Analysis of External Factors Influencing Maritime Operations

This report provides a comprehensive study of maritime operations, focusing on the impact of external factors on the industry. The analysis includes a PESTLE framework, evaluating political, economic, social, technological, legal, and environmental influences. The report examines how these factors, such as globalization, technological advancements, and economic conditions, affect sustainable maritime practices. It discusses competition within the market, the impact of changing consumer preferences, and the role of technology, including hybrid solutions and automated vessels. The study also addresses the challenges faced by the industry, including fluctuating oil prices and the need for strategic adaptation. The report concludes by highlighting the importance of understanding and responding to these external factors to ensure the long-term viability and sustainability of maritime operations. The report is available on Desklib, a platform providing AI-based study tools for students.

Running Head: STUDY ON MARITIME OPERATIONS
Study on Maritime operations
Name of the Student
Name of the University
Author’s Note

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Table of Contents
- What extent do external factors influence sustainable maritime operations?...............................2
- Use of a strategic analysis model (PESTLE)?...............................................................................4
POLITICAL.....................................................................................................................................5
ECONOMICAL...............................................................................................................................5
SOCIAL...........................................................................................................................................6
TECHNOLOGICAL........................................................................................................................6
LEGAL............................................................................................................................................7
ENVIRONMENTAL.......................................................................................................................8
- Facilitate strategic analysis of external factors affecting an organization?...................................8
References......................................................................................................................................11

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- What extent do external factors influence sustainable maritime operations?
According to the author Carley et al., (2017), the activities of the port function undertake
changes in order to act as an economic catalyst and take on a central position within the industry,
engaged within international maritime transport, issues in regard to economic stability and
corporate responsibility has put new light upon the port operations. On the other hand, because
of the decrease within the oil price, the maritime operations has failed to proceed smoothly and
efficiently. On the other contrary, the economic conditions of the country are not favourable for
which most of the countries fall in the red zone. In order to deal with such issues, some
companies have even planned to merge with other firms or reduce their business operations.
Taking into consideration the case study, ABC Co. firm has been facing the issue in
regard to the external business environment changes for which the remuneration package has
been changed in order to sustain the long term and experienced personnel. Moreover,
technological advances are taking place in place of the oil and gas industry. Much of the firms
operating within this industry makes use of the modern based technology for which they make a
huge competition among the present rival firms (Hamark et al., 2014). Some of the modern
based technology are as follows: Hybrid solutions, Fuel converter, Automated Vessel, and Power
and Propulsion. However, making use of this technology advancement will make the operating
cost low, but at first glance, the price will be high because of making use of this technology.
Within the shipping industry, it is also observed that much of vessel operating costs is its fuel
consumption.
Moreover, the number of stakeholders assist ports in order to respond quickly to their
expectations. Ports can lower the potential environmental risks and focus on sustainable

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development of maritime business operations by means of an accessible generic business process
framework, highlighting the importance of educational dimensions, commercial missions and
stakeholder engagement for sustainable development of maritime operations in ports.

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- Use of a strategic analysis model (PESTLE)?

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POLITICAL
- The local political body hugely
impacts the business undertaking of
the maritime operations by creating
favourable and unfavourable political
surrounding.
- Singapore is a strategic location for
undertaking oil and gas business. Due
to the increase in trade and Oil & Gas
exploration within the Asian region,
companies took this opportunity to
expand their operations in Singapore
ECONOMICAL
- The current economical state of the
region also matters such as the
recession or depression stage of the
economy.
- The present government rules, laws,
and policy also affect the business
undertaking of maritime operations.
- The change in the oil price is making
the offshore vessel industry fail to
operate smoothly.
- The port is an important aspect for the

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SOCIAL
creation of new jobs.
- The port increase in the real GDP of
the economy.
- The concerning business firm has a
strong financial and market position.
TECHNOLOGICAL
- Because of the increasing participation
of the international countries in trade
introducing globalization, it brings in
complexity within the port operations.
There is a requirement for an
application of sophisticated ICT
system (information and
communication technology).
- The World Shipping Council (WSC)
promotes the use of the efficient
energy design standard for the ships.
- The firm makes use of hybrid
technology for power generation.
Some of the technological
advancements are Hybrid solutions,
Fuel converter, Automated Vessel,
Power and Propulsion.

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LEGAL
- Some ports are required to claim
tourist visas for their foreign crew
before disembarking their vessels; one
example of such port is the
Philippines.
- It is mandatory for the maritime
operations to take place in accordance
with the local laws and regulations of
the specific country.
ENVIRONMENTAL
- The size of the port and ships have
increased with time as such that
managing port operations has become
difficult and requires even larger
logistical effort.
- There is a requirement to undertake
necessary changes in terms of the
port’s physical infrastructure with
time.
- The regulatory body such as the
World Shipping Council (WSC),
along with other organisations and
governments, is engaged in
discussions at the International

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Maritime Organization (IMO) and
with the European Commission, in
regard to the reduction of carbon
emissions that are being generated by
the shipping sector.
- Facilitate strategic analysis of external factors affecting an organisation?
Competition- Competition within maritime operations is huge within the market. As
such that there exists a number of rival firms. These rival firms make use of the competitive
advantage in order to have advantage over the other business firms. Unless there is a presence of
innovative products, the number of potential consumers fails to exist in favour of the concerning
business firm. Innovation in business operations is the key to business success.
Latest technology- The of Offshore Support Vessel that makes use of the latest technology will
possess a competitive advantage over the other rival firms. The number of technology’s that are
new within the market, the competitive advantage is acquired by making use of technological
advancements.
Consumer tastes- the frequent changes that take place because of the change in the consumer
taste and preference hugely impacts the maritime operations of the concerning business firm. The
changes in consumer tastes and preference take place because of the change in the income
potential of an individual. It is the consumer behaviour that keeps on fluctuating; the business
firm fails to achieve a favourable amount of loyal consumers (Bichou et al., 2014).

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Economy- Business firm operating on maritime operations cannot control their economy. There
is a need for the business firm to undertake changes in their respective business undertakings in
accordance with the changes within the marketing trends. Such as the up-trend and down-trend
of the market.
There are some other factors like that of change in the market price in regard to the
business operations, The unfavourable economic state where one firm may have to merge with
other company or cease the company because of the lack of potential.
- How do these external factors restrict or enhance sustainable maritime operations?
Because of the changes within the business environment because of the technological
advances, and because of the decline in the price level of the oil and gas industry there has been
huge changes within the business process. The lead to unfavourable business scenarios, and
unfavourable business climate. On the other hand, the business unit gets hampered because of the
fluctuations within the marketing trends such as the upward and downward movement of the
marketing trend. However, from the above PESTEL analysis, we can have a justification for the
factors that affect the sustainable maritime operations of the concerning business firm (Simons et
al., 2014). These external factors are sometimes created by the political bodies to cause harm to
the reputation of the concerning business firm in order to bring it down in terms of competition.
It is since, 2014 that the business firm has been facing a very volatile and unstable market.
However, the firm is able to sustain its feet within the oil and gas industry by cutting down its
assets, laying up vessels, and making use of modern based technology. One of the important
factors that hugely affects the normal being of the maritime operation is globalization that
introduces a lot of competition along with a lot of politics backed up with financial ability.

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References
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