A PESTEL study is a planning tool that companies use to evaluate and understand the external macro-environmental factors that have the ability to affect how their business works. The letters PESTEL stand for the study of political, economic, social, technological, environmental, and legal factors. The PESTEL framework will be used to look at Amul, which is a well-known dairy company in India and a well-known organization in the dairy industry.
Political factors are the different parts of the political world that can affect how people, organizations, and governments work and make decisions.
Amul works in an industry where there are a lot of rules about how to make milk, how to make sure it meets quality standards, and how to set prices. When these rules are changed, they can have a big effect on how the business works.
Amul has to deal with the effects of international trade agreements, taxes, and trade limits in its export and import business. Changes in the way world trade works could have an effect on business.
The economic factors that affect a situation or event are very important for knowing how they work and what happens as a result. These factors cover a wide range of
Amul is vulnerable to currency changes because it does business around the world, which has an effect on prices. High amounts of inflation can also affect the costs of making things and how prices are set.
How much people want to buy Amul’s dairy goods depends a lot on how much money they have. During an economic slump, people might spend less money on things like dairy products that aren’t necessities.
Social factors are the different things in a society that can have an effect on people and how they act. These things include things like national norms.
Amul works in a country where people have many different tastes when it comes to dairy goods. Understanding and adapting to these tastes is important if it wants to reach its goals.
People are becoming more aware of their health and fitness, and this has made them want better alternatives to dairy. Amul should think about changing their products to meet the changing needs of their customers.
Technological factors are the outside situations and effects that come about because of changes and improvements in technology. These things can make a big difference.
Amul may be able to improve working efficiency and cut costs by combining technology and innovation in the areas of dairy farms, milk processing, and milk distribution.
Digitalization: Using e-commerce and digital marketing platforms could help Amul reach more customers and keep them more interested.
Environmental factors are the different situations and forces from the outside world that can have an effect on the natural world. There are many things that make up these factors.
In order to be sustainable, Amul needs to take steps to deal with the environmental problems that come with dairy farming. This includes reducing the carbon emissions that come from making milk and putting in place effective waste management strategies. Using sustainable practices could improve a company’s business picture.
Climate change could affect the production of milk by changing the way the weather works, which would have an effect on the availability and price of raw materials.
When analyzing a case or issue, the legal factors are one of the most important things to think about. These things include the laws
Amul’s image and customers’ trust depend on how well it follows food safety rules. Any kind of violation could lead to court trouble and hurt the company’s image.
As far as intellectual property rights go, Amul’s continued success depends on keeping its brand name and products safe from counterfeiting and copyright theft.
In short, Amul works in a business world that is constantly changing and affected by many outside forces. For the company to stay competitive and successful in the long run, it needs to keep an eye on and respond to changes in the political, economic, social, technical, environmental, and legal fields. By keeping an eye on these factors, Amul can keep its place as a major player in India’s dairy market and grow its presence around the world.