Jumia Nigeria Assignment 2
PESTEL Analysis
1. Political – How stable is the political environment in the prospective country?
– What are the local taxation policies? How do these affect your business?
– Is the government involved in trading agreements, such as the European Union (EU), the North American Free Trade Agreement (NAFTA), or the Association of Southeast Asian Nations (ASEAN)?
– What are the country’s foreign-trade regulations?
– What are the country’s social-welfare policies?
2. Economic – What are the current and forecast interest rates?
– What is the current level of inflation in the prospective country? What is it forecast to be? How does this affect the possible growth of your market?
– What are local employment levels per capita, and how are they changing?
– What are the long-term prospects for the country’s economy, gross domestic product (GDP) per capita, and other economic factors?
– What are the current exchange rates between critical markets, and how will they affect production and distribution of your goods?
3. Sociocultural – What are the local lifestyle trends?
– What are the country’s current demographics, and how are they changing?
– What is the level and distribution of education and income?
– What are the dominant local religions, and what influence do they have on consumer attitudes and opinions?
– What is the level of consumerism, and what are the popular attitudes toward it?
– What pending legislation could affect corporate social policies (e.g., domestic-partner benefits or maternity and paternity leave)?
– What are the attitudes toward work and leisure?
4. Technological – To what level do the local government and industry fund research, and are those levels changing?
– What is the local government’s and industry’s level of interest and focus on technology?
– How mature is the technology?
– What is the status of intellectual property issues in the local environment?
– Are potentially disruptive technologies in adjacent industries creeping in at the edges of the focal industry?
5. Environmental – What are the local environmental issues?
– Are there any pending ecological or environmental issues relevant to your industry?
– How do the activities of international activist groups (e.g., Greenpeace, Earth First!, and People for the Ethical Treatment of Animals [PETA]) affect your business?
– Are there environmental-protection laws?
– What are the regulations regarding waste disposal and energy consumption?
6. Legal
– What are the local government’s regulations regarding monopolies and private property?
– Does intellectual property have legal protections?
– Are there relevant consumer laws?
– What is the status of employment, health and safety, and product safety laws?