Pestel analysis legal factors in malaysia

Such adaptation is essential to the long-term survival and growth of the business, especially amid aggressive competition. Governmental intervention can determine the rate and path of business development. Nonetheless, this same external factor creates an opportunity for the company to improve its products. In relation, governments have evolving public health policies, which present a threat and an opportunity for the restaurant chain business.

Pestel analysis legal factors in malaysia

McDonald’s PESTEL/PESTLE Analysis & Recommendations - Panmore Institute

Their exports mainly compose of oil and electronic equipments. The law strictly prohibits use or possession of drugs and there is penalty of death for someone who is found guilty.

The official religion is Islam but there are minorities too which include Christianity, Hinduism and Buddhism. Many international brands outsource their manufacturing unit to Malaysia due to their technical expertise.

The country might be small but it has immense potential. The other party is Pakatan and it is multiethnic and it is formed on the grounds that minorities should be given equal opportunity to represent themselves.

Political Factors Affecting McDonald’s Business

Since the elections the political drift has divided the country in two parts. Prime Minister Najib Razzak is trying to save his neck and political career by trying to cope up with the scandal that has recently come to surface, it involves government investment fund and Prime Minster heads the financial dept of it.

So far Prime Minister has Pestel analysis legal factors in malaysia two government officials to step down, both of whom decided to go against him.

Full force investigation has been launched to investigate the matters. Fortunately for UMNO, opposition is a mess at the moment, with their leader in jail but there is high chance that UMNO might not be able to win next elections as they already lost popular votes.

Kassim, Economic Factors It is the third richest country in its region. Malaysian currency has devalued against dollar to this extent for the first time in history.

Global oil price fluctuations have hurt their economy since it was their major export, also the Malaysian labor force is deemed expensive as compared to their counterparts, and therefore many companies do not think manufacturing in Malaysia is as feasible as they used to think before.

Worst of all situations is the political between current and former Prime Minister which has made investors rethink about their decisions. Social Factors Malaysia has experienced years of economic growth and development with dynamic leadership, where government with its carefully targeted policies encouraged urbanization.

Social issues such as poverty, unemployment and exploitation of workers by large corporations do not exist in Malaysia; however racial discrimination and conflicts are getting worse with the passage of time.

Majority of population is of Muslims but Hindus, Buddhists and Christians are not in negligent numbers which gives rise to these conflicts esp. Technological Factors Major firms in the world have outsourced their manufacturing in Malaysia because of its well established infrastructure and well equipped workforce who are productive and skilled.

The railroads, recreational parks, apartments and shopping malls are all equipped with optical fibers to provide internet connectivity to all people. Environmental Factors Environment of Malaysia is deeply impacted by deforestation and pollution.

Malaysia has been blessed by diverse range of flora and fauna.

Pestle analysis on Malaysia | sadat hossain -

The urbanization, placing of dams, agriculture etc are the huge motives behind deforestation. Malaysia is a huge exporter of tropical wood and palm oil.

As a result, logging is still carried out in Malaysia although on paper they have the best rainforest protection policies. The island of Borneo in Malaysia has suffered huge deforestation by loggers since Malaysian primary forests exist in its states.

The people of the region protested against the logging but the government of Malaysia was able to hush them down and the logging rate has increased since then. The headland of Malaysia experienced mining at the cost of deforestation and pollution.

This has left an ugly mark on the ecological system of that region opening new ways to colonization. Air pollution has gained deep roots in the country as the toxic gases from vehicles and industries are being emitted into the atmosphere.

Malaysia is ranked 42nd in the world on the basis of ownership of most transports per capita. These cities produce 1. After considering the land in usage, Malaysia has been ranked 4th in the world on the terms of emitting most amount of greenhouse gases per capita.

However the fire incident in called the Malaysian haze was caused by the burning activities in Indonesia. This law was established in the early colonies of Malay Peninsula. Malaysia gained its independence from the British in The legal history of Malaysia starts with the acquirement of Penang in and the charter of justice was introduced inand Malaysian laws are also based on Australian and Indian laws.

Pestel analysis legal factors in malaysia

The Malaysian criminal code was made after Indian criminal code and Malaysian land law is based on Australian Torrens system. The federal jurisdiction made by the parliament of Malaysia is practiced throughout the country.Starbucks Coffee’s industry leadership is linked to the company’s effectiveness in addressing external factors identified in this PESTEL/PESTLE analysis.

The PESTEL/PESTLE analysis model is used to determine the most important issues that Starbucks must address in its business strategies. Pestle analysis on Malaysia Political: A political factor determines to what extent the government or the political situation may influence the economy or a certain industry in the country.

From the Malaysian political perspective, it is one of the world’s most peaceful and political stable countries.

Legal factors are external factors which refer to how the law affects the way businesses operate and customers behave. Product transportation, profit margins, and viability of certain markets are all examples of things which may be influenced by legal factors.

The analysis of those factors of the macro-environment is therefore often known as PESTEL analysis.3 PESTEL is an acronym for the six key strategic areas of change: Political, Economic, Social, Technological, Ecological and Legal and a technique for understanding the various external influences on a .

Domestic demand, along with an additional lift fromexports, is expected to be the main growth driver of the Malaysian economy, as global growthimproves in political, economic, social, technological, legal, and environmental factors of Malaysia and hascome up with a comprehensive research report, “PESTLE Analysis of Malaysia ”.

Starbucks Coffee’s PESTEL/PESTLE analysis indicates that most of the external factors in the company’s remote or macro-environment present opportunities. (Photo: Public Domain) Starbucks Coffee Company, founded in .

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