SYBMS

Submitted to: Mrs. Rupali Dabre St. Gonsalo Garcia College, Vasai GROUP # 9

[STRATEGIC MANAGEMENT]
This presentation is a part of curricular activities for SYBMS Semester III for Strategic Management. The presentation is an attempt to explain PESTLE Analysis which is an important decision-making tool for businesses the world over.

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Group Members

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Acknowledgements

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Introduction Political Environment Economic Environment Socio-Cultural Environment Technological Environment Legal Environment Ecological Environment Conclusion Bibliography & Webliography

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GROUP MEMBERS

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NAME

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Ms. Vinola Almeida

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Ms. Sharon Faria

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Mr. Javed Khan

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Ms. Greeshma Nambiar

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Ms. ForamNotaria

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Ms. Jisha Joseph

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ACKNOWLEDGEMENTS:
The group sincerely thanks Mrs. RupaliDabre for her constant guidance and support during the making of this presentation.

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INTRODUCTION:
The word PESTLE is an acronym formed from the words Political, Economic, Socio-Cultural, Technological, Legal and Ecological. It is a total analysis of the external environment of a business. However, only conducting a PESLE analysis is not all. Once the analysis is conducted the company/ business/ firm should concentrate on finding answers and solutions to the problems or questions highlighted by the analysis. PESTLE analysis is a macro-environmental analysis and therefore provides an overall view to situations and conditions. Individual level issues are not addressed in this analysis. PESTLE analysis is an important market research tool for companies; providing ita total over-view of macro-environmental factors. It helps companies to form aggressive marketing strategies for marketing their products. The political environment of a company refers to the political system as well as conditions prevalent in the country where the company is functioning. It includes the ruling party, the opposition, their conflicts and stabilities, etc. The Economic environment refers to the economic policies of the country e.g. tariffs and custom duties payable, fiscal policies, currency exchange rates, etc. The word Socio-Cultural is derived from the clubbing together social and cultural. This refers to the cultural framework in the society where the company exists. Technological environment is the changes in technology which may affect the company. E.g.: A company using the latest technology and machinery will definitely have better edge than a company using old and obsolete technology. Legal environment refers to the changes in the rules and regulations of a country that may affect the working of a company. It includes employment policies, International trade regulations, etc. Ecological Environment refers to the Natural environment including all the flora and fauna that may come in contact and be affected by the company as well as the climatic changes that may affect the company. PESTLE Analysis may sometimes be extended to STEEPLED to cover the Ethical and Demographic environment. Demographic environment refers to the kind of geography that the place where the company functions. Demographics of a place are the land formations there e.g.: hilly regions or flat plains. Ethics are basically the kind of morality that the people of a place have. It s their beliefs, principles and moral values which have evolved and grown over ages.

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POLITICAL ENVIRONMENT
The political environment refers to the influence exerted (forced) by three political institutions, they are legislature, executive and judiciary. These factors shape, direct develop and control the business activities. The influence of political environment on business is very large. The political system existing in a country decides, promotes, encourages, direct and control business Case: Mahanadi Coalfields limited company was established in Orissa in the year 1990. For the past 20 Years it is one of the top most companies in Orissa. It has nearly two hundred employees. It has various branches across India. It is the leading firm which is the pride of Bhubaneswar. The Mahanadi coalfield is known for its services render to its employees and co-operation. The bandh which was proclaimed by various political parties throughout India has ruined the Indian economy and the man power. The bandh had specifically damaged the economy of Orissa to a large extent. Mahanadi coalfield limited was also targeted by the political persons. The personnel officer of the Mahanadi coalfield was badly injured and the furniture of the organization was also broken. The political members badly ransacked the entire building for their vested interest. The manager of the company complained to the police about this and the police arrived after two hours. The political person who called the bandh was arrested along with 800 political members. NALCO Company was also affected by this bandh in this region. About 50 crores of loss was estimated in this region due to the political unrest. Mahanadi coalfield limited working was stopped for 10 days due to the loss endured. This is the most shame full aspect as it has affected the normal life of peace loving citizens of India. Mahanadi coalfield suffered a loss of 20 laths excluding the damaged done to human life. The C.M has rendered his full support to the victims of the political unrest. The influence of the political parties and the policies of the ruling party are the main political factors that affect the political environment. In the case of Mahanadi coalfield limited the loss was huge as it became a victim of the growing political unrest in the region. So in this way we come to know that the influence of political environment on business is very large.

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ECONOMIC ENVIRONMENT:
Those Economic factors which have their affect on the working of the business are known as economic environment. It includes system, policies and nature of an economy, trade cycles, economic resources, level of income, distribution of income and wealth etc. Economic environment is very dynamic and complex in nature. It does not remain the same. It keeps on changing from time to time with the changes in an economy like change in Govt. policies, political situations. Talking about economic environment, Recession is a part of economic environment which can affect a business. Recession:The given definition of recession should be a substantial decline in activity across the economy, lasting a longer period which is usually more than a few months. The activity across the economy is reflected by various economic data like, industrial production, employment, gross income and wholesale-retail trade. From a technical point of view, a recession happens when there are two consecutive quarters of negative economic growth as measure by a particular country's Gross Domestic Product (GDP). Usually recession lasts from 6 to 18 months. So stock markets falling relentlessly does not necessary means that the economy is undergoing a recession. But recession however is something that cannot be avoided as it is considered as a part of the business cycle. For obvious reason, it is also the most dreaded and hated part of a business cycle. Talking about recession, Recession actually started in 2006 in U.S market, slowly gulping ASIA & EUROPEAN countries & put its major impact by late 2008... By 2010 it declined in INDIA; however U.S market can t relax & overcome before 2015. The textile, garment and handicraft industry were worse affected. There has also been a decline in the tourist inflow. The real estate had also a problem of tight liquidity situations, where the developers were finding it hard to raise finances. IT industries, financial sectors, real estate owners, car industry, investment banking, service sector and other industries as well were confronting heavy loss due to the fall down of global economy. The leisure sector hotels, pubs and restaurants had taken the brunt of the recession. Airlines which comes in the service sector were worst affected by recession. Airlines like US Airways, Air Canada, Air India, Aloha Airlines, and Delta Airlines etc. When the recession made its hit, General Motors and Ford were the first one to face the hit. Both these leading car manufacturers were affected. But the greatest affected were the Lehman Brothers. CASE: Lehman Brothers founded in 1850, is a global financial-services firm. The firm does business in investment BANKING, equity and fixed-income sales, research and trading, investment management, private equity, and private banking. It is a primary dealer in the U.S. Treasury securities market. The firm s worldwide headquarters are in NEW YORK CITY, with regional headquarters in London and Tokyo, as well as offices located throughout the world.

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In 1844, 23-year-old Henry Lehman, the son of a cattle merchant, immigrated to the United States from Rim par, Bavaria. He settled in Montgomery, Alabama, where he opened a dry-goods store, H. Lehman . In 1847, following the arrival of Emanuel Lehman, the firm became H. Lehman and Bro. With the arrival of their youngest brother, Mayer Lehman, in 1850, the firm changed its name again and Lehman Brothers was founded. In 1850 Lehman brothers set up the MERCHANT BANK in New York after MAKING MONEY in railway bonds. In this way this finance giant came into existence in USA. There was mortgage crisis in United States due to decline in prices of real-estates. As a result, housing loans made by the bank to people with little support made these loans very risky, and when interest rates were raised by these banks, these borrowers could no more repay Lehman. This led to huge losses for Lehman. It caused $60 billion loss in bad real estate loans for Lehman Bros. One of the main reasons for its downfall was its poor relations with TOP BANKS of United States. They refused to do business with Lehman due to over-confidence of its CEO over the Lehman financial assets. And after big debt of $639 billion, when Lehman asked Barclays and Bank of America for acquisition, they simply rejected the offer. Over 5,000 employees in the UK had already lost their jobs, while about 20,000 in the US might as well forget going back to their work stations. Wall Street had lost its glory in world business. Three of the Street s five major independent brokers had disappeared. They had only Goldman Sachs and Morgan Stanley left. y y y Big loss for Indian software companies. Higher Credit rates and borrowing costs. Slow down of US economy and SHARE MARKETS.

Conclusion: Because of this, recession spread over across countries affecting Indian software companies and also the US was badly affected. Considering these things, it shows how economic environment can have a greater effect over the business. Economic environment plays a very important role in the working of organizations. If the economic environment gives negative vibes than the whole business organizations are affected. One problem and whole business can turn upside down. So, concluding that to avoid such conditions, to make strategic plans for business is important. It can avoid losses and balance things in the business.

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SOCIO-CULTURAL ENVIRONMENT:
Socio-cultural environment consists of two things society and culture i.e. it is a combination of social and cultural environment. The social environment is made up of customers,employers,shareholders,and the whole society. The cultural environment includes people s attitude towards work and wealth,role of family, religion and education, moral issues, marriage, lifestyle of people, traditions, values, beliefs and lifestyle of the society. The socio-cultural environment is one large area of total business environment and puts the maximum influence on business activities. The socio-cultural factors influence the buying decisions of the member of the society. Society includes all social groups such as consumers, investors, local community, employees, etc.Nestl began in Switzerland in the mid-1860s when founder Henri Nestl created one of the first baby formulas. Henri realized the need for a healthy and economical product to serve as an alternative for mothers who could not breastfeed their babies. Mothers who were unable to breastfeed often lost their infants to malnutrition. Henri s product was a carefully formulated mixture of cow s milk, flour and sugar. Nestl s first product was called FarineLacte ( corn flour gruel in French) Henri Nestl. The product was first used on a premature baby who could not tolerate his mother s milk or other alternative products of that time. Doctors gave up on treating the infant. Miraculously the baby tolerated Henri s new formula and it provided the nourishment that saved his life. Within a few years the first Nestl product was marketed in Europe. In 1874 the Nestl Company was purchased by Jules Monnerat. Nestl developed its own condensed milk to contend with its competitor, the Anglo-Swiss Condensed Milk Company. The Anglo-Swiss Condensed Milk Company made products like cheese and instant formulas. The two companies merged in 1905, the year after Nestl added chocolate to its line of foods. The newly formed Nestl and AngloSwiss Milk Company had factories in the United States, Britain, Spain and Germany. Soon the company was full-scale manufacturing in Australia with warehouses in Singapore, Hong Kong and Bombay. Most production still took place in Europe. By the 1920s Nestl was creating new chocolate and powdered beverage products. Adding to the product line once again, Nestl developed Nescaf in the 1930s and Nestea followed. Nescaf, a soluble powder, revolutionized coffee drinking and became an instant hit. During the First and Second World War, profits plummeted. Production increased dramatically after America entered the Second World War. Nescaf became a main beverage for the American servicemen in Europe and Asia. Total sales increased by $125 million from 1938 to 1945. By the 1980s Nestl had a new Chief Executive Officer. In the one of the largest takeovers at that time, Nestl bought Carnation for $3 billion and parted with any unprofitable businesses. The leading in the food industry, Nestl brings in $81 billion in overall sales and has 470 factories around the world. The company s mission is to focus on long-term potential over short-term performance. CASE: Greenpeace China is demanding that Nestl, the world s largest food manufacturer, immediately stop using genetically engineered (GE) ingredients in its baby food sold in China after independent tests showed that one of Nestl s baby rice cereals contained several GE ingredients.

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Greenpeace China is also condemning Nestl for operating under double standards the company has promised not to use GE ingredients in its products sold in the EU, Russia and Brazil but it continues to treat Chinese babies as guinea pigs by refusing to make the same commitment in China (including Hong Kong). In August, Greenpeace sent a sample of Nestl Baby Rice Cereal (rice with beef & vegetables) to an independent laboratory. The sample tested positive for GE ingredients including 35s, NOS and Bt. Consumers in China do not want to eat GE food any more than their counterparts in Europe do, especially when it comes to baby food, said Fang Lifeng, Greenpeace China Food and Agriculture Campaigner. It is appalling that Nestl is feeding GE food to Chinese babies. The BT gene found in the sample leads to production of a protein that was developed to kill certain insects; this gene acts like a pesticide. Scientific evidence shows that this protein may induce allergeniclike reactions in mice1. The Royal Society, the UK s national academy of science, ranks infants as a high risk group for food safety problems. In its 2002 report on GE food, the Royal Society recommended that any GE ingredients in baby food should be investigated most rigorously . As well as the baby food bought in China, Greenpeace has previously tested several food and drink products owned by Nestl in Hong Kong, including Pak Food branded soya milk, chocolate, baby food and a soup mix, and found them all to contain at least one GE ingredient. More than 140 companies in China, including major baby food producers like Heinz and Beingmate, have already committed to not using GE ingredients in their products. As the world s number one food producer, Nestl has to finally take responsibility and stop harming the environment and risking people s health. It has to start listening to their customers demands and commit to stop selling GE food in China, Fang added. Companies that have said they will stop using GE ingredients in China include internationally known brands such as Kraft, Wyeth, Mead Johnson, Wrigley and Lipton, as well as Chinese companies including large soy sauce producers in southern China. From its inception more than 130 years ago, Nestl has built its business on successfully applying scientific breakthroughs and technological innovations while taking full responsibility for the quality and the safety of its products. Throughout these years Nestl has been manufacturing and marketing products tailored to meet the diverse needs and preferences of consumers all over the world. This broad experience has provided Nestl with thorough insight into and understanding of consumer demands, both in developing and developed countries. Clearly, consumers' perceptions and opinions differ in the various regions of the world. Hence Nestl has always strived to respect these differences and to take them into account in its activities. Gene technology in food production: With this vast experience, Nestl recognizes the potential gene technology has in the longer term to improve the quality, availability and nutritional value of food. Gene technology has the potential to 9|P ag e

increase food production and to support sustainable agricultural practices. In some instances, positive health effects have been confirmed. For those reasons, Nestl supports a responsible application of gene technology for food production based on sound scientific research. Safety: The safety of their products and the integrity of the ingredients from which they are manufactured are paramount to Nestl. Genetically modified crops, as all raw materials used by Nestl, comply with strict regulatory and safety evaluations. WHO, FAO, OECD and numerous independent scientific bodies have concluded that genetically modified crops, including ingredients derived from them that have passed food safety evaluation procedures can be registered as safe for use in food production. Nestl concurs with their shared opinion that such crops are as safe as their traditional counterparts. Consumer information and labeling: Consumers' confidence in the food they are buying is supported by having access to information. Nestl's Consumer Services are well equipped to provide this access and thus are the first source of information, including the use of ingredients, derived from genetically modified crops, in Nestl products. Many governments now have implemented or are considering regulations for the use and labeling of these ingredients. In the absence of a global agreement on the labeling of ingredients, derived from genetically modified crops, and recognizing governments responsibility for the regulatory process, Nestl strictly adheres to national laws and regulations regarding their labeling. Consumer perceptions and the future needs of society: As a global food manufacturer and marketer, Nestl takes into consideration local needs, cultural differences and consumer preferences as well as attitudes concerning the use of ingredients derived from genetically modified crops. In some regions of the world, governments have expressed a keen interest in this technology as a potential tool to address their country's future food requirements. Nestl's long term experience in food production can be a valuable resource in finding the right balance between these elements. This may well result in different solutions in various regions of the world, without jeopardizing in any way the safety and quality of its products. Provided their safety is proven, as required for all ingredients, Nestl will continue to use ingredients derived from genetically modified crops wherever appropriate.

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TECHNOLOGICAL ENVIRONMENT:
Technological environment refers to the technological advancement put to use in an organization or company. Technological environment includes the kind of machinery or technology used in the production process. A manufacturer with a better and more updated technology of production will have an edge over his competitors using obsolete methods and technologies. Most of the world's PCs are powered by an Intel microprocessor. It is recognized as the fifth most valuable brand in the world. Through high levels of investment and concentrating on microprocessors, Intel was able to leave competitors behind. Intel's new strategy moves away from just the production of microprocessors, to producing platforms - integrated sets of technology that work together.The largest semiconductor manufacturing company;it is also a leading vendor in computer, networking and communications products. Intel's hardware and Microsoft's software pioneered the PC and revolutionized the computer industry. Intel's x86 family of CPUs is the most widely used in desktop PCs, laptops and servers. Intel was founded in 1968 by Robert Noyce, Gordon Moore and Andy Grove in Mountain View, CA. A year later it introduced its first product, a 64-bit bipolar static RAM chip. By 1971, its very successful memory chips began to render magnetic core storage obsolete. In that same year, Intel developed the microprocessor. In response to a calculator chip order from Japanese manufacturer Busicom, Intel engineer Marcian E. "Ted" Hoff decided it would make more sense to design a general-purpose machine. The resulting 4004 chip was the world's first microprocessor. Although known for its x86 family of chips, over the years, Intel has developed a wide variety of chips and board-level products, including the MULTIBUS bus used in industrial applications. Intel started with 12 people, and first year revenues were less than $3,000 dollars. In 2006, the company had 100,000 employees and revenues of $35 billion. Intel Corporation is the largest semiconductor manufacturer in the world, with major facilities in the United States, Europe, and Asia. Intel has changed the world dramatically since it was founded in 1968; the company invented the microprocessor, the 'computer on a chip' that made possible the first handheld calculators and personal computers (PCs). By the early 21st century, Intel's microprocessors were found in more than 80 percent of PCs worldwide. The company's product line also includes chipsets and motherboards; flash memory used in wireless communications and other applications; hubs, switches, routers, and other products for Ethernet networks; and embedded control chips used in networking products, laser printers, imaging devices, storage media, and other applications. Intel remained competitive through a combination of clever marketing, well-supported research and development, superior manufacturing proficiency, a vital corporate culture, legal proficiency, and an ongoing alliance with software giant Microsoft Corporation often referred to as 'Wintel. Intel's founders, Robert Noyce and Gordon Moore, were among the eight founders of Fairchild Semiconductor, established in 1957. While at Fairchild, Noyce and Moore invented the integrated circuit, and, in 1968, they decided to form their own company. They were soon joined by Andrew Grove,

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a Hungarian refugee who had arrived in the United States in 1956 and joined Fairchild in 1963. Grove would remain president and CEO of Intel into the 1990s. Case: The marketsegment is constantly changing, so Intel needs to develop new strategies. The market segments in which Intel competes are becoming increasingly competitive' sales of desktops are falling, whilst sales of laptops, mobiles and other handheld devices are increasing. Intel aims to develop integrated packages - platforms - to provide complete solutions to its key customers such as Sony and Philips. Intel's strategy is to be at the heart of new technological developments in all areas such as home entertainment, security and medical care that will generate new revenue streams. Launching strategy When an organization changes, it is important to communicate that change to all stakeholders. On January 5th 2005 Intel launched its new strategy at the Las Vegas Consumer Electronics Show. Part of the new strategy is a new logo, redesigned to show that Intel is moving forward. Intel's message is that it is at the leading edge of technology development, creating the right products before its competitors do. Developing new products Intel predicts trends and developments in the market segment. It also uses customer focus groups to test its predictions. New product development involves high levels of investment, so it is important to get it right. Intel was a founder and sits on the Board of Directors of the Digital Living Network Alliance, which aims to create joint standards and increase interoperability. In 2006 Intel is rolling out a series of new products. One of these is a home entertainment platform that brings together film, TV, music and games. Marketing Intel's new strategy has a strong focus on marketing - finding out what customers want and then providing it. Clear communication is the key to this. The company has been completely restructured to reflect the emphasis on communication. It has reorganized into four sectors to reflect the four parts of the market segment. These are notebooks, PCs, servers and wireless technology. Intel has also increased its range of end customers to include, for example, mobile phone companies and hospitals. New product development focuses on specific market segments, for example in healthcare or entertainment, and provides specific solutions. Intel has recognized that the market segment is changing. It has therefore developed new strategies to keep itself at the leading edge of that market. Intel Breaks Down IBM announced on December 12th that it would no longer ship computers with the flawed chip, this was the height of the busiest season for PC sales. IBM said the risk of error may be significantly higher for common calculations than Intel had indicated. IBM s researcher said the flaw could occur every 24 days for the average user; Intel s stock dropped $3.25 the day of this announcement. Intel stated the flaw might occur once every 27,000 years for the average user. Intel accused IBM of having an underlying motive, self serving, for saying this. IBM and Motorola were ready to market their PowerPC chip which would directly compete with the Pentium chip.

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LEGAL ENVIRONMENT:
The legal environment of a company is the framework of rules, laws and regulations implemented bythe government of a country and which are followed by the country as a whole. The judiciary of acountry is the spine of the legal framework of a country. It is the guardian and interpreter of theConstitution. In India, the judiciary is composed of the Supreme Court; which is at the apex of thejudicial system. Every state has a High Court and District courts. The legal environment includes government policies on industrial licensing, public sector, monopolies, pricing and distribution of goods, imports exports licensing etc. Businesses have to function according to the framework set by the judiciary. What a business can do and what it cannot are set in a framework by the judiciary. The laws framed by the judiciary are in public interest; when a firms/ businesses defy these rules it indirectly hints at going against public interest. Hence the legal environment of a business has direct effect on the business.

Case Tamiflu (generic name: Oseltamivir) is a common antiviral drug used in the treatment and prophylaxis of both Influenza virus A and Influenza virus B marketed in a generic form in India. It is a prodrug, which is hydrolyzed hepatically to the active metabolite, the free carboxylate of oseltamivir. It was developed by Gilead Sciences and is currently marketed by Hoffmann-La Roche (Roche) under the trade name Tamiflu. Indian Company Cipla received marketing approval from the drug controller-general of India and launched a generic version of Oseltamivir, Anti-Flu, in the domestic market. The drug was initially priced at about Rs. 1,000 per strip of 10 75 mg tablets.

THE CENTRAL GOVERNMENT issued a circular that the retail sale of Oseltamivir phosphate or Tamiflu has been prohibited in the Indian market. The officials of the respective department have asked people not to buy this drug in the retail market. Chemists have also been asked not to sell the drug across the counter. The notice came after it was reported that Tamiflu was being sold at exorbitant prices in the retail market throughout the country. The Indian Government posted a ban on the open sale of these tablets for a number of reasons. I) The pandemic of Swine flu began in Mexico where the drug is easily available. The result of this was that people developed a resistance to the drug and treatment was made impossible. There is a tendency among people to hoard the Drug; hence people who actually need it will be deprived of it. Because of panic buying there are very high chances of fake Tamiflu being sold in the market.

II) III)

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Though Tamiflu helps to cure influenza, according to medical practitioners, indiscriminate use of Tamiflu is detrimental for health. The Central government is now maintaining adequate stocks of the drug. It would be distributed later among the people free of cost through the public health network. The Ministry of Health and Family Welfare also declared that no cases of A/H1N1 influenza in the country have been reported. The throat swab sample tests of 20 patients were proved negative. The health screening of all international passengers is continuing at 21 international airports throughout the country. More than 39,000 passengers were screened in last twenty-four hours. Among of those screened, 5,987 passengers came from the affected countries. Due to the ban on open market sale of the drug, the company could make sales only to government approved health care centers. This made the company s sales suffer. The productions are down to minimal and are most likely to stay the same in the near future. The government s decision to ban the open market sale was in public interest. Opposing such an order would not only mean defying the country s judicial system but also a careless attitude towards the society. A step out of line in this case would mean drastic consequences for Cipla which is currently a renowned manufacturer of drugs in the country. Losing its market share is the last thing any company would want, especially in a country like India where research capital requirement is low and profit margin high. Cipla has complied with the ban and supplies the drug only to government approved health care centers.

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ECOLOGICAL ENVIRONMENT:
Natural or ecology environment relates to natural resources like land, water, and minerals, port facilitates etc. Business firm use natural resources like land, water, iron ore, crude oil etc. In using such things there is erosion of natural resources and pollution of resources like air, water etc.Business firm should understand the effects and take necessary measures to control. Tata Iron & Steel Company Ltd. (TISCO) is the iron and steel production company associated with the Tata group of some 80 different industrial and other business enterprises in India, founded by members of the Tata family. TISCO operates as India's largest integrated steel works in the private sector with a market share of nearly 13 percent and is the second largest steel company in the entire industry. Its products and services include hot and cold rolled coils and sheets, tubes, construction bars, forging quality steel, rods, structural, strips and bearings, steel plant and material handling equipment, ferro alloys and other minerals, software for process controls, and cargo handling services. Through its subsidiaries, TISCO also offers tinplate, wires, rolls, refractories, and project management services. The story of TISCO is the story of one family or, more accurately, one man whose vision and determination to give India a modern industrial economy helped provide a platform for the country's independence half a century after his death. At the same time, he helped create what was by 1970 India's biggest nonpublic enterprise. From his travels in other industrialized nations he had come to identify three essential elements for a modern industrial economy: steel production, hydroelectric power, and technical education. Tata Steel was established by Indian Parsi businessman JamsetjiNusserwanji Tata in 1907. Tata Steel introduced an 8-hour work day as early as in 1912 when only a 12-hour work day was the legal requirement in Britain. It introduced leave-with-pay in 1920, a practice that became legally binding upon employers in India only in 1945. Similarly, Tata Steel started a Provident Fund for its employees as early as in 1920, which became a law for all employers under the ProvidentFundAct only in 1952. Tata Steel's furnaces have never been disrupted on account of a labor strike and this is an enviable record. CASE: Dhamra port is now being built in proximity to the Gahirmatha Marine Sanctuary, on the northern coast of Orissa, India. Gahirmatha is the world's largest remaining nesting ground for the Olive Ridley Sea Turtle, a species classified as Endangered by the IUCN. Between 200,000 and 500,000 female turtles nest here every year, in spectacular arribadas (mass nesting). The planned port facility will be located just north of the Gahirmatha Marine Sanctuary and less than five kilometers from the boundaries of the Bhitarkanika Wildlife Sanctuary, which itself contains an abundance of rare wildlife species and an amazingly lush and biodiversity mangrove forest ecosystem, all of which are threatened by this port development scheme . The port is being built by Tata Steel via the Dhamra Port Company Limited, a 50:50 joint venture between Tata Steel and Larsen & Toubro. Dhamra is proposed to be a deep water port, one of the largest in South Asia, capable of handling 180,000 DWT ships and 83 million tonnes per annum in ten years. The proposed port at Dhamra is to be developed over an area of nearly 1,000 acres and another 3,000 acres are being acquired for other project-related development activities. The proposed 15 | P a g e

investment is approximately US $ 500 million. The port and its attendant infrastructure, accompanying industrial and residential development, artificial lighting and the shipping traffic it will attract are only some of the problems it poses for the turtles and their hatchlings. A serious threat will also be posed by the amount of dredging required to create and maintain the shipping channels at the necessary depth. The development of the port will also lead to an industrialization spree in the area, with the attendant hazards posed by an increased population, lighting, pollution etc. While the Dhamra port site itself is not a nesting ground, the coastal waters are turtle habitat and there are many reports of turtle sightings in the area during the turtle season (November to May) each year. Obviously, such large turtle congregations depend on the natural food chain and ecology of the area to sustain themselves. Another issue is the probable impact on livelihoods of thousands of fishermen in the region, as the construction of the port and dredging in particular could result in the destruction and pollution of breeding and spawning grounds of fish, besides leading to a situation where the fisherfolk cannot fish in their own local areas. The location of the port also runs contrary to a 2002 directive of the Ministry of Environment, based on the government of India's National Wildlife Action Plan, that a radius of 10 km. from all existing parks and sanctuaries be declared 'eco-sensitive areas' and large-scale industrial development be kept away from these areas. Additionally, the central government's own guidelines for industries ask that they be located at least 25 km. away from ecologically sensitive areas. There are two ongoing legal issues pertaining to Dhamra. The first, a petition filed by the Wildlife Society of Orissa in the Orissa High Court, pending since 2000. The other is a petition filed before the Central Empowered Committee (CEC) of the Supreme Court that is yet to come up for hearing. Further, in its 2004 report, the CEC had recommended that the port be shifted to an alternative site due to its proximity to the Gahirmatha Marine Sanctuary and the turtle nesting ground. The project's main proponents are now Tata Steel, part of the Tata Group, one of India's largest industrial houses. Larsen and Toubro signed an agreement in October 2004 for the construction of the Dhamra port with Tata Steel. The Industrial Development Bank of India (IDBI) is the main funding agency supporting the Dhamra project. On June 8, 2007, Greenpeace released a scientific report prepared by the North Orissa University. The study makes the case that there is need for abundant caution, besides highlighting the significance of the Dhamra mud-flat area as an ecosystem and all that it sustains. TATAs have always maintained that they will reconsider the port, if the evidence of turtles in the area is established. In addition, there are other significant findings, such as that the mudflats are a mating and nesting ground for Horseshoe crabs. TATA Steel is now one of the largest steel producers in the world, following its acquisition of the British group Corus a few months ago. The TATA group is also growing in Europe with its software consulting arm, Tata Consultancy Services, aside from Tata Motors and other smaller companies. The company has refused to re-examine its plans, while continuing to maintain that they will not harm the environment or an endangered species, without responding to either the specific concerns that are being raised or new 16 | P a g e

evidence presented. The TATAs' plan to build a mega port at Dhamra on the Orissa coast of India, in the turtle mating and feeding grounds, is shocking, particularly for a company that seems to pride itself on its benign, philanthropic and environment friendly image. The area has been proven to be inhabited by significant numbers of the endangered Olive Ridley sea turtles in the offshore waters. The mass nesting beaches of Gahirmatha less than 15 km. away, are the world's largest mass nesting beaches for the Olive Ridley turtle The Bhitarkanika Sanctuary is just about 5 km. away from the port site. Horseshoe crabs and rare frogs and snakes have been recorded from the port area as well. It is impossible for a large project of this sort to come up in an ecologically significant area and yet have no impacts on the environment and the species it holds.

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CONCLUSION: From all these 6 case studies, it is clear that the effect of the external environment of a company is highly unpredictable as well as sensitive. The company cannot control or manipulate its external environment whereas the effect of the external environment on the company, its productions and sales is very high. This highlights the need for PESTLE Analysis in a company and its marketing strategies etc.

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BIBLIOGRAPHY AND WEBLIOGRAPHY: www.google.com - Web Search Engine www.nestle.in - Nestl s Official Website www.wikipedia.org The Free Encyclopedia www.intel.com Intel Corps. Official Website www.tamiflu.com Tamiflu Official Website www.wikinews.com The Free News Portal

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