Academic Master

Business and Finance

Analysis of Emirates National Oil Company

Introduction:

Emirates National Oil Company is a leading company operating in the energy sector. In this research, a PESTLE analysis of the ENOC Company has been done. All the factors, including economic, political, social, technological, legal, and environmental, affecting the company have been presented in this paper.

PESTLE Analysis:

Political:

After the analysis of the ENOC, certain political factors give the company a competitive advantage. These political factors include the presence of positive tax policies in the company. Due to this kind of policy, the company is allowing fewer restrictions on the company’s trade policies (Farooq, 2018). Overall, in the United Arab Emirates, there are fewer restrictions on the entry of goods into the market. This has had a positive effect on the overall condition of the company. The positive taxation policies have implied reduced costs for the effective working of the company. Overall, the political stability of the company has been a great plus for ENOC’s business.

Environmental:

Economic factors play an important part in the overall effective working of the business. From the current analysis of the United Arab Emirates, it has been figured out that the overall market size has increased progressively. This increase in the market size has proved beneficial for the company (Bush, 2017). With the increase in investment in the research and development department, there are extensive opportunities for the company to take advantage of. Besides this, sustainable growth rates are observed in the overall working of ENOC.

Social:

As far as the social factors are concerned, there are three prominent factors that have been obvious in the entire working of the ENC business. One of the social factors is the progressively growing economy in the past. The United Arab Emirates is the center of the business hub because of the country’s growing economy (Endrew, 2018). This positively affects ENOC’s business. Similar positive effects have been observed in the stability of the company’s social structures. The increase in the demand for energy sources is yet another social factor affecting the business of the ENOC.

Technological:

With the increase in technological development in the country and worldwide, the businesses of many companies have been affected by technological advancements. The risks found in the development and the increase in automation are some other technological factors that affect the working of ENOC (Farooq, 2018).

Environmental:

Since the company deals in the sector of oil, hence recycling and climate change are important environmental factors in the working of the company. In addition to this, green products and services are an important factor in ENOC’s business.

Legal:

Technological and industry concentration is one of the important legal aspects of ENOC’s work. Other than this, an important impact is left by the technological scale effects as well.

Conclusion

This PESTLE analysis of the ENOC Company provides a competitive advantage to the company. Overall, the analysis can be helpful in formulating well-established strategies for EEOC’s business.

References:

Endrew, T. (2018). ENOC PESTLE Analysis – Political, Economic, Social, Technological, Legal, Environmental factors of ENOCHealthplace4u.com. Retrieved 21 March 2018, from http://www.healthplace4u.com/pestle-e/36757-pestle-analysis-enoc.html

Bush, T. (2017). A PESTLE Analysis of The UAEPESTLE Analysis. Retrieved 21 March 2018, from http://pestleanalysis.com/pestle-analysis-of-uae/

 Farooq, U. (2018). Political Factors Affect Business Environment | Marketing TutorMarketing Tutor. Retrieved 21 March 2018, from https://www.marketingtutor.net/political-factors-affect-business/

The company, E. (2018). Emirates National Oil Company – ENOC | mid-east.infoMid-east.info. Retrieved 21 March 2018, from http://mid-east.info/energy/energy-energy/oil-gas-consumable-fuels/oil-gas-exploration-production/emirates-national-oil-company-enoc/

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