Published by MBA Skool Team, Last Updated: February 14, 2021
PESTLE Analysis of Quaker Oats analyses the brand on its business tactics. Quaker Oats PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Quaker Oats, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
The political factors in the Quaker Oats PESTLE Analysis can be explained as follows:
Quaker Oats is doing its business in various countries. Different countries have different governments and governments used to change. So, its important for the company to maintain political connections and monitor the political stability. It also maintains good connections with the local government which are crucial for making policies and implementing those policies. It also should know about the international treaties by the parent country and formulate its strategies according to it. Due to pandemic, the budget allocations and the company trade policies might be changed. In some countries like India promoting local brands and giving subsidiaries to those companies. As the world is moving towards deglobalisation it is important for the company to watch the political policies of the countries where it is operating.
Below are the economic factors in the PESTLE Analysis of Quaker Oats:
Being a global brand, Quaker Oats’ performance is affected by several economic factors.
Due to pandemic, the world economy has downfall. Still vaccination is in initial phase and economy is growing slowly, it impacted on the business. Quaker Oats should also be careful with the foreign exchange risk. It is operating in many countries and it should be more cautious about the exchange rates before starting business in that country. Many countries expected negative growth in next financial year and the company should focus on the various economic indicators to design new strategies. The average expenditure of the household also decreased due to this pandemic. Most of the families have reduced their consumption.
Following are the social factors impacting Quaker Oats PESTLE Analysis:
Quaker Oats mostly focuses on the students, health freaks, unmarried. This pandemic also changed lifestyles of many people. People started moving towards the healthy food habits. The level of education of the people has improved. They are fully aware of the information which are healthier. The company should also focus on new product ranges where people are interested. They should focus on people habits, who try cooking and cooking new dishes. If the company provides the new recipes to try will attract new customers. As the company is in the food industry, people habits and tastes changes frequently. So, it is important to always keep an eye on people lifestyles and habits.
The technological factors in the PESTLE Analysis of Quaker Oats are mentioned below:
The industry, including Quaker Oats, follows mass production, the process doesn’t have much variety. So, the company incorporated automation process. The company can incorporate latest new technologies to improve the process. The company should invest more on the research and development to improve the process along whole value chain process. It also can incorporate new technologies in their supply chain network.
It also helps their vendors and distributors to incorporate new technologies which aid in collective growth and prosperity.
Following are the legal factors in the Quaker Oats PESTLE Analysis:
As Quaker Oats is in food industry, there are lot rules and regulations to follow. These food safety regulations are different from one country to another country. The company should ensure that these are incorporating standard quality measures. The company operates in different nations, so it ensures it follows all legal aspects to establish the plant and to do business. Quaker Oats should also assure the customers that they are providing right products with right information and right ingredients are used. If any ingredient or product doesn’t match the company’s promotion it will face severe consequences. The labour laws are also different from each country and the company should incorporate its legal aspects according to the laws of the particular nation.
In the Quaker Oats PESTLE Analysis, the environmental elements affecting its business are as below:
Since the company produce lots of products it uses lots of energy. Quaker Oats company uses most of this energy generated from fossil fuels which increases the carbon foot print. So, company should incorporate green energy process and also work for the aid of global environment.
As the environmental laws are different from nations, it is important for the company to follow safe environmental practices. It also should improve its global supply chain as its supply chain shouldn’t be disturbed by climate disasters. It also should use sustainable packaging as customers have a positive attitude towards the eco-friendly products.
To conclude, the above Quaker Oats PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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