Pestle Analysis Mining Equipment and Construction

Question: Discuss about thePestle Analysisfor Mining Equipment and Construction. Answer: Completed PestleTools P-Political- This tool focuses on the political stability and instability towards the organization E-Economic- This tool focuses on the state of economical nature that helps organization to lead the business S-Social- Social culture and trends have vast impact on the organization T-Technological- Technological advancement largely influence the operation of the company where it operates L-Legal- Government regulations and other trade laws influencing the business E-Environmental- Environmental sustainability is significant aspect for developing the business PestleAnalysis It is a known fact that Caterpillar Inc. has gained an incredible progress and driven the positive changes in each part of the world. According recent annual report (2015), the company has generated the revenue of $47.011 billion with the sales of 2015 (Caterpillar.com 2016). Caterpillar has now become worlds leading manufacturer of mining equipment and construction. The company has wide range of products and services. Figure 1: PESTLE analysis (Source: Zalengera et al. 2014) Political- As Caterpillar has globally been running the business it has created a strong global presence (Gillam and Siriwardena 2013). As the organization has wide range of products and services, it best meets the needs and demands of people. However, there have been certain laws and tariffs based on the country influence the operation. For example, in the developing the country like China, it could not make desired profits due to its country regulations, changeable trades laws and different tariffs. Economic- Due to the long-term global operation, the company has to go through the dynamic nature of the market. Moreover, it has also been identified that economic stability hardly remains stable for long. In most of the countries, there is a state of economic uncertainty, which largely affect the business operations. However, in some developing countries like China, UK, US, Australia, Caterpillar has found the ways to spread its wings (Zalengera et al. 2014). A large part of the revenue comes from UK and Australia. Notwithstanding, it can be mentioned that economic uncertainty is the significant factor that largely influence the operation. Social- Based on the country operation, the trends of purchasing the products and services differ. Caterpillar is running its operation in more than 180 countries; thereby, the ways each country has different culture and trends. However, with the help of advanced strategies, the company identifies the social needs and gaps and based on the identification, it designs and develops the products. Technology- Caterpillar has long history of innovations; thus, the company is always a step ahead in adopting new technology in its products and services. In addition, as it is global manufacturing organization, the company implements ongoing technological advancement. Caterpillar tends to implement the best technologies for its construction operations. Environmental- Caterpillar has taken the initiative of moving towards the environmental sustainability. Now, with the help of advanced technology and the process of innovations, the company has increased the productivity of innovation but it has no impact on the environment. Legal- As discussed earlier, the trade laws and countrys regulations have been affecting the operations of Caterpillar. There have been different export, import and labor laws that are highly considered by the company. However, when the changes occur in the political environment, these laws change affecting the organizations operation (Caterpillar.com 2016). Critically Analyzing the Findings The finding of the data analysis helps to learn that Caterpillar has tremendously running its operations in the global environment. This has opened up different opportunities to the company based on which, it deals with other external barriers. However, the company experiences an instable political environment, which results in operational failure. The company faces different operational issues due to the unstable political environment in China. On the contrary, by implementing the environmental sustainability strategies, it develops the ways implementing the manufacturing operations that cause no less harm to the environment (Kolios and Read 2013). It also provides the guidelines to its customers not to harm the environment. Determining the Likelihood of Success The long-term past history of Caterpillar and vast product range facilitates the ways of extending the operations. In addition, due to the adoption of new technology and innovation, Caterpillar leaves no stone unturned to meet the needs and changing demands of the customers. However, it is necessary for the organization to pay more attention to the mining side of the business as emerging markets may require coals along with other resources. Moreover, in order to penetrate more in Asian market, Caterpillar needs to expand the dealership opportunities. This may help to increase to expand the business in Middle East and other Asian countries. On the contrary, the customer relation is one of the important aspect should be covered by the company. This could be done through repairing and maintenance scheduling. Reference List: Caterpillar.com. (2016). Caterpillar. [online] Available at: https://www.caterpillar.com/ [Accessed 19 Sep. 2016]. Gillam, S. and Siriwardena, A.N., 2013. Leadership and management for quality.Quality in primary care,21(4), pp.253-259. Kolios, A. and Read, G., 2013. A political, economic, social, technology, legal and environmental (PESTLE) approach for risk identification of the tidal industry in the United Kingdom.Energies,6(10), pp.5023-5045. Zalengera, C., Blanchard, R.E., Eames, P.C., Juma, A.M., Chitawo, M.L. and Gondwe, K.T., 2014. Overview of the Malawi energy situation and A PESTLE analysis for sustainable development of renewable energy.Renewable and Sustainable Energy Reviews,38, pp.335-347.