PEST AnalysisCarrie Keller

Ashland Consumer Markets- Valvoline

Business to Consumer Division

Political- Business to Consumer

Ashland Consumer

Ashland Performance

Ashland Water

Ashland Specialty

0% 10% 20% 30% 40%

Sales by Commercial Unit

Sales by Commercial Unit

• Strict environmental laws throughout Europe. Laws are especially strict within Germany, Sweden and Finland.

• The EU has a waste oil collection rate of about 80%.

Economic- Business to Consumer

• Shrinking car market in Europe. Fewer personal cars results in decreased need for maintenance and oil.

• Poor economy in Europe.• Fluctuations in value between the Euro and

the United States Dollar. The chart at left shows the ever changing exchange rate between the EUR and the USD over the last ten months.

Social- Business to Consumer

• Attitudes toward the environment in Europe.

• Environmental protectionism in Europe.

• Attitudes toward the necessity of personal automobiles as opposed to public transportation.

• Changing perceptions about the frequency of oil change necessity.

Technological- Business to Consumer

Increasing popularity of synthetic oil product. Consumer can change their own oil.

Ashland Specialty Ingredients, Water technologies and Performance Materials

Business to Business Division

Political- Ashland Specialty Ingredients

Potential legal issues due to the nature of the products. Foods consumed by humans could create legal risk.

Strict laws in the European Union about food additives.

Economic-Ashland Specialty Ingredients

The varying exchange rate between the Euro and the United States Dollar.

Poor economy in Europe.

Social-Ashland Specialty Ingredients Negative perception of food

additives. Trend toward more natural foods. Health conscious Europeans

leaning toward unprocessed and organic foods.

Technological-Ashland Specialty Ingredients Consumer demand for

products that will not be harmful to their health.

Political / Legal-Ashland Water Technologies Strict environmental

regulations relating to papermaking and factories.

Legal issues regarding potential pollution.

Economic-Ashland Water Technologies Shift toward recycled paper

products. Poor economy in Europe. Fluctuation between the Euro

and the United States Dollar.

Social-Ashland Water Technologies Increasing awareness and social pressure

to be ‘green’. Recycling is the norm in Europe. Increase of availability of recycled

materials. Increased awareness of the type of

packaging a food item is in.

Technological-Ashland Water Technologies Food production techniques are

constantly changing. Changing technology of paper

recycling toward a more environmentally friendly approach.

Political- Ashland Performance Materials Environmental concerns.

Pollution. Chemicals used in building

materials being linked to diseases like autism.

Economic-Ashland Performance Materials Poor economy in Europe

causing construction to lag. Changing exchange rate

between the Euro and the United States Dollar.

Social-Ashland Performance Materials Increased awareness of

chemicals in construction materials and their potential health risks.

Technological-Ashland Performance Materials Consumer demand for

safe yet effective products within their homes and businesses.

PEST AnalysisFactor Trend Evaluati

onImpact (1=low, 5=high)

Rank

Political 1. Strict environmental laws in Europe.2. Strict food additive laws in Europe.

1. Threat

2. Threat

4

4 4

PEST AnalysisFactor Trend Evaluation Impact

(1=low, 5=high)

Rank

Economic 1. Economy lagging in Europe

2. Currency exchange rate between the EUR and the USD.

1. Threat2. Opportunity

33

3

PEST AnalysisFactor Trend Evaluatio

nImpact (1=low, 5=high)

Rank

Social 1. Consumer awareness of chemicals and additives in their foods.

2. Consumer awareness of the effects of chemicals in building supplies

3. Environmental protectionism.

1. Threat

2. Threat

3. Threat

5

5

5

5

PEST AnalysisFactor Trend Evaluation Impact

(1=low, 5=high)

Rank

Technological 1. Consumer demand for safe, effective products that are not harmful to the environment

1. Opportunity 4 4

Conclusions: The major opportunity for my company

appears to be the changing technology of food additives, chemical compounds and increasing awareness of environmental issues. By continually changing, my company can gain a competitive edge.

Conclusions: The major threat to my company would

be the poor economy in Europe. Another threat that is also an

opportunity is the increasing consumer demand for more earth friendly products.