Abbott PESTLE Analysis
Detailed PESTLE analysis of Abbott examining political, economic, social, technological, legal & environmental factors.
Political Factors:
Abbott has its services more than 160 countries. It is important to know the policies made by the government which affect the company. The company should also have good connections with the governments of the nations. As the parent company has very good connections with all the host nations, it is easy for the company to operate in those nations. Due to pandemic, the governments have put the restrictions. In the initial days the company faces difficulties in the logistics but now due to lift up of the restrictions and vaccination process, the inbound and outbound logistics are performing smoothly. The company also should observe the policies made by the government on the health and public welfare sector in their nations.
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This concludes the political factors in the Abbott PESTLE Analysis.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Abbott:
The downturn of the economy due to pandemic has affect the income of the people. The disposable income of the consumers has decreased.
The family expenditure also reduced. But the economic stimulus given by the various nations to improve the economy of the nation which aids the improvement of the income of the people and eventually it helps the company. The economic policies taken by the nations and the increase in the expenditure of public health welfare will aid for the growth of Abbott. The foreign exchange factors also play major role in the company’s profits.
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Social Factors:
Following are the social factors impacting Abbott PESTLE Analysis:
Now-a-days the increase in diabetes has increased a lot. Many people don’t know that they have diabetes. This is due to rapid change in their lifestyle, food habits. Due to this fact people become more proactive and constantly checking about their health. This change will definitely aid for the Abbott’s growth. The change in lifestyles of the people, the rate of people having heart problems has increased. Today people are more conscious about their health and proactively checking about their health conditions. It is important for the company to produce new products which aids for the people’s health.
Technological Factors:
The technological factors in the PESTLE Analysis of Abbott are mentioned below:
Abbott produce the products and services in the healthcare which is rapidly changing. There should be constant development of new products which can efficiently provide the service to the people. To research and produce new products, the company should embrace the new technologies like AI, ML, IOT. The company should also improve its logistics and supply chain technology for smooth operations.
The company should also focus on the improving the manufacturing process by implementing efficient inventory management.
Legal Factors:
Following are the legal factors in the Abbott PESTLE Analysis:
The company works in many nations and different nations have different rules regulations to follow. The company should ensure that they follow those rules and regulations. Each nation has different trade rules. Abbott should not make any discrepancies where the rules are strict in the health sector. The company should also ensure that they follow all the safety measures introducing the products which should not affect the health of the company. The company should also have strong legal support to protect its patents and intellectual property.
Environmental Factors:
In the Abbott PESTLE Analysis, the environmental elements affecting its business are as below:
The company is in the manufacturing sector which uses lots of energy. This increases the carbon foot print which aids the climate change.
the consumers also checking the process how the products are produced due to the improvement in the technology. So, it is important for the company to implement the policies which aids for the environmental sustainability. Abbott should also focus on the reducing the climate change factors which disrupt its supply chain and logistics.
To conclude, the above Abbott PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
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