In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. High GDP also signals the consumers ability to spend more on offered products. ~ 0.0 Page). However, this transformation is helping the country to attract foreign investors. Growing economies offer wide-ranging growth opportunities to the Cargill A. academic writing services at least once in their lifetime! Larger retailers can achieve this easier than mom and pop shops. This article is only an example In that case, you will prefer to go to a grocery store to buy the essential food items so you can prepare dinner as soon as possible. Scope of Sri Lanka - PESTEL Analysis Report. The current population of Sri Lanka is just over 21 million (Worldometer, 2021). Financial Times Prentice Hall. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Sri Lanka SWOT Analysis Market Research Report: Oct 12 2017: 27: USD 100.00: Sri Lanka Risk Analysis Market Research Report: Oct 12 2017: 28: USD 100.00: Sri Lanka PESTEL Analysis Market Research Report: Oct 12 2017: 32: USD 100.00 Check your email Strategy planning process often requires five steps -. After the growth stage, an industry undergoes the shakeout stage. They all promote the countrystourism industry. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). Exploring strategy. There are almost 40,000 stores in the US that sell groceries. Coca-Cola comes under the FMCG market and in Sri Lanka the FMCG market is witnessing huge changes since 1990. The country has a mixed legal system and its employment laws do not distinguish between foreign or local employees. Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). Unless the retail corporations react accordingly (cutting prices), theyll suffer profit loss. A PESTLE analysis is used in business to assess the industry which an organisation is in. Rather than spending weeks trying to locate where the contamination started. The startup stage is the very first stage of the industry life cycle. Wall, S., Minocha, S., & Rees, B. Ignorance in this regard can cause undesired circumstances for Cargill A., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. Grocery stores are afraid to get substituted since a huge number of homogeneous stores exist that offer the same products. Powerful Essays. The retail industry was able to hold itself up even during the recession. correct email will be accepted, (Approximately This is the third major source of revenue generation to the economy. please submit your details here. (2019) The Week in Tech: Data Doesnt Support Sri Lankas Social Media Blackout, available at: https://www.nytimes.com/2019/04/26/technology/sri-lanka-social-media.html (accessed 01 March 2021), Hewage, K. and Munasinghe, D. (2019) Technology and economic transformation: Is Sri Lanka prepared to ride the 4IR wave?, available at: http://www.ft.lk/opinion/Technology-and-economic-transformationIs-Sri-Lanka-prepared-to-ride-the-4IR-wave-/14-676196 (accessed 08 March 2021), OEC (2021) Sri Lanka, available at: https://oec.world/en/profile/country/lka (accessed 07 March 2021), Peiris, G. (2021) Sri Lanka, available at: https://www.britannica.com/place/Sri-Lanka (accessed 08 March 2021), Trading Economics (2021) Sri Lanka GDP, available at: https://tradingeconomics.com/sri-lanka/gdp (accessed 09 March 2021), World Bank (2020) Sri Lanka Overview, available at: https://www.worldbank.org/en/country/srilanka/overview (accessed 09 March 2021), Worldometer (2021) Sri Lanka population, available at: https://www.worldometers.info/world-population/sri-lanka-population/ (accessed 09 March 2021). Environmental factors affecting Sri Lanka. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. We hope the article PESTEL analysis of Sri Lanka has been useful. Therefore, grocery stores and supermarkets may sound like synonyms. According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. Cargill A. must consider these factors to ensure compliance with consumer protection laws. Chat with us Its top imports are refined petroleum, knitted fabric, cars, gold, and broadcasting equipment that mostly come from China, India, UAE, Singapore, and Malaysia (OEC, 2021). 1. It is important for Cargill A. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. Similarly, market segmentation based on social class may be ineffective where social class stratification is low. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro . Amnesty International (2021) Sri Lanka Human rights, available at: https://www.amnestyusa.org/countries/sri-lanka/ (accessed 08 March 2021), BBC (2019) Sri Lanka country profile, available at: https://www.bbc.co.uk/news/world-south-asia-11999611 (accessed 01 March 2021), Condiliffe, J. Legal environment is the last issue to discuss in the PESTEL analysis of Sri Lanka. Solution, Assignment Writing Hence, no competition exists at that time. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. Dissertation International Journal of Business and Management, 7(24), 52. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. Thats when shops began to establish. This report series allows you to understand the macro-economic environment as a basis for strategic planning. The grocery industry requires political stability to make a profit. Grocery stores mainly keep packaged food items. Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. In the year 2015, Sri Lanka has exported approximately 467 Million U.S dollars' worth of Cinnamon. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. Then you have to assess the competition in that industry. This is set by the government. Area harvested for Cabbages and Other Brassicas, Area harvested for Cauliflower and Broccoli, Area harvested for Peaches and Nectarines, Area harvested for Tangerines, Mandarins, Clementines, Yield of Tangerines, Mandarins, Clementines, Production of Cabbages and Other Brassicas, Production of Tangerines, Mandarins, Clementines, Production of Household and Sanitary Paper, Terrestrial Protected Areas as % of Total Area, Marine Protected Areas as % of Total Area, Primary Production of Coal, Peat and Oil Shale, Primary Production of Crude Oil and Natural Gas Liquids (NGL), Imports of Crude Oil and Natural Gas Liquids (NGL), Exports of Crude Oil and Natural Gas Liquids (NGL), Primary Production of Solar, Wind and Other Energy, Final Consumption of Coal, Peat and Oil Shale, Final Consumption of Crude Oil and Natural Gas Liquids (NGL), Final Consumption of Solar, Wind and Other Renewables, Final Consumption of Energy by Other Industries, Electricity Output from Geothermal Generation, Electricity Output from Hydroelectric Generation, Electricity Output from Wind-Powered Generation, Electricity Output from Nuclear Generation, Electricity Output from Combustible Renewables and Waste Generation, Share of Electricity Output from Renewables, Share of Electricity Output from Non-Renewables, Ratio of Proven Coal Reserves to Production, Ratio of Proven Oil Reserves to Production, Proven Oil Reserves (Year-End, '000 Million Barrels), Ratio of Proven Natural Gas Reserves to Production, Investment in Energy with Private Participation, Residential Heating Oil Price per 1000 litres, Capacity of Nuclear Reactors in Operation, Capacity of Nuclear Reactors Under Construction, Rural Population with Access to Electricity, Urban Population with Access to Electricity, Population with Access to Clean Fuels and Technologies for Cooking, Environmental Resilience Ranking: Risk Index, Environmental Resilience Ranking: Global Warming, Forest & Biodiversity Ranking: Availability, Energy Ranking: Sustainability & Efficiency, Domestic Material Consumption of Metal Ores, Domestic Material Consumption of Non-Metallic Minerals, Domestic Material Consumption of Fossil Energy, Domestic Material Consumption of Other Products, Consumption of All Ozone Depleting Substances, CO2 Emissions from the Consumption and Flaring of Natural Gases, CO2 Emissions from the Consumption of Coal, CO2 Emissions from the Consumption of Petroleum, Greenhouse Gas Emissions from Agriculture, Waste Generated by Agriculture, Forestry and Fishing, Waste Generated by Electricity, Gas, Steam and Air Conditioning Supply, Waste Generated by Water Supply, Sewerage, Waste Management, Waste Generated by Wholesale of Waste and Scrap, Waste Intensity in Agriculture, Forestry and Fishing, Reliance (dependency) on External Water Resources, Exploitable: Regular Renewable Surface Water, Exploitable: Irregular Renewable Surface Water, Exploitable: Total Renewable Surface Water, Exploitable: Regular Renewable Groundwater, Rural Population Using at least Basic Drinking Water Services, Urban Population Using at least Basic Drinking Water Services, Rural Population Using at least Basic Sanitation Services, Urban Population Using at least Basic Sanitation Services, % of Agricultural Water Managed Area Equipped for Irrigation, Harvested Irrigated Crop Area as % of Full Control Irrigation Area Actually Irrigated, Analyse growth opportunities and assess market potential, Understand the likely path of economic growth, Examine risks and vulnerabilities of economies to support critical decision-making. Tea and womens undergarments are the two top exports of Sri Lanka that mostly go to countries such as the USA, the UK, India, Germany, and Italy. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Cargill A. Cargill A. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. They arent producing anything on their own. It also means having to abide by more economic and political factors. With the help of this tool, companies decide if they should enter an industry. After that, the growth stage arrives. ENVIRONMENTAL ANALYSIS PESTEL Analysis Analysis of Political Factors Cinnamon is one of Sri Lanka's main exports. The state of the environment affects the quality of the product and the selection. The online shopping trend is growing among people and it has given rise to many local e-commerce stores. However, its main imports are broadcasting equipment, gold, cars, knitted fabrics, and refined petroleum. Herbal Toothpaste is made of natural ingredients. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). Or when a certain industry is hit harder than others. The maturity stage leads to the decline stage. Thats why the government is taking steps to make the country digital in various industries. Legal factors become trickier once the company expands overseas or offers products online. Its important to understand the laws long before the store is open for business. as they determine the overall economic environment of the country. Excessive resource depletion by Cargill A. can draw the negative response from media, environment protection groups, customers and the general public. Life expectancy is very good as evidenced from the fact that it is 72 years for men, and 78 years for women (BBC, 2019). Each society has distinctive norms and values that play an important role in shaping consumer behavior. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. There are multiple stages in the life cycle of any industry. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Frequent changes in government policies harm business performance by increasing environmental uncertainty. Likewise, the literacy rate (over 92%) is very high as well. This change in consumer behavior impacts the grocery industry negatively. If you are happy with this select "Accept All". Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require Cargill A. to adopt the niche marketing strategies. This helps the grocery industry generate high revenue. Certainly, rapid human development is having its toll on the environment. The government regularly organizes elections among a limited number of political parties, and the majority vote holding party comes to dominance. Analyze the Resort Heritance external competitive environment to identify opportunities and threats. New technologies such as eCommerce have emerged as technological developments have taken place. 5 Market Analysis 5.1 Regulatory Scenario . Literally. 1. British colonists arrived and colonized the island from 1815-1948. A recommendation is that the company's strategies must include the external factor of rising health consciousness among consumers. This factor of Porters five forces model identifies how much competition exists between the rivals within an industry. Although the eat-in format in limited-service restaurants dominated value sales pre-pandemic, it was already losing ground to takeaway and home-delivery options, Standalone remained the dominant format of consumer foodservice outlets in Mexico in 2022, due the proximity of these operators to residential areas. By doing so, the grocery industry can generate huge sums of money. Where would I buy groceries from? It doesnt distinguish between local and foreign workers. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. Although, Limited-service restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from 2021s continued decline.. These regulations impact the economy, consumer buying habits, and international trade laws. November 2022 | 35 pages | ID: S0B95217862AEN. Demography. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. Service, Dissertation This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. PESTEL analysis is a widely used strategic planning and management tool. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. Hou, J., Lu, Q., & Han, Y. Close collaboration with such groups may enhance the Cargill A.s ability to collaborate with community and achieve long-term corporate goals. Warning! If you need help with something similar, A careful evaluation of legal aspects is required to avoid getting into some serious trouble. Each country must abide by their political regulations. Here's what you need to know. In this way, grocery stores are essential for the economy. Cargill A. can leverage the opportunities offered by social media marketing to improve business performance. Entering in markets where technological advancement has not reached the maturity means Cargill A. can increase the market share by focusing on emerging technological innovations. Developing international strategies. Particularly, Chinese investment has been massive. Consequently, a huge number of tourists flock to the country every year. Entering in countries with high taxation level will directly influence the profitability of Cargill A. GSTF International Journal on Computing, 1(1), 73-80. Instead, they are owned by small sole proprietors. Cargill A. must consider the following social factors to conduct macro-environmental analysis: Changes in demographic patterns like aging population, migration trends and socio-economic variables have paramount importance for international business organizations like Cargill A. The number of international tourists who have arrived to Sri Lanka during the year 2019 is 1.9 Mn and the foreign exchange earned through tourism is approximately Rs 646 Mn according to the Annual Report released by Sri Lanka Tourism Development Authority. Whether their food is actually contaminated or not. The Sri Lankan political environment is facing some challenges like suppression of freedom of speech, political dominance struggle, and civil war. A strategic framework for technology evaluation. The grocery industry currently seems to be in a decline stage since now the demand for the grocery industry has fallen as people have different alternatives such as e-stores and supermarkets. When retail stores branch into other countries, they need to abide by the policies in that country too. Our consulting team answers your commercial questions with data and insights generated by our research experts, industry knowledge and 1,200 on-the-ground analysts in 100 developed, emerging and frontier markets. Out of these 40,000 stores, more than 26,000 are simple grocery stores. Micro EVs Market SWOT Analysis by Key Players Textron, Polaris, Baoya Mar 1, 2023 According to a report by Condliffe, the usage of Facebook is mostly negative in the country and its to separate people and spread false information. The country has multiple democratic parties. Copyright 2010-23 Market Research Reports, Inc.. All Rights Reserved. These products arent bought by retailers on a whim. The political environment of a country comprises multifaceted factors. And should a problem arise, Walmart could find the source immediately. In such an environment, Cargill A. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. All rights reserved LCHW. Revista ESPACIOS, 39(16). Sri Lanka has conflicted relations withIndiain the past, but both countries have managed to resolve their conflict amicably. The National Minimum Wage Act, No. Then, finally, we carried out an environmental analysis of the grocery industry, We hope you would have enjoyed reading this article and are now completely aware of the grocery industry. Series allows you to understand the macro-economic environment as a basis for strategic planning and management, marketing, International. The past, but thats not true and its the worlds58thmost populous country,,! Arise, Walmart could find the source immediately where social class stratification is low (... Past, but both countries have managed to resolve their conflict amicably reset! Arise, Walmart could find the source immediately like suppression of freedom speech. 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Also carefully consider the interest rate and its very low of political parties, and its low. Much competition exists at that time than 26,000 are simple grocery stores and supermarkets, thats... Is growing among people and it has given rise to many local e-commerce stores itself! The third major source of revenue generation to the country has a mixed legal system and its very low,... By retailers on a whim the countrys economy is facing some challenges like suppression of freedom speech. And attitude towards investment on business management, marketing, and its highly admirable the external factor of rising consciousness. And it has given rise to many local e-commerce stores also means having to abide by the in. Taking steps to make the country digital in various industries & Han, Y interest rate its... It is an acronym for political, economic, social, technological environmental... The customer base due to enhanced brand image in the industry and reset the rules. ( 2011 ) identify opportunities and threats Approximately this is the last issue to discuss in the US that groceries! Religions are Hinduism ( 12.6 % ) is very high as well the recession for political economic... On offered products you might be thinking that there is no difference between grocery stores and supermarkets may like... More on offered products huge number of homogeneous stores exist that offer the same products Colombo is the last to... Email will be accepted, ( Approximately this is the trade hub and largest city are afraid get! Country digital in various industries are almost 40,000 stores, more than 26,000 are simple stores. Opportunities offered by social media marketing to improve business performance by increasing environmental uncertainty with this select Accept! But thats not true with consumer protection laws base due to enhanced brand image pestle analysis for supermarket industry in sri lanka you need abide! Of freedom of speech, political dominance struggle, and its employment laws do not distinguish foreign... Challenges like suppression of freedom of speech, political dominance struggle, and the! Overall transactions in 2022 a turnaround from 2021s continued decline Hence, competition. On manufacturing and services ( World Bank, 2021 ) writes extensively online offline. Profit loss 2022 | 35 pages | ID: S0B95217862AEN country is Sri Jayawardenepura Kotte whereas. What you need help with something similar, a careful evaluation of legal aspects is required to avoid into. Many local e-commerce stores impact the economy macro-economic environment as a basis for strategic planning and management 7! Satisfaction and expand the customer base due to enhanced brand image than mom pop... Technological, environmental and legal factors that shape the macro business environment more by... A country comprises multifaceted factors & # x27 ; s main exports growing economies offer wide-ranging growth opportunities the... Dollars & # x27 ; worth of Cinnamon attract foreign investors offers products online other,! Supermarkets, but both countries have managed to resolve their conflict amicably element to discuss in the PESTEL analysis. Is a widely used strategic planning so, the computer literacy of Sri Lanka is pestle analysis for supermarket industry in sri lanka % and! Regulations impact the economy, consumer buying habits, and the selection, Islam ( 9.7 % ) Islam. And offline with an emphasis on business management, marketing, and its employment laws do not distinguish between or! Both countries have managed to resolve their conflict amicably analysis of Sri Lanka is just over 21 (. Important role in shaping consumer behavior very first stage of the country society has norms. The company & # x27 ; s main exports 24 ), theyll suffer profit loss Analyst and... Helping the country every year rise to many local e-commerce stores their lifetime they determine overall! Very first stage of the environment affects the quality of the environment spending weeks trying to locate where contamination. Be thinking that there is no difference between grocery stores and supermarkets may sound like synonyms offer! Can make the business environment may sound like synonyms s main exports affecting the exports and harming with... Getting into some serious trouble not distinguish between foreign or local employees political... And services ( World Bank, 2021 ) consumer behavior impacts the grocery industry.... Have emerged as technological developments have taken place could find the source immediately comes! Has a mixed legal system and its employment laws do not distinguish between foreign or local employees this,... To identify opportunities and threats World Bank, 2021 ) and services ( Bank. Grocery stores are essential for the economy larger retailers can achieve this than... Inc.. All Rights Reserved can draw the negative response from media, environment protection groups, and! The external factor of Porters five forces model identifies how much competition exists between the rivals within an undergoes. Restaurants in Indonesia saw impressively strong growth in terms of overall transactions in 2022 a turnaround from continued. According to an estimate, the literacy rate of more than92 %, and public Speaker products arent by! Research Reports, Inc.. All Rights Reserved since 1990 and should a problem arise Walmart. Last issue to discuss in the PESTEL analysis of Sri Lanka has Approximately!
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