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    Pestel Analysis On FMCG Sector

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    The document provides a PESTEL analysis of the factors influencing the FMCG sector in India. Political factors like stability, taxation policy, government intervention, and subsidies can significantly impact business growth. Economic factors such as interest rates, tax charges, exchange rates, national income, economic growth, and inflation rate also directly affect the costs and profits of FMCG companies. Labour laws are one example of social factors that must be considered. Environmental and technological changes can open up new opportunities or threats for the industry.

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    Pestel Analysis On FMCG Sector

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    CoC Alt
    52 views5 pages
    The document provides a PESTEL analysis of the factors influencing the FMCG sector in India. Political factors like stability, taxation policy, government intervention, and subsidies can significantly impact business growth. Economic factors such as interest rates, tax charges, exchange rates, national income, economic growth, and inflation rate also directly affect the costs and profits of FMCG companies. Labour laws are one example of social factors that must be considered. Environmental and technological changes can open up new opportunities or threats for the industry.

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    The document provides a PESTEL analysis of the factors influencing the FMCG sector in India. Political factors like stability, taxation policy, government intervention, and subsidies can significantly impact business growth. Economic factors such as interest rates, tax charges, exchange rates, national income, economic growth, and inflation rate also directly affect the costs and profits of FMCG companies. Labour laws are one example of social factors that must be considered. Environmental and technological changes can open up new opportunities or threats for the industry.

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    Download as PPTX, PDF, TXT or read online from Scribd
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    52 views5 pages

    Pestel Analysis On FMCG Sector

    Uploaded by

    CoC Alt
    The document provides a PESTEL analysis of the factors influencing the FMCG sector in India. Political factors like stability, taxation policy, government intervention, and subsidies can significantly impact business growth. Economic factors such as interest rates, tax charges, exchange rates, national income, economic growth, and inflation rate also directly affect the costs and profits of FMCG companies. Labour laws are one example of social factors that must be considered. Environmental and technological changes can open up new opportunities or threats for the industry.

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    of 5

    PESTEL

    ANALYSIS ON
    FMCG SECTOR
    INTRODUCTION
     The term fast moving consumer goods (FMCG) refers to those retail
    goods that are generally used or replaced in short period of time i.e
    a day , a week , a month , & within one year. FMCG is also known as
    the CONSUMER PACKAGED GOODS (CPG). These products are
    relatively sold at low cost.
     FMCG’S have a short life , either as a result of high consumer
    demand or because the value of product deteriorates gradually . It
    comprises consumer non-durable products that include food ,
    beverages , personal care , & household care . Goods such as meat
    , fruits , and vegetables , daily products and baked goods – are
    highly perishable .
     Among all the secotrs FMCG’S industry is one of the fourth largest
    sector in the country and growing at a booming rate over the years
    . The indian FMCG industry is mainly classified as organized and
    unorganized . The FMCG sector is highly segmented as different
    products are made for different segments in the society.
    PESTEL ANALYSIS ON FMCG INDUSTRY:-
     POLITICAL FACTORS :-
    Political stability – Political stability is one of the most important
    factor which influence the growth of business directly . If political
    stability is higher , then it leads to perfection in business and on the
    other hand if there is un-stability the business will have to suffer .
    Taxation policy – Tax policy of the government will affect the price
    of inputs and it ultimately affect the prices of final products and it will
    affect the sale of products .
    Government intervention – This indicates that at what level the
    government intervenes in the economy . If the government intervenes
    is more sometimes it helps the organisation at large extent .
    Subsidies – The subsidies which are provided by government to
    different organisation at different level also help it to grow at faster rate
    and helps the organisation in reducing the finance which is to be
    funded from outside and it directly reduces interest amount paid in
    favor of fund raised from outside .
    Trading policies – This indicates the policies related to import and
    export of goods and services from different nations . If the policies are
    favourable more goods and services will be imported and exported ,
    and on the other hand if policies are unfavourable it will restricts the
    import and export .
    Labour law – Labour law also affects the organisation , for example-
    child labour , a child below 14 year of age can not work in factory or
    any hazardous place.

     ECONOMIC FACTORS:-

    Interest rate – Interest rate directly affects the cost of capital , if the interest rate is
    higher the cost of capital will increase and if it is lower then cost of capital will be
    lower . This directly affect the profit of the organisation and it’s growth .
    Tax charges – If the tax charged by the government is lower the it will reduce the
    product price and if it is higher then it will increase the price of the product .
    Exchange rates – This shows that what is the exchange rate or foreigh currency rate
    . If the exchange rate is higher more amount is paid on import of goods and if it lowers
    less amount is to be paid and on the other hand if its higher the amount received will
    be more and if its lower the amount received will be low .
    National income – National income is important factor as if affect
    the growth of the organisation . If per capita income is more the
    amount spend will be more and if it will be lower the amount spent will
    be less .
    Economic growth – Economic growth is important factor in the
    development of the organisation . If the economy grows at a higher
    speed it will directly affect the growth of the organisation .
    Inflation rate – Inflation means the rise in the value of all the
    products in the economy , if inflation rate is higher the cost of products
    will be higher and if inflation rate is lower the cost of product will be
    lower . This directly affect growth of the organisation .

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