PEST Analysis A tool to determine a business standpoint in access of its challenges, opportunity, obstacles, and competitor which fully focus on the external environment. Political Factor Stable political situation in country creates a path to successful operation of a business. Political changes in sense of Government law enforcement give an impact in whatsoever business. Company requires more physical work which needs many workmen at job site to construct swimming pool.
Government implement on new rule to restrict the numbers of foreign workers in country, some of the existing workers forced to sent back to their own country where they are not allowed to extend their passport or stay longer in this country. Since company depends on foreign workers, it causes difficult time to hire new or alternative workers, forced to pay higher agency fee, other problems like workers experience might not match the job requirement or even they are not valid to stay longer in this country. Economical Factor Inflation or economy crisis will affect the business cycle.
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This situation can force big organization that build pools for their apartment, hotel, and university might slow down their projects due to poor cash movement or even house pool owners drag their payment causes company to face cash shortage and difficult moment for enrolment. Inflation causes exchange rate to be higher where company needs to pay more when import goods from overseas and charge that cost on selling price to customer in some unavoidable cases. In this situation, customer mood might change and their confidence level might drop to build swimming pool or request for special discount or even demand for more payment terms.
Besides this, company might also cut down the numbers of workmen and overtime pay. The monetary policy of bank might affect where banks might increase the interest rates for any loans given. This critical situation must be overcome by good internal planning of company to avoid business and customer loose. Social Factor The social cultural on current trend of lifestyle changes gives an impact to swimming pool business. People with high income distribution most likely willing to build swimming pool for their houses / bungalows and demographic factors like age structure of population, family size and gender become a factor for their decision.
Chinese and Malays are the ethnic groups who are most likely to have big houses and prefer to build swimming pool especially for their kids to swim and play. When comes to young couples, foreigners, outstation college students & working adults, home worker or even single household prefer to stay in service apartments or condominiums which most likely swimming pool to be built in while become a trend and fashion of luxury lifestyle to enhance their living style.
This people either interested to invest / rent on this type of properties where the value easily can shoot up and this trend represents an opportunity where creates demand for swimming pools construction business. Technology Factor The new discoveries and development, easy up the working environment. More machineries and tools cut down the energy cost and save production time. At the same time some advanced machineries creates win-win situation for supplier and also customer by having zero rate of wastage.
In this case, supplier wont have material loose and buyer no need to pay additional charges for the wastage. As far as concern government do not spend on research for swimming pool industry where they don’t give priority for this since they are only built for flexible lifestyle by luxury people. Government rather spend more on the other researches which is beneficiary for the whole nation. By the speed of technology transfer swimming pool products and equipments easily can be imported from abroad by advance Telco and Internet services.