Pestle Analysis

Topics: Recession, Regulation, Environmentalism Pages: 3 (808 words) Published: March 1, 2013
Gore operates in over 45 countries so has the potential to be affected by a range of different political developments and policies as they apply in the countries concerned. Major events such as war or political upheaval can halt production at Gore’s factories, interfere with its supply and trade chains, or reduce demand in its markets. Political instability can result in frequent changes in government policy, and resulting legislation, which can adversely affect Gore’s operations and increase overheads. Gore has to adapt to the increasing impetus in developed markets for the introduction of laws and policies aimed at protecting consumers from perceived health and environmental risks associated with ePTFE. In emerging markets, Gore has to factor in the cost of doing business in terms of burdensome regulation, anti-business employment and taxation laws, corruption and exchange control restrictions.

Fluctuating economic conditions in the countries within which Gore operates have the capacity to adversely affect Gore’s production and sales. Gore has to monitor economic conditions across its geographies on an ongoing basis and be sufficiently nimble to alter its business approach accordingly as governments increase tax rates or tighten monetary policy to cope with economic downturn. At the same time, Gore’s spread of operations and markets across geographies and industries provide diversification of risk so that downturns in certain countries are compensated for by growth in others. This diversification provides Gore with the best protection against global recession and explains its strong showing internationally as number 164 in Forbes’ list of private companies in 2010.

Gore aims to excel in whichever field it operates and to use ePTFE in an innovative way, for example Gore creates market busters like dental floss or guitar...
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