Global Business: PESTLE Analysis of Singapore for Kiwikids Expansion

This report presents a PESTLE analysis of Singapore, evaluating its suitability as a market for the New Zealand-based company, Kiwikids. The analysis comprehensively examines the political stability, economic growth, social dynamics, technological advancements, legal framework, and environmental regulations of Singapore. It assesses the country's economic factors, including its high per capita income and competitive business environment, alongside social factors such as high literacy rates and linguistic advantages. The report also considers technological infrastructure, the legal environment, and environmental regulations, alongside the competitive landscape, including the importance of brand loyalty and the growing emphasis on nutritional value in children's food products. The conclusion highlights the overall favorable environment for business and foreign investment in Singapore, despite certain limitations, making it a potentially lucrative market for Kiwikids.

Running head: GLOBAL BUSINESS
Global Business
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
PESTLE Analysis of Singapore.......................................................................................................2
Political Factors...........................................................................................................................2
Economic Factors........................................................................................................................3
Social Factors...............................................................................................................................4
Technological Factors..................................................................................................................4
Legal Factors...............................................................................................................................5
Environmental Factors.................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................7

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Introduction
In the contemporary global business scenario, a more integrated and inclusive
commercial environment prevails. In this structure, the commercial enterprises venture in
different countries, for the purpose of expansion of business prospects and profitability (Wang et
al., 2012). However, for venturing in different countries and for making the venture successful, it
is of immense importance for the companies to take into account the macro-environment of the
country and the external factors, which can have implications on the concerned business. One of
the primary efficient tools for the purpose of analyzing the same is the PESTLE Analysis
Framework, which helps the company in concern to get an overview of the overall environment
of the country it thinks of venturing (Yüksel, 2012).
This assignment, keeping this in consideration, performs the PESTLE Analysis for
Singapore, keeping in mind the company in concern, the New Zealand based company Kiwikids.
The analysis takes into account the political, economic, social, legal and technological and
competitive environment prevailing in the country in concern.
PESTLE-C Analysis of Singapore
This section elaborates the overall environment of Singapore, which are expected to
directly or indirectly affect the profitability and sustainability of the concerned business, both
positively as well as negatively, provided the venture happen (Tremewan, 2016).
Political Factors
Singapore enjoys a stable political environment with the political risks being very low.
The country enjoys a democratic environment where the representatives are elected by the

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citizens and who work for the betterment of the society as a whole. This in turn, indicates that
there is the presence of favorable environment for businesses to flourish and for foreign firms to
venture (Rodan, 2016).
However, there are complaints regarding limitations of freedom of speech of the
opposition parties in the country and there are threats of cumbersome defamation lawsuits and
imprisonments, which limits the freedom of opposition parties to a considerable extent and
lowers the inter-party debates.
Economic Factors
Singapore, over the past few years, has prospered magnificently and the economy of this
country is one of the most prospective free-market economies in the global scenario. Among the
ASEAN countries, Singapore enjoys the highest per capita income and the government of the
country also believes in diversification in the economy (Lim, 2016).
One of the primary factors contributing to the impressive economic growth of the country
is the presence of a highly competitive and corruption free business environment, which
facilitates free-market interactions of the demand and the supply side players of any industry.
The diversification agenda of the government has also paved the way for inclusion of newer
industries including pharmaceutical, tourism and others in the country. The strategic location,
clubbed with all the above-mentioned factors make the country extremely favorable for the
foreign entrepreneurs to venture.
However, there are several limitations in the economic structure of the country which
includes the shortage of labor, thereby contributing to increase in the costs of labor and also a

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recent decline in the overall labor productivity. These limitations are also to be taken into
account by the concerned enterprise before entering the markets of the country (Morley, 2015).
Social Factors
Singapore, being an Eastern country, is a perfect cultural balance between the Eastern
culture of tradition and family values and the Western competitive and fast-paced culture. The
young generation of the country, especially is highly motivated and works hard in the globally
competitive environment, which contributes to the overall increased productivity of the nation.
The overall literacy rate in the country is impressively high and almost the majority of the
population has excellent command over English and Chinese languages. The linguistic advantage
clubbed with the high purchasing power of the consumers of the country makes it a lucrative
location for the company to venture as Singapore provides the opportunity of having skilled
labor as well as a huge market for their products (Keong, 2013).
Technological Factors
One of the strongest attributes and contributors to the impressive economic development
of Singapore and its overall better lifestyle is the path-breaking technological advancement,
which the country has made within the last few decades. The internet framework in the country
is extremely praise-worthy as more than 70% of the households of the country enjoy broadband
services. The IT structure being extremely developed the government has been slowly moving
towards an e-government scenario (Chen et al., 2012).
This can have positive implications on the business ventures in the country, especially by
facilitating fast and efficient communication. However, this is especially true for the e-commerce

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and online business sectors. But, the same is also expected to facilitate the online marketing
strategies for the businesses.
Legal Factors
The legal environment of the country is also one of the driving factors in the development
of the business environment in the country. The legal infrastructure, along with the cross-border
commerce laws and policies make it productive for the businesses to venture in this economy.
The concerned company here, being the one, which deals with nutritious foods for
children, the company will fall under the Sale of Food Act in the country and has to abide by the
standards of AVA, which includes the presence of certified documents from the food-safety
authority of the country. The country also has regulations on packaging, expiry date, minimum
and maximum level of relevant constituents and labeling requirements (Tremewan, 2016).
Environmental Factors
The environmental regulation in the country is extremely vigilant and the Anti-Pollution
Unit, along with the Ministry of Environment works effectively in maintaining a low pollution
level, especially in the urban regions. Water being one of the scarce resources, the Drainage Act
of the country also deals with the major concerns of preventing water pollution from oil and
industrial byproducts. This aspect has also to be taken into account by the concerned company
while venturing in the concerned country (Rosenbaum, 2013).
Competitive Factors
For Kiwikids to enter and prosper in the markets of Singapore, it is important to take into
account the competitive threats and opportunities which are already existing in the market. Given
the fact that Kiwikids venture in the Growing Up Milk sector, which is mainly concerned with

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the growth of children, the concerned sector in Singapore has been expanding in the current
period.
However, one of the major factors, which is predominant in this sector and has major
implications on the expansion and success of any company trying to venture in this market is the
presence of the importance of goodwill and word of mouth. The parents in this country are not
much experimental regarding the food and nutrition products of their children and brand loyalty
is a big issue in this market, which may create hurdles for the new entrants in the supply side.
However, the people in the country, with time, are becoming more cautious regarding the
nutritional aspects of the foods, which they are providing to their children. Nutritional aspects
such as protein, DHA, vitamin and others have become important components in the food
products for their children. This poses as an opportunity for the new entrants to market their
products on the basis of the nutritional value, which if done successfully, can help the new
companies to gain sustainable and considerable size of the concerned market.
Conclusion
From the above discussion, it can be asserted that the overall social, political, economic,
technological and environmental environment of the country, in spite of the several limitations
which are currently existing in the economy, are mostly favorable to the economic development
of the country. This in turn, indicates that the environment of the country and the external factors
of the country are favorable for the businesses to flourish and also makes the country a lucrative
region for the foreign entrepreneurs, including the concerned company, to venture in the
economy of Singapore.

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References
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leadership facilitate technological innovation? The moderating roles of innovative culture
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Keong, C. S. (2013). Multiculturalism in Singapore-The Way to a Harmonious
Society. SAcLJ, 25, 84.
Lim, L. Y. (2016). Fifty years of development in the Singapore economy: An introductory
review. In Singapore's Economic Development: Retrospection and Reflections (pp. 1-15).
Morley, J. W. (2015). Driven by Growth: Political Change in the Asia-Pacific Region.
Routledge.
Rodan, G. (2016). The political economy of Singapore's industrialization: national state and
international capital. Springer.
Rosenbaum, W. A. (2013). Environmental politics and policy. Cq Press.
Tremewan, C. (2016). The political economy of social control in Singapore. Springer.
Wang, C. L., Li, D., Barnes, B. R., & Ahn, J. (2012). Country image, product image and
consumer purchase intention: Evidence from an emerging economy. International
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Yüksel, İ. (2012). Developing a multi-criteria decision making model for PESTEL
analysis. International Journal of Business and Management, 7(24), 52.