An External Environment Analysis of Ireland

Question: Describe about an external environment analysis of Ireland? Answer: Introduction In recent times there are many organizations which faces a challenge regarding the impact on their business due to change in environment. The companies face various threats and challenges due to environmental changes can affect the profitability of a country. The analysis provides details about the external environment of Ireland. The analysis is done based on PESTLE analysis. IRELAND capital Dublin Area 84,421 km2 Official language English, Irish, Ulster Scots Population 4,832,765 currency EURO Ethnic group White, Asian,black. Source: (Cia.gov, 2015) Political Ireland belongs to European Union since 1973. Hence the trade policy of Ireland is same as other countries of European according to the trade and Foreign affairs department of Ireland, the division of promoting and trade is responsible for strategic decisions and applications the oversight of export trade council and making trade strategy for economic and cultural relations along with various related information (Cia.gov, 2015). Being a part of European Union it has certain non tariff barriers in import restrictions, quotas, services, manufacturing and agricultural subsidies. For the treaty of Fiscal deficit, Ireland aims to adopt long term budgetary plans in the Euro area and the European Union. Ireland has low scope for terrorism and the international relations are strong with UK, Iceland, and Denmark and apart from European Union members, they had a substantially good foreign relation with USA (Buyusainfo.net, 2015). Economical GDP rate 183.8 billion CPI rate of Inflation -0.6% Unemployment 10.5% Average Gross Salary $3,508 monthly Foreign Reserves 1.219 Billion Source: (Cso.ie, 2015) Due to high Sovereign debt, increased rate of Unemployment and low foreign exchange the country is facing social and economic challenges Presently the emerging industry in Ireland is Entertainment and media (Insights, Desk, Data, Connected Academy (for students, 2015). The internal debt of Government has increased highly around 2010 for economic crisis (brink Kenny, 2015). At that period funds were generated by issuing their bonds in the economy. In the Irish property market, due to domestic issues there are bank solvency problem in Ireland. The Ireland government focuses more on trade, investment, high-tech and services Industry. Ireland is considered amongst the leading wealthiest countries. Social Birth rate 16.1 births per 1000 population Gender ratio (male: Female) 1 male(s)/female Unemployment rate 11.9% Literacy rate 99% religion Irish 84.5%, other white 9.8%, Asian 1.9% Source: (Indexmundi.com, 2015) English, Irish are the commonly used Official language in Ireland. Apart from European Union, the country has membership in many global Organizations like Security and Cooperation in Europe and The United Nations. In regard to social issues, Ireland is considered as progressive. The major social challenges include increasing the rate of employment for higher purchasing power and income level. From the age of six the education system of Ireland is compulsory. Technological Ireland is currently going through a digital conversion. The continual innovation has led the technological Industry of Ireland to grow in a rapid rate. According to technological survey, the market speculators predicted there are 90% companies who have chances of sales growth due to technological advancement (Bdo.ie, 2015). The Ireland Information and Communication Technology are renowned because out of top ten, nine of the ICT companies are located in Ireland. Ireland has total three international Airports where the route between London and Dublin is considered as the busiest route. For high level of infrastructural programs the exportation of services and goods facilitates a business. Ireland has remarkable transport structure and logistics. It offers regular ferry service, rail service and many more. 77% population in Ireland is Internet users the country is ranked among the 40th in the world for using internet services. Legal According to reports of 2010 the service export of Ireland had increased to 16 Billion yearly after the Government came into terms with new measures for lifting legal barriers for trading. Due to this the Ireland has become the only country amongst Eurozone that has a record for increase in export activity. Irish firms have free access to approximately 350 million people, which helps firms to expand. In order to launch a business the days required is six, and necessary permission takes around 150 days (Citizensinformation.ie, 2015). The labor rate is costly though there flexible dismissal and hiring regulations. The government charges subsidy over few industries like energy and wind. Environmental The quality of Irish environment is good, the climate is influenced by Atlantic Ocean, the average temperature in Ireland is 50F the sea temperature is also mild (Weatheronline.co.uk, 2015). The pollution is less which indirectly makes a good impact on the health of the people of Ireland. Ireland hugely emphasizes on environmental protection and health of their people. Conclusion Through Pestle analysis it is clear that Ireland is economically stable and politically strong. Not only that the social and cultural structures of Ireland is very acceptable for business expansion and entry into the market. Because of its high focus in technological advancement the country would stand as a better prospect in European countries. There are also low rigidity in trade policy tariff and taxation in industries. Thus Ireland seems to be a favorable destination for any market entry. References Bdo.ie,. (2015).BDO Ireland | Technology, Media Telecoms Publications | Technology sector growth survey insights 2013-2014. Retrieved 2 March 2015, from https://www.bdo.ie/publications/technology-media-telecoms/technology-sector-growth-survey-insights-2013-2014 brink, H., Kenny, E. (2015).How Ireland pulled back from the brink.Agenda - The World Economic Forum. Retrieved 2 March 2015, from https://agenda.weforum.org/2015/01/how-ireland-pulled-back-from-the-brink/ Buyusainfo.net,. (2015).U.S. Commercial Service : Your Global Business Partner. Retrieved 2 March 2015, from https://www.buyusainfo.net/adsearch.cfm?search_type=intloadnav=no Cia.gov,. (2015).The World Factbook. Retrieved 2 March 2015, from https://www.cia.gov/library/publications/the-world-factbook/geos/ei.html Cia.gov,. (2015).The World Factbook. Retrieved 2 March 2015, from https://www.cia.gov/library/publications/the-world-factbook/geos/ei.html Citizensinformation.ie,. (2015).Residence rights of non-EEA nationals in Ireland. Retrieved 2 March 2015, from https://www.citizensinformation.ie/en/moving_country/moving_to_ireland/rights_of_residence_in_ireland/residence_rights_of_non_eea_nationals_in_ireland.html Cso.ie,. (2015).Consumer Price Index January 2015 - CSO - Central Statistics Office. Retrieved 2 March 2015, from https://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexjanuary2015/#.VPQmY_mUdEA Indexmundi.com,. (2015).Ireland Demographics Profile 2014. Retrieved 2 March 2015, from https://www.indexmundi.com/ireland/demographics_profile.html Insights, G., Desk, R., Data, T., Connected, G., Academy (for students, t. (2015).Ireland globalEDGE: Your source for Global Business Knowledge.Globaledge.msu.edu. Retrieved 2 March 2015, from https://globaledge.msu.edu/globalresources/resourcesbytag/ireland Weatheronline.co.uk,. (2015).Climate of the World: Ireland - Weather UK - weatheronline.co.uk. Retrieved 2 March 2015, from https://www.weatheronline.co.uk/reports/climate/Ireland.htm