Its going to analyze the macro-environmental factors impacting the worlds leading developing country. [ CITATION CSE18 \l 1033 ] 4. British colonists arrived and colonized the island from 1815-1948. Buddhism is the majority religion, and roundabout70.2%of the people believe in Buddhism. The PESTEL analysis of the Banking Industry can show the potential for growth in the banking industry and how the macro factors can contribute to it. Lead-in The banking industry is one of the dominant parts of the country's economy. A new location with a strategic importance for the company has been open with the north and east being liberated. PEST Analysis of Nestle: Conclusion Political factors: The company's ability to impact the government Since Nestl operates in more than 190 countries, any shift in regulatory environments can massively impact operations. However, the country has also developed very relations with regional countries likeChinaandPakistan. The headquarter of the company is in Vevey, Vaud, Switzerland. The supermarket chain use advance state of the art systems like Motorola MC3000 mobile computers for maintaining inventory with time saving and efficient stock reconciliation. Error: Something went wrong, try again in a few minutes. Nestle S.A. is a Swiss food & beverage multinational company. 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. To examine the external environment, the researchers employed the PEST analysis method which evaluates the political, economic, social and technological environment in which industry. 2023 Euromonitor is privately owned & trademarked. The current population of Sri Lanka is just over 21 million (Worldometer, 2021). 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. However, there are some social issues challenging Sri Lanka today. Life expectancy is very good as evidenced from the fact that it is 72 years for men, and 78 years for women (BBC, 2019). 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 extreme poverty level, environmental issues, and inflation are some of the main issues. It gives people the confidence to deposit their money or take loans from the bank. Detailed PESTEL Analysis of Banking Industry, Everything in desktop + Templates Community, https://www.notesmatic.com/banking-industry-pestel-analysis//, https://www.marketingtutor.net/pestle-analysis-of-banking-industry/, 4. 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. The banks should also concentrate on providing top-level customer service. Bar-coding, loyalty cards to retain customer loyalty. Weakness Customer perceived image of premium pricing, high quality requirements, complex vertical decision-making, high plant depreciation, maintenance cost, Limited supplier base, limited distribution in other parts of the country apart from western province, concentration on domestic market segment alone. Once satisfied with your PESTEL Analysis diagram, you can export it into multiple formats, including Microsoft, JPEG, PNG, Visio, HTML, and more. It also helps firms carry out their business by offering them loans. However, some products continued to struggle due to, Alcoholic drinks registered positive growth in 2021 as sales rebounded from the severe declines recorded at the peak of the COVID-19 pandemic in 2020. This report series allows you to understand the macro-economic environment as a basis for strategic planning. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.io. Posted on . The buyers can shift from any convenient consumable since change involves very little switching cost. The differentiation strategy must ensure that hire price charged on the buyer for its high quality is not too far above than the average premium price of the competition. However, Sri Lanka also faces some environment challenges e.g. 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. Mobile adoption is very strong, but innovation potential is lacking. The banks are willing to create a customer-friendly environment, and therefore, they target to offer service anywhere and anytime. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Sri Lanka has realized the significance of science and technology. After the pandemic, many businesses have encouraged their customers to do online transactions. 2.0 INDUSTRY ANALYSIS: PESTEL FRAMEWORK Premium World Trade Organization Free trade International trade. Dialog Telekom is one of the largest companies listed under the Colombo Stock Exchange. Likewise, the computer literacy rate needs improvement as it was only 27.5% in 2019 (Hewage and Munasinghe, 2019). For example, the US economy has laws like the Dodd-Frank act, Glass Steagall act, etcetera. 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. Retailer is the person who carries out the function of processing many small orders, rather than one big order like in wholesale, governments, and corporations. Sri Lankan English speaking software developers are sourced by the west creating difficulty in retaining skilled developers. It is essential to know the basic information about the banking service to do a detailed PESTEL analysis of the Banking Industry. The banking industry is one of the dominant parts of the country's economy. Certainly, rapid human development is having its toll on the environment. Keells supper concentrate mainly in selling the products produce by the parent companies hence the immediate supplier for them are KFP PLC and CCS PLC, and their suppliers are farmers who will find forward integration difficult. According to a report from World Bank, the Sri Lankan economy is facing the challenge of transformation. PESTLE Analysis of Pizza Hut in Sri Lanka - Academia Analysis . Companies of any type of industries are facing the uncertainties of the external environment. The economy should begin to recover from the effects, The briefing examines how education industry performs globally and in the largest countries in terms of education output. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. What are the country's risks and vulnerabilities? Technological factors affecting Sri Lanka. Both presidential and parliamentary elections are behind us ensuring greater political stability encouraging investments. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Technological factors impacting Sri Lanka, Environmental factors impacting Sri Lanka. (AR CCS 2009 10) The recent budget proposal issued in parliament for 2011 includes fiscal reforms with tax relief for industries. 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. Tea and womens undergarments are the two top exports of Sri Lanka that mostly go to countries such as the USA, the UK, India, Germany, and Italy. The second international airport also will be set up in the south Hambanthota district which would facilitate international trade. 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. All rights reserved LCHW. (JKH PLC N A). A nation's political condition and governmental decisions have a massive impact on the banking industry. Therefore, the number of banks is also increasing. Many banks have opted for paperless transactions to decrease the use of paper. The Keells Super is also equipped with the range of products from the convenient food to cold food, canned food, carbonated beverages, and cold confectionaries items, and is backed by the high level of aggressive advertising providing high level of product differentiation. This is possible since Keells Super sell FMCGs and competitors could substitute these products, however the competitor might have to out run the keells supper brand equity and the production capacities which renders benefits of economies of scale. Other minority religions are Hinduism (12.6%), Islam (9.7%), and Christianity (7.4%). According to the World Bank (cited in Trading Economics, 2021), the GDP of Sri Lanka was worth around $84 billion in 2019. Table of Contents Sri Lanka is a country located in the Indian Ocean rich of Eco resources, having fabulous places, jungles, mountains, views to view. Due to Dialog the Sri Lankan mobile industry has achieved new heights and has come at par with the developed world. PESTEL analysis of the Banking Industry gives an insight into its present condition and future potential to grow. According to an estimate, the annual nominal GDP of Sri Lanka in 2020 was81.120billion dollars, and its66thworlds highest. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Study for free with our range of university lectures! Pratap, A., 2022. Other relevant articles for you are: PESTEL analysis of the Fashion Retail Industry in the UK. The aim of this assignment is to discuss the external environmental analysis of Coca-Cola. Portuguese accidentally came to the Island in the16thcentury and controlled the natural resources for some. Marketing Tutor. Sri Lanka is a South Asian country that has a rich cultural heritage. The government and financial bodies under government supervision make laws to make the banking system less risky. Online banking is gaining popularity, making the banking system highly dependent on technology. 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. The capital requirement to put up state of the art retail shopping outlets will be relatively high the backward integration it has with its production and packaging line up makes it impossible for a new entrant to come up with equal capital investment. Thus, they conduct most of their transactions online. The hospitality industry needs to worry about . Groups diversified companies have offices spread around Sri Lanka as well as the Maldives, India, Mauritius, Singapore, UK, USA, and the UAE. Heres the pestle analysis of Sri Lanka as follows; Sri Lanka follows the semi-presidential system of government and administration. The banking sector needs an internet connection for their transactions. 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. Technological advances have helped the bank to provide customers with a safe-and-secured service. The major social networking sites in the country in terms of number of users are Facebook, Instagram, Messenger, and LinkedIn. This PEST country analysis report on Sri Lanka provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis. 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. In place of traditional banking, internet banking and mobile wallets are gaining high popularity. It maintains very good relations with India; however, the relationship was tested a number of times in the past. The report also provides data for, The commodities country overview provides comprehensive data on production, consumption and price trends in key commodities markets. These strategies are called generic because they can be pursued by any type or size of business firm, even by not for- profit organization. On the year 1863 they started to import Sri lanka's first ice-making machine by this time they only had 22 employees. CCS PLS is also the house for production of one of the countrys leading brand of ice cream under frozen confectioneries. This mindset of using less cash is helpful for the banking industry. 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. Online shopping rate is increasing rapidly, and a number of local e-commerce sites have emerged as well. . Sri Lanka has a rich and long history dating back to125,000years ago, but the country has a documented record of3000years. Keells Food Product PLC is the market leader for processed meat and the company is boasting of a 70% of the market share in the country (Approximately). 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. There are strict laws for banking dealing with local and international customers. It Will Help u out in finding data and copying also;) . Copyright 2017 2025. After technological advancement, the model of banking is changing. Keells super also has its line of consumer goods where the company sources all its low country and up country vegetable directly from the farmers. Follow this link to learn more about our cookie policy and how we use cookies. If this is your first time using the tool, you can register with your personal or professional email address. It is creating a perfectly competitive environment. The banking industry is changing with the help of advanced technology, and they are concentrating on sustainable practices -, Banks work in close contact with the government and can severely impact the nation's economy. By 2020, the industry may see global sales nearing $30 trillion. The Sri Lankan economy is going through a massive transition. It will open up the user-friendly canvas of EdrawMax that has several features that ease your efforts in making PESTEL analysis diagrams. The laws see that NPA does not have an enormous effect on the banking industry. Sociocultural forces that regulate the values, mores and customs of society. 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. Curious about how we partner with you to help you solve your complex modern-day business problem? Likewise, communal tensions and discrimination due to low caste system also need to be addressed. (KS 2010), (Figure 02) (JKH Sustainability Report 2009, 2010). In business strategy the process of scanning the environment of a business with three main types of logical environments which includes Natural environment, Social environment, and Task environment with Macro- forces, and Micro-forces, is required for strategy formulation. The Conventional Oil Market size was valued at USD 2687.32 Billion in 2022 and the total Conventional Oil revenue is expected to grow at a CAGR of 3.8% from 2023 to 2029, reaching nearly USD 3493.71 Billion. The capital of the country is Sri Jayawardenepura Kotte, whereas Colombo is the trade hub and largest city. In some countries, the government controls the banking sector to ensure a smooth monetary flow in the economy. Social issues challenging Sri Lanka as follows ; Sri Lanka has realized the significance of and. An example of a student written essay.Click here for sample essays written by professional. 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