Comprehensive Analysis: Clorox's PESTLE and Stakeholder Assessment

This report offers a detailed analysis of the Clorox Company, employing PESTLE and stakeholder frameworks to assess its macro-environmental factors and key relationships. The PESTLE analysis examines political, economic, social, technological, legal, and environmental influences, providing insights into the external business environment and potential opportunities and threats. The stakeholder analysis identifies and categorizes stakeholders based on their power and interest, including owners, employees, customers, suppliers, shareholders, and the government. This analysis helps to understand the needs and influence of each stakeholder group, contributing to a comprehensive understanding of Clorox's strategic position and operational considerations. The report highlights the importance of these analyses in understanding the current business environment and making informed strategic decisions. The report is designed to provide a clear understanding of the current business environment, which is highly beneficial to initiate new business and to enter a new market as it provides a clear understanding of the current business environment.

RUNNING HEAD: CLOROX
MANAGEMENT

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Contents
PESTLE analysis........................................................................................................................2
Stakeholders...............................................................................................................................3
Stakeholder matrix..................................................................................................................4
Stakeholders analysis..............................................................................................................5
Bibliography...............................................................................................................................7

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PESTLE analysis
Pestle analysis is a framework to analyze the macro-environmental factors that lay
an impact on organizational performance. It is an acronym for Political, Economic, Social,
Technological, Legal and environmental factors. It assists to analyze the external business
environment of a country. A business organization used this tool to track the opportunities
and threats prevailing in the operating environment. It is highly beneficial to initiate new
business and to enter a new market as it provides a clear understanding of the current
business environment (Perera, 2017).
Political factor
It takes into account the government influence and the political situation of a country.
It includes factors like tax rate and policies and trade tariffs. The presence of low trade
barriers enables feasible business operations in the domestic and international markets (Ho,
2014). The corporate tax rate is 21% and the government offers high business freedom and
government integrity (Heritage, 2019). The tax rate limits the Clorox profits and high
business freedom will enable in conducting a business operation in the international market
as well.
Economic factor
It focuses on the economic growth of a country by considering factors like Gross
Domestic Product, Per Capita Income, Interest rate, Foreign Direct Investment, Disposable
Income, Inflation, and Unemployment rate. The economic performance of a country lays a
direct and strong impact on the organization. The presence of high GDP, PCI, and FDI
improves the purchasing power of customers. The high percentage of inflation and
unemployment rate lowers the customer's buying capacity and organizational profit (Perera,
2017). Its GDP counts to $19.4 trillion with a growth rate of 2.3%. Its PCI and
unemployment rate is $59501 and 4.4%. Additionally, its inflation rate is a mere 2.1%
(Heritage, 2019). This states that a high percentage of Americans attain adequate financial
resources to easily opt for Clorox cleaning products (Clorox, 2020).
Social factor

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It focuses on the social environment of a market and it includes factors like cultural
trends, demographics, customer buying behavior (price sensitivity and brand loyalty). This
dimension also represents health consciousness, lifestyle, attitude, and population growth
(Ho, 2014). The United States of America has a population strength of 325.9 million
(Heritage, 2019). In the USA, 75% of customers are highly sensitive to price and about 22%
remain unchanged to price (Statista, 2018). Additionally, they do not depict brand loyalty as
a high degree of customers opt for new brands (Keyes, 2019). The presence of price-sensitive
customers restricts the Clorox Company to raise its product price.
Technological factor
It takes into account the level of technology, research and development, automation,
digital connectivity and innovation prevailing in the country (Ho, 2014). The USA is among
the top three innovative countries in the global world (Radu, 2019). The availability of
upgraded technology minimizes the manual requirement of The Clorox Company and assist
in the easy manufacturing of cleaning products.
Legal factor
It emphasizes specific laws like discrimination laws, antitrust, consumer protection,
copyright, and patent laws. The availability of strict legislative policies assists in smooth
business functioning (Perera, 2017). The USA government guarantees to safeguards the
property rights of business organizations. Additionally, corruption is rare and high judicial
effectiveness prevails in the country (Heritage, 2019). Therefore, Clorox Company will not
face the issue of product imitation in the market.
Environmental factor
It considers the ecological factors like weather, climate, the occurrence of natural
calamities and its impact on business operations. The presence of favorable climatic
conditions, low risk of natural disaster and minor pollution (like plastic and water pollution)
directly raise the favourability of a country (Perera, 2017). The USA has minor risks from
natural calamities like cyclones and landslide. Thus, Clorox Company will not face any
climatic issue and it can easily conduct business activities like product distribution.

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Stakeholders
Stakeholders lay a high influence on the success of an organization. Stakeholder
analysis is a process of identifying and grouping the stakeholders based on their participation,
interest, and influence in the organization. It is a suitable means to assess their needs and it
also aids in fulfilling obligations towards them (Harrison & Wicks, 2013).
Stakeholder matrix
STAKEHOLDER TYPE DESCRIPTION POWER INTEREST
Owner Internal Clorox is owned by
Procter and Gamble
Company
(Thecloroxcompany
, 2020).
They attain
adequate power to
amend the
policies, structure,
business culture,
terminate an
employee and
many more.
They have a
high interest in
employee
productivity
level, annual
return, and
building a
positive
relationship
with the
stakeholders.
Employee Internal It has an employee
strength of 8700 in
worldwide
(Thecloroxcompany
, 2020).
They have the
power to raise
Clorox's
profitability by
delivering a
quality output. It
will assist in
retaining
customers and
raising the
company’s
profitability.
They attain low
interest in
Clorox
financial
earnings. They
lay high
emphasis on
incentives,
recognition,
rewards, and
pay.
Customer External It targets customers
from the domestic
market (United
They are the main
profit builders of
an organization.
They have an
interest in
business

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States) and the
international market.
They aid in
increasing the
organizational
profit, reputation
and vice versa.
reputation,
product
availability,
feasibility,
quality, and
price.
Suppliers External The Clorox
company avails the
raw material from
multiple suppliers.
They assist in
fulfilling the
customer’s needs
and preferences
by timely
providing the
required
essentials. They
attain the power
to restrict the flow
of raw material.
They attain
interest in
gaining fair
prices for their
raw material.
Shareholders External It has multiple
shareholders and the
top among them are
The Vanguard
Group, Blackrock
fund advisor, Cedar
rock capital (CNN,
2020).
They attain the
power to share
their views and
suggestions in the
Clorox decision-
making process.
Their sole
interest is in the
financial
earnings of the
Clorox to avail
of financial
benefits.
Government External The Clorox
company complies
with the legal
obligations of a
country.
The government
attains the utmost
power to restrict
the flow of
services and cease
the business unit
in case of
misconduct and
unethical
The legal
bodies have a
high interest in
the Clorox
income as they
have to charge
tax.

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behavior.
Stakeholders analysis
GOVERNMENT AND SUPPLIERS
(High power and low interest)
SHAREHOLDERS
(High power and high interest)
EMPLOYEES
(Low power and low interest)
CUSTOMERS
(Low power and high interest)

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Bibliography
Clorox. (2020). Find the Perfect Product. Retrieved February 19, 2020, from Clorox:
https://www.clorox.com/
CNN. (2020, February 19). Top 10 Owners of Clorox Co. Retrieved February 19, 2020, from
CNN: https://money.cnn.com/quote/shareholders/shareholders.html?
symb=CLX&subView=institutional
Harrison, J., & Wicks, A. (2013). Stakeholder theory, value, and firm performance. Business
ethics quarterly, 23(1), 97-124.
Heritage. (2019). United States. Retrieved February 19, 2020, from Heritage:
https://www.heritage.org/index/country/unitedstates
Ho, J. (2014). Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), 6478-6492.
Keyes, D. (2019, March 14). Brands should be concerned about customer loyalty. Retrieved
February 19, 2020, from Businessinsider: https://www.businessinsider.com/most-us-
consumers-not-brand-loyal-2019-3?IR=T
Perera, R. (2017). The PESTLE analysis. Nerdynaut.
Radu, S. (2019, August 8). The U.S. Is (Again) Among the World's Top Innovators. Retrieved
February 19, 2020, from Usnews:
https://www.usnews.com/news/best-countries/articles/2019-08-08/us-returns-to-top-3-
in-global-innovation-ranking
Statista. (2018, October 10). U.S. consumers' rating of price sensivity 2013. Retrieved
February 19, 2020, from Statista: https://www.statista.com/statistics/269208/us-
consumers-rating-of-price-sensitivity/
Thecloroxcompany. (2020). Timeline. Retrieved February 19, 2020, from
Thecloroxcompany:
https://www.thecloroxcompany.com/who-we-are/our-heritage/timeline/
Thecloroxcompany. (2020). Who We Are. Retrieved February 19, 2020, from
Thecloroxcompany: https://www.thecloroxcompany.com/who-we-are/

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