PEST ANALYSIS

1). Political Factors

Himalaya Herbal is one of the main brands in FMCG. The present political
atmosphere is great for the development of Ayurveda and Ayurvedic items. In
1975, the organization arrangement a serious assembling office in Makali,
Bangalore, India, which houses the corporate central command. In 1991,
organization migrated its R&D office to Bangalore.
Himalaya is following different government activities like Make in India
Campaign. From that point forward there has been a development in the
results of Himalaya natural hence we can say that the political components
have assumed a major part in the advancement of Himalaya.

1.1 Political Stability

High political stability gives a steady and friendly business condition with
unsurprising business sector development patterns. In any case, when there is
political chaos, it prevents the speculators or Investors and damages the
partners' trust in monetary and resulting authoritative execution.

1.2 Dynamic Policies

Continuous changes in the government policies can harm the performance of
the business by increasing the environmental uncertainty. It is important for
Himalaya Company to study and analyze the current trends in the country’
political scenario as whatever changes happen in the government policies may
alter the government’s priorities towards the development of various
industries.

1.3 Taxation, Trade restrictions

If Himalaya co. launches any of its products in a country which has a high
taxation level, then it will directly affect the profitability of the business. High
taxation policy affects the International trade and it also prevents the exports
of the products. Himalaya co. should study the industry specific taxation
policies so that it can understand the host government’s priorities and interest
in developing industries.
Similarly, a high trade restriction also makes the business environment more
and more complex by affecting the exports and this causes in harming the
relationship with international trade partners.
2). Economic Factors
The monetary advancement of a nation straightforwardly impacts authoritative
execution. Developing economies offer wide-going development chances to
the HIMALAYA COMPANY. It is crucial to understand the industry lifecycle
stages. Entering in develop ventures can be more testing because of market
immersion than enterprises at the development stage.

2.1 Inflation/employment/interest/exchange rates

The GDP development rate will decide the HIMALAYA DRUG COMPANY's
capacity to seek after its drawn-out development techniques. High GDP
likewise flags the purchasers' capacity to spend more on offered items.
High joblessness signals the accessibility of surplus work at relatively lower
compensation. Working in such a market can bring down the creation cost of
HIMALAYA DRUG COMPANY's products.
The Himalaya co. should carefully take into consideration the interest rate and
its affect on the borrowing capacity and attitude towards investment. The
higher the interest rate, the higher will be the growth opportunities for
Himalaya co.
Exchange rates fluctuation may also influence affect the profitability and
international trade for the Himalaya co. as the high fluctuation rate on the
domestic currency can result in a serious concern for the Himalaya co.

2.2 Labor market conditions

The demand and supply of the labor will determine the wage rates and the
supply of the skilled human resource. The Himalaya co. must analyze the labor
market conditions so that it can attract skilled workers and utilize their skills to
improve its business performance. Operating in a very rigid labor market can
cause the labor wage and rise in the other problems.

2.3 Efficiency of Financial markets

The globalization strategies of the Himalaya co. are affected by the financial
market efficiency as working in a highly efficient financial markets can lead
towards in improving the liquidity positioning and it strengthened its ability to
enter in the new markets.
3). SOCIAL FACTORS
Nowadays in the situation of the COVID-19, the people of different countries
are becoming more and more health conscious of the organic products.
Hierarchical culture gets solid impact from the cultural standards, qualities and
patterns. Understanding the segment patterns, power structures, shoppers'
spending designs and shared convictions can assist Himalaya with tranquilizing
company plan viable advertising messages and satisfy corporate targets
through educated PESTEL investigation.

3.1 Demographic Trends

Changes in segment designs like maturing populace, relocation patterns and
financial factors have foremost significance for global business associations like
Himalaya co. By analyzing the demographic features the Himalaya co. can
choose the right market segments which has a high growth potential.

3.2 Societal norms and class distribution

Culture of any society is an important variable for any company. Every society
has different norms and values and beliefs which plays a significant role in
forming the behavior of the consumer.
Himalaya co. ought to create neighborhood groups and create nearby
organizations for understanding the cultural mentalities and standards to tailor
advertising methodologies as indicated by exceptional social setting.
The analysis of social class distribution is also important for Himalaya co.
Offering superior goods at a premium price to the market where the very good
quality market is extensively little in number will require Himalaya co. to
embrace the specialty promoting techniques. Essentially, market division
dependent on social class might be insufficient where social class delineation is
low.

3.3 Spending patterns and behavior

The shoppers' spending designs are impacted by their buying influence of cash.
Analyzing and anticipating the buyers' buying power dependent on relevant
monetary pointers is critical to examine the clients' advantages and spending
designs. In certain societies, devouring the offered item is viewed as a
superficial point of interest, while, a few people utilize similar items for useful
angles.
Himalaya co. must utilize time to understand the consumption behavior of the
consumer so that they can make the products according the customer interest.
4). Technological Factors
‘Technology’ is the fourth important factor which a company must analyze. The
constant and rapid changing in the technological sector increased the
significance of understanding the technological factors while the making of the
strategic decision for the company.
A thorough study and analysis of the technological environment will surely help
the Himalaya co. to capture the trends in technology so that it can achieve
some advantages, like- increase in profits, boosting the innovation process and
improving the operational efficiency.

4.1 Social media marketing

The use of social media nowadays has become a common thing. Himalaya co.
can use this opportunity provided by the social media marketing to improve
the performance of the business. Trends in technology can be used to
commence the creative social media campaigns for enhancing the online brand
communities.

4.2 Shortened the life cycle of the product

The advancement of new technologies has abbreviated the lifecycle of new
item improvement. Today, new items are grown rapidly, and supply chain
accomplices have likewise increased more force. It pressurizes the Himalaya co.
to grow new items rapidly, increment in the variety of the product, incorporate
adaptability into the value chain and create sound business associations with
esteem chain accomplices.