Question:
What is Pestle analysis? Describe some of the important points, which will concentrate towards the development process of proper managerial activities of the selected organization.
The present assignment will focus on some of the important points, which will concentrate towards the development process of proper managerial activities of the selected organization. Singtel is the chosen organization in the study. Singtel is one of the largest telecommunication markets in entire Singapore. The assignment will focus towards development process of a proper situation analysis tool, which includes PESTEL Analysis, as well as Porters 5 forces. There are certain organizational as well as managerial objectivities which majority of the companies depending upon the nature of the business tries to accomplish in the firm operations. All these marketing tools contribute a significant portion towards a development of a proper marketing plan.
The selected organization in the business operates its business in the telecommunication sector of the country. The telecom sector in Singapore falls under the notion of the oligopoly market structure where there are few numbers of sellers operating their business in the same industry and the most important point is the decision making the power of one firm affects the decision making the power of the other firm (Aaker, 2013). To evaluate all the business activity of the organization in a proper manner, the company needs to develop an appropriate market plan by assessing these entire marketing tools in a significant way.
PESTEL Analysis is one of the most crucial marketing tools, which are required by a different organization to scan the external environment (Baggini, 2012). There are six factors in this particular marketing tool, which have the distinct contribution in the overall plans and proceedings of the management. Pestel Analysis is a perfect situation analysis tool which management of different organization and policy makers applies towards organizing a proper business activity.
The first factor is the Political factor in this particular marketing tool. The political condition of Singapore is very much stable and it is an ideal place towards organizing a different business. It is a democratic country (Cateora, Gilly, & Graham, 2013). The government develops different regulations, which guides the organization in a variety of ways towards having arranged a proper business structure. Some of the key elements, which are identified in the political factor, include government policies based on various kinds’ industry policies, laws and legislation, tax policies, trade restrictions and application of the different kinds of traffics (Collins, 2012).
The second factor is the economic factor, which the organization needs to analyze to conclude a proper managerial procedure. Singapore is a corruption-free environment, which supports different kinds of business activities. Singapore falls among the most competitive countries in the world (Finch, 2012). The economic factor, which this particular organization is looking at, begins from wider economy, which includes economic growth as well as economic prospects, economic growth, interest rate changes as well as inflation and deflation rate.
The third factor is the social element of this particular marketing tool, which will allow the organization to identify all the social needs, which often looks at cultural aspects such as health consciousness, demographic factors, age distributions, and changes in the trends as well as buying patterns of the customers (Homann, Koslowski, & Lütge, 2007). The fast changing lifestyles of different people are focusing telecom companies on enlarging the complete services in the country.
The fourth factor is the technological factor, which mainly relates to various applications of modern inventions, which include the use of different Research and development, special incentives as well as technological changes (Hood, 2013). In current generations, the diverse use of the telecommunication sector has provided one of the significant breakthroughs in the lifestyle of the people.
The fifth factor includes the application of the environmental factor. The application of the environment factor needs to emphasize towards maintaining a pollution free business environment. The environmental analysis of any industry based on nature as well as an objective of the company needs to analyze environmental ethics and environmental working conditions.
The final factor is the right element of the country, which includes the notion of the following all the rules as well as regulations of the telecom authority of Singapore. The legal framework, which is developed by the governing sector of the telecommunication authority, is under the framework and the legislation of the Union government of Singapore. The telecom industry of Singapore maintains particular legal framework converging services like the internet, radio, voice mail, VOIP, E-commerce, and mobile communication (Institute of Leadership & Mana, 2012).
Porters 5 forces are an important marketing tool, which allows the different organization to scan a proper positioning mapping of the company in the marketplace. Five factors need to be analyzed in an appropriate manner to evaluate this particular marketing tool in the overall business operations (Kotler & Armstrong, 2012). The following part of the study will investigate the five factors in the porters five forces tool. Threats of substitution of products and services, threats of new entrants, bargaining power of suppliers, bargaining power of buyers, and rivalry power are the five top factors that are required by Single to develop a proper business plan and managerial procedures. The telecommunication sector is one of the fast growing industries in Singapore.
The first point, which needs to be analyzed, is the power of the buyer. Customers switching cost and buyers information are the two factors, which affects bargaining power of the buyers. Lower cost of switching, as well as low cost of new connection cost and mobile number portability, are the three factors, which are the significant point in the purchasing decisions of the buyers (Kurtz & Boone, 2012). On the other hand, users get sufficient information regarding the availability of other options. All these mentioned points indicate towards big customers’ power.
The second aspect, which is analyzed, is the power of suppliers. There is a price war happening between different mobile operators. On the other hand, the price is one of the most crucial factors towards developing proper managerial activities (Potter, 2012). The suppliers are chosen carefully in order to drag down the profitability of the organization in an efficient manner. Therefore, fewer providers in the telecommunication industry have less bargaining power in the entire telecommunication industry. The three factors, which affect supplier’s power, are mobile tower companies, SIM cards, and cell phone handsets.
The concept of threats of the substation is the third point in this particular analysis tool which includes buyer’s propensity to substitute, relative prices, and performance of substitution are the three key points to conclude the idea of replacements. The telecommunication sector in Singapore is one of the fastest growing industries in the country. The decision making a power of the buyers is diversified, as there is more than one firm in this particular industry doing the same business. If the customers are not satisfied with the service, which one company, this particular group, provides will quickly shift to the next best alternatives to satisfy the demands and wants. Internet users are increased day by day as compared with the GSM services. Voice quality is getting better with internet telephony, as compared with the general mobile network, the cost of VOIP is very much less (Pride, 2012). This is another significant factor, which concludes the concept of substitution in the present business situation.
The fourth point is the idea of Threats of Entry. However, in the oligopoly, market structures the entry as well as the exit is very much limited and it is not restricted. There are few numbers of firms, which operates its business in this particular marker structure. Capital requirements towards maintaining a proper operational business management of the telecom industry actively or passively is very much high. Access to fiber optics is another significant point which in the notion of the substation for the selected organization (Pride, Hughes, & Kapoor, 2012). Technological change, as well as technological advancement, is one of the crucial points that which substitutes access to an optical fiber network. There are some government and legal barriers in Singapore, which different kind’s operators including Singtel needs to follow towards developing a proper business structure.
Rivalry power is the final point that needs to be focused on this particular tool. The decision making the power of one firm is hugely affected by the decision making the power of the other firm. All the time the firms are in a price war to maintain a healthy and a proper customer base system.
The recommendation part of the assignment will focus towards concluding four major recommendations that will be helpful towards the development process of a proper marketing strategy (Thorson & Duffy, 2012). The following part of the job will focus on what are the different kinds of key strategies that the organization needs to develop in the overall managerial operations.
The decision-making activity is one of the most crucial parts in this particular market structure. As discussed at the beginning of the assignment, the telecommunication sector of Singapore falls under the notion of the oligopoly market structure. The concept of the oligopoly market structure maintains different features of the market. In this particular market structure, there are few sellers with a large number of buyers (Werhane, 2012). The most crucial point is to develop a proper decision making activity as the decision of one firm hugely affects the decision making of the other companies. To implement an appropriate decision making activities, the company needs to analyze as well as develop appropriate research works and process to conclude towards the best implementation of the decision making of the enterprise.
In any market structure if the purchasing decisions of the buyers are enhanced, then the organization need to focus towards developing proper pricing strategies. Pricing strategy is one of the most crucial parts of every business organization (Baggini, 2012). Singtel is one of the most common telecommunication industries, which operates its business both in the national as well as in the global boundary, which maintains a huge customer base. The development process of a proper pricing decision will enhance the business operation of the selected organization in a diversified manner.
To diversify the business processes, Singtel needs to develop an appropriate feedback system. There are certain positive applications towards the development of an appropriate feedback system, which will focus on a proper customer relationship management (Aaker, 2013). If the customers are satisfied and happy with the service, the company will get benefited in certain ways and it will generate automatically sales the overall profit as well as profit of the organization.
The final point of the study will focus towards the application of an appropriate technological progress. If the company develops and maintain an adequate technological advancement, the customers of the organization Singtel will be benefited in particular ways (Cateora, Gilly, & Graham, 2013). The company needs to develop different kinds of research and developing programmers, which will indicate about different kinds of positive impact towards the business proceeding of the organization.
Conclusion
The concluding part of the study will analyze all the relevant factors, which are required by the selected team to develop a proper business plan. Singtel is the organization, which operates its business in the telecommunication sector of Singapore. It is one of the largest telecom companies in the entire Singapore. The objective of the assignment is to focus on the key factors, which will guide the organization in a proper manner to develop active managerial plans and activities. Some of the necessary tools, which are highlighted in the study, are the application of the PESTEL Analysis as well as the application of the Porters 5 Forces.
Both of the tools, which are used by the management, are required to develop a proper situation analysis process. The concluding part of the study will conclude about four recommendations, which will guide the organization to identify what are the crucial factors that need to be analyzed towards developing a proper business plan. Singapore is an appropriate country to organize different kinds of business plans and operations. With the help of this particular program of activities, the organization will be benefited in certain ways.
Reference List
Aaker, D. (2013). Marketing research. Hoboken, NJ: John Wiley & Sons.
Baggini, J. (2012). Ethics. London: Quercus.
Cateora, P., Gilly, M., & Graham, J. (2013). International marketing. New York: McGraw-Hill Irwin.
Collins, D. (2012). Business ethics. Hoboken, N.J.: John Wiley & Sons.
Finch, J. (2012). Marketing Principles Essentials. Newburyport: Research & Education Association.
Homann, K., Koslowski, P., & Lütge, C. (2007). Globalisation and business ethics. Aldershot, England: Ashgate.
Hood, D. (2013). The marketing manifesto. London: Kogan Page.
Institute of Leadership & Mana, I. (2012). Marketing for Managers Super Series. Hoboken: Taylor & Francis.
Kotler, P. & Armstrong, G. (2012). Principles of marketing. Boston: Pearson Prentice Hall.
Kurtz, D. & Boone, L. (2012). Principles of contemporary marketing. Australia: Southwestern Cengage Learning.
Potter, N. (2012). The library marketing toolkit. London: Facet Publishing.
Pride, W. (2012). Marketing principles. South Melbourne, Vic.: Cengage Learning.
Pride, W., Hughes, R., & Kapoor, J. (2012). Business. Mason, OH: South-Western Cengage Learning.
Thorson, E. & Duffy, M. (2012). Advertising age. Mason, OH: South-Western Cengage Learning.
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