A Pestle Analysis of Mining Industry

Better Essays
| A PESTLE Analysis of Mongolian Mining Industry | | | Hui Wu (Meredith) | 09/04/2010 |

|

A PESTLE analysis of the Mongolian mining industry 2 1. Executive summary 2 2. Introduction 3 3. PESTLE Analysis 3 4. Analysis of the future environment 8 5. Entry mode options 8 6. Potential risks 9 7. Recommendations and strategic option 10 8. Conclusion 11 9. Bibliography 11

A PESTLE analysis of the Mongolian mining industry 1. Executive summary
This report has analysed the investment environment of mining industry in Mongolia. The PESTLE analysis is considered first as a basic narration of the situation, and then the evaluations based on this PESTLE analysis are given to show the quality of the Mongolian investment environment. From the former analysis it can be seen that the overall investment atmosphere is good for the Chinese company. And considering the particularity of the local investment environment, it is better that the Chinese mining company forms a joint venture company with the local government. And in the initial stage of the company’s operation, a strategy with high FSA and low CSA are recommended in order to build the brand awareness and to be localised. Furthermore, the future environment and the potential risks are considered to be able to overcome and approved. Therefore, it is a good decision that to expand the mining business in Mongolia. 2. Introduction
With the development of the global economies, the current demands for the energy resources are becoming more and more difficult to meet. It can be seen in the world that the conflicts of resources have involved more and more countries in recent years. The Mongolia, however, possesses a rich amount of undeveloped mineral resources, which attracted plenty investors, especially countries like the U.S and China, who are intending to get benefits from the co-operations on resources mining industry. Therefore, an analysis based on the relationship between Mongolia and China



Bibliography: * 1. Skhouri 2008, Mongolian Mining Industry, International Business Wiki, accessed 04 April 2010, < http://www.wikia.com/Wikia> * 2. Wikipedia 2010, Mongolia, The United States, accessed 05 April 2010, <http://zh.wikipedia.org/wiki/%E8%92%99%E5%8F%A4%E5%9B%BD#.E6.94.BF.E6.B2.BB > * 3. U.S. Department of State Background Note 2007, Mongolia, The United States, accessed 08 April 2010, <http://www.infoplease.com/country/profiles/mongolia.html > * 4. CIA 2010, East & Southeast Asia: Mongolia, accessed 08 April 2010, < https://www.cia.gov/library/publications/the-world-factbook/geos/mg.html > * 5. The Strong anti-China Mood 2009, Blog, accessed 08 April 2010, < http://blog.huanqiu.com/?uid-388-action-viewspace-itemid-348202 > * 6. Lynch & Mahoney, n.d., Mongolia Laws and Commentaries

You May Also Find These Documents Helpful

  • Good Essays

    Mining Industry Analysis

    • 681 Words
    • 3 Pages

    I. Industry Classification: a. Life Cycle Position: The mining industry is in the mature phase of the Industry life cycle, with established firms having a stronghold in the industry and specific products and regions. There is scope for further consolidation within the firms in the industry and expected returns are high as the global mining index has outperformed the overall market indices. b. Business Cycle: The mining industry is a cyclical industry as the change in GDP affects…

    • 681 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    WINE PESTLE ANALYSIS Political • The wine industry in the United States continues to face political challenges as it tries to extricate itself from arcane laws left over from the prohibition era. Although some states have abolished laws prohibiting the sale of beer, wine and spirits on Sundays and have opened the door to Internet sales of wine, many other states are not as progressive. The hot political debate in 2010 revolved around the privatization of alcoholic beverage sales. Every state has…

    • 436 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    PESTLE ANALYSIS 1.0 INTRODUCTION Deepkamal Exports Pvt Ltd is a 100% export oriented company. We are a government recognized Star export house and deal in Spices, Oil seeds and Dehydrated vegetables. Our main markets are Russia, Eastern Europe and The Middle East. We plan to expand our business into Brazil, Ukraine, Poland and Taiwan. Through the analysis we will try to look into several factors that we think will have an impact on our future investment plans. 2.0 INDUSTRY ANALYSIS: PESTEL FRAMEWORK…

    • 1498 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    PESTEL ANALYSIS Political * The public spending on infrastructure is expected to decrease in many developed countries. Major part of this spending will be directed to the civil infrastructure due to the increasing concerns about sustainability. Investments in power station replacements, wind farms, waste management assets and other green initiatives will increase (The Economist 2010; Balfour Beatty, 2012). * Since governments in the emerging countries, especially in India, China and Brazil…

    • 822 Words
    • 4 Pages
    Satisfactory Essays
  • Best Essays

    Mining Industry

    • 2035 Words
    • 9 Pages

    impact the development of an industry. These factors can by categorized as Political, Economic, Social, Technological, Environmental and Legal (PESTEL). Economic, legal and environmental factors are closely tied up and mostly controlled by the political factors. Political factors mainly refer to intervention of the government in the economy via introduction and amendments of various new policies and laws. The purpose of this essay is to explain how the mining industry faces an uncertain future in…

    • 2035 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    cruise industry through a PESTLE analysis, which analyses the political, economical, social, technological, legal and environmental external factors that influence this particular industry. Business is considered an economic system in which goods and services are exchanged for money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis. The tourism industry consists…

    • 1556 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    PESTLE analysis on wine industry Constellation Brands, E&J Gallo Winery, and Wine Group are amongst the three top producers of Wine in the United States. The success of the three organization have been acquired from the recent acquisitions, as well as, their capability of changing with the consumers needs the three major issues which the wine industry is currently being faced with entail upholds the standards of advertising, the corporate buyouts threat as well as, the increasing wine market. Industry…

    • 1102 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Gold Mining Industry Analysis By: Robert 6/6/2010 The Gold Mining Industry has experienced a huge amount of growth since the beginning of the financial crisis. With the price of gold being at $639 in January 2007 before the beginning of the financial crisis and now in June 2010 the price of gold reaching $1220, there is no denying the interest of gold between investors and governments. Investors are seeking ways to protect themselves from inflation and any other type of financial crisis that…

    • 926 Words
    • 4 Pages
    Good Essays
  • Good Essays

    1.1 Using the PESTEL framework, identify and discuss the key factors in the macro environment that influence the tourism industry. Political: A large influence on the tourism industry can be the stability of government. If the government in unstable it can be viewed as dangerous and unpleasant to visit. This can have a huge impact on that countries tourism numbers. Some governments also choose to make shopping tax-free for tourists, as tourists have the right to claim back VAT (Value-Added Tax)/GST…

    • 976 Words
    • 4 Pages
    Good Essays
  • Good Essays

    jurisdictions, anyone who is convicted of injuring or killing someone while under the influence of alcohol or drugs can be heavily fined, as in France, in addition to being given a lengthy prison sentence. Sometimes those campaigns make the brewery industry looking very bad since usually the blame is laid exclusively on them for making alcohol so easily available. Threat, with the government heavily expending money in such campaigns the consumption of alcohol tends to decrease with people scare of…

    • 3532 Words
    • 14 Pages
    Good Essays