PESTLE Analysis

PESTLE ANALYSIS

We are studying the problem of flooding by using analysis tool known as "PESTLE Analysis". Each letter stands for a meaning which are;

P = Politic
E = Economic
S = Social
T = Technoly
L = Legal
E = Enironment

Composition of each perspective. 

• Political factors, are how and to what degree a government intervenes in the flooding problem. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit bads). Furthermore, governments have great influence on protective measurement which can be done to help subsidizing the damage caused by flood.

• Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. However, we will focus more on how the flooding create problems which lead to economic growth of the country.

• Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Idea and impression which people from different groups have on their government.

• Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. It will indicate how the technology can be used or lead to solving or creating problems.

• Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting many companies to operate with better management of their resources.

• Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors set the framework of how much things can be done toward helping people and companies who are affected by flood.

reference: http://en.wikipedia.org/wiki/PEST_analysis

Political Aspect

Politic	Current Situation	Opportunity
- Kitchen of the world Policy promoted by government. - Political Stability - Create long term relationship with the government - Government Spending	- Since 2008, Thai government has been trying to promote Thailand as “Kitchen of the world” by aiming to be one of the top 5 food exporters in the near future. Government sees that Thailand has potential for both agricultural sector. Thailand has potential to supply the food to all over the world. Government has spent large amount of budget to support the program but the potential hasn’t been fully maximized due to flooding. - From flooding in 2010, government was attacked heavily from medias and relating parties about how slow it reacted to the problems which, in reality, damage the reputation of the government quite a lot. They had provided food, medicine and other support slowly. - When the government is changed, many projects which started by the previous government are cancelled or rarely continue by new government due to the conflict of interest. - Each year, government spends billions of baht to subsidize the flood damages and infrastructure maintenance. On the other hand, government should spend money on something else to develop country in other aspects.	- We can help the government to see how we can help subsidize or prevent the damages from flood to promote maximum potential of Thailand’s food productivity in the near future. - By co-operation with us, the people will see that government is really sincere in helping people, who are affected by flood, by sharing their resources which will show government’s commitment in solving problem. - We focus only on helping the citizens so we don’t have to care whether the government is changed or not - We can provide the government with methods which spend lesser each year with more effectiveness

Economic Aspect

Economic	Current Situation	Opportunity
- Loss of economic productivity. - Problems to business sectors. - Consumer Confidence Index - Sustainable economic model	- From flood in 2010, around 8 million of 3.5 acres of agricultural area in around 35 provinces are damaged which costs around 1000 million baht. More than 10 million tons of sugar production is damage. Kasikorn Research Institution estimated that the total damage is around 50,000 million baht and affect about 0.2% of the GDP. - The consequences after the flood, there are higher unemployment rate, rising prices of commodity products and sometime leads to stealing. From latest flooding, millions of people have to lose their jobs. - When the people doesn’t feel safe about their well-being. They tend to spend less and reduce their investments into any business activities. For foreign customers are also reluctant to travel to Thailand which will lead to problem about economic growth in the end. - Many of big companies in developed countries have been trying to come up with sustainable business model which will make both financial profit and reserve natural capital. Even in Thailand, many of companies who are making profit without caring for the environment, are being attacked and gain bad reputation. For example, Mabtaput Industrial Park.	- We can provide the solution which will help reduce the effect of damages and reduce the effects of the flood. - As mentioned above, we will help the government to take care of the damage before-between and after the flood to keep the amount of damage in certain limit. - We can educate people how to deal with flood in advance and work with them in order to find effective way within their limitations. However, if we can ensure their safety, people will spend more and tourists will also come to spend time in Thailand without worrying. - Thai Government and private companies are trying to come up with sustainable business plan but they are still lack of expertise that can provide them with guideline and development plan which will allow Thailand to grow and developed with sustainability.

Social Aspect

Social	Current Situation	Opportunity
- More attention to green business -Better Living Standard - Flooding create poverty and social gap.	- More green business model which help companies to reserve natural resources and promote using of recycle materials. - For flooding problem. Government always tend to be reactive more than proactive which people’s properties are already damaged before any helping hands come in. - One of the problems in agricultural sector is poor people who borrow money from banks or even informal debt from local rich people who charges high interest. When flood comes and they lose their crops, they don’t even have revenue to pay for debt. It leads to bigger social gap in the system which also leads to conflict among people from different classes.	- We can help promote Thai society and business sectors to concern more about environment which will not only help keeping our natural resources for the future but also change the mindset of young generation. - We will develop warning system which can help them to prepare themselves and limit the damages caused by flooding to improve living standard of people - If we can prevent flood, we can prevent them from making loan in some extent and the life of farmers can be better. It will help reduce the gap of the social class.

Technology Aspect
















Legal Aspect

•       Lack of land usage control law and effective national habitation policy •       Urban planning criteria •       Help flood victim regulation •       ISO 14000 / ISO 14001

No strict habitation policy to focus on ecosystem, environment conservation and prevent flooding. For area that flood always occur, normally urban planner focus on only economic, social and politic factor but not consider on natural disaster risk area The tax cut would apply to flood-victim and donations Many companies applied ENVIRONMENTAL MANAGEMENT for global standard.

We can support government to issue this policy. We can support urban planner to consider environmental criteria. We can corporate the government to help flood-victim and reduce flood damage. We can support business sector to concern on ENVIRONMENTAL MANAGEMENT

Environmental Aspect