PESTEL Analysis of Milliner

Limitations of PEST analysis

Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate.

Economic factors affect the purchasing power of potential customers and the firm’s cost of capital.

Social factors  include the demographic and cultural aspects of the external macro environment. These factors affect customer’s needs and size of potential markets. Technological factors can lower barriers to entry reduce minimum efficient production levels and influencing outsourcing decisions.

It may be difficult to forecast true trends with an acceptable level of accuracy. In this regard, the firm may turn to scenario planning techniques to deal with high levels of uncertainty in important macro-environmental variables.

Political and legal analysis

Milliner is subject to local, regional and global rules, laws and regulations. These rules and regulations cover diverse areas such as product safety, product claims, trademarks, copyright, patents, employee health and safety, the environment, corporate governance, listing and disclosure, employment and taxes.

Important ejaculatory bodies in respect of business include the European Commission and the US Food and Drug Administration. Failure to comply with laws and regulations could leave Milliner open to civil and criminal legal challenge and may result in fines or PEST Analysis By subversion imprisonment to personnel.

Further, reputation could be significantly damaged by adverse publicity relating to such a breach of laws or regulations. During 2009-2010 almost 49% of Milliner revenue came from D&E markets including Brazil, India, Indonesia, Turkey, South Africa, China, Mexico and Russia.

These markets typically roved more volatile than developed markets. Any government response to reduce the impact such as fiscal stimulus, changes to taxation and measures to minimize unemployment have also affected Milliner’s economic performance. In some regions Gobo. Has imposed heavy duties on imports and raw materials and it has a negative impact on production capacity. However, Milliner is quite good in managing relations with Governments.

Milliner Financial Statement Economic analysis

Milliner market environment is becoming highly competitive especially in Western Europe.

Macroeconomic environment is highly uncertain which has affected microeconomic environment as well by creating a fear among ordinary consumers. Consumers would not want to buy expensive product or brands due to current economic tide. Competition in EX. has grown so strong that Milliner is facing difficulties in places like France, Netherlands.

Economic Decline in business during an economic downturn has resulted in customer and supplier default. Milliner’s business is dependent on continuing consumer demand for its brands.

Reduced consumer wealth driven by adverse economic conditions has resulted in consumers coming unwilling or unable to purchase Milliner products, which has adversely affected cash flow, turnover, profits and profit margins. Adverse economic conditions have resulted in the impairment of some of intangible assets which are in the form of brand names. Adverse economic conditions have affected in two ways I. E. One or more countries within a region or extended globally. However, recession has increased the demand for some of the home care products. Milliner is operating in different market, which have reacted to recession in different ways.

In D&E arrests volume led growth has been improved Upton 7% in the first quarter of 2010. Milliner. Com Executives Director’s Report Societal and Ecological Analysis Milliner has developed a strong corporate reputation over many years for its focus on social and environmental issues, including promoting sustainable development and utilization of renewable resources. It is very conscious about safety and health of its employees and accident rate decreased by 9% during 2009. Milliner’s vision is to help people feel good, look good and get more out of life with brands and services hat are good for them and good for others. You may be interested in PESTLEe Analysis Turkey

It has successfully maintained high social and environmental standards by designing and producing products that are safe for consumers. Milliner is working on so many social welfare projects like World food programmer and safe drinking water. Milliner is using environment friendly materials and packing stuff. The Milliner brand logo now displayed on all products and advertising, increases its external exposure. Milliner has built its image as an environment-friendly and socially responsible company.

Milliner Financial Statements – Operational Highlights Enliven.

NAVA Sustainability Milliner WET. NAVA=Sustainability Technological Analysis Milliner has been spending on IT to improve its business especially in the area of e- business so as to improve brands image and quality of its products. Milliner know that failure to provide sufficient funding to develop new products, lack of technical capability in the R&D function and quickly roll out the products may adversely impact its cash flow, turnover, profit and profit margins and affect reputation.