Detailed Environmental Analysis Report: GoCar Business in Ireland

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Added on  2022/09/29

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This report provides a comprehensive environmental analysis of GoCar, a car-sharing organization established in Dublin, Ireland, using the PESTEL framework. It examines the economic factors, such as Ireland's GDP growth and disposable income, and social factors, including declining birth rates and increasing divorce rates, impacting GoCar's market. The analysis also covers technological advancements like AR and 5G implementation, alongside legal aspects like the Companies Act 2014 and consumer protection. Furthermore, the report explores environmental factors, emphasizing the National Spatial Strategy and EPA regulations. The study highlights how these factors influence GoCar's competitive advantage and its contribution to sustainable transportation, concluding that GoCar's service propositions align with environmental goals and market trends.
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Running head: ENVIRONMENTAL ANALYSIS OF A BUSINESS
ENVIRONMENTAL ANALYSIS OF A BUSINESS
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
Introduction to GoCar
The concerned organization, GoCar is a car-sharing organization that was established
in the year 2008 in Dublin, Ireland. Colm Brady and Jonathan Roche took the initiative of
bringing the organization into existence with the vision of promoting sustainable
transportation facilities to the clients. The organization operates through a membership based
structure which enables the members in booking their cars online or via the application that is
devised by the organization. The rates of the car rental operations are €9 per hour with
inclusion of 50 km driving capacity. It enabled the organization in not only targeting a huge
group of clients but also allowed the same in empowering sustainable transportation options
to the people in the operating units (GoCar 2019).
The sustenance of the organization is specifically based on the expansion of the
operations in around 250 locations in Ireland with 10,000 members supporting their
operations for growth (GoCar 2019). According to the official website, the organization has
the capability of reducing the car ownership status by one rental vehicle replacing 15 owned
cars which is greatly supported by the government and environmental protection agencies
(GoCar 2019). Therefore, the current study will examine the macro- environmental position
of the venture through thee conduction of ESTLE analysis.
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
ESTLE analysis on the organization
Economic The GDP of the nation grew by 2.4%
in the first quarter of 2019 which can
be traced as an economic bounce
after 2007 or 2008 (Rabbitt and
Ghosh 2016). The growth in the
economy resulted to the stabilizing
position of Ireland. On the other
hand, due to the economic
stabilization, the prices in the nation
were only increased by 0.7% which
critically supported the growth of the
industries (Ferrero et al. 2018).
However, it has been noted through
the 2018 OECD report that the nation
must take steps to improve the
productivity (Perboli et al. 2018). In
this situation, the increased rate of
disposable income of the people in
Ireland would enable GoCar in
maximizing its scope of finding
potential members for the smooth
functioning and sustenance of the
firm. Again, the personal
consumption of goods and services
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
in the economy grew by 3.4% in
2018, which clearly reflected the
opportunities of growth and
expansion of the organization in the
different regions in the nation (Alam
et al. 2017).
The growth of the service sectors in
the economy and their improved
contribution (72%) to the national
GDP of Ireland has again improved
the markets of the concerned venture
(Ferrero et al. 2016). It has been
noted that Ireland’s economy shifted
from agriculture based sectors to
knowledge and service based
economy which contributed to most
of the GDP raised by the nation
(Peterson and Simkins 2019). The
emergence of service sector in the
economy fuelled the growth and
expansion of the companies that
strived in the economy. In this
relation, the growth of the knowledge
based industry would enable GoCar
in gaining support from different
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
other organizations (Lambe, Murphy
and Bauman 2017).
The growth of the service sectors in
the economy influenced the
expansion of the concerned
organization in the markets. The
concerned organization might initiate
collaboration with different service
sector organizations with the
objective of empowering the
expansion (WU 2016).
As per the forecasts made by EU,
unemployment in the nation
diminished by 5% and the real wages
grew by 3.2% which backed the
buying power of the people
(Semanjski, and Gautama 2016). The
improved employability, the Equal
treatment of the employees at work
and the increase in the real wages has
backed the potentiality of the people
in Ireland. The improved aspects of
employability enabled the
organization in maintaining the
efficiency of the operations in
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
alignment with the needs of the
venture (Mulholland e al. 2018). The
increased employability of the people
would permit the venture in
empowering the target market.
Social The declining birth rate and the
increasing life expectancy has
enabled the Irish economy in
establishing a stabilized social
position (Sun et al. 2019). It has
been noted that the increased
postponement of marriage age
enabled the economy in minimizing
the rate of births (Dey, Caulfield and
Ghosh 2018). The factor would
enable the organization in finding a
stabilized market in Ireland for its
growth and sustenance. On the
contrary, it has been noted that the
society in Ireland encountered an
increased divorce rate of 0.6% a year
for every 1,000 people in the nation
which increased the single parent
families in Ireland (Postorino and
Sarnè 2017). In this relation, the
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
concerned organization, GoCar holds
a unique opportunity of minimizing
the rate of car ownership in Ireland
through proposition of car rental
based services in orientation with the
needs of the clients (Dey, Caulfield
and Ghosh 2019). The fragmented
social structure through maximized
rate of divorces has empowered the
growth of the single parent families
which might result to increased car
buying habits among the potential
customers. However, the
distinguished offerings made by the
organization, GoCar enabled in
minimizing the rate of car ownership
by one rental vehicle replacing 15
owned cars (WU 2016).
The increased level of education
among the Irish customers greatly
influence the buying behaviour of the
same. It has been noted that the
informed customers lay a major role
in selecting the most desirable
products or services for themselves
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
while contributing to the principles
of sustainable consumerism. Again,
it has been noted that around 41% of
the Irish customers are ready to pay
premiums for sustainable
propositions (Alam et al. 2017). The
informed customer base and the
sustenance based preferences of the
Irish customers would surely
contribute to the strategic edge of
GoCar. The concerned organization
aimed at proposing fuel efficient
rental car service for minimizing the
rate of car ownership in the nation.
The sustainable offerings of the
organization aimed at engaging the
customers who are concerned about
the environment. On the other hand,
Rabbitt and Ghosh (2016) noted that
88% of the Irish customers are health
conscious and are well aware of the
manner in which harmful emissions
and wastes might impact their day to
day life. Therefore, the informed
Irish customers would contribute to
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
the growth and expansion of GoCar
for the sustainable offerings that are
made by the business.
Technological
Most of the organizations in Ireland
are service oriented which is
empowered through the development
of AR technologies. The diverse
range of technological innovations
enabled the venture in improving the
productivity and performance of the
same (Semanjski and Gautama
2016). The development of the AR
technologies and the induction of the
same in the different service sector
enterprises in Ireland enabled in
improving the service propositions in
orientation with the needs of the
customers. In this relation, GoCar
would be benefitted through the
utilization of AR technologies as the
technological advancement would
enable the business in making the
customers aware of the propositions
more vividly. It has been noted that
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
Ireland has developed 12% on the
AR technologies over the last few
years which has greatly improved the
rate of services (Mulholland et al.
2018).
It has been noted that telecomm
operators in Ireland are planning to
implement 5G mobile network
within the next 12 months (Perboli et
al. 2018). The development of
efficient telecomm services in the
regions have greatly contributed to
the growth of the service sectors in
the different regions of Ireland.
GoCar will definitely gain a
competitive advantage over the other
players through the development of
telecomm facilities through improved
connectivity (Semanjski and
Gautama 2016). It has been noted
that 89% of the households have
access to internet services and more
than 93% of the population are active
social media users (Dey, Caulfield
and Ghosh 2018). The wider access
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
over the internet facilities and greater
availability of population over the
social media sites would enable
GoCar in widening its reach of
making the potential members aware
of the rental services that are being
provided by the same.
The modifications in the
organizational operations are reliant
on the information gathered by the
entrepreneurs. In this relation, the
growth of cloud storage technologies
and the enumeration of Big Data
Analytics enabled the service sector
organizations in retrieving
information on the changing
preferences and trends of the market
(Lambe, Murphy and Bauman
2017). In this relation, it has been
noted that Ireland has developed 35%
of the cloud storage technologies
while empowering most of the
service sector firms in developing
knowledge on the markets (Dey,
Caulfield and Ghosh 2019).
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ENVIRONMENTAL ANALYSIS OF A BUSINESS
Therefore, GoCar would be
benefitted through the assessment of
the needs and expectations of the
consumers while proposing their
rental services.
Legal The Companies Act 2014 (amended)
brought about significant changes in
the business environment of Ireland
with major concerns based on Data
protection and financial control
based operations of the businesses
(Peterson and Simkins 2019). The
different changes in the
organizational operations in
alignment with the needs of the
venture. The legislation governed
over the organizational operations
with the objective of retaining the
ethical perspectives. Again the
complicated nature of the legal
frameworks with higher levels of
bureaucracy to obtain licenses might
affect the capabilities of the
organizations in upholding the
effectiveness of the operation as per
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