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    I. Environmental Scanning 1. Pest: Political Factor

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    les
    This document discusses a PEST analysis of Procter & Gamble's business environment in the Philippines. It identifies several key political, economic, and technological factors. Politically, rising e-commerce support creates both threats and opportunities. Stable support for globalization and energy efficiency present opportunities. Economically, high growth in developing markets, improving incomes, and stability in developed markets all offer opportunities for growth. Technologically, digital transformation trends may disrupt traditional consumer goods sales but also enable new opportunities through e-commerce.

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    I. Environmental Scanning 1. Pest: Political Factor

    Uploaded by

    les
    31 views2 pages
    This document discusses a PEST analysis of Procter & Gamble's business environment in the Philippines. It identifies several key political, economic, and technological factors. Politically, rising e-commerce support creates both threats and opportunities. Stable support for globalization and energy efficiency present opportunities. Economically, high growth in developing markets, improving incomes, and stability in developed markets all offer opportunities for growth. Technologically, digital transformation trends may disrupt traditional consumer goods sales but also enable new opportunities through e-commerce.

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    strategis PEST

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    Pest

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    This document discusses a PEST analysis of Procter & Gamble's business environment in the Philippines. It identifies several key political, economic, and technological factors. Politically, rising e-commerce support creates both threats and opportunities. Stable support for globalization and energy efficiency present opportunities. Economically, high growth in developing markets, improving incomes, and stability in developed markets all offer opportunities for growth. Technologically, digital transformation trends may disrupt traditional consumer goods sales but also enable new opportunities through e-commerce.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    31 views2 pages

    I. Environmental Scanning 1. Pest: Political Factor

    Uploaded by

    les
    This document discusses a PEST analysis of Procter & Gamble's business environment in the Philippines. It identifies several key political, economic, and technological factors. Politically, rising e-commerce support creates both threats and opportunities. Stable support for globalization and energy efficiency present opportunities. Economically, high growth in developing markets, improving incomes, and stability in developed markets all offer opportunities for growth. Technologically, digital transformation trends may disrupt traditional consumer goods sales but also enable new opportunities through e-commerce.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    I.

    ENVIRONMENTAL SCANNING

    1. PEST

     Political factor:

    The political landscape impacts how Procter & Gamble implements strategies that
    satisfy policies and governmental requirements on business development in
    Philippines. This element of the PEST Analysis framework evaluates the influence of
    Philippine’s government and related organizations or institutions on the remote or
    macro-environment. Procter & Gamble must address the effects of the following
    political external factors on its consumer goods business performance:

    1. Rising governmental support for e-commerce in Philippines (threat & opportunity)


    2. Stable overall governmental support for globalization (opportunity)
    3. Governmental support for higher energy efficiency (opportunity)

    Rising governmental support for e-commerce is a threat against Procter & Gamble,
    increasing competitive rivalry in the consumer goods industry. However, this political
    external factor also creates opportunities for the company to generate more revenues
    through its online store, P&G Shop. On the other hand, stable overall governmental
    support for globalization is an opportunity for firms in Philippines to increase their
    penetration in various markets around the country. Also, stable “governmental support
    for higher energy efficiency”1 presents the opportunity to improve Procter & Gamble’s
    environmental footprint by accessing such support in the remote or macro-
    environment. For example, the company can benefit from government programs for
    cost-effective energy solutions for business.

     Economic factor:

    The Procter & Gamble Company’s performance in the consumer goods industry is
    directly based on the economies where the business operates. The effects of
    economic trends and issues on the remote or macro-environment are determined in
    this analysis framework. The following economic external factors are most notable in
    the case of Procter & Gamble:

    1
    (Murphey, M., & Gause, R. (1974). “UCF Research Guides. Industry Analysis. PESTLE Analysis”. Business
    Horizons, pp. 27-38)
    1. High growth rate of developing markets in Philippines (opportunity)
    2. Improving disposable income levels (opportunity)
    3. Economic stability of the majority of developed markets in Philippines (opportunity)

    “The opportunity linked to the high growth rate of developing markets supports
    Procter & Gamble’s potential growth”2. For example, increasing penetration into the
    country can drive the company’s overall local growth.  The company also has the
    opportunity to grow based on improving disposable income levels. This economic
    external factor corresponds to customers’ rising purchasing capacity for consumer
    goods in the country. Moreover, the stability of the majority of developed markets
    contributes to the considerable stability of P&G’s remote or macro-environment in
    Philippines.

    2
    (Panmore Institute (2017), “P&G PEST analysis and reccommendations”)

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