The governments in the last many years took a number of initiatives to digitalise different sectors of the economy. You can start customizing the PESTEL analysis diagram as per your requirements. British colonists arrived and colonized the island from 1815-1948. It is essential to know the basic information about the banking service to do a detailed PESTEL analysis of the Banking Industry. It is officially known as the Democratic Socialist Republic of Sri Lanka. The Democratic Socialist Republic of Sri Lanka or Ceylon is a South Asian island country. Currently, the economy worldwide is in a great spot for retail industries to expand. Multinational firms like Nestl have a greater risk of production bottlenecks because of governmental policies and changes. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. If not buyers will not see the extra quality as worth the extra cost. A rising economy is favorable to the banking business, and at the same time, the banking business can help regulate the monetary circulation and keep the economy stable. Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable). Do you have a 2:1 degree or higher? Academia.edu no longer supports Internet Explorer. This mindset of using less cash is helpful for the banking industry. Opportunity Looking at economic value indicator for the 2009-10 though retailer has not performed to the expectation the modern supply chain and consumer food industry together have archived their expectations compare to last year. civil wars, political power struggle, and suppressing dissent and activism in the past. (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). Small organizations use payment methods like credits and debits, which is helpful for the banking industry. Convenient food industry in Sri Lanka are highly saturated specially the processed meat industry, Carbonated beverage, and cold confectionaries except for the recently librated areas in the north and east. Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. Our consulting team answers your commercial questions with data and insights generated by our research experts, industry knowledge and 1,200 on-the-ground analysts in 100 developed, emerging and frontier markets. The PESTEL analysis of the Banking Industry can also hint at the potential for growth that the industry has soon while these factors impact it directly or indirectly. The banking industry is focusing on mobile banking and mobile wallets, which has decreased the rate of people using traditional transaction methods. The hospitality industry needs to worry about . The use of solar ATMs with rechargeable lithium-polymer batteries is increasing rapidly. For e.g. Millennials and students prefer to carry their debit and credit cards. A PESTLE analysislooks at the macro trends in the surrounding environmentof a certain business or organization. New budget proposal indicates tax relief for year at hand. (Wheelen Hunger 2010). The government regularly organizes elections among a limited number of political parties, and the majority vote holding party comes to dominance. 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. Encourage the management of the company to source where possible for open source software as to counter the affect of the increasing cost of licensed software. A PESTLE analysis is a useful tool for understanding the 'big picture' of the environment in which an organisation is operating. Public deposits their money in the bank to save or invest for the future. Once satisfied with your PESTEL Analysis diagram, you can export it into multiple formats, including Microsoft, JPEG, PNG, Visio, HTML, and more. Its going to analyze the macro-environmental factors impacting the worlds leading developing country. They have installed ATMs and opted for mobile banking services so that the customers do not have to arrive at the branch for small transactions. - ppt download Free photo gallery. 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. . Dedicated to your worth and value as a human being! Read More Swot Analysis Of Wimpy 1862 Words | 8 Pages However recent indicators show a sharp decline in consumer spending power due to constant inflations prevailing company will have to watch out for these. This report will evaluate the marketing strategies that have used and how the Spa Ceylon has achieved their target. The major social networking sites in the country in terms of number of users are Facebook, Instagram, Messenger, and LinkedIn. Curious about how we partner with you to help you solve your complex modern-day business problem? Over the years, the banking industry has reached magnificent customers and created millions of jobs. 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 The Commodities in Sri Lanka report includes: Analysis of the country's political and macroeconomic stability Porter stated that five forces are deciding an industry either beneficial at future or it will become a case study and commerce practice (Porter, M.E., 2008). The financial organizations set repo and reverse repo rates to keep the money flow steady. Access and download reports and data purchased through Euromonitor.com. Porter's five forces factors are consists of competitive rivalry, the threat . The National Minimum Wage Act, No. These memberships attest to its importance in the regional socio-political affairs and beyond. Sri Lanka should accelerate its growth in the tech industry if the country wants to develop. Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. According to an estimate, the computer literacy of Sri Lanka is roundabout30.1%, and its very low. In the case of Unilever, these external factors vary significantly, considering the international scope of the business. This tool is very useful which help in overall growth and development of organization after learning from the past mistake and working for future. (AR CCS 2009 10) The recent budget proposal issued in parliament for 2011 includes fiscal reforms with tax relief for industries. (JKH PLC N A). It is a subsidiary of the Axiata Group Berhad. However diversity of rivals of keells supper is high as all of them are competing in the same market and each one is trying to increase its market share hence the effect of rivalry among existing firms are moderate. Sri Lanka is an agriculture base country primarily it has 2 million hectares or 30% agricultural land, and almost 75% of the agricultural land is under small holdings and the balance is under estates. Switching cost of the products available in keells supper may be considered as easy for they are consumable and convenient food items, but brand equity of keells super may challenge this position. If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Sri Lanka has made some good progress in science and technology over the years. PESTEL Analysis diagram requires you to add Political, Economic, Sociological, Technological, Legal, and Environmental content so that the reader will understand what influences an organization. The increase in Nation building tax and impose of a high percentage of value added tax will increase unit cost of convenient foods. 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, Volume sales of cigarettes increased in 2021 after two years of strong declines due to tax increases and the COVID-19 pandemic. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Looking further into the analysis proves that this competitive strategy could be best approach to retain competiveness of other forces, since keels super can and has build unique brands which have high brand loyalty giving them big margins on brand equity. The geographic location of the island played a significant role in history from a strategic point of view. He is a lecturer in Management and Marketing. The public authority is a combination of the parliamentary and official framework. Through the PESTEL analysis, several key drivers of change that influence the IT industry in Sri Lanka can be derived. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. Certainly, rapid human development is having its toll on the environment. PESTLE Analysis of Pizza Hut in Sri Lanka - Academia Analysis . PESTLE Legal: - current home market legislation, future legislation - European/international legislation - regulatory bodies and processes - environmental regulations, employment law, consumer protection - industry-specific . It was known as Ceylon until 1972. Approximately21,803,000people are populating the Island, and its the worlds58thmost populous country. Groups diversified companies have offices spread around Sri Lanka as well as the Maldives, India, Mauritius, Singapore, UK, USA, and the UAE. The telecom company operates 2G, 3G and 3.5G mobile services, supporting the current trends in . Beverage the next specialty in JKH food production is operated and headed by Ceylon Cold Store Plc. 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). Specifically a PESTLE analysis is a useful tool for understanding risks associated with market (the need for a product or service) growth or decline, and as such the position, potential and direction for an individual business or organisation. This detailed PESTEL analysis of Sri Lanka aims to explore some of the powerful macro factors that impact on Sri Lanka today and may continue doing so in the future. Access to distribution channels could be considered low as the keells supper has on 46 super markets compared to its competitor Cargills. PESTLE Analysis Political Factors In Sri Lanka it is a socialist republic state. And in terms of volumes purchase by the super market they are large hence Keells supper and KFP PLC and CCS PLC has the ability to bargain as a buyer with their supplier this will indicate that amazingly for keells supper product line up supplier bargaining power is relatively high since it affect the bottom lines of their integrated producer. The one of the main factors that would affect the consumer food and the grocery industry would be the Economic forces. 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. Surely, it needs to work on political stability, and reforms. The customers take loans for further investment or education. Environmental factors affecting Sri Lanka. Pratap, A., 2022., [online]. It also helps firms carry out their business by offering them loans. PESTEL analysis of the Banking Industry discusses how the political, economic, social, technological, environmental, and legal factors contribute to the banking business. However, Sri Lanka also faces some environment challenges e.g. The country's economy is a decisive factor leading to the growth of this banking industry. Posted on . The External Environmental Variables that affects the Industry. Different countries have different laws, but they can affect the banking industry -, If you are using the offline version of EdrawMax, open the tool in your system. *You can also browse our support articles here >. Is mankinds social system that includes general forces that do not directly touch on the short-run activities of the organization that can, and often do, influence its long-run decisions. Study. Competition from other business From changing the background to adding content, you can customize the diagram in any way you desire. otesmatic. Profit share schemes for collective bargaining with non executive staff for high performers, Ability to introduce sub-brands, Ability to tie up with multinationals. Michael Porter proposes two generic competitive strategies for outperforming other corporations in a particular industry: lower cost and differentiation. Should we compete on the basis of lower cost (and thus price), or should we differentiate our products or services on some basis other than cost, such as quality or service? The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. Pizza Hut Marketing PLan - BSB 126 MARKETING PLAN NAME: Matthew Fagg STUDENT NUMBER: N9447334 TOTAL - Studocu . They need to have a fast internet speed to offer a seamless service to the customers. When the organizations figure and execute the techniques, the political field has an immense effect on organizations' guidelines and buyers and different organizations' spending force. And also others medium scale competitors like Laughs and Arpico who are rapidly adding capacity and expanding number of competitors for this industry could be high. Rivalry among existing firms for keells super could be considered high especially with its number one competitor Cargills Food City who has outnumbered keells super with it island wide distribution network 200 supermarkets. Assignment on analysis of business environment. . According to a report by Condliffe, the usage of Facebook is mostly negative in the country and its to separate people and spread false information. It examines the political, economic, social, technological, legal, and environmental elements of the operating marketthat may have either positive or negative effects on your company or organization. Admissions Open. Likewise, it needs to work more on ensuring communal harmony and upholding human rights of journalists, minorities, and others (Amnesty International, 2021). If you need assistance with writing your essay, our professional essay writing service is here to help! Other than that, some financial bodies take care of the money flow and risk associated with the banking system. Enter the email address you signed up with and we'll email you a reset link. (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. This detailed PESTEL analysis of Sri Lanka aims to explore some of the powerful macro factors that impact on Sri Lanka today and may continue doing so in the future. For example, the US economy has laws like the Dodd-Frank act, Glass Steagall act, etcetera. By 2020, the industry may see global sales nearing $30 trillion. The buyers can shift from any convenient consumable since change involves very little switching cost. The banks should also concentrate on providing top-level customer service. The banking industry is classified into various divisions and sectors, including investment banking, retail, co-operative banking, and rural banking; all come under the umbrella term 'banking industry.' However, Condliffe (2019) reports that social media particularly Facebook, have been used to spread false information to bring about social disturbance and disharmony in the country. The major languages are Sinhala, Tamil, and English, while Buddhism, Hinduism, Islam, and Christianity are the major religions. However, Indian and Sri Lankan cultures are almost the same. A new location with a strategic importance for the company has been open with the north and east being liberated. SLS complaisance and ISO 22000 and ISO 9001 will increase sales in the new regions in the North and East. Writing. Inflation and interest rates have shown a constant decline in the past year showing and opportunity for equity borrowing. They are also taking part in environment-friendly projects and keeping their locality clean. The chi-square test was used to analyze the data. The country is drawing a lot of foreign investments every year. As Government regulations play a significant role in the banking industry, the government must create a competitive environment. This would enable them to be on control of substitutes challenging its position, and increasing brand loyalty among customers who will not be price sensitive, giving keells super the ability cover supplier cost increase on increased margins. Threats the global catastrophe affecting the north eastern coast of Japan and the political unrest effecting the Middle Eastern countries will affect the global economy at large. Legal environment is the last issue to discuss in the PESTEL analysis of Sri Lanka. But it needs a lot of investment and tech acceleration. 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. National Productivity Merit award. We're here to answer any questions you have about our services. It's one of the few industries who managed to scrape through. Air Potato Vine Poisonous To Dogs . The Total Pestle Analysis of Sri Lanka. Therefore, several laws govern the operations of the banks. If this is your first time using the tool, you can register with your personal or professional email address. Or learn more about our privacy policy and how we use and store your data. Government has clearly identified the importance of the IT sector and supports the growth of this sector by giving focus to IT education and improving the IT infrastructure in the country. Case Description of The Sri Lankan Health Crisis and the Middleman Case Study In 2015, many people in southwest Sri Lanka were experiencing severe health problems as a result of poor water sanitation, decaying pumps and pipes, and the resultant unsanitary water. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. Instead of keeping money at home, many people are choosing banking services to save it. 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. Sri Lanka has conflicted relations withIndiain the past, but both countries have managed to resolve their conflict amicably. Enterprise resource planning (SAP) Customer relationship management (CRM) SMS alerts for key performance indicators (KPI)s all with ambitious effort to be the premium supermarket in the grocery or Mega Stores industry. It could be observed that there had been times in the process meat and dairy products industry the local supplies have not been adequate and the companies had to import the material to supply the current demand and high cost was absorbed by the company. Exit barriers are not high in the grocery industry as any retailer could easily sell of its business to another operator. It maintains very good relations with India; however, the relationship was tested a number of times in the past. Keells super online shopping portal and intranets, will increase sales and create awareness and product differentiation a. Motorola MC 3000 real- time inventory systems, Enterprise resource planning (SAP) Customer relationship management systems (CRM), Unique retail outfit, strategic location, Parent company backing, Well trained staff skill, corporate culture, Brand equity, Credit worthiness, and lending worthiness, Distribution channels. Estimate, the relationship was tested a number of political parties, and English, while Buddhism,,. Trends in the tech industry if the country 's economy is a combination the... Michael porter proposes two generic competitive strategies for outperforming other corporations in a particular industry: lower and... 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The government regularly organizes elections among a limited number of political parties, and a of! Production is operated and headed by Ceylon Cold Store Plc banking system essay our... Largest city of production bottlenecks because of governmental policies and changes helps firms carry out their business by offering loans. That have used and pestle analysis for supermarket industry in sri lanka the Spa Ceylon has achieved their target the Economic forces or education analysis...