Impact of Internal and External Factors on Business: SWOT and PESTEL Analysis

This report analyzes the impact of internal and external factors on business using SWOT and PESTEL analysis. It discusses the strengths, weaknesses, opportunities, and threats of Nivea and examines the political, economic, social, technological, legal, and environmental factors affecting the company. The conclusion highlights the importance of understanding these factors for decision-making.

PPT
INTRODUCTION
A business want to be successful in marketplace, it is necessary to understand factors that
exert impact on their development of company. The internal factors figure out strength and
weakness. If one element brings positive effect is consider strength and a factors prevent
development of company, is weakness. Where as external element are affecting factors outside
environment in which company has no control over it. This report is going to analysis impact of
internal and external factor by SWOT and PESTEL.
SWOT analysis of Nivea
Strength: One of leading organisation in industry. It has numerous strength that helps to thrive
marketplace. Such as:
 Nivea's superb performance and building portfolio at entering new market and
expanding into new products categories. Successful track records of developing new products and integrating complimentary
firms through merger and acquisition.
Weakness: The areas where Nivea can improve upon. They are:
 Nivea need more investment in new technologies as not able to tackle challenges. Limited resources outside core business as not good at demand forecasting, missed
opportunities.
Opportunities: opportunities are set of circumstances that help an organisation to do something
initiative in business.
 Adoption of new technologies along with government green drive for new innovation,
creates huge opportunities for Nivea. With low inflation rate Nivea enable to increase its competitiveness with competitors.
Threats: External strategic factors that are affected are as follows:
 Increase the demand of highly profitable products in peak season. Foe example- winter
care products.
 Nivea, is operating in numerous countries, exposed to currency fluctuation in volatile
political climate market across the worlds.
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PESTLE analysis of Nivea
Political environment: It is related to the government interferences, which effect an
organisation.
 Nivea, is affected by local, national, global political environment. It prices are control by
regulatory bodies and differ from nation to nation. Need to check political influences before launching new product so that they do not face
any legal issues.
Economic environment: This factor help in determining current and expected future value of
business or investment portfolio.
 Change in interest and exchange rate, as well as inflation rate are main element that
affect the value of Nivea. Increase in commodity price leads to increase risk at financial market which affect the
business of respective organisation.
Social factor: Social factor includes changes in taste and lifestyle in demographic make up of
population.
 They concern mainly about people's health according to their age, attitudes and emphasis
on safety. Nivea, using power of new marketing strategies as part of mix grow awareness among
targeted consumer.
Technological Factors: Technological factors affect various external factors on business for
evaluating available alternatives with respect to technological capabilities.
 Nivea using modern technological advancements for new and existing products. Focusing on reliable quality,as a strong track record for innovation with use of superior
technology as core element for success.
Legal Factor: Certain powers and limitation that arises with laws, rules or regulation that affect
business. Such as organisation securities, employment contract, consumer protection etc.
 With the adoption of laws, Nivea ensure certain safety for their employees such as
health, compliance and grievances. As it is beneficial for both employees and
organisation.
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 There are certain legal regulation which are not favourable for the respective company.
Such minimum wage act, that bound to pay certain amount of wages as per the law.
Environment Factor: Environment factors affect the survival, operation and growth of an
organisation. It basically helps to measure carbon emission caused by a particular company.
 Nivea, is focusing on minimising effect on surroundings of environment by adopting
certain techniques to sustainable environment of business.
 Focusing on lower down carbon emission at certain level, as to have control over it.
Conclusion
From the above discussion it has been concluded that, SWOT and PESTLE analysis help a
decision maker in understanding the impact of these changes on their business. Further, SWOT
analysis focus on internal strength and weakness. Where as PESTLE analysis concentrates on
external factors that affect business.
REFRENCES
Mkude, C.G. and Wimmer, M.A., 2015, May. Studying Interdependencies of E-government
Challenges in Tanzania along a Pestel Analysis. In ECIS.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy
industry in China. Renewable and Sustainable Energy Reviews. 80. pp.276-289.
Poster
INTRODUCTIO
Marketing mix has been defined as set of tools, used by a particular organisation to
pursue is marketing objectives in targeted market. Garnier, is one of leading organisation with
specific product lines for different types of skin and culture. Moreover to sustain and remain
competitive in marketplace they are using various promotional strategies as online marketing,
print media and so on.
Promotion Strategy
Promotion refers to raising customer awareness of a particular product brand, generating
sales, creating brand loyalty etc.. It is one of basic elements of marketing mix. The promotion
strategy of Garnier are as follows:
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Word of mouth: Garnier always adopt most attractive techniques of promotion that
directly impact on customer mindset. Its loyal customer are biggest source of promotion who
create awayness and publicity about is product through word of mouth.
Professional models: It also spend huge amount budget over television and internet
advertisement which employing professional models, actors and skin specialist.
Print Media: Garnier promotes itself through print media including newspaper, popular
magazines like Femina. To attract the attention of trendy and young generation.
Online marketing: Garnier is also promoting its product on social media and online
shopping apps. It also runs YouTube channel which creates and circulates promotional videos
and campaigns of company to its viewers across world wide.
Conclusion
From the above discussion it has been concluded that promotion marketing strategy is
something that constantly evolves adapting to changing marketing conditions. Garnier has
outcome with different promotional strategies such as word of mouth, print media, professional
models and online marketing. These strategy are continuously evaluated to attract customer who
are concerned about their skin as well trendy and young generation. However these strategies
changes the aspect of business to maintain its product quality. Further, focusing on high level of
customer stratification from its product and services.
REFRENCES
Zavattaro, S., 2014. Place branding through phases of the image: Balancing image and
substance. Springer.
Maci, S.M., 2013. Tourism discourse: professional, promotional and digital voices (Vol. 11).
Ecig.
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