Pestel analysis is a concept in marketing principles moreover, this concept is used as a tool by companies to track the environment they are operating in or are planning to launch a new project/product /service etc. things to keep in mind when doing Pestel analysis:
What is the political situation of the country and how can it affect the industry?
What are the prevalent economic factors?
How much importance does culture has in the market and what are its determinants.
What technological innovations are likely to pop up and affect the market structure?
Are there any current legislations that regulate the industry or can?
there be any change in the legislations for the industry.
What are the environment concerns for the industry?
According to insiders Adcock’s lacks the political connections of giant as compared to Aspen Pharmacare. Bidvest has some foothold in selling to the state. The state’s two biggest investor’s, the government Employees Pension Fund and the Public Investment Corporation(PIC). If Bidvest manages to buy Adcock Ingram it will get more business from the government and Adcock will also benefit from this acquisition.
Economic factors related to goods, services, and money. Despite directly affecting businesses, these variables refer to financial state of the economy on a greater level whether that be local or global. The reason for this is that the state of the economy can decide many of the important details that come up in an operating company, including topics such as consumer demand, taxes and asset value. Bidvest is still facing challenges in the current world economy, regulatory and legislative changes imperative in the countries where it operates.
Business also have their own social environmental factors. This is also known as internal social environments. There is some level of control by a business over its internal social environments in relation to its external environments, all of which are factors affecting business when it comes to their social environments. In simple terms, the beliefs, customs, practises and behaviours within the confines of the business.
Cultural determinants like demographics, growth trends, health consciousness, customer attitudes, etc. affect the demand for certain products or services. Consider your marketing strategy in the context of social norms, current trends and how these trends are likely to develop over time.
Consider current technology and advancements that are on the horizon. Innovations in technology can affect the company’s operations and the market in which it operates. The business needs to consider technological factors such as automation, research and development, connectivity, e-commerce, etc.
These are ecological aspects such as weather and climatic changes, tourism, farming, insurance, geographical locations, etc. An awareness of the impact of these factors is crucial to develop and deliver an effective marketing strategy that can succeed in the environment in which the business operates.
There are two issues in the pharmaceutical industry. The medicine producers should find a way to solve the health problem due to that pollution. The environmental hygiene also effective, because more disease appears, people need more medicine to solve it.
Bidvest and Adcock should work in partnership with its suppliers, customers and other relevant business partners, within its sphere of influence, to redesign and reduce the environmental impact of products, services and other business activities. Optimise consumption of raw materials and energy, and minimise waste through applying a ‘reduce, reuse, recycle’ philosophy.
Regulators are becoming more powerful and the legislative burden on businesses is arguably greater than ever. Your team needs to consider the legal factors that will affect your business now and in the future. This could be anything from data protection regulations through to employment legislation.
Pharmaceutical industry is subjected to regulatory and the department will examine all the data to support the safety, efficacy and stability. Pharmaceutical promotion is subjected to self-regulation. Representative requires passing all the examination testing of medical knowledge. Some countries, government require the agency to check if the promotional claim is consistency with the data