Environmental Analysis of Kirrikin for International Market in UAE

This report presents an environmental analysis of Kirrikin, a company specializing in handcrafted silk and cashmere products, focusing on its potential expansion into the United Arab Emirates (UAE) market. The analysis encompasses social, technological, environmental, economic, and political factors, utilizing a PESTLE framework to assess the external environment. The report examines the UAE's social landscape, including cultural and religious influences, technological advancements, environmental considerations such as climate, economic indicators like GDP per capita and unemployment rates, and political factors like government policies and trade regulations. The study aims to provide insights into market opportunities and challenges for Kirrikin, offering recommendations to improve employee performance and increase the likelihood of successful market entry. The report emphasizes the importance of adapting to the UAE's unique market dynamics and understanding the evolving needs and preferences of its consumers.

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Environmental analysis

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Executive summary
International marketing is essential for the business because it allows an organization to
do business in more than one country. Kirrikin is the business which enhances the skills of the
artist in the Australia. It is a report which has been made on the environmental analysis of the
same company in which social analysis, political analysis, environmental analysis, economic
analysis and Technological analysis are included. It is the business which has the opportunity to
expand its business into the United Arab Emirates. The recommendation has been made to
improve the performance of the employees so that the step to enter into the new market could be
successful.

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Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Social analysis.................................................................................................................................5
Technological analysis.....................................................................................................................7
Environmental analysis....................................................................................................................9
Economic analysis.........................................................................................................................11
Political analysis............................................................................................................................12
Summary and Recommendation....................................................................................................14
References......................................................................................................................................16

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Introduction
The international environment can be demonstrated as the factors of global that are
outside of the control of individual organizations but able to influence the way that organization
operates. These factors are involved inflation rates, unemployment rates and labor cost. It is a
report which will focus on the business of Kirrikin. It is the company which made handcrafted
silk and cashmere scarf, bow and tie, and Pocket square features artworks of contemporary
indigenous Australian artists. The founder of Kirrikin was Amanda Haley who is a successful
business women and Indigenous business award winner. She gave great contribution to enhance
the skill of artist of her own country. The report will focus on the environmental analysis of the
Kirrikin organization. Social, technological, environmental, economic and political analysis will
be made on the organization of Kirrikin. The scope of international marketing of the Kirrikin in
the United Arab Emirates will be focused in this report. United Arab Emirates has been chosen
for the future launch products of Kirrikin which would be very big achievement for the company.
It has been chosen because UAE has number of youth who might like the new trend of scarf and
necktie.

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Figure 1: Environmental analysis
Source: (Shahbaz, Muhammad, Rehman, Sbia, and Hamdi, 2016).
Handcrafted neckties and scarf have been made by Kirrikin Company which is good initiation to
keep the artist in the same country. It has the opportunity to do business in United Arab
Emirates. Environmental analysis is required for analyzing the external environment of UAE, it
would be beneficial for Kirrikin to launch the new product (Cavusgil, Tamer, Gary, John,
Riesenberger, Hussain Rammal, and Rose, 2014). Pestle analysis will be described in below.
Social analysis
Cultural religion and social keeps huge importance in the context of social analysis.
Kirrikin would be the new company which enters into the new market of UAE for producing its
products that is scarf and necktie .There are certain factors which need to considered by the
Kirrikin company before entering into the new market and that is organizational culture, living
standard diversity, population growth rate, cultural aspects, age distribution and law changes
which can a affect the social factor trends and advertise. The living standard of UAE people is
very high and they believe in the western lifestyle and constantly rising financial positions
(Bealer, Dianne, and Bhanugopan, 2014). There are certain factors which may influence the new
product of Kirrikin. The main contribution of globalization is that it provides many employees to
UAE from all over the world. Religion is an important element in this particular country, which
usually influences the society. For instance, this is specific clothing which native women are
expected to wear. The population of the UAE is educated and well settled. It would be a great
opportunities for the Kirrikin to know the demand of its population related to scarf (Enderwick &
Peter, 2015). It is important for the Kirrikin to pay attention to the social environment in an

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effective manner. Kirrikin need to understand the behaviour of the new culture of UAE, if it is
not able to adapt its external social environment, it would be unable for the Kirrikin to survive. It
has been analyzed that the need and want of people change from time to time, it is important for
the organization to understand the need and the latest trend in the market before entering into the
new market. The concept of the culture of the people of UAE has been understood by the
organization (Calautit, Kaiser, Hughes, and Nasir, 2017). A society that gives preference to
higher education will offer up effective work force and will lead to more Innovation and
productivity.

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Technological analysis
UAE is the company that keeps itself technologically update. Indeed, it would be great
opportunity for the Australian business that make hand crafted scarf and necktie to enter in the
market of UAE. The founder of the organization need to analyze the new technology for getting
ideas about the design of scarf towards the accomplishing the task and should focus on an
innovative ideas to bring changes in the design of these handmade things. If an organization is
unable to adapt to the ongoing changes of technological then it is destined to wrap behind its
competitors in the market. It is essential for the Kirrikin to focus on specific factors which is
related to technological elements of UAE. Company needs to attention the factor of
technological environment of in the good manner (Rohani, Golbarg, and Mutasim, 2014).
Technology of the organization should be improved that allow organization to manufacture
products for less money which reduces the production cost as well. Innovative technology offers
organization to improve the efficiency of the employees and enhance the productivity towards
accomplishing the task. UAE is wider in the context of Technology so it is important for the
company of Australia to make a different scarves and necktie for the youth of the US so that the
people of UAE can feel the different product which is made by the artist of the Australia. It
would be helpful to develop the thinking in the mind of the youth of the UAE that they are
wearing handmade crafted things which is based on realistic design and safer in comparison of
other products. The safer product will bring the competition in the e market because Kirrikin
produces the handmade products with better quality at affordable costs. There are certain factors
of technological such as change in distribution by new technologies, way to communicate with
the customer, amendments in physical Sciences speed and cost of transfer of Technology and
prospect of better quality with affordable price (Beamish & Paul, 2014). Kirrikin should consider

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all the factors related to technology because it would be helpful for the organization to enter in
an effective manner in to the new market with innovative product.

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Environmental analysis
The environment of UAE is hotter in comparison of Australia so it is important for the
Kirrikin to consider the demand of the youth before entering in to the new market. It is the
country which is quiet hot and dry climate which may influence the various things. Impacted
things may affect the productivity of an employee. Kirrikin need to analyze the some factors
before launching new products in the market of UAE. There are some environmental
developments which would be relevant to the company. UAE is finding a few coastal year which
is allowing the country to trade by sea. Environmental factors are including climate, climate
change, weather, population and availability of non-renewable goods. Kirrikin is known by its
scarves and necktie which are handmade by the artist of the Australia. The design of product is
drawn by the artist (Wortley, Richard, and Michael, 2014). Environmental factors are those
which affect the business from political to legal, and everything in between. External factors may
hamper the business of Kirrikin; it should go with the climate and manufacture the products as
per the environment status of UAE. Marketing strategy should be accepted by company and
before launching or producing the product company need to set the targeted market after that as
per their choice should make products. The price of fuel in UAE is lower which might enhance
the business and make the travel cheaper. It would be helpful for the organization to transport
tier products from one place to another at lower cost. Due to hotter climate suitable and
affordable scarves can be preferred by the population of the UAE.

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Economic analysis
An economy of country is essential factor for the standing of the country. The GDP per capita of
UAE is expectedly very high. UAE is the well known in the global property which brings s
highly lucrative opportunity and international joint ventures are performing in the country to get
benefitted appropriately. Unemployment rate of UAE is considered as low (Shahbaz,
Muhammad, Rashid, Helmi, and Ilhan, 2014). Various visitors visit UAE from all over the
world. It would be great opportunity for the business to sell their product to the visitor of UAE. It
would not only enhance the good image of country but also helpful in promoting the
organization. UAE is the fastest growing tourist attraction point, attracting various international
jet setters and investors alike. The most advantage factor in UAE is that it has absence of taxes
which is a clear incentive for investors and this beneficial point attracts many companies of
foreign to generate activities within the cities of industrial in the part of UAE. The thriving
economy of UAE backed by extremely favorable taxes which is liable to make the country for a
growing workforce of highly paid tax free workers. It enhances the attractions of new business
towards the economy of UAE to buy or rent the accommodation (Cantwell & John, 2015). The
program related to infrastructures is going on in the UAE progressively which maintain the
quality of the services of UAE appropriately and handle the international standards. A current
report of government is outlined that more than 1,800 projects are being carried out by the Golf
region.

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Political analysis
Political rules and policies of every country are different and it should be followed by the
citizen who lies in their country. Even though it is applicable for them as well who do business
with other country so the taxes, tariffs and payment structure should be done on the basis of that
country with which another country is doing business. There is a certain policies of UAE is
different from other countries which influence its standing in the world. Australia business
should get first authority from the government of the UAE to initiate the business after that there
is some policies and rules which is required to sign by that country who want to do business with
UAE. In that case Kirrikin need to analyze the condition of the UAE and its contract as well and
after that it should select the certain way to enter into the market. It can be the joint venturing,
partnering, franchising and many more. It is the factor which involves the intervention of
government in the economy (Stahl, and Rosalie, 2015). It includes some certain factor which
may affect not only the international business but also the home business. These factors are
tariffs, employment laws, trade restriction, tax policies, customer protection laws and labor law.
The abroad policy and norms play an imperative role in deciding the trade regulations of the
state. These regulations may offer various trade restrictions and incentives. A specific regulation
which is imposed by the company will definitely influence the new company and existing as
well. Kirrikin should give importance of paying attention to the political environment. It has
been analyzed that the political environment of the company is the least predictable factor in the
world of business. Political stability is must in the business because due to the lack of political
stability business may get affected adversely and may hinder the operation of business. It is vital
to keep in mind that the government is a main customer of goods and services (Rohani, Golbarg,
and Mutasim, 2014). Before it decides to do business, Kirrikin should analyze the policies terms,

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taxes and laws and rules of the foreign country. For instance, Brazil is a country that compels
upper level import duties for protecting its own domestic economy may not be presentable
appealing in the market of US. Potential political developments in the content of Kirrikin
Company can be effective in the term of good terms with the government of UAE.

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Summary and Recommendation
It is the report which is made on the environmental analysis of Kirrikin. Kirrikin is an
Australian business which makes handmade scarf and necktie. It is essential for the company to
analyze each factor before launching its products in the market of UAE along with that company
need to choose the option of entering into the market of UAE. Economic analysis will be helpful
for the company to analyze the growth rate of other taxes and policies for the business. Social
analysis refers to the living standard of the people of there. Environmental analysis facilitates to
know about the climate environment of the country so hat business could adapt the situation and
manufacture the products as per their environment. Political analysis tells about the involvement
of the government of UAE in the business and rates of tax on each product. Technological
analysis defines the status of the country in the context of technological updates and it has been
found that UAE is most advanced country in the context of technology and adapt it hastily.
It has been recommended that environmental analysis is an important part for analyzing
the country for starting the business. Organization need to analyze the place in UAE for starting
up the business. Kirrikin need to focus on the 4PS of marketing strategy that is product place,
promotion and price. Company need to focus about the products appropriately and give proper
time to management to think about the category of the product and to define the characteristics of
the services, the meet of the customer should be met. In the context of pricing, ethics should be
considered in the great manner. Price of the product should be genuine and affordable for the
people of new market. It is required for the Kirrikin to target the market before choosing the
pace. Company should consider the targeted market; it can be youth, ladies and child who
believe in fashion. It is not enough for the company to just placed in the new market for selling

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the product company need to chose some advertisement option so that the promotion of products
get done effectively and the people of new market get aware about the new product in their
country.

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