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An External Environment Analysis Of Ireland

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Describe about an external environment analysis of Ireland?




In recent times there are many organizations which faces a challenge regarding the impact on their business due to change in environment. The companies face various threats and challenges due to environmental changes can affect the profitability of a country. The analysis provides details about the external environment of Ireland. The analysis is done based on PESTLE analysis.





84,421 km2

Official language

English, Irish, Ulster Scots





Ethnic group

White, Asian,black.

Source: (, 2015)


Ireland belongs to European Union since 1973. Hence the trade policy of Ireland is same as other countries of European according to the trade and Foreign affairs department of Ireland, the division of promoting and trade is responsible for strategic decisions and applications the oversight of export trade council and making trade strategy for economic and cultural relations along with various related information (, 2015). Being a part of European Union it has certain non tariff barriers in import restrictions, quotas, services, manufacturing and agricultural subsidies. For the treaty of Fiscal deficit, Ireland aims to adopt long term budgetary plans in the Euro area and the European Union. Ireland has low scope for terrorism and the international relations are strong with UK, Iceland, and Denmark and apart from European Union members, they had a substantially good foreign relation with USA (, 2015).


GDP rate

€183.8 billion

CPI rate of Inflation




Average Gross Salary

$3,508 monthly

Foreign Reserves

€1.219 Billion

Source: (, 2015)

Due to high Sovereign debt, increased rate of Unemployment and low foreign exchange the country is facing social and economic challenges  Presently the emerging industry in Ireland is Entertainment and media (Insights, Desk, Data, Connected & Academy (for students, 2015). The internal debt of Government has increased highly around 2010 for economic crisis (brink & Kenny, 2015). At that period funds were generated by issuing their bonds in the economy. In the Irish property market, due to domestic issues there are bank solvency problem in Ireland. The Ireland government focuses more on trade, investment, high-tech and services Industry. Ireland is considered amongst the leading wealthiest countries.


Birth rate

16.1 births per 1000 population

Gender ratio (male: Female)

1 male(s)/female

Unemployment rate


Literacy rate



Irish 84.5%, other white 9.8%, Asian 1.9%

Source: (, 2015)

English, Irish are the commonly used Official language in Ireland. Apart from European Union, the country has membership in many global Organizations like Security and Cooperation in Europe and The United Nations. In regard to social issues, Ireland is considered as progressive. The major social challenges include increasing the rate of employment for higher purchasing power and income level. From the age of six the education system of Ireland is compulsory.



Ireland is currently going through a digital conversion. The continual innovation has led the technological Industry of Ireland to grow in a rapid rate. According to technological survey, the market speculators predicted there are 90% companies who have chances of sales growth due to technological advancement (, 2015). The Ireland Information and Communication Technology are renowned because out of top ten, nine of the ICT companies are located in Ireland. Ireland has total three international Airports where the route between London and Dublin is considered as the busiest route. For high level of infrastructural programs the exportation of services and goods facilitates a business. Ireland has remarkable transport structure and logistics. It offers regular ferry service, rail service and many more. 77% population in Ireland is Internet users the country is ranked among the 40th in the world for using internet services.


According to reports of 2010 the service export of Ireland had increased to €16 Billion yearly after the Government came into terms with new measures for lifting legal barriers for trading. Due to this the Ireland has become the only country amongst Eurozone that has a record for increase in export activity. Irish firms have free access to approximately 350 million people, which helps firms to expand. In order to launch a business the days required is six, and necessary permission takes around 150 days (, 2015). The labor rate is costly though there flexible dismissal and hiring regulations. The government charges subsidy over few industries like energy and wind.


The quality of Irish environment is good, the climate is influenced by Atlantic Ocean, the average temperature in Ireland is 50áµ’F the sea temperature is also mild (, 2015). The pollution is less which indirectly makes a good impact on the health of the people of Ireland. Ireland hugely emphasizes on environmental protection and health of their people.


Through Pestle analysis it is clear that Ireland is economically stable and politically strong. Not only that the social and cultural structures of Ireland is very acceptable for business expansion and entry into the market. Because of its high focus in technological advancement the country would stand as a better prospect in European countries. There are also low rigidity in trade policy tariff and taxation in industries. Thus Ireland seems to be a favorable destination for any market entry.


References,. (2015). BDO Ireland | Technology, Media & Telecoms Publications | Technology sector growth survey & insights 2013-2014. Retrieved 2 March 2015, from

brink, H., & Kenny, E. (2015). How Ireland pulled back from the brinkAgenda - The World Economic Forum. Retrieved 2 March 2015, from,. (2015). U.S. Commercial Service : Your Global Business Partner. Retrieved 2 March 2015, from,. (2015). The World Factbook. Retrieved 2 March 2015, from,. (2015). The World Factbook. Retrieved 2 March 2015, from,. (2015). Residence rights of non-EEA nationals in Ireland. Retrieved 2 March 2015, from,. (2015). Consumer Price Index January 2015 - CSO - Central Statistics Office. Retrieved 2 March 2015, from,. (2015). Ireland Demographics Profile 2014. Retrieved 2 March 2015, from

Insights, G., Desk, R., Data, T., Connected, G., & Academy (for students, t. (2015). Ireland >> globalEDGE: Your source for Global Business Retrieved 2 March 2015, from,. (2015). Climate of the World: Ireland - Weather UK - Retrieved 2 March 2015, from


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