Introduction:
Emirates national oil company is a leading company operating in the sector of energy. In this research 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, there are certain political factors which are giving the company a high competitive advantage. These political factors include the presence of positive tax policies in the company. Due to this kind of policies, the company is allowing fewer restrictions on the policies concerning with the trade of the company (Farooq, 2018). Overall in the country of the United Arab Emirates, there are fewer restrictions on the market entry of the goods. This has added positive effect to the overall condition of the company. The positive taxation policies have implied reduced costs for an effective working of the company. Overall the political stability of the company has been a great plus point for the business of the ENOC.
Environmental:
Economic factors play an important part in the overall working of the business effectively. 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 the 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 which have been obvious in the entire working of the ENC business. One of the social factors is the growth of economy progressively in the past time. The United Arab Emirates is a centre of the business hub because of the growing economy in the country (Endrew, 2018). This is positively affecting the business of ENOC. Similar kind of positive effects has been observed by the stability of the social structures of the company. The increase in the demand of the energy sources is yet another social factor affecting the business of the ENOC.
Technological:
With the increase in the technological development in the country and worldwide as well, the business working of many of the companies has been affected by technological advancements. The risks found in the development and the increase in the automation is some other technological factors found in affecting 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. Other than this, green products and services are an important factor in the working of the business of ENOC.
Legal:
Technological and industry concentration is one of the important legal aspects of the working of ENOC. 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 the business of ENOC.
References:
Endrew, T. (2018). ENOC PESTLE Analysis – Political, Economic, Social, Technological, Legal, Environmental factors of ENOC. Healthplace4u.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 UAE. PESTLE Analysis. Retrieved 21 March 2018, from http://pestleanalysis.com/pestle-analysis-of-uae/
Farooq, U. (2018). Political Factors Affect Business Environment | Marketing Tutor. Marketing 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.info. Mid-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/
