PESTEL RESULTS

POLITICAL

It is very paramount for Ice cream newcomer in the Dutch market such as Snoggle to analyze it' Political, Economical, social and technological an legal environment.

Political factors have a strong influence on ice-cream industries. This can give the company advantages, opportunities but it can also give them sanction when the company is not acting accordingly. These factors can be government regulations or individual politicians who can control the operations of a company. The analysis of political factors will help Snoggle determine how to proceed in that particular market. Political factors can be;

Legislation such as the minimum wage or anti-discrimination laws. Voluntary codes and practices Type of government regime e.g. communist, democratic, dictatorship

(international minimum wage rates, 2013).

Labor Law

The federal legislation is the biggest source of labor law, there is not one consolidated labor code. The labor law standards are put in separate Acts on several issues related to labor, which are added by the government ordinance. The labor legislation are dictated by labor courts, but in some cases like strike they are partly or total left to case law. (International Labour organization, 2011).

Working time is defined as the time from the beginning until the end of work without breaks. The legal working time is 8 hours per day, except for Sunday and statutory holidays, which are normally seen as a resting period. The normal weekly working hours are 48hrs but in many cases it can reduced to 38,5 and 35 hours by mutual agreement. The normal working hours cannot be exceeded to mothers, young workers lower than 18 or pregnant women. In other cases order than to ones mention before the working hours can be extended to 10hrs, this can only happen if for the first six months the regular working hours were eight hours per day. (International Labour organization, 2011).

Voluntary Codes & Practices

when social standard are not maintained, the International Labour Organization (ILO) cannot impose sanctions. For this reason voluntary codes of conduct, private initiatives and quality labels are important when it comes to implementing labor standards worldwide. The private sector and unions are working together in introducing social standards. Code of Conduct for specific sectors

It’s very complicated for small and medium sized companies and organizations to develop a code of conduct for their particular business. For this reason several industries of different branches had the initiatives to develop codes of conduct that apply to entire sectors. An example of code of conduct is the Common code for the Ice-cream community. ( BMZ Federal Ministry for Economic Co-Operation and Development, 2012).

Government

The Netherlands is a parliamentary democracy, and parliament therefore has the last word. It has an elected government and a head of state, the king or queen. The basic structure of government is set down in the Constitution, which also deals with citizens' rights vis-à-vis the government and the government's duties towards its citizens.

ECONOMICAL

All businesses are affected by national and global economic factors. National and global interest rate and fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organizational stakeholders such as suppliers and creditors behave within society. An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence. Conversely a booming or growing economy will have low unemployment, high spending power and high stakeholder confidence.

For Snoggle, the economy aspects of The Netherlands is very important, Why? Because we want to know whether or not our target group will be able to pay for high quality ice-cream. If the economy is not growing it means there is a possible risk of unemployment and low spending. Factors that we need to research on the economic environment of The Netherlands are;

• Interest Rates

• The level of inflation Employment level per capita.

• Long term prospects for the economy

LEGAL FACTORS

These factor is related to the changes in laws and regulations in the future. Governments tend to add laws or regulations to many activities that has to do with businesses. Any law that don’t favor the business market can lead companies and organizations to loss in profit and even to a more tense working environment. Since Snoggle is planning in working on an international market, the company will have to focus on the legal factors for that particular country in this case The Netherlands. These factors can be;

Market regulations Trade agreements, tariffs or restrictions Tax levies and tax breaks

(Answersforbusiness, 2014).

.

as labeling, packaging materials and quality control. (Taxation and Custom Union, 2013).

References

1. European Commission (2013) “ Taxation and Custom Union” [Online]. Available at; http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en (accessed 12-03-2013).

2. European Commission (2013) “ Customs Tariffs Database” (TARIC) [Online]. Available at; http://ec.europa.eu/taxation_customs/customs/customs_duties/tariff_aspects/customs_tariff/index_en.htm (accessed 12-03-2013).

3. Germany Trade & Invest (Aug. 2010) “ Your Export-Guide to the German Market” [Online]. Available at; http://www.musavirlikler.gov.tr/upload/D/your-export-guide.pdf (accessed 12-03-2013).

4. Trading Economics (2013) “Germany- National Statistics” [Online]. Available at; http://www.tradingeconomics.com/germany/indicators ( Accessed 12-03-2013).

5. Trading Economics (2013) “Germany Interest Rates” [Online]. Available at; http://www.tradingeconomics.com/germany/interest-rate (accessed 13-03-2013).

6. Trading Economics (2013) “Germany Inflation Rate” [Online]. Available at; http://www.tradingeconomics.com/germany/inflation-cpi (accessed 13-03-2013).

7. Trading Economics (2013) “Germany Unemployment Rate” [Online]. Available at; http://www.tradingeconomics.com/germany/unemployment-rate (accessed 13-03-2013).

8. Deutsche Bundesbank Monthly Report (June 2012) “Outlook for the German Economy- Macroeconomic projections for 2012 and 2013” [Online]. Available at; http://www.bundesbank.de/Redaktion/EN/Downloads/Publications/Monthly_Report_Articles/2012/2012_06_outlook.pdf?__blob=publicationFile (accessed 13-03-2013).

9. The German Business Portal (2013) “Your Business in Germany” [Online]. Available at; http://www.ixpos.de/IXPOS/Navigation/EN/Your-business-in-germany/Market-entry/Tax-and-duty/duties,did=270820.html (accessed 11-03-2013).

10. International Minimum Wage Rate (2013) “Germany minimum wage” [Online]. Available at; http://www.minimum-wage.org/international/en/Germany (accessed 19-03-2013).

11. International Labour organization (2011) “National Labour Law Profile: Federal Republic of Germany” [Online]. Available at ; http://www.ilo.org/ifpdial/information-resources/national-labour-law-profiles/WCMS_158899/lang--en/index.htm (Accessed 19-03-2013).

12. BMZ Federal Ministry for Economic Co-Operation and Development (2012) “Corporate social responsibility: voluntary codes of conduct” [Online]. Available at; http://www.bmz.de/en/what_we_do/issues/wirtschaft/sozialstandards/unternehmensfuehrung/index.html (accessed 19-03-2013).

http://www.overheid.nl/english/aboutgov

http://www.answersforbusiness.nl/sector/retail-trade/advertising-promotion

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