APPENDIX

PESTEL ANALYSIS FOR ESTABLISHMENT AND OPERATIONS OF LYDIL IN

CANADA
Political
1. Canada has a long history of issues related to national unity. Since the
union of upper and lower Canada since mid-nineteenth century. Its broadly
between French speaking and English speaking regions. However country
is democratic and very stable politically.
2. Canada has seen dramatic boost in its economy after 1999 when it signed
US-Canada Free trade agreement followed by signing of 1999 North
America Free Trade agreement. Us is Canadas largest trade partner and
foreign trade investor.
Economy
1. Canada is a member of the Organization of the Economic Cooperation and
Development (OECD) and the G-8. Canada is amongst the top ten trading
nations in the world.
2. 75% of the countrys population is employed in service sector generating
70% of its GDP.
3. Canadas industry contributes 28% of its GDP.
4. From 1985 to 2006, Canada saw foreign investment on its soil rising from
rose $100-billion to $550-billion.
5. In a 2012 survey, the top challenges faced by retailers were increasing
costs of doing business (22%) and attracting new customers (17%).
6. To counter these challenges, half of the retailers resorted to wide product
offerings whereas almost 40% went to devise new marketing strategies.
7. Also contributing to the year-over-year increase were gains at electronics
and appliance stores (+4.9%). Margins have trended upwards since the
second quarter of 2015 in this subsector, reversing the downward trend
observed since 2008.
Social
1. Median total income of a Canadian family in provinces like Quebec and
Ontario is approximately USD 75000 annually.
2. Approximately 4.4 million Canadians live below the "poverty line," that
point below which people spend approximately 55% of pre-tax income on
food, clothing, and shelter. Canada has been criticized for making no
substantial development in raising the poverty level.
Technology
1. As per a recent survey, Canadians are online at an average of 44 hours
per month which is almost double of rest of the world average.
2. James Gosling of Canada invented the JAVA programming language.
Waterloo, Ontario-based Research in Motion developed the BlackBerry

smartphone. IBM Canada, is ranked among the top 10 biggest corporate

spenders on research and development.
Environment
1. The Government of Canada is taking action to help reduce the overall
levels of air pollution. Air pollution is subject to a number of regulations
developed and implemented under the Canadian Environmental Protection
Act (1999).
2. Despite the e conomic and industrial growth the environmental indicators
have shown improvement with each passing year since last two decades.
These reductions were achieved by implementing of regulations, actions
and technological improvements.
3. Regulations specific to air pollutants under the Canadian Environmental
Protection Act, 1999 (CEPA 1999) include, but are not limited to, the
following:
a.
Off-Road Compression-Ignition Engine Emission Regulations
(amended 2012)
b.
Off-Road Small Spark-Ignition Engine Emission Regulations
(amended 2012)
c.
On-Road Vehicle and Engine Emission Regulations (amended 2014)
d.
Benzene in Gasoline Regulations (amended 2011)
e.
Contaminated Fuel Regulations (1991)
f.
Gasoline and Gasoline Blend Dispensing Flow Rate Regulations
(2000)
Legal
1. In Canada, like other developed countries its a violation of federal and
state law for any company, including retail businesses, to make false or
deceptive claims with advertising regarding products and services.
2. Each state of the country has consumer protection laws in place, with the
goal of preventing businesses from using misleading marketing campaigns
as a means to drive sales numbers.
3. Its illegal for companies to deceive consumers by misleading them
through false discount claims.