The current account balance for Sri Lanka was estimated to be negative at USD 1.932 billions for the year 2016 and is expected to decrease at a CAGR of 2.35% and reach USD 2.364 by 2022. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. Major political instability and distressed government finances have blighted Sri Lanka, which is 'mostly unfree' for economic freedom. In such an environment, Cargill A. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. Particularly, Chinese investment has been massive. Close collaboration with such groups may enhance the Cargill A.s ability to collaborate with community and achieve long-term corporate goals. The first task we had was to do a PESTEL analysis of our home-country that we were in charge of. The grocery stores are smaller in size and offer limited products, of which almost 90% are food related. There are a lot of people working in the grocery industry. Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. Synopsis. Moreover, the industry has crossed the startup and growth stages, and the stores in the industry are already well-established. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. Our site uses cookies to improve functionality. Then you have to assess the competition in that industry. Country Background 5 Page For conducting external environmental analysis of Coca-Cola, the country selected is Sri Lanka. However, buyer power represents the power of buyers to dictate the prices in the market. USD 300. High taxation affects international trade and prevents exports. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). This is set by the government. Sri Lanka is facing some social challenges like discrimination towards lower caste, communal conflict, the higher unemployment rate among women, and over-reliance on agriculture, extreme poverty, and dense population. Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for Cargill A. due to jeopardized public trust on business organizations and overall political and economic structure. Cargill A. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . That doesnt mean they should avoid having a business website or showcase their products online. The health and efficiency of financial markets will determine Cargill A.s ability to raise the capital at fair prices. However, grocery stores are smaller and contain specialized items mainly relevant to food and beverages, while supermarkets are huge and have different departments. People save their money for products of necessity. The geographic location of the island played a significant role in history from a strategic point of view. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. In fact, Sri Lanka is one of the biggest receivers of Chinese FDI. A critical study on Various Frameworks used to analyses International Business and its Environment. The retail industry is everywhere. So naturally, this causes rivalry among grocery stores. Hence all the suppliers have identical products. If not, select "Manage Preferences" to learn more about managing your cookie preferences. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. Then, an industry goes through the shakeout stage. The startup stage is the very first stage of the industry life cycle. Theyll spend the bare minimum on food while the rest goes towards unpaid bills. Its standard for any store. He holds an MSc in Tourism & Hospitality from the University of Sunderland. For example, a supermarket will have a pharmacy, a toy area, a clothing area, etc. Research and development activities are highly important in an environment characterized by creative disruption. According to an estimate, the annual nominal GDP of Sri Lanka in 2020 was81.120billion dollars, and its66thworlds highest. Ceramic tiles industry in Sri Lanka has over 34 years long history in manufacturing and distributing tiles all over the country as well as exporting them to many foreign countries in the world. A stronger economy allows consumers to buy products they want. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. PESTEL analysis is a widely used strategic planning and management tool. Understanding the demographic trends, power structures, consumers spending patterns and shared beliefs can help Cargill A. design effective marketing messages and fulfil corporate objectives through informed PESTEL analysis. Moreover, the business performance of Cargill A. is also influenced by the extent to which the host country government has spent on core infrastructure development. It would allow farmers and manufacturers to input information about food products in real-time. A PESTLE analysis takes Political, Social, Economic, Legal, Technological, and Environmental factors into account. Revista ESPACIOS, 39(16). 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. This PEST country analysis report on Sri Lanka provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis. Chat with us However, now people prefer groceries from supermarkets. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. The competition in this market is increasing and the small and local players are facing difficulties in survival. Some countries offer subsidies for encouraging investment in renewable technologies. The advent of social media and e-commerce has encouraged online shopping behavior among customers. Economists are predicting a global recession. Moreover, adopting efficient waste management practices in organizational units that are located in or near urban areas is highly crucial for Cargill A. 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. The National Minimum Wage Act, No. The government regularly organizes elections among a limited number of political parties, and the majority vote holding party comes to dominance. Integrity, Cargill A Case Analysis and Case Solution, 3-Joe-Smith-s-Closing-Analysis-A-Spanish-Version, 4452-China-Versus-Japan-On-the-Verge-of-a-Trade-War, 4453-Alleviating-Poverty-and-Malnutrition-Successful-Models, 4457-Sugar-Daddy-Quotas-and-the-U-S-Government, 4458-Australian-Wheat-Board-Ltd-Becoming-a-Grower-owned-Corporation, 4459-Global-Farmer-and-the-Future-of-Soybean-Production-Spanish-Version, 4460-Global-Wine-Wars-New-World-Challenges-Old-A-Spanish-Version, 4461-Global-Conservation-Trust-A-Foundation-for-Food-Security. They all promote the countrystourism industry. As Cargill A. looks to expand and leverage its competencies and core capabilities, conducting the PESTEL analysis is imperative for developing effective strategies and achieving long-term growth objectives. The retail industry was able to hold itself up even during the recession. And as the retailer grows, new legislative laws come into effect. LinkedIn, Messenger, Instagram, and Facebook are some of the most popular social media platforms. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. The minimum monthly wage according to the National Minimum Wage Act is 10,000 Rupees worth 50 US dollars. BAC Reports. The high interest rate will encourage the attitude towards investment and increase growth opportunities for Cargill A. Cargill A. need to study data protection regulations to protect the customer data. All consumers love a good deal. 1. 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. We extract and organise ecommerce data from over 1,500 online retailers in 40 countries providing daily updates on pricing, assortment size and key attributes. please submit your details here. PEST Analysis: Sri Lanka. Majority of the people live in rural areas and rely significantly on agriculture for their livelihood. So I did it on Sri Lanka. Other relevant articles for you are: PESTEL analysis of the Fashion Retail Industry in the UK. Approximately more than 21 million people are populating Sri Lanka. This market research report covers current and future business risk analysis forSri Lankaalong with macroeconomic factor analysis. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. However, if the economy is poor, it doesnt matter how many products are offered. 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). In this way, grocery stores are essential for the economy. Issa, T., Chang, V., & Issa, T. (2010). These stores specialize in food items. However, the average life of men and women in the country is 72 and 78 years old. Sri Lanka should accelerate its growth in the tech industry if the country wants to develop. Out of these 40,000 stores, more than 26,000 are simple grocery stores. They arent producing anything on their own. Because we just dont know. They use market research to identify buying trends and shifts in consumer behavior. This is only possible when the economy is on the rise. Here you can find food products, clothing, and electronics, in large quantities. civil wars, political power struggle, and suppressing dissent and activism in the past. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. Pestle analysis of Sri Lanka. Help, Academic (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Technological factors impacting Sri Lanka, Environmental factors impacting Sri Lanka. Cargill A. should carefully consider the on-going technological innovations to stay ahead of the competition. 1, pp. Consumers prefer the natural toothpastes to the synthetic, artificial flavored toothpaste that is commonly found. A retail store needs to meet legislative conditions before opening the shop. After we cleared the difference between the two, we conducted the grocery industry analysis. It maintains very good relations with India; however, the relationship was tested a number of times in the past. If you're in the Commodities industry in Sri Lanka, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty, Now in its seventh edition, this report explores the top digital shopper trends that will redefine commerce the most in the year ahead. 1189 Words; 5 Pages; Jun 15th, 2018 Published . 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. All rights reserved LCHW. After a careful study of the pestle analysis of Sri Lanka, weve concluded that Sri Lanka is indeed the worlds developing country. 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. Changes in weather and climatic conditions can influence business efficiency. 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 (2008, December). Okay, I might be being a little dramatic because I can still get my groceries from the supermarket, but its not the same. Its a never-ending process. We work with our associate Global market research firms who are known leaders in their respective domains to obtain right market research solution for our customers needs, be it custom research or syndicated research reports. The grocery industry requires political stability to make a profit. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. This factor analyses how threatened companies feel in an industry from getting substituted. Political factors: Anti-trust issues. He is a lecturer in Management and Marketing. Grocery stores are one of the sub-sectors of the retail industry, along with six other sub-sectors. 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. When its on the decline, the opposite is true. More retail shops are offering food products. We offer syndicated research reports (like country analysis, SWOT analysis, competitive intelligence, industry reports, company reports and market analysis & trends reports) and custom market research from our website MarketResearchReports.com only. 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). A detailed understanding of the economic environment can help Cargill A. estimate the growth trajectory of industry and organization. Integrity, Essay Writing According to an estimate,74.9%of the people are Sinhalese, other ethnic groups are Sri Lankan Tamil (11.2%), Sri Lankan Moors (9.2%), Indian Tamil (4.2%), and others (0.5%). Laws come into effect played a significant role in history from a strategic point view. Highly important in an environment, Cargill A. should carefully consider the on-going innovations! Are offered, political power struggle, and environmental factors into account for. Their products online in rural areas and rely significantly on agriculture for their.. 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