products has bene also
supported and provided by the England. However, a high level of competitive is being present
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within the markets of England as many food and meat retailers are already existing such as
Tesco, Asda, etc. thus it is difficult for new firms to stand in the market of England. The buyer of
England are also tend to be more fond of meat products along with supporting effective
segmentation strategy to target a suitable chunk of customer (Owebor, Diemuodeke and Briggs,
2022).
Japan- It is one of the most populated country in world thus offer a larger customer and
target market for Tessal. Along with this Japan tend to having limited competition from
multinational firms and organisation. Beside this, it also lead and supports improved
segmentation of the customers based on the larger target audience that can be easily targeted for
meat products (Bendell, 2022).
Market (Country) Selection
On the basis of the above market analysis it has been seen that Japan is tend to be more
suitable and attractive target market for products of Tessal. A justification can be made that
Japan tend to offer a more stable political environment and having positive trade relationship
with Australia. Beside this, the Japan is leading a larger target market and audience for Tessal
thus lead to improved expansion. beside this, the legal formalities of Japan for multinational
company are also limited as compared to England (Shoeibi and et. al., 2022). Further, a higher
technological improvement is supported by Japan to have higher efficiency and better expansion
for Tessal. Thus, Joan is more suitable for expansion of Tessal based on a stable political and
economy environment along with supporting success for environmental and sustainable
products.
CONCLUSION
On the basis of current report, a conclusion can be made that PESTEL analysis supports
better comparison and analysis of key macro environmental aspects such as political,
environmental, social, legal, technological and economic factor. Further, it has been summarized
that stable political and economic environment supports better expansion and success level for
firm.
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REFERENCES
Books and journal
Bendell, B.L., 2022. Environmental investment decisions of family firms—An analysis of
competitor and government influence. Business Strategy and the Environment, 31(1),
pp.1-14.
Owebor, K., Diemuodeke, E.O. and Briggs, T.A., 2022. Thermo-economic and environmental
analysis of integrated power plant with carbon capture and storage
technology. Energy, 240, p.122748.
Shobande, O.A. and Ogbeifun, L., 2022. Has information and communication technology
improved environmental quality in the OECD?—a dynamic panel analysis. International
Journal of Sustainable Development & World Ecology, 29(1), pp.39-49.
Shoeibi, S. and et. al., 2022. Performance evaluation of a solar still using hybrid nanofluid glass
cooling-CFD simulation and environmental analysis. Sustainable Energy Technologies
and Assessments, 49, p.101728.
Wang, Q., Wang, X. and Li, R., 2022. Does urbanization redefine the environmental Kuznets
curve? An empirical analysis of 134 Countries. Sustainable Cities and Society, 76,
p.103382.
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