Vithitis in the beverages industry, as an alternative to sugary drinks but competesin the same market within the health beverages niche. In this assignment I will apply PESTLE andPorter’s five forces to Vithit as well as the beverages industry. I will also analyse Vithit’s strategy forinternationalisation by looking at Greiner’s model of how organisations growand evolve and Mintzberg’s five natural configurations. PESTLEstands for political, economic, social, technological, environmental and legal. Political is concerning the opportunitiesand threats placed on a business by political institutions such as thegovernment. The main influences aregovernment policies, trading policies, grants, lobbying, interest groups,political trends, taxes and bureaucracy. Economic is regarding economic policies andeconomic structures.
The main influencesare the local economy, taxation, inflation, interest rates, economic trends,industry growth, international trade and exchange rates. Social refers to the cultural aspects oflife, beliefs and trends that will affect a products sales and popularity. The main influences are, demographics, media,brand, lifestyle trends, consumer attitudes and opinions, ethics andadvertising.
Technological is concerningthe technological aspects of business, the barriers and incentives. The main influences are new technologies,legislation, research and innovations, ICT and competitor technology advances. Environmental is relating to theopportunities and threats the environment has on the business. The main factors are environmentalregulations, reducing carbon footprint and impact of weather. Legal relates to the laws, regulations andlegislation that affect the running of Vithit. The main factors are Irish legislation, international legislation,consumer protection, health and safety regulations, competitive regulations andindustry-specific regulations (processpolicy.
com, 2018). PESTEL is a way to analyse the strategicplanning of a business. It looks at theexternal influences on a business, so they can plan accordingly and besuccessful in the long run. It helps thebusiness with their strategic planning, marketing planning, organizationalchange, research and product development. Porter’sfive forces framework consists of the main elements of competition, thebargaining power of suppliers, threat of substitutes, bargaining power ofbuyers, threat of new entrants and competitive rivalry. The goal of the corporate strategist is tofind a position in the industry to best defend the company and to takeadvantage of these forces. The impact ofeach of the forces vary depending on the industry but their collective strengthdetermines the overall profit potential (Porter, 1979). They highlight the strengths and weaknessesof the business and show which areas need to be adjusted for maximumresults.
The weaker the forces thegreater the opportunities for higher performance.