PEST Analysis on Shell
SECTION 1: PEST Analysis
Royal Dutch Shell plc also known as Shell is an Anglo-Dutch multinational oil and gas company. It’s headquarter is located in The Hague, Netherland while its registered office is located in London, United Kingdom. Shell is the world’s second largest revenue company and it operates in over 90 countries and has 44,000 service stations worldwide. PEST analysis, “Political, Economic, Social and Technological analysis” is the external macro-environment in which a firm operates. This factors gives an impact to the organisation through the operating period.
PEST factors are usually hard to control but the changes in the external environment created a new opportunities and so analysing these factors are easier. This allows us to be ready to take opportunities as they arise. PEST analysis allows recognizing and work with changes as it happens. It also helps in avoiding factors of failure which are beyond the controls. It is useful for starting an operation in a new country or region where the macro environment is different from the normal.
Political Factor
As the analysis are done from a political point of views, the government rules and regulations of the business as which must be considered before entering the Malaysian markets. Malaysia is a constitutional monarchy in Southeast Asia which Mohamad Najib bin Abdul Razak acts as the Chief Executive. The tax policy in Malaysia is rather considerate as the corporate tax rate has been reduced to 25% which applies to both local and foreign companies. In addition, for people who are carrying on petroleum upstream operation are subject to a Petroleum Tax Income of 38% and are allowed to be paid by instalments of 5 years under the country’s law.
Economic Factor
Malaysia is a dynamic country as it is constantly evolving. With the export rate of the country was RM513.59 billion between Jan-Sept 2011, shows that there’s no problem with the economy here. Considering the rapid growth of development in
Royal Dutch Shell plc also known as Shell is an Anglo-Dutch multinational oil and gas company. It’s headquarter is located in The Hague, Netherland while its registered office is located in London, United Kingdom. Shell is the world’s second largest revenue company and it operates in over 90 countries and has 44,000 service stations worldwide. PEST analysis, “Political, Economic, Social and Technological analysis” is the external macro-environment in which a firm operates. This factors gives an impact to the organisation through the operating period.
PEST factors are usually hard to control but the changes in the external environment created a new opportunities and so analysing these factors are easier. This allows us to be ready to take opportunities as they arise. PEST analysis allows recognizing and work with changes as it happens. It also helps in avoiding factors of failure which are beyond the controls. It is useful for starting an operation in a new country or region where the macro environment is different from the normal.
Political Factor
As the analysis are done from a political point of views, the government rules and regulations of the business as which must be considered before entering the Malaysian markets. Malaysia is a constitutional monarchy in Southeast Asia which Mohamad Najib bin Abdul Razak acts as the Chief Executive. The tax policy in Malaysia is rather considerate as the corporate tax rate has been reduced to 25% which applies to both local and foreign companies. In addition, for people who are carrying on petroleum upstream operation are subject to a Petroleum Tax Income of 38% and are allowed to be paid by instalments of 5 years under the country’s law.
Economic Factor
Malaysia is a dynamic country as it is constantly evolving. With the export rate of the country was RM513.59 billion between Jan-Sept 2011, shows that there’s no problem with the economy here. Considering the rapid growth of development in
References: http://www.shell.com.my/ http://www.malaysia.ahk.de/fileadmin/ahk_malaysia/Market_reports/The_Malaysian_Petrochemical_Industry.pdf http://www.indexmundi.com/malaysia/government_type.html http://www.shell-livewire.org/swot-analysis http://en.wikipedia.org/wiki/SWOT_analysis Principles of Management by Charles Hill and Steven L McShane Management and Organisation Behaviour by Laurie J. Mullins.