Presented to:- Dr.

Bharathi karanth
Faculty
PIM
Presented by:-Trivikram Nayak
2nd MBA
PIM
Huawei PESTEL Analysis
Political
One of the main characteristics of the Chinese political
environment, which constitutes of Huawei's largest
market, is that the ruling party exerts a lot of influence on
the country's economic environment (Piotroski, Wong &
Zhang, 2015). Therefore, any occurrence that influences
the Chinese politics has a heavy impact on Huawei's
profitability. For example, Piotroski, Wong & Zhang (2015)
suggest that during political promotions and National
Congress meetings, the stock prices of most Chinese firms
fall. Globally, the organisation's profitability is subject to
the political climate in the respective countries. In the case
of instability in its global markets, the largest being
Europe, Huawei is unable to make sales (Ba, Zehou &
Qing, 2016). On the other hand, according to Ba, Zehou &
Qing (2016), international and local politics may affect
Huawei operations positively. For example, the Chinese
government strongly supports the telecommunications
sector by ensuring sufficient training of engineering
students, which increases the competitiveness of the
domestic labour force and this makes domestic labour
force highly competitive. Secondly, the Chinese
government provides loans and incentives to promote
local manufacturers (Xuesong, 2016), which gives these
local companies an edge over their foreign counterparts.
Economic
Internationally, Huawei relies majorly on European
markets and is, therefore, greatly affected when there is an
economic downturn in Europe (Lopez & Zhang, 2017).
When there is an economic downturn, consumers prefer
to purchase necessities only. Additionally, Huawei's
competitors, for instance, Apple have vast resource
reservoirs while Huawei is struggling to increase its capital
(Cao, 2017). Furthermore, value added tax in the
telecommunications sector increases the operating cost,
which diminishes their profitability margins (Lu, 2016).
Nevertheless, the Chinese domestic economy is growing
fast, which increases disposable income, and, therefore,
demand for luxury products such as high-quality mobile
phones (Arora, 2015). Given Huawei's current placing as a
premium phone manufacturer, the organisation can tap
into the growing Chinese middle-class local market that is
increasingly concerned with quality.

Socio-Cultural
Lu (2016) asserts that China markets are growing daily
since the country is densely populated with around 1.3
billion people. High population provides a wide market for
Huawei products. Besides, a large population creates a
steep demand for products since the number of buyers
keeps increasing. Currently, smart phones are trending,
whereby their market penetration has grown
tremendously (Lopez, 2017). This changing trend ensures
that unlike in the recent past, where mobile devices were
a preserve of the elite class, everyone can own a
smartphone. This trend is expected to continue, which
ensures sustainability for Huawei, which has invested
heavily in smartphones manufacturing.

Technological
The modernisation rate in China is currently high, and
almost everyone is going digital (Lu, 2016). People want to
be connected to the internet, and this leads to better sales.
Furthermore, the Chinese Government wants to ensure
that there are innovations especially in ICT (Information
and Communication Technology), by providing high-
quality education and training programs (Lopez & Zhang,
2017). Innovative minds will ensure quality products are
manufactured. Quality goods that are competent enough
can fight stiff competition in the market by international
brands such as Samsung or Lenovo.

Environmental
Arora (2015) notes that The Green pipe of Huawei has
environmental policies that must be adhered to by
company in conserving the environment. Wastes from the
company are reused to cut on possible wastages and to
maximise available materials. Huawei wants to be the
leading distributor of green energy products. Additionally,
Huawei is trying to come up with effective ways to
minimise the emission of carbon substances (Lopez, 2017).
Legal
According to Arora (2015), Huawei must abide by legal
laws such as patent acts, tax rates, labour laws and
environmental laws. Huawei deals with many employees
in various countries, and it should comply with the wages
and labour laws for all its jurisdictions of operation.
Abiding by the rules will ensure positive business
performance as the company will have an easy time with
the Government. Violating the rules of strict countries
could lead to business closure, expensive fines or
sanctions.

Zomato PESTEL Analysis

Political
Any business firm wishing to enter the overseas market is
highly prone to political risks. The political decisions made
by a host country are likely to affect the organisational
productivity and profitability. Extreme political actions
can very detrimental. The digital India campaign that was
recently launched by the country's Prime Minister
Narendra Modi is more likely to allow the company to get
more internet penetration in India and everyone can easily
access from every corner of the market. Zomato can
exploit this opportunity to cover many restaurants of cities
using the Digital India Campaign. The Indian government
puts more focus on ease of doing business in the country
because it encourages foreign direct investment
(Deshpande, 2016). In this regard, Zomato can be a
beneficiary with such kinds of investment. The
government puts emphasis on skill development among
the youths who will eventually help many people with
skills and knowledge. Zomato requires skilled people to
enable it to penetrate and establish itself in the market. In
this case, Zomato can hire skilled people from the Pradhan
Mantri Kaushal Vikas Yojana program that develops skills
of the youths.

Economic
Between the periods of 2011 and 2014, Zomato achieved an
overwhelming growth by 1399%. This comes as a result of
its tremendous achievements in 22 countries, thus,
contributing effectively to economies of the countries.
Besides, there is a potential rise in service prices after the
country announced a service tax from 12.36% to 14%
(Deshpande, 2016). This move is likely to affect the
economic well-being of Zomato. Furthermore, the
company is initiating cashless transaction aimed at
creating jobs in different countries. As it stands, the
company has 2319 employees, and it has somehow
managed to solve the unemployment problems in the
country .Lastly, the company attracts several investments
as well as funding from the government and foreign
investment, all of which are good for the country's
economy.

Socio-Cultural
In the last six years, Zomato has turned out to be the
country's favourite online restaurant discovery tool.
However, it has influenced the manner in which
individuals select their preferred restaurants. The
changing lifestyle patterns and income levels of the Indian
working population, and this is advantageous to Zomato.
This is because; many young people and new age working
couples like eat out, with this category attracting about
30% in 2012 (Deshpande, 2016). For this reason, user
engagement in its website is therefore critical for customer
participation. Finally, customer service Zomato has been
amazing and going by the friendly replies from the
customers, the company has managed to maintain
customer loyalty (Chakraborty, 2016). As a dimension of
social engagement with people, Zomato stays ahead over
its competitors.

Technological
Zomato has enjoyed a greater advantage by using
technology in designing a beautiful user interface that
makes it easier for the users to browse (Wikiwealth, 2017).
One advantage that Zomato continues to enjoy out of this
kind of technological innovation is that the service is much
faster despite the fact that the high resolution is needed
for the menus. In essence, the technology encourages
online services. For example, incorporating what the
restaurant into mobile app helps the customers to select
the restaurant on the go. According to Deshpande (2016),
the restaurant information is customised in a manner that
the customer to obtain the information he or she needs
without necessarily making a hassle. Technology also
makes the company have a good business model that
keeps the customers' information. The only thing a
customer is required to do is to log and use the service.
This move exposes the company to a competitive
environment with the likes Google. However, since the
product is purely made to for Indian restaurants, it cannot
serve the demands of the global market. Therefore,
Zomato has used technology effectively to achieve
competitive advantage .

Environmental
Achieving business sustainability is dependent on how the
company addresses the ecological requirements
(Deshpande, 2016). Being a service company, there are no
significant environmental impacts from Zomato
Company.

Legal
The company is required by the Indian law to comply with
all regulations that control technology firms in the
country. This ensures that it is used effectively without
being subjected to abuse.

Etihad PESTEL Analysis

Political
Etihad is an international airline located in Abu Dhabi,
operating international routes only, hence the airline is
mostly exposed to international political developments.
The Trump administration's ban to restrict travel for the
citizens of six Muslim countries associated with an
increased threat of terror attacks is a political decision that
may limit airlines' growth located in the affected region
(Kamel and El-Din, 2017). Reportedly, due to the sudden
drop in load factors on Gulf airlines' flights to the US,
airlines decided to reduce the frequency of US flights and
to discontinue certain routes (Bhaskara, 2017). US and
European airlines continue their strong lobbying activities
to restrict middle eastern airlines' access to their markets
(Zhang, 2016).

Economic
International airlines are exposed to changes in the
performance of the global economy, so any development
in the macro environment changes the demand for air
travel (IATA, 2017). Since the 2007/08 financial crisis, the
global economy has recovered and was able to exhibit a
continuous moderate growth (with positive repercussions
for the airline industry), however, the unpredictability of
emerging markets' performance (such as Asia and Africa)
poses an economic risks for Gulf airlines' earnings
(Walker, 2017). The drop in the price of crude oil, on one
hand, helped many airlines to reduce their operational
expenses, yet on the other, for Gulf airlines, this also meant
that the demand for premium travel to oil rich regions
declined (Reuters, 2016).

Socio-Cultural
In addition to the economic recovery after the 2007/08
financial crisis, the growth of the middle class (and the
rapid rate of population growth) in emerging regions of
the world has also contributed to the positive change in
the demand for air travel (Forbes, 2016). As more people
are able to afford to travel in emerging regions (such as
Africa and Asia) airlines are able to grow by focusing on
these lucrative markets. Another social development
worth considering is Generation Y travellers, carrying a
high potential for airlines as past generations' (e.g. baby
boomers) inclination to travel is expected to decrease in
the future (Machado, 2014). Generation Y customers place
a strong importance on travelling so while generation Y
customers are not yet the largest market for airlines,
developing such services and business processes that are
closely meeting this segment's needs is going to be a
critical success factor for international airlines (Bulldog
Reporter, 2013).

Technological
The airline industry has witnessed rapid technological
changes pertaining to the methods employed to reach out
to their target audience and to discover business patterns
to optimise service development and delivery (Accenture,
2017). As more customers are using online platforms to
manage their bookings and to engage with (airline)
brands, industry players have no alternative to embracing
digital technology in order to follow changing customer
expectations (e.g. mobile applications, customised
services, flexibility… etc.) (Accenture, 2017). Regarding
aircraft technology, for the foreseeable future, jet engine
technology is not expected to witness substantial changes,
although fuel efficiency improvements remain the top
priority for manufacturers and airlines as well (Martin,
2016).

Environmental
The airline industry's carbon footprint has been gradually
growing due to the increased demand for air travel (Vidal,
2016). Manufacturers are investing a significant amount of
resources into R&D programmes to develop alternatives to
fossil fuel engines; NASA (2017) claims that the use of
biofuel could reduce the airline industry's pollution by 50
to 70 percent in the near future, as the technology
matures. Changes in the global climate could bring about
unique challenges for airline operations (such as
inclement weather) (Wichter, 2017).

Legal
The Trump's administration decision to mitigate the
escalating terror threat has brought about significant legal
challenges for middle eastern airlines (Peters, 2017). The
travel ban on certain Muslim countries' citizens is a legal
act that reduced middle eastern airlines' access to US
markets (Peters, 2017). Whether or not further actions will
be pursued to covertly limit middle eastern airlines access
to US and/or EU markets is uncertain. As an ongoing
process, European and American airlines have been
tirelessly lobbying their governments to reduce the
reportedly state-subsidised middle eastern airlines access
to their markets, so far with limited success (Ostrower,
2017).

H&M PESTEL Analysis

Political
As a global brand operating a number of stores across the
globe, the monitoring of political risk is increasingly
important for H&M. The organisation has franchised
outlets in a number of markets and countries that are
increasingly politically unstable, including Turkey, Egypt
and Lebanon, and state that they monitor any changes
closely and have contingency plans in place to deal with
any political instability as advantageously as feasible for
both the stakeholders of the company and the company
itself (H&M, 2017c).
Due to regulatory reasons, H&M has to collaborate with
franchising partners to operate their brands in United
Arab Emirates, Kuwait, Qatar, Saudi Arabia, Egypt, Oman,
Bahrain, Lebanon, Israel, Morocco, Indonesia, Jordan and
Thailand, despite franchising not being a part of the firm's
general expansion strategy (H&M, 2017b).
Economic
Despite the negative effects that Brexit has brought for
currencies across, Europe, H&M report that its June 2017
sales rose by 7 per cent on a local currency basis in
comparison to June 2016, and grew 10% when converted
into Swedish currency, the Krona (Botter, 2017).

Socio-Cultural
In the present day, increasing levels of transparency are
demanded off businesses, as consumers want to
investigate where they are giving their money to. H&M are
increasingly adhering to this demand, with the brand
announcing in June 2017 that they will begin to release
quarterly updates, and also publishing its CSR reports
online (Botter, 2017).
With consumers being increasingly influenced by media
and celebrities to adopt a luxurious and materialistic
lifestyle, current trends indicate that consumers would
prefer to spend more for designer fashion goods (Amatulli
et al., 2016). H&M announced its latest designer creation
with Erdem to be released in 2017, which allows the brand
to meet this trend (Gowans-Eglinton, 2017).

Technological
H&M continue to develop their app for mobile devices,
recently unveiling the use of the H&M club function,
which allows consumers to collect reward points from
their online and instore purchases using the app on their
mobile device (H&M, 2017a).
The third-party logistics provider utilised by H&M in the
UK, Hermes, has a strong reputation for technological
advancement, and has an extensive network of supply
chain technology to track all logistics operations, aiding
the service provided by the firm (H&M, 2017a).

Environmental
- H&M aim to be 100 per cent circular and renewable by
2030, meaning that all products will be generated from old
products of the firm, and that only recycled and durable
materials will be used for products (Pergrankvist, 2017).

Legal
- In the past two years, H&M has been involved in a
number of legal disputes regarding infringement by the
clothing retailer. Perhaps the most prominent occurred in
2015, when the retail giant lost a patent dispute worth
multi-millions of pounds against a UK manufacture for
infringing a coveted technology in Bras (Solicitors Journal,
2015). While H&M have the funds to cover such a legal
dispute, the firm now operate a stringent risk management
system to avoid such a dispute arising again, given that it
is damaging to firm reputation (H&M, 2017).

.
Boeing PESTEL Analysis

Political
There are policies and regulatory decisions made by the
governments that can have major impacts on the demand
of their civil transport aircraft.
The US. Government and the Federal Aviation
Administration (FAA) are very influential as Boeing is one
of the largest air transport companies that they are highly
focusing on. Also the US and European governments’
regulations could be the main driving force for the
purchase of new aircrafts and engines in the future.
The deregulation of the European airlines, which were
initiated in the early 1990’s hold the promise regarding
their expanded market prospects for a smaller regional
jets.
Trade in a larger commercial jetliners have been virtually
tariff-free since 1979 under the General Agreement on
Tariffs and Trade (GATT)
There is a high level of political intervention, as a result
has a major impact on the sales of the aircraft. Therefore,
this will have an effect on the buyer’s decision. For
example, China, the largest market for Boeing has gained
political leverage in the US.
Due to the US and the European transatlantic agreement
provided a major concession to both US and EU airlines.
This agreement came to effect in March 2008, which
covers 27 EU member states and US. This allows many
airlines to have direct flights from many new airports. This
agreement therefore generates more passengers, which
leads to greater sales for Boeing.

Economic
Aircrafts operating business rely heavily on subsidies.
Recently, Boeing and Airbus are on the debate of unfair
subsidies between one another.
The economic recession and financial crisis have caused
people to reduce their spending especially on travel. This
reduction in passenger demand has led to cancellation of
aircrafts orders.
However, in some of the fast growing economies countries
such as, China and India. There is an increase in spending
on air travel, which caused the increase in demand for
aircrafts in those countries.
There are other effects, such as; the fluctuation in the fuel
prices, the congestion and other environmental
restrictions, as well as the prospect of higher security and
insurance costs to reflect the risk of terrorism.

The global tourism industry trend also has the impact on

the sales of the aircrafts.
Socio-Cultural
In general, individuals tend to be taking more vacations
especially for festive seasons such as, Christmas and
Easter, thus causing the airlines to increase the supply of
their aircrafts to fit the demand.
The low cost airlines influence people to travel more and
thus increase the demand for the aircrafts.

Technological
Usage more carbon composites in the manufacture of
Boeing aircrafts will make the aircraft more fuel-efficient.
Greater fuel efficiency will enable the aircraft to fly in a
longer distances without refueling. This new technology
has led to more orders for Boeing.
The supersonic transport also an opportunity because an
entirely whole new segment of the market will form.
Commercial carriers will buy many of these supersonic
aircrafts in order to satisfy the consumer’s need to reach
destinations quickly and on time.
Hi-tech advances will also help the companies to use up
the resources more efficiently, i.e. using robots in the
manufacturing process.

Environmental
Although, there are no binding regulations on aircraft
emissions. Many organizations have set voluntary targets
to reduce the emissions. International Air travel Authority
(IATA) has expected the improvement in fuel efficiency in
aircrafts emission. Boeing has reduced energy
consumption by 0.3 percent in 2009 and has reduced
energy consumption on a revenue-adjusted basis by 32
percent since 2002. a 15% reduction in carbon emissions
with every new commercial aircraft (Boeing, 2010).
Demand for fuel-efficient aircrafts and environmental
concern are driving Boeing to improve fuel efficiency and
to use environmentally progressive materials.
The EU commission, the European Parliament and the
European Council have decided to include the aviation
sector in European Emission Trading Scheme (EU-ETS).
This scheme has set limits for airline emission. This
scheme will thus force Boeing to produce more fuel-
efficient aircrafts, to limit the emission. This will lead to
additional costs for Boeing

Legal
WTO has support Boeing’s complaint against Airbus
regarding the illegal subsidies. This ruling could help
Boeing to regain their position in commercial aircraft .
The new US-EU transatlantic market has provided more
flexibility to both US and EU airlines. This has led to
passengers being able to fly more cheaply, therefore they
could lead to an increase in the demand for the aircrafts
orders for Boeing .