Vithit to the opportunities and threats the environment

Vithit
is in the beverages industry, as an alternative to sugary drinks but competes
in the same market within the health beverages niche.  In this assignment I will apply PESTLE and
Porter’s five forces to Vithit as well as the beverages industry.  I will also analyse Vithit’s strategy for
internationalisation by looking at Greiner’s model of how organisations grow
and evolve and Mintzberg’s five natural configurations.    

PESTLE
stands for political, economic, social, technological, environmental and
legal.  Political is concerning the
opportunities and threats placed on a business by political institutions such
as the government.  The main influences
are government policies, trading policies, grants, lobbying, interest groups,
political trends, taxes and bureaucracy. 
Economic is regarding economic policies and economic structures.  The main influences are the local economy,
taxation, inflation, interest rates, economic trends, industry growth,
international trade and exchange rates. 
Social refers to the cultural aspects of life, beliefs and trends that
will affect a products sales and popularity. 
The main influences are, demographics, media, brand, lifestyle trends,
consumer attitudes and opinions, ethics and advertising.  Technological is concerning the technological
aspects of business, the barriers and incentives.  The main influences are new technologies,
legislation, research and innovations, ICT and competitor technology
development.  Environmental is relating
to the opportunities and threats the environment has on the business.  The main factors are environmental
regulations, reducing carbon footprint and impact of weather.  Legal relates to the laws, regulations and
legislation that affect the running of Vithit. 
The main factors are Irish legislation, international legislation,
consumer protection, health and safety regulations, competitive regulations and
industry-specific regulations.  PESTEL is
a way to analyse the strategic planning of a business.  It looks at the external influences on a
business, so they can plan accordingly and be successful in the long run.  It helps the business with their strategic
planning, marketing planning, organizational change, research and product
development. 

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Porter’s
five forces framework consists of the main elements of competition, the
bargaining power of suppliers, threat of substitutes, bargaining power of
buyers, threat of new entrants and competitive rivalry.  The goal of the corporate strategist is to
find a position in the industry to best defend the company and to take
advantage of these forces.  The impact of
each of the forces vary depending on the industry but their collective strength
determines the overall profit potential. 
They highlight the strengths and weaknesses of the business and show
which areas need to be adjusted for maximum results.  The weaker the forces the greater the
opportunities for higher performance.    

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