The Pestel Analysis Of Tata Tea

877 Words 4 Pages
For any organization, surrounding factors like political, economical, social, technical, environmental play important role in strategic planning as well as operational execution. Any factors affecting organization's supply and demand levels along with costs need to be identified and analyzed for the influence. PESTEL analysis describes a framework which helps categorize environmental influences as economic, political, social and technological along with environmental and legal forces. Framework conducts impact analysis of these factors among each other and on Business. Findings are used as inputs for SWOT analysis performed on the product, business, organization.

PESTEL analysis is continuous process which caters to planning process.
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Increase in Interest rates causes lower spending levels. Tata tea has challenegs due to rising commodity costs for Tea produce. Due to pricing, Tata tea presence is limited to key areas and fierce promotional campaigns from competitors can be a cause of concern. Although it has not affected profits as much.

Social Environmental Factors: Social factors include population growth, age distribution, people habits, youth career aspirations. Trends in these factors determine demand for company's products and company operation. More and more people are adapting healthier lifestyles and it has affected non-alcoholic beverage industry in both ways.
People are preferring herb drinks, natural drinks over alcoholic drinks or other carbonated drinks. Tata tea has already sensed the trend and has launched products like green tea in market which is definitely an advantage especially in urban areas. MoU for joint venture with PepsiCo to explore ready-to-drink healthier beverage will give an edge to Tata Tea in the market in Health and Nutrition segment.
Due to globalization, working hours of corporate employees are changing. More secured environments like offshore development centers, BPO offices make solutions like installing beverages vending machines very much viable and exciting. Tata Tea has already ventured in this
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Use of technology increases production, innovation and is important for competitive advantage. Tata tea is making use of technology in increase of tea produce, plucking tea leaves systematically and process to convert leaves to fine tea. This gives an edge over traditional way of making tea from tea leaves.
Introduction of vending machines for Tea - Coffee has increased the production tremendously. Technical advancements help in innovative packaging of the products, effective advertisement through traditional channels like television as well as social

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