A Comparative PESTLE Analysis: UK vs. Libya

Political:

Political stability is the great strength of the country, but after BREXIT the internal situation becomes uncertain.

The corporation tax rate in the previous year 2019 was 19%, and the government of the UK takes initiative to restructure the corporate tax rate in order to maximise profitability of the business (Bush, 2016).

From April 1, 2020, the corporate tax rate will be 18% and reduction of the tax rate will affect the business positively.

Economic:

UK is the fifth largest economy with high nominal GDP with 1.45% growth.

Stable economic condition with inflation rate of 1.7% is effective for the business to grow faster.

In 2017, the inflation rate was 3.1% and government of the UK developed strategic planning for reducing the inflation rate under 2% and it further increased interest rate which will be beneficial for the organisations to conduct business in the UK (UKesays, 2017).

Social:

The population rate of the UK is effective where in 2018, there were 4 million people and it is expected to reach 74 million by 2039.

The population is multicultural and the UK has string consumer market which further provides a scope to the businesses to expand their activities in the market and strengthen their customer’s base for securing future sustainable development.

Technological:

There is lot of investment not the Information Technology which influence the business firms to digitalise their operational activities and improve creativity and innovation.

However, the UK is failing behind the USA, Japan, and South Korea in terms of technological development.

Legal:

The legal structure of the UK is strong where the legislations such as non-discriminatory policies and practice, maternity and paternity leaves, minimum wage, sick pay, holiday pay and legal protection are effective to create values for the employees and retain them for long run to achieve organisational success.

Additionally, the Employment Act 1996 protects rights of employees and Equality Act 2010 protects people from any discrimination are also beneficial to enhance the business activities by strengthening their employee base.

Environmental:

The government, local council and charitable organisations of the UK are collaborative to tackle the challenging weather condition through creating environmental awareness and reducing the negative impacts of economic growth on environment.

Political:

There exists political instability and corruption due to lack of transparency, weak internal accountability, restricted freedom to express and no access of information.

Economic:

The economic growth rate in Libya is increasing at a rapid rate and it is considered to be one of the highest GDP per capita in Africa (Ahmed, 2010).

The inflation rate in Libya is 4.22% which needs to be managed and lowered in upcoming years to stabile the country’s economic growth and social development.

Social:

As of January 1, 2020, there are 6281256 people in Libya and it is expected to rise in future with 0.04% (Market research reports, 2018).

There is strong consumer base in the country which is effective for the corporate businesses to expand their activities in the market and strengthen their customer’s base.

Technological:

There is high opportunity of innovation and creativity through technological advancement, where the people are interested to explore new technology in the country.

The practice of technological advancement and upgraded organisational IT infrastructure are effective for the business to expand their business activities in Libya and gain high competitive advantage through technical innovation.

Legal:

The Labour Relations Act of 1956 and rights of all South Africans are effective to protect the interest of the employees.

Additionally, every worker have the right to strike and on the other hand the duty of care and the duty of mutual trust and respect are also there which are effective to develop organisational culture (The World Bank, 2020).

The basic employment rights are the right to know, right to participate at the right to refuse unsafe work are there which also restructure the employment legislation and practice and thus the legal structure of Libya is effective for the business to retain experienced staff and expand the business activities strategically (Market research, 2020).

Environmental:

There is lack of environmental concern for which the people are suffering form protecting the environment.

Pollution of rivers, air pollution from acid rain and lack of importance in water reservation are there which may hamper the business activities negatively (Chavan, 2020).

Political:

Political instability is high in the country, where it is difficult for the businesses to expand their activities in Romania. It may hamper the smooth business activities negatively in the market.

The government of the country focuses on improving cooperation to influence international trade to stabile the economy and provide an opportunity to the business firms to successful expansion (Market research reports, 2020).

Economic:

There is economic growth in the country, where it is likely to grow to $252 billion at the current price by 2019 (Bivolaru, Andrei and Purcăroiu, 2009).

Economic growth and improving the stable inflation rate in the country further helps to stabilise the taxation and interest rate and this further enhances the business activities in the market.

Social:

Social development is there in the country with population growth rate.

The people are literate and there is string consumer market, where the business firms can expand their activities for maximising profitability and sales volume.

Technological:

Romania is considered to have high infrastructural development in terms of IT services.

The country is growing with technological advancement and improving organisational infrastructure.

It further enhance the scope for the firms to expand their business in the country for better management f he operational activities through innovation and creativity (bica, 2008).

Environmental:

As per the environmental concern, the country is innovative and it is considered as largest creative country in terms of IT development.

The leader and the mangers in the multinational corporate firms try to reserve the natural process of the country and tackle the weather change through using renewable resources so that it is possible for them to protect the environment and maximise green environmental footprint (Lucintel, 2014).

Reference List

Ahmed, A. S., 2010. An empirical analysis of Libyan business environment and foreign direct investment. [online] Available at: http://etheses.dur.ac.uk/462/ [Accessed on 22 February 2020].

bica, 2008. PEST Analysis of Romania. [online] Available at: http://www.unrealestates.bg/PEST%20ANALYSIS%20OF%20ROMANIA.pdf [Accessed on 22 February 2020].

Bivolaru, E., Andrei, R., and Purcăroiu, G. V., 2009. Branding Romania: a PESTLE framework based on a comparative analysis of two country brand indexes. [online] Available at:

Bush, T., 2016. An Example PEST Analysis of the UK. [online] Available at: https://pestleanalysis.com/pest-analysis-of-the-uk/ [Accessed on 22 February 2020].

Chavan, H., 2020. Pest Analysis of Libya. [online] Available at: https://www.scribd.com/presentation/211465628/Pest-Analysis-of-Libya [Accessed on 22 February 2020].

Lucintel, 2014. PESTLE Analysis of Romania 2014. [online] Available at: https://www.lucintel.com/pestle-of-romania-2014.aspx [Accessed on 22 February 2020].

Market research reports, 2017. Romania PESTEL Analysis Market Research Report. [online] Available at: https://www.marketresearchreports.com/market-research-reports-inc/romania-pestel-analysis-market-research-report [Accessed on 22 February 2020].

Market research reports, 2018. North Africa PESTEL Analysis Market Research Report. [online] Available at: https://www.marketresearchreports.com/market-research-reports-inc/north-africa-pestel-analysis-market-research-report [Accessed on 22 February 2020].

Market research reports, 2020. Romania. [online] Available at: https://www.marketresearchreports.com/countries/romania [Accessed on 22 February 2020].

Market research, 2020. Country Analysis Report: Libya, PEST Insights. [online] Available at: https://www.marketresearch.com/MarketLine-v3883/Country-Libya-PEST-Insights-10255099/ [Accessed on 22 February 2020].

The World Bank, 2020. Country overview Libya. [online] Available at: https://www.worldbank.org/en/country/libya/overview [Accessed on 22 February 2020].

UKesays, 2017. PESTLE Analysis of UK. [online] Available at: https://www.ukessays.com/essays/economics/a-pestle-analysis-of-the-united-kingdom-economics-essay.php [Accessed on 22 February 2020].

disclaimer :-Our assignment samples are intended strictly for reference purposes, and we do not provide finalized assignments. However, we encourage you to use our work as a reference to enhance your learning and understanding of the subject matter.

Dig deeper into A Comparative Analysis with Overseas Competitors with our selection of articles.