Environment Analysis of Perfect Potion
Introduction and Background
Environment Analysis is conducted for understanding the business political, economic, social, technological, environmental and legal issues. This study would focus on the Environment Analysis of Perfect Potion. Perfect Potion is an Australian private company from Banyo, Brisbane. It basically produces aromatherapy kinds of products. (PerfectPortion, 2018)The range of the product of Perfect Portion includes hair herbal and face herbal products, essential oils, natural remedies and herbal products for face skin etc. The Perfect Potion team is dedicated as well as goal oriented for creating innovative products, innovative as well as creative natural cosmetics that not only good for the body, for the mind, and for the spirit of life, but also having to establish the proper balance of our environment to the skin of our body. Perfect Potion has established a standard where others can seek out social and environmental perspective with a wealth of attitudes. Thus now they have intended to expand the market to export their product in Indonesia and Philippines. (SMH, 2018)Thus it is very required for them to have the proper environment analysis of these two countries.
Environment Analysis Considering Indonesia Business Environment
Socio Economic Environment
Socio economic environment of Indonesia is in response to the Rapid industrialization of this country has identifies itself as the country of economic development in the country. Since the time of 1982 it is seen that the annual economic growth of this country was at least 5 percent. But the things is changed. After the period of 1990, it has come to the world as a billionaire in East Asia, “Academic Excellence” and “Asian Tiger”, both in its matter of economic size and the matter of economic growth. (APEC, 2016)
At the same time, the collection system, which allowed for its impressive economic development, triggered high levels of nepotism, corruption, secretive conspiracy in government, and strong anti-human rights abuses. Since the 1997 Asian financial crisis, shaky instigations and public invasions by the Suhart regime have led to the crisis. The democratic movement that began in the early 1990s gained momentum and played a major role in opposing the regime. Suharto announced his retirement in 1998, followed by Vice President Habibi. (Heritage, 2017)
Political Legal Environment
Political legal environment of Indonesia having the push and pull of different strength. The country is in the stable position, fully respondent to acknowledging its political mistakes. Political deepening of the election sees a number of political needs and expectations. Free media provides room for open debate and discussion, as well as issues of accepted cultural and political standards. (WeForum, 2018)It has the healthy environment practice for democratic development and the subsequent erosion of harmful and corrupt practices. So the political system is still in the process of development, but not without fear. But the events of the Arab Spring and subsequent political unrest have shown that the seemingly stable authoritarian regime has leaked due to the inevitable expanse and the decline of the economic cycle. Excessive concentrated power is also the main focus of ignition, as seen in some countries such as Thailand. The immediate effect of Indonesia’s decentralization is excessive waste and bureaucracy. However, this is part of a process of political maturity, which eventually leads to a number of coordination areas that have implemented policies that fill their specific attributes and the strengths of trade. From this long-term perspective, investors can trust Indonesia’s stability and its political system will continue to grow over the next few decades. (Justin, 2016)
Business Environment
The benefits of Indonesia as a business and investment target are determined by the current global and global climate, which outlines some of the key parameters to be addressed in emerging markets. Natural resources, food security and renewable energy give rise to an increase in oil and food prices, fueling public discontent in other markets. Their potential as raw materials for additional value added production will also be important to drive the country through the transition to medium-term and developed economies. The large population, which is expected to reach 288 million by 2050, will serve both high-quality manufacturing and consumer markets, as the country reaches its forecast as the sixth-largest economy in the world.
Environment Analysis Considering Philippines Business Environment
Socio Economic Environment
The socio economic environment of Philippines is enjoying the country benefits from renewed interest from foreign investors, both in the light industry and in the services sector, such as access to business needs. (APEC, 2016)
The Philippine economy has risen sharply as well as effectively in recent years and remains strong even with occasional shocks. By 2016, the country’s economy grew 6.8 percent, the fastest in Asia, and 6.7 percent in 2017, driven by growth in investment and consumption, as well as public and private and PPPs in infrastructure. Domestic consumption is considered to remain as the main engine of the economy of the country, for 70% of GDP. Although China is the third-largest exporter of Philippine exports, the Philippines is expected to be less affected by falling in China due to high demand for electronics. In 2017, current accounts have fallen into this negative range for the first time since the global financial crisis in 2009, partly due to new ambitious infrastructure spending plans. Gross domestic product is projected to grow by 6.6 percent in 2018 and 6.5 percent in 2019. (Nordea, 2018)
In this society, the country has faced many problems in recent years, thus the population of the country living below the poverty line has raised (33 percent of the population and 75 percent in parts of southern Philippines). Though it has the low unemployment rate (5.3 percent in January 2018), but there was inequality in distribution of wealth and beside these the unemployment continues to grow which was 18 percent of the population in the labor market. (ASEAN, 2017)
Political Legal Environment
The Philippine government has adopted many government policies to keep the political environment good for the betterment of the country economy. The constitutional framework in some cases is modeled on the progress of the economic development of the country. The Philippines Law on the Right to Give People the Human Rights of the Nation as Americans. Moreover, this country is the politically stable country in the world and having good atmosphere for business and there are no violation that may restrict te growth of the business or the growth of the country economy. (Santan, 2018)
Business Environment
The Philippine business climate was noted as a wave of growth. It is not likely to be reduced compared to neighboring countries. More recently, the political and economic environment has become a major challenge for many local businesses. However, due to the current environment, there are businesses that continue to grow. They have the ability to cope with major crises and have the flexible strategies in recent times and able to take the opportunity very quickly. It has the criteria for these business responses to changes in the internal and external environment. These responses are reflected in corporate strategy. These strategies are analyzed together because one strategy will affect the next. In that case, in Philippine a very well integrated model is used to demonstrate interaction between entrepreneurs, entrepreneurs, immediate environment, and the general atmosphere. (Nordea, 2018)
Overall Analysis
The analysis of the GDP of both the country is phenomenal. Thus for Perfect Portion to export the product to these countries are viable as both GDP is at increasing or stable point.
(APEC, 2016)If we look for the Indonesia GDP then we can see that projected GDP of this country up to 2022 then we can see that its GDP growth rate is increasing over the year and it is a good judgment to decide by observing the GDP trend whether the Perfect Portion will go for the export of the product of not. (ASEAN, 2017)Whether up to 2022 it is giving the increasing trend though it has some fluctuation in some years but while the trend is in upward shape then it could be the great judgmental issue to consider to export in that country. (OECD, 2018)Moreover, we have seen the economical, political and business environment is too much stable there is no cause of violation that may restrict the business growth. Thus Perfect Portion may go for the export of his skin product in this country. (Justin, 2016)
On the other hand, If we look for the Philippine GDP then we can see that projected GDP of this country up to 2022 then we can see that its GDP growth rate is slightly decreasing over the year and it is a good judgment to decide by observing the GDP trend whether the Perfect Portion will go for the export of the product of not. (WeForum, 2018)In that case, it may create dilemma that to export in Philippine will be wise or not. Whether up to 2019 it is giving the increasing trend though it has some fluctuation in some years after 2019 but it is recovering back in after 2019 and up to 2021 it is increasing having slight decrease in 2022 while the trend is in upward shape up to 2019 then it could be the great judgmental issue to consider to export in that country. (APEC, 2016)And then therefore the slight decrease in 2022 may happen in GDP due to economic factor like inflation, or some policies of the government but the overall scenario is good at for business and exporting the product by Perfect Portion. Moreover, we have seen the economic, political and business environment is too much stable there is no cause of violation that may restrict the business growth. Thus Perfect Portion may go for the export of his skin product in this country. (ASEAN, 2017)
Recommendation – Environment Analysis
So, finally it could be given the recommendation for Perfect Portion as it has decided to export its skin product in the Indonesia and Philippine could be viable and justifiable. Because both the country has good and better stable as well as increasing business environment in response to the GDP growth and they may go for it.
References – Environment Analysis
Alex. (2016). Business Environment in the Philippines . Retrieved 05 04, 2018, from global trade
APEC. (2016). Assessment of the Achievements of the Bogor Goals in 2016. Retrieved 05 04, 2018, from APEC
ASEAN. (2017). An Economic & Social Background to the Philippines 2017. Retrieved 05 04, 2018, from ASEAN
Eldis. (2017). Social, economic and political context in Indonesia. Retrieved 05 04, 2018, from Eldis
Export. (2018). Political and Economic Environment. Retrieved 05 04, 2018, from Export
Heritage. (2017). Indonesia. Retrieved 05 04, 2018, from Heritage
Justin. (2016). Indonesia – Political Environment. Retrieved 05 04, 2018, from Export
Nordea. (2018). The economic context of the Philippines. Retrieved 05 04, 2018, from Nordea
OECD. (2018). Reports. Retrieved 05 04, 2018, from OECD
PerfectPortion. (2018). About us. Retrieved 05 04, 2018, from Perfect Portion
Santan. (2018). Philippines (the): Economic and political outline. Retrieved 05 04, 2018, from Santan
SMH. (2018). Falling under spell of aromatherapy. Retrieved 05 04, 2018, from SMH
WeForum. (2018). Reports. Retrieved 05 04, 2018, from We Forum
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