In addition to that, report contents the macro and microenvironment factor analysis as well Internal factors and SWOT analysis of spa Ceylon. Many banks have opted for paperless transactions to decrease the use of paper. A State-of-the-Industry Analysis Studocu. Capacity increase is possible for keells supper if required for the north and east new markets but existing capacities of keells could service through these markets. Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. otesmatic. . The supermarket industry in Sri Lanka is set out for an explosive growth in the recent years this is with the western lifestyle of modern Sri Lankans where convenience is a key benefit sought after. PESTLE Analysis of The Retail Industry The retail industry is comprised of the process where retailers sell their final products and services to the end consumers. Follow this link to learn more about our cookie policy and how we use cookies. Mitigate possible infrastructure failures by harvesting on early warning systems. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. With the rise in population and literacy rate, many people understood the importance of having financial education. PESTLE is a business tool that used by companies to track and analyse the macro environment in which the company operate. It will open up the user-friendly canvas of EdrawMax that has several features that ease your efforts in making PESTEL analysis diagrams. But they are also working to keep up with their social responsibilities. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. The most important was the 30 year war coming to an end ensuring peace in the country; huge infrastructure development poses opportunity for expansion and development. (Perera 2006) The traditional grocery store concept has been evolving in to a Mega Stores and the heavy discounter concept which carry all the goods shoppers want (Stanton 2007). Social factors impact the banking industry as banking services involve public dealings. Exit barriers are not high in the grocery industry as any retailer could easily sell of its business to another operator. The people and their buying habits and preferences influence the banking industry. Beverage the next specialty in JKH food production is operated and headed by Ceylon Cold Store Plc. After technological advancement, the model of banking is changing. Stiff competitions from multinationals and there brands like Coca-Cola, and Pepsi. Economic forces that regulate the exchange of materials, money, energy and information. Country Profiles examine the economic and political trends in 210 countries and associated regions, serving as a one-stop-shop for data and analysis on the economy, political landscape and the business environment. If a banking institute fails to comply with its laws and regulation, it may face a ban. PESTLE Legal: - current home market legislation, future legislation - European/international legislation - regulatory bodies and processes - environmental regulations, employment law, consumer protection - industry-specific . If not, select "Manage Preferences" to learn more about managing your cookie preferences. Curious about how we partner with you to help you solve your complex modern-day business problem? Sri Lanka has made some good progress in science and technology over the years. 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. In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organizationssupply and demandlevels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). British colonists arrived and colonized the island from 1815-1948. According to a report from World Bank, the Sri Lankan economy is facing the challenge of transformation. Cargills Food City, Kings Supper City, Sentra, EH Super Pola, Sunup, Laughs, Crystal, Arpico super are some of the supermarket operators in Sri Lanka while Lanka Sathosa the state operated publics shop is also being revamped and develop to the Mega Stores concept. (2019) The Week in Tech: Data Doesnt Support Sri Lankas Social Media Blackout, available at: https://www.nytimes.com/2019/04/26/technology/sri-lanka-social-media.html (accessed 01 March 2021), Hewage, K. and Munasinghe, D. (2019) Technology and economic transformation: Is Sri Lanka prepared to ride the 4IR wave?, available at: http://www.ft.lk/opinion/Technology-and-economic-transformationIs-Sri-Lanka-prepared-to-ride-the-4IR-wave-/14-676196 (accessed 08 March 2021), OEC (2021) Sri Lanka, available at: https://oec.world/en/profile/country/lka (accessed 07 March 2021), Peiris, G. (2021) Sri Lanka, available at: https://www.britannica.com/place/Sri-Lanka (accessed 08 March 2021), Trading Economics (2021) Sri Lanka GDP, available at: https://tradingeconomics.com/sri-lanka/gdp (accessed 09 March 2021), World Bank (2020) Sri Lanka Overview, available at: https://www.worldbank.org/en/country/srilanka/overview (accessed 09 March 2021), Worldometer (2021) Sri Lanka population, available at: https://www.worldometers.info/world-population/sri-lanka-population/ (accessed 09 March 2021). Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). KIDS PARADISE is a Pre-school, Daycare and an Activity Centre. The governments in the last many years took a number of initiatives to digitalise different sectors of the economy. Thus, they conduct most of their transactions online. History-The history, development, and growth of the company over time Ceylon Cold Stores was established in 1866 as the Colombo Ice Company. Technological factors affecting Sri Lanka. 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. Or learn more about our privacy policy and how we use and store your data. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. (www.priu.gov.lk) The gradual improvement of the global economy lead by sharp recovery by the Asian markets are encouraging lending and stabilizing parity differences. Telecom Outsourcing Market Telecom Outsourcing Market - Massive Growth Ahead| Ericsson, IBM Corporation, Cisco Systems Use the PEST symbols from the left side and add the content to your PESTEL analysis diagram. This PESTEL Analysis diagram software comes with a free template and customization options that help create wonderful diagrams and ensure your analysis diagrams stand out from the rest. The banking institutions have decreased the use of harmful chemicals on machines and as cleaning agents. There are2 types of environmental factors: External: The economy In a bad economy, even a well-run business may not be able to survive. On the year 1863 they started to import Sri lanka's first ice-making machine by this time they only had 22 employees. Some factors will be more important to different types of businesses, and a PESTLE analysis will help identity risk factors for the SWOT analysis. Public deposits their money in the bank to save or invest for the future. Many of them are looking to use renewable energy sources. It becomes helpful for a country's economy as the small-scale industries or businesses create enough jobs. Lead-in The banking industry is one of the dominant parts of the country's economy. It gives people the confidence to deposit their money or take loans from the bank. In addition to this, you can go ahead and change the background color, modify the text, add hyperlinks, add multiple pages, add images, and even add vector-enabled texts to your PESTEL analysis diagram. Access to distribution channels could be considered low as the keells supper has on 46 super markets compared to its competitor Cargills. The country imports it fromMalaysia,Singapore,UAE, India, and China. pestle analysis for supermarket industry in sri lanka. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. However, there are some challenges facing the Sri Lankan economy. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. It maintains very good relations with India; however, the relationship was tested a number of times in the past. Switching cost of supplier would not be low since the required quality levels are high by the producer and the consumer food industry demand strict qualities from their suppliers hence if this affect the producer it will affect the supply chain integrated to it .Keells supper forte or the product portfolio involves in process food meaning it would be some form of conversion of the original hence substituting the base material would be difficult. Kells Supper has 45 retail outlets strategically located in urbanized and semi urbanized around the companies metropolitan cities. Sorry, preview is currently unavailable. The lifestyle of people is changing rapidly. Over the years, the banking industry has reached magnificent customers and created millions of jobs. Due to Dialog the Sri Lankan mobile industry has achieved new heights and has come at par with the developed world. The global assets the banking industry is dealing with are trillion dollars. PESTLE Analysis of Banking Industry | Marketing Tutor., [online]. Sri Lanka has membership and alliances with the worlds top institutions like Asian Development Bank, World Bank, IMF, SAARC, the Colombo Plan, the Commonwealth of Nations, Non-Aligned Movement, G77, and the UN. Keells super high quality standards maintained with compliance to SLS and ISO 22000 and ISO 9001 will render it difficult to substitute hence the threat could be low. This agricultural and farming industries leading to backward integrations with grocery industry which has influence the above Mega Stores concept and consumer products FMCG, and convenience food and frozen confectioneries which have shown huge potential in becoming one of the lucrative industries encouraging large corporate players JKH investing in this area. This mindset of using less cash is helpful for the banking industry. SLS complaisance and ISO 22000 and ISO 9001 will increase sales in the new regions in the North and East. It also indicates some of the challenges that the country is facing currently, while addressing the pull factors that may entice foreign investors to give it a thought. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. Posted on . Known until 1972 as Ceylon, Sri Lanka is an island surrounded by the Indian Ocean.as a result of its location in the path of major sea routes, Sri Lanka is a strategic naval link between West Asia and South East Asia and was colonized by Portuguese, Dutch and English . According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. We're here to answer any questions you have about our services. It doesnt distinguish between local and foreign workers. With the identification of above criteria, company decided to enter for the modern trade industry of Sri Lanka with retail supermarket chain. JayKay Marketing Services (Pvt) Ltd. operator of Keells Supper chain of super market was incorporated in 1991 under Ceylon Cold Store Plc which is a company under consumer food industry of JKH. Make Pestel Analysis Diagram Now 1. The one of the main factors that would affect the consumer food and the grocery industry would be the Economic forces. Today, well discuss the pestle analysis of Sri Lanka. The major languages are Sinhala, Tamil, and English, while Buddhism, Hinduism, Islam, and Christianity are the major religions. The journey of KP began in 2001 as an independent . (www.news.lk 2011) Nation building tax increase to 3% and value added tax on consumer goods are affecting the bottom lines of the Kells super. Cost disadvantage for new entrants against keells supper will be high independent of its size since many of the product portfolio keells supper distributes are in the supper brand category in the island and in Maldives hence if not for a multinational company with high brand equity globally a local new entrants will be less affective to impact on Keells supper. Keells Supper should watch out for cheap imitations which would damage its brand image, and keells should always maintain the extra value buyers paying for. Together they have received prestigious awards such as prestigious industrial Excellence award Gold award for manufacturing large category. The headquarter of the company is in Vevey, Vaud, Switzerland. It was known as Ceylon until 1972. Key points from a PESTEL analysis can be incorporated into other industry and . According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. (Wheelen Hunger 2010). 5 GAP Analysis Tools to Help a Business Analyst in Strategic Management GAP analysis tools include SWOT and PEST analysis, the Fishbone diagram, McKinsey 7S, and the Nadler-Tushman Congruence Model. The supermarket industry in Sri Lanka is set out for an explosive growth in the recent years this is with the western lifestyle of modern Sri Lankans where convenience is a key benefit sought after. Rising fuel coat will increase production cost of Keells Supper and their supply chain. Should we compete head to head with our major competitors for the biggest but most sought-after share of market, or should we focus on niche in which we can satisfy a less sought-after but also profitable segment of market? So I did it on Sri Lanka. Pestle analysis of Sri Lanka. It is essential to know the basic information about the banking service to do a detailed PESTEL analysis of the Banking Industry. D. Chaired Professor of Management Science INSEAD (Singapore & Fontainebleau France) www . EGB the natural ginger beer, Cream soda, Orange crush, Orange barley, Lemonade, Necto, Soda, Apple soda, Dry Ginger, Ale Tonic, Caffeine based wild elephant (energy drink) and blue fountain bottled drink water under the name of Elephant house. A PESTLE analysis is a useful tool for understanding the 'big picture' of the environment in which an organisation is operating. The 2013 Import and Export Market for Tea in Sri Lanka By Professor Philip M. Parker Ph. Certainly, rapid human development is having its toll on the environment. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. 2. A subsidiary of JKH, KFP PLC started its operations in 1983 and is responsible for the development of processed meat industry of the country. The banks provide loans that the firms can use as capital or invest in the infrastructure. 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%). Shaw, A., 2022. In this guide to analysis of the PESTEL, we saw how easy, effective, and efficient it is to work on a PESTEL analysis once we use EdrawMax templates. Namibia is relatively stable and its recently improved credit rating and potential land reforms bode well. Pizza hut company analysis by api.3m.com . Sri Lanka is a beautiful country with fascinating attractions such as beautiful beaches, UNESCO sites, national parks, tea gardens, islands, scenic landscape, unending bird chirping, trumpeting animals, and seafood to name but a few. Customers are getting attracted to better interest rates and customer service. If we look at the drivers for the evolution of modern supply chains, or Modern Trade they have been persistent in increase demand for value added consumer products, convenience food, beverage, and frozen confectioneries. In the case of Unilever, these external factors vary significantly, considering the international scope of the business. Therefore, if the government creates favorable laws and conditions, that will be helpful for the banking business. Majority of the people live in rural areas and rely significantly on agriculture for their livelihood. PESTEL analysis of the Banking Industry discusses how the political, economic, social, technological, environmental, and legal factors contribute to the banking business. Sri Lanka Imports 65000 MT of diary commodities mainly FCMP and diary therefore seen and instrument to replace, and about 70% of the contribution to the livestock subsector comes from chicken, meat and eggs (MOLARCD 2010). The rate of financial literacy is going up. Academia.edu no longer supports Internet Explorer. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. Likewise, the literacy rate (over 92%) is very high as well. By 2020, the industry may see global sales nearing $30 trillion. Sri Lanka should accelerate its growth in the tech industry if the country wants to develop. However, they are tied to privacy and consumer laws, which prevent them from sharing any such personal data of the customers. How to Do a PESTEL Analysis in EdrawMax, 2,027,667 (commercial banking industry in the USA). The PESTEL/PESTLE Analysis model is a tool for managers to understand the influence of the external environment on businesses. In EdrawMaxs Pestle Analysis of the banking industry we will find out how political, social, economic, technological & legal factors affect the banking sector. the retail shops have faced major threat from the huge discount store like Big Bazar, D-Mart or Wall Mart. The geographic location of the island played a significant role in history from a strategic point of view. Both presidential and parliamentary elections are behind us ensuring greater political stability encouraging investments. Michael Porter proposes two generic competitive strategies for outperforming other corporations in a particular industry: lower cost and differentiation. Political forces Political uncertainty has been ruled out with both the Presidential and parliamentary elections coming to an end bringing stability to the economy polices and political instability prevailed. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! On the other hand new sources of fresh supply and live stocks to the supply chain of Keells Super. Political stability creates the perfect environment for the banking business expansion. Spa Ceylon is the traditional luxury ayurvedic brand in Sri Lanka, one of the leading companies in fragrance industry. A nation's political condition and governmental decisions have a massive impact on the banking industry. Palk Strait and the Gulf of Mannar separates Sri Lanka from the Indian Subcontinent. It Will Help u out in finding data and copying also;) . Multinational firms like Nestl have a greater risk of production bottlenecks because of governmental policies and changes. Keells supper is active in high information analyzing with constantly monitoring its key performance indicators, also its production line up consider optimization and cost reduction by increase productivity and minimizing waist reducing and adjusting and setting off the fixed cost as possible. However, the country has also developed very relations with regional countries likeChinaandPakistan. (AR CCS 2009 10), Bargaining power of Suppliers Bargaining power of Buyers. Strengths Companies quality policies GRI global reposting initiative will help improve capacity of the company and encourage investors. You can download the paper by clicking the button above. Technological forces. 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