The organization “EcoBikers Limited” which is trying to enter into the business market of China is one of the largest ones of the nation of United Kingdom. It has more than 15 different manufacturing centers in the nation of the United Kingdom and in addition to the “brick and the motor” model of business it also takes the help of the “omni-channel business strategy” to provide e-commerce services to the customers. In addition to these, “EcoBikers Limited” provides a wide range of innovative bikes to the customers starting from the “Pollution Eating Bikes” to the traditional ones to the customers. The organization after enjoying a considerable amount of success in the nation of the United Kingdom has decided to expand into the business market of China to further enhance the amount of revenue generated by it on yearly basis.
The PESTLE analysis is a framework which gives an overview to the organizations about the different factors which are likely to wield a considerable influence on the business process of the concerned organization (Srdjevic, Bajcetic and Srdjevic 2012). The important attributes of this framework are “political, economic, social, technological, legislative and environmental factors” (Srdjevic, Bajcetic and Srdjevic 2012).
The nation of China is a Communist one and the major activities of the nation are controlled by the “Communist Party of China” (Dreyer 2015). The “Communist Party of China” exercises a stringent control over the various organizations and the business of the nation is still as per the Communist model of business (Dreyer 2015). Furthermore, it is seen that the government of the nation takes very little initiative for the promotion of the private business. Therefore, it would be apt to say that this particular political condition of the nation of China is likely to act as a threat to the EcoBikers Limited which is trying to expand into this particular nation.
The nation of China ranks at the 71st position in terms of GDP among the various nations of the world (China.org.cn. 2018). Furthermore, the nation has the “world's largest total banking sector assets of $39.9 trillion (252 trillion CNY) with $26.54 trillion in total deposits” (China.org.cn. 2018). The best part about the economy of the nation is that the economic recession from which the majority of the world is suffering from has very little effect on the economy of China (Guthrie 2012). Therefore, it would be apt to say that this particular economic condition of the nation is likely to act an opportunity to EcoBikers Limited.
The society of the nation is a very conservative one and the people of the nation still believe in taking the help of the various kinds of traditional models of business (Geng et al. 2012). Furthermore, the process of multiculturalism has very limited amount of effect on the society of the nation and unlike other nations of the world the nation is not much influenced by the Western culture (Geng et al. 2012). Therefore, it would be apt to say that the online services provided by the retail organization will not be much appreciated by the people of the nation. Furthermore, it is seen that the people of the nation do not like to take the help of bike and feel more comfortable driving cars. Thus, it would be safe to say that this particular factor is likely to act as a threat to the retail organization willing to expand their business into it.
The growth rate of technology in the nation of China is very high and therefore it is seen that the organizations of the nation related to the different industries are increasingly taking the help of this particular factor to not only produce surplus products but also for the other important aspects of their business process like marketing, communication and others (Tian et al. 2014). Therefore, it would be apt to say that this particular factor is likely to act an opportunity for EcoBikers Limited which is trying to start its business in the nation of China.
As already mentioned the nation of China is controlled by its party “Communist Party of China” and all other organs of the state are subordinate to it (Potter 2013). Furthermore, it is significant to note that this particular party supports the various owned industries whereas for the private organizations the rules are very arbitrary and not clearly demarcated (Potter 2013). Moreover, it is also seen that the limited number of legislations which they have for the process of business is being amended by the party as per their requirements (Potter 2013). Therefore, it would be apt to say that this particular factor is also likely to act as a threat for the retail organization.
The nation of China in the recent times have emerged as one of the most polluted countries and it is significant to note that very little initiative is being taken by the national party to mitigate the situation (Guthrie 2012). However, in the recent times it is seen that the party has passed some regulations which the various organizations need to follow. The bikes are especially designed to curb the pollution of the nation. Therefore, this particular factor is also likely to act as an opportunity for the retail organization.
An analysis of the macro as well as micro environment in which a particular organization becomes very important for the concerned organization it gives an idea to the organization about the factors which they need to take into consideration for the process of their business. Furthermore, these analyses also give them an idea about the key threats as well as opportunities which their business is facing.
The competitive world of business has made it imperative for the various organizations of the contemporary business world to analyze the micro as well as the micro environment in which they are operational (Kolios and Read 2013). The frameworks like PESTLE analysis, SWOT analysis and others are very important for the various organizations as they give an idea to the various organizations not only about the kind of environment in which they are operational but also about the key competencies as well as threats which galore their business (Kolios and Read 2013). Therefore, the various organizations are increasingly taking the help of these frameworks to analyze the environment in which they are operational. This report will discuss about the PESTLE analysis of a bike manufacturing organization called “EcoBikers Limited” belonging to the nation of United Kingdom which is trying to launch its product in the market of China.
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