Business Environment Analysis: PESTEL of Iceland and UK Markets

This report provides a PESTEL analysis of the business environment, focusing on Iceland and the United Kingdom. The analysis examines the political stability, economic factors like GDP and unemployment, and social aspects including customer expectations and market competition. It also considers technological advancements and the need for companies like Iceland to innovate. Environmental concerns, such as the use of hydrocarbon fuels and fertilizers, are addressed, along with the legal framework impacting business operations. The report emphasizes the importance of adapting to changes in the external environment and adhering to legal regulations to ensure business growth and customer loyalty. References include academic journals and online resources that support the analysis.

GLOBAL BUSINESS
ENVIRONMENT

TABLE OF CONTENT
PESTEL ANALYSIS OF ICELAND, UK......................................................................................3
REFERENCES................................................................................................................................4

PESTEL ANALYSIS OF ICELAND, UK
This is a framework which all the company uses to examine the macro-environment and the
effect the external factors have on the operations and profitability of the organisation. Before
developing any strategy also, the companies perform this so that it can monitor the changes in
the external environment and the way in which it can differentiate itself from its competitors.
The PESTEL analysis of Iceland Company which is a chain of British supermarket
headquartered in Wales is as follows:
Political: There is stability in the country which makes the policies and laws in UK remain the
same and the decision making is easier in the company. All the regulations are being followed
and due to experience in the market the organization has been able to find a stronger place for
them in the market. The labour laws and customer’s rights are given a lot of importance for the
company which is going to impact the standards and reputation.
Economic: The GDP and income level of the customers does make a lot of difference on the
pricing of the products and services of the organization. The unemployment rates and inflation is
making the pricing of Iceland be affected as well which the company will have to maintain so
that there is going to be higher performance which is going to be present.
Social: Company is changing their services and products from time to time in order to be able to
maintain the expectations and standards of the customers. There is a huge competition which is
present in the market for Iceland therefore they must understand the expectations and needs of
the customers which is going to be very good for the operations (Kasemsap, 2016). Trends and
needs of customers is shifting and changing which is why the organization will also have to
improve their services and products making the company have higher performance.
Technological: Though Iceland is growing substantially in terms of innovation and making the
use of advanced technology, the company must always monitor the innovation which is
demanded by the market and must strive hard to implement the same in order to compete (Zhao
and Dou, 2019).
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Environmental: Iceland make use of hydrocarbon fuels which makes its air cleaner. But the its
water supply is being polluted by the use of excessive fertilizers. Iceland must find alternatives
for fertilizers which does not enhance water pollution instead must use environment-friendly
resources. Iceland uses 6% of the total renewable water resources for the industrial purposes
(Yeung, 2016).
Legal: These factors prove to be beneficial for Iceland as it has a legal system of civil law.
Iceland must abide by all laws and regulations of the government such as food safety laws etc.
which ensures that the food is safe for consumption (STEEPLE Analysis on Iceland Frozen
Foods, UK, 2018). These laws sometimes restrict the company’s operations but by following
these, the company can face a rapid growth legally which increases the customer loyalty.
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REFERENCES
Books and Journals
Kasemsap, K., 2016. Analyzing the roles of human capital and competency in global business.
In Project Management: Concepts, Methodologies, Tools, and Applications (pp. 2190-
2218). IGI Global.
Yeung, W.K., 2016. An evaluation of the feasibility of setting up a gourmet sandwich outlet
within Cardigan, West Wales (Doctoral dissertation, Cardiff Metropolitan University).
Zhao, J. and Dou, X., 2019. A Study of British Organic Food Market.
Online
STEEPLE Analysis on Iceland Frozen Foods, UK, 2018. [ONLINE] Available through :<
http://creativehive.org.uk/abahjie/2018/11/16/steeple-analysis-on-iceland-frozen-foods-
uk/>
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