Instable political system would be delay or reduce investment and slow down entrepreneurial activity. So it means a successful company will avoid instable political system. Political factors will also impact the operation cost of organization. Because of there are various taxes which firms need to pay, so the operation cost of company would be increase by government policy. Agents focus on global agriculture industry which is important to all governments. The World food Summit defines food security as all people have access to sufficient and safe food to meet their needs all the time. World Health organization, 1996). In order to increase food security, Agents concern on improving technologies which are safe and reliable. Most of countries focus on developing new energy; Agents invests in befoul technology which is helping countries to provide alternatives energy. In additional, the greenhouse gas emissions would be reduced by using the befouls. The new markets which Agents choose to expand are under stable political system such as China and Australia. Agents obey different national laws in different places and attempt to assist government achieve national goal.
Consequently, Agents acquire government’s support to expand into a new market. Economic Factors The economic factors of PESTLE model relate to changes of economy, there are several key economic indicators such as interest rates, rate of unemployment, exchange rates and gross domestic product (GAP). (Anthony, 2008, up. 52) The ability of business to generate profits is affected by these economic indicators so that it need close monitoring. Adrian and Alison (2008) mentioned that there are some other important economic factors relate to supply of raw material and labor.
It means the shortage of raw material and labor result in the increasing of price or salaries which will increase the operation cost of company. There are a number of economic factors affects the operation of Agents such as the increasing price of oil and the increasing demand for crops. As a result of increasing demand of crops, farmers need to use the land much more effectively. In order to fulfill the requirement of the farmer, Agents improve the quality of product. It means crops are ensured as health and free from disease so that the production of crop would be increase.
According to announcement of Agents, the new crop protection technologies increase 60% of production. Social Factors Social doctors to P E model include the changing to social within the environment and often related to changes in society’s behavior, tastes and lifestyle. (Anthony, 2008, up. 56) There are two different types of social trends. (Adrian & Alison, 2008, up. 108) Some social trends will affect few people or last in short time period, others are widespread in most of countries and last in several decades. Firms need close monitor the change of social trends.
A successful company or organization would be able to make suitable strategy to fulfill social trends, thus to maximize the profit. There are a range of social factors would affect the expanding of Agents. As the result of global population increasing, the demand of water increase dramatically. And agriculture is one the biggest user of water in a nation at same time. Therefore, Agents launch a new product which is more water-efficient and still high yielding. The feature of this new plant not only fulfill social trend and also help Agents expand into a new market effectively.
Technological Factors Firms are facing increasing competitive pressures in today’s global economy. There is a common strategy which can be used to assist firms to remain competitiveness and this strategy called technologies. (Change, Change & Hang, 2011) Technological factors of PESTLE model include the rate of innovation. (Anthony, 2008, up. 58) Technological advances include the internet, the use of software, genetic engineering and Anna technology. (Anthony, 2008, up. 58) It means technology remain competitiveness so that assist company expand into new market.
In the other hand, technological factors also help the company to meet sustainability. Sustainability is now a high priority and businesses are keen to reduce waste and be more energy-efficient. Agents always focus on increase the product output and develop sustainable agriculture product. For instance, there is a partnership among Agents, government and environmental organization and they concentrate on reduce soil erosion and improve biodiversity. Agents also provide befouls support car manufacturer in developing low emission vehicles. With these technological advantages, Agents are able to expand into a new market successfully.