Pestle Analysis Of The Energy Industry
This because the industry’s main suppliers are from those inside the UK. However, this has been complicated by the crisis of terrorist, competitors from neighboring countries. This has made the control of information be based on international politics. `
Technological Trends
Nearly half of the world’s population have access television and Internet connections in their homes. In the UK nearly half of the populations have access to internet in their homes, according to the annual survey by the Pew Internet & American Life Project in July 2007.
The number of home broadband users nationwide now equals the total number of Britons with any type of Internet connection in 2000, the first year the survey was conducted. Six out of 10 adults have broadband access at home, compared to 15% two years ago. Nearly one-third of rural Britons have home broadband connections, compared to about half of Britons living in urban areas and the suburbs. Income and race are becoming less important differentiators in UK broadband adoption. In Far East things have taken a new dimension majority of the parents have resorted for internet for academic purposes this has led to increase in the needs of broadband connections in homes.
Economic Trends
The US sub prime crisis has already had a global impact on global financial markets and could affect consumer spending worldwide. At first sight, this would seem a disproportionate reaction but banks all over the world are exposed to US debt.
Sub-prime lending was lending at higher interest rates as a means of helping American consumers of lower incomes and poorer credit records obtain mortgages. These loans were then sold on, in complex ways, to other institutions including hedge (higher risk higher return) funds. The treatment of sub prime loans by the banks is likely to have far-reaching effects including, possibly, a slowdown in the US economy and a confidence linked decline in US consumer spending. Fact is that US retail sales rose only 0. 3% in August 2007 suggesting increasing caution of the crisis ahead. US retail sales are a major driver of economic growth and may be viewed as an early response to a housing slump and financial market turmoil. Over the past 12 months, retail sales rose by 3. 9% excluding autos. However, the level of spending did not indicate recession tendencies though analysts expect growth to decline in the near future. There were modest increases in sales for furniture (0. 5%), electronics (0. 4%), sporting goods (0. 3%), and health care (0. 3%) compared with the same month a year ago.
Thus, this national economic problem might have a small effect on the health food sector because organic foods are usually priced higher than regular food (Xinhua News Agency, 14 September 2007). This trends affecting world economy is contributing to the fall in demand for cars and other consumables that use the products of the industry. Currently there is a high food price which is contributing to decrease in the demand for this product.
Environmental
The company is very competitive; Vodafone is balancing its e-commitment to communities they operate in through its corporate responsibility. They assist in environmental activities.
Legal Constrains
The company is operating all over the world but from UK. Each country have the own laws to complied with. The head finds it difficult to for example convert financial statements prepared in different accounting standards and procedures. These is one of legal constrain facing this company, although accounting standards board are solving this problem though convergence of accounting standards.
References
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- Corporate Entrepreneurship and strategic management: insights from a Process study. Management Science, 29, 1349-1364.
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