Pestel PHILIPS
PEST Analysis of Philips company:
POLITICAL FACTORS
Because Philips is an international company, it has to deal with many political factors such as: tax policy, employment laws, environmental regulations, trade restrictions and political stability inside each country they are in. Philips is a manufacturer, a sales company and needs to maintain service organization too, so it must deal with many varieties of laws and policies that are changing, depending the country and the time. For example in many countries of European union now taking place dynamic changes in employment law. (Federation of European employees, 2007)
ECONOMIC FACTORS
Depending on the country and the economic growth of it, the purchasing power of the population is not the same everywhere. In fact, as Philips is present in many countries, it has to adapt its products and sales processes to the buying habits and the standard of living. For Philips high economic growth means the increasing purchasing power of the population that is desirable for the company.
SOCIO-CULTURAL FACTORS
The social and cultural influences on business vary from country to country, region to region. It is very important that such factors are considered.
Then, it is necessary for Philips to understand the consumer needs and habits in order to meet its expectations.
Moreover, in developed countries nowadays, customers are paying more and more attention to ethics, respect and culture of the company.
TECHNOLOGICAL FACTORS
Because of the international presence of Philips, each country doesn’t have the infrastructure to welcome properly Philips’ technologies, including online processes. So Philips needs to adapt its products to the country where they are.
Moreover, Philips Company is very dependant on technology. New innovations can significantly improve operations of the company.
Also, it’s important not to neglect the Research and Development department even if it’s the most expensive one.
POLITICAL FACTORS
Because Philips is an international company, it has to deal with many political factors such as: tax policy, employment laws, environmental regulations, trade restrictions and political stability inside each country they are in. Philips is a manufacturer, a sales company and needs to maintain service organization too, so it must deal with many varieties of laws and policies that are changing, depending the country and the time. For example in many countries of European union now taking place dynamic changes in employment law. (Federation of European employees, 2007)
ECONOMIC FACTORS
Depending on the country and the economic growth of it, the purchasing power of the population is not the same everywhere. In fact, as Philips is present in many countries, it has to adapt its products and sales processes to the buying habits and the standard of living. For Philips high economic growth means the increasing purchasing power of the population that is desirable for the company.
SOCIO-CULTURAL FACTORS
The social and cultural influences on business vary from country to country, region to region. It is very important that such factors are considered.
Then, it is necessary for Philips to understand the consumer needs and habits in order to meet its expectations.
Moreover, in developed countries nowadays, customers are paying more and more attention to ethics, respect and culture of the company.
TECHNOLOGICAL FACTORS
Because of the international presence of Philips, each country doesn’t have the infrastructure to welcome properly Philips’ technologies, including online processes. So Philips needs to adapt its products to the country where they are.
Moreover, Philips Company is very dependant on technology. New innovations can significantly improve operations of the company.
Also, it’s important not to neglect the Research and Development department even if it’s the most expensive one.