Pestel Philips Essay Example for Free

Pestel Philips Essay 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. ECOLOGICAL FACTOR: Many countries are now environment concerned and try to reduce pollution. Philips as a large manufacturer can face some problems because of that, even more as it is a lightening company. With the important development of the LED, Philips has a real challenge even if the LED market is not as profitable as the lamp market. LEGAL FACTOR Each country has its own legislation even countries which are parts of the same organization, for example, in Europe, there is the European legislation and the country’s legislation, so Philips needs to be aware of every aspects of this system and adapt quickly.