It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Developing international strategies. Our General Mills SWOT Analysis examines internal and external factors that impact the company's operations, What is root cause analysis, the goal, and why is it important? Market Research Reports, Inc16192 Coastal HwyLewes, DE 19958, USA. As well as cash registers to manage money after a sale. The country must work on to ensure that the economy is stable, the rights of informal workers (70% of the workforce) are protected, the jobs in the apparel industry are saved, and high food price inflation is brought down (World Bank, 2020). In the grocery industry, buyers have great power. Pestle analysis of Sri Lanka. November 2022 | 35 pages | ID: S0B95217862AEN. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. 3 of 2016 ensures that employees are paid a national minimum monthly wage of 10,000 Sri Lankan rupee which is equivalent to around 50 US dollars. Posted by Zander Henry on November 2022. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. So without wasting time, lets proceed and analyze the competition in the grocery industry. Sri Lanka has a mixed legal and judiciary system. Check your email Curious about how we partner with you to help you solve your complex modern-day business problem? However, if the economy is poor, it doesnt matter how many products are offered. At this stage, the industry is booming and has reached its peak. All consumers love a good deal. In such an environment, Cargill A. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. Therefore, grocery stores and supermarkets may sound like synonyms. There are multiple stages in the life cycle of any industry. Integrity, Essay Writing 1. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. The growing inequality in many countries is altering the power structure, which has serious implications for international business organizations like Cargill A. Cargill A. need to study the traditionally assigned gender roles to align its marketing and communication practices accordingly. Understanding these two things helps to find items more likely to boost profits. Wall, S., Minocha, S., & Rees, B. They arent producing anything on their own. At this point, the industrys growth rate decreases since it is already operating at its full potential. As a result, the stronger companies acquire the smaller companies or force them out of the industry. However, now people prefer groceries from supermarkets. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. In this PESTLE analysis, we'll look at the Political, Economic, Sociocultural, Technological, Legal, and Environmental factors affecting the food industry; in particular, we'll look at how both restaurateurs and food distributors might be affected by current trends. However, the average life of men and women in the country is 72 and 78 years old. inspiration, guidance, and understanding. Warning! Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. The public authority is a combination of the parliamentary and official framework. Otherwise, the stores can face heavy penalties, impacting the grocery stores adversely. Accordingly, we never encourage or endorse its direct (2012). 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 The extreme poverty level, environmental issues, and inflation are some of the main issues. Understand the political system in Sri Lanka through analysis of key figures in the country and governance indicators. These conditions are often standard. By doing so, the grocery industry can generate huge sums of money. Big name companies are able to offer a selection online. This repels customers. Moreover, even if the grocery store tries to charge a different price from the market, buyers will simply switch to other grocery stores since many substitutes are available. It would allow farmers and manufacturers to input information about food products in real-time. Academic writing has no room for errors and mistakes. Economic factors affecting Sri Lanka. So lets quickly carry out the grocery industry SWOT analysis to see what internal and external factors impact the grocery industry. A retail store needs to meet legislative conditions before opening the shop. He is a lecturer in Management and Marketing. Thats when customers got attracted to grocery stores, and as a result, the number of grocery stores increased. . correct email will be accepted, (Approximately Moreover, considering the development and maturity level of technology in the respective market is also important. If other companies used this, they would know whether their lettuce is truly contaminated. Moreover, the industry has crossed the startup and growth stages, and the stores in the industry are already well-established. Its not only physical retail stores under scrutiny. Not only to streamline services, but also to reach audiences worldwide. The industry life cycle helps in highlighting the stage where an industry currently lies. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Moreover, people are also unaware of the industry at this time, so companies try hard to attract customers. Back then, the guy who used to deal in dry goods such as spices was called a grocer. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. A stronger economy allows consumers to buy products they want. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. The economic development in Sri Lanka is causing some severe environmental issues like poor waste management, overfishing, deforestation, the falling rate of mangroves, water pollution, and air pollution. 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. Cargill A. needs to consider the investments made by competitors on a micro and macro level to understand how new technologies influence the firms value chain and prevailing cost structure. A recommendation is that the company's strategies must include the external factor of rising health consciousness among consumers. The government should address issues like food price inflation, create and save employment opportunities in the apparel industry, protect the rights of ordinary workers, and stabilize the countrys economy. Developing a multi-criteria decision making model for PESTEL analysis. Not following these laws exactly as outlined will lead to legal troubles like bankruptcy and foreclosure. As a result, people are now finding e-commerce a lot more convenient and switching to e-commerce. All Rights Reserved, Economic factors: Nearly $30 trillion dollars in a couple more years, Social factors: Buying in bulk and collecting endless data, Technological factors: A digital catalogue for easy browsing, Environmental factors: Contamination and blockchain technology, A stronger economy allows consumers to buy products they want, more disposable income to spend on friverous products, main social factors affecting the retail industry, They use market research to identify buying trends, about environmental issues inside of the stores, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. However, Indian and Sri Lankan cultures are almost the same. PEST Analysis: Sri Lanka. Total asset base amounts to Rs. IEEE. 1. This stage of the industry life cycle represents growth in the industry when more people begin to join. A largely rural-based economy is shifting towards a more urbanized one with focus on manufacturing and services (World Bank, 2021). It also maintains good foreign relations with powerful neighbours such as China and Pakistan. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. The shakeout stage is followed by the maturity stage. It requires Cargill A. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. Hence, no competition exists at that time. Cargill A. need to study data protection regulations to protect the customer data. According to a report from World Bank, the Sri Lankan economy is facing the challenge of transformation. Cargill A. can leverage the opportunities offered by social media marketing to improve business performance. Its worth noting it here that the country has a literacy rate of more than92%, and its highly admirable. Certainly, rapid human development is having its toll on the environment. Springer Berlin Heidelberg. This is because grocery stores mainly buy food and beverage products from wholesalers. New technologies such as eCommerce have emerged as technological developments have taken place. 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. This is set by the government. For instance, people enjoy buying products in bulk. But even smaller shops can benefit from offering discounts and sales on products. BAC Reports. The retail industry has greatly benefited because of the internet. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Cargill A. A careful evaluation of legal aspects is required to avoid getting into some serious trouble. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. Use of social media has become common in a modern business environment. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. Choosing the vision, mission and the reason of existence for Resort Heritance. The advent of social media and e-commerce has encouraged online shopping behavior among customers. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). of the box and hire Case48 with BIG enough reputation. 2023 Euromonitor is privately owned & trademarked. Amazon and Walmart are going head-to-head. 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. And as the retailer grows, new legislative laws come into effect. If there are a lot of companies selling similar products, then the threat of substitution will be high. submission, reproduction, or any other misuse in any manner. This will cause the demand for grocery stores to fall significantly. We also cant forget about environmental issues inside of the stores either. There are a lot of people working in the grocery industry. Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). 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