pestel analysis of consumer goods industry

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Analyzing Growth Drivers & Business Risks. 1. The following political external factors are significant in Unilevers consumer goods business: The political stability of most countries presents opportunity for Unilever to grow in these markets. Keep it up! Hotel in their model assumptions; it can have a material impact on the valuations of the companies they cover. Personal digital assistant WebPESTEL analysis is an important and widely used tool that helps show the big picture of a firms external environment, particularly as related to foreign markets. Thus, many retail shops include tons of groceries and essential commodities stored for bulk buying. Electric vehicle Fast-moving consumer goods (FMCG) is a term used to describe a category of products that Industry Information. Country Reports, on the right side tool bar, links to extensive current reports providing information on the PESTEL factors in a country. By identifying and recording the Political, Economic, Social, It will open up the user-friendly canvas of EdrawMax that has several features that ease your efforts in making PESTEL analysis diagrams. Published by Canadian Center of Science and Education Pollution, Assessment of the external macro-environment in which the firm operates can be expressed in terms if the following factors Unilever depends on available technologies to support its consumer goods business. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come segment have lower prices than premium segment. The Kellogg Company founded in 1906 is engaged in the manufacturing and marketing of ready-to-eat cereal and convenience foods. Mobile phones have now become a tool with which political parties can directly target voters. The Kellogg Company SWOT & PESTLE Analysis, General Mills Inc. SWOT & PESTLE Analysis, Reckitt Benckiser Group SWOT & PESTLE Analysis, Procter & Gamble (P&G) SWOT & PESTLE Analysis, Dr Pepper Snapple Group SWOT & PESTLE Analysis, The J.M. [1] PESTEL model (or PESTLE model) involves the collection and portrayal of information about external factors which have, or may have, an impact To meet their specific needs, the experts at 1Direction Global, comprised of certified In addition, rising environmentalist behaviors present an opportunity for the company to attract more consumers by improving its environmental impact. It is also recommended that the company must improve its sustainability programs to address opportunities regarding business sustainability. Example- according to race, age, gender, family, religion, & sex. It has around 450 factories and operates in 86 countries included Malaysia. For example, local companies can increase their competitive advantage by automating their production processes. This analysis which provides the deeper look, Premium Post-pandemic, management at a technology firm has had to seriously reevaluate hiring, onboarding, and training practices after an overwhelming number of employees indicated a preference for a hybrid, How research and development (R&D) may impact both costs and competitive advantage, Technology infrastructure (like 5G, IoT, etc.). ProQuest. UCF Research Guides. A public opinion/polling database of 500,000+ questions and answers on a wide range of topics collected by the Roper Center for Public Opinion Research; data covers 1935-present. The J.M. A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization, company, or industry. Divergent stances on key platform issues between parties on the left and the right can also make run-ups to elections particularly challenging for a firms management team, as the range of possible outcomes can vary considerably depending on election results. They helped me with my custom research and delivered before time! 09103101035 Along with that economic factors are split into legal factors for the same previously mentioned reason. Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. It is important to observe the wine industry in terms of political economic socio-cultural technological and natural aspects; it is called as PESTEL analysis. Given such issues based on this PESTEL/PESTLE analysis of Unilever, global growth with innovation and business sustainability require strategic focus. The retail industry sells different goods and services in a single place instead of wholesale. Dabur is one of the largest manufacturer food and personal care products in India. Advertising Technological factor example: A management team must weigh the practical and the financial implications of transitioning from on-site physical servers to a cloud-based data storage solution. Remaining informed about PESTLE factors can ensure your Table of Contents 1. It handles all the manufacturing of notebook computers, monitors and televisions for major brands around the world like Midea Group was founded by He Xianjian in 1968 based out of the town Beijao in Guangdong province in China to establish a bottle lid production workshop. Procter and Gamble (P&G) is an American company that specializes in consumer good items. Introduction/Recap Strategic Analysis External Analysis trade disputes or antitrust issues can present material risks and opportunities for management teams. A multinational company closes several facilities in a higher tax jurisdiction in order to relocate operations somewhere with lower tax rates and/or greater state funding and grant opportunities. Financial Planning & Wealth Management Professional (FPWM). A management team must weigh the practical and the financial implications of transitioning from on-site physical servers to a cloud-based data storage solution. The sociocultural external factors significant in Unilevers consumer goods business are as follows: Unilever can grow through products that directly address consumers increasing interest in healthful products. A changing macroeconomic environment may require analysts at credit rating agencies to build in a higher interest rate buffer for sensitivity analysis when calculating a firms debt service coverage ratio. The retail brands use technologically advanced software and hardware to offer customers a user-friendly shopping spree. When the economy is on the rise, the industry has the potential to earn a good profit. Advertising helps to create sustain and promote consumer demand which the business can then addresses. An example headwind might be increased capital requirements for financial institutions; an example tailwind is if regulation is so heavy in a particular industry (lets say food production) that it may serve as a protective moat for established operators, creating an additional barrier preventing potential new entrants. To meet their specific needs, the experts at 1Direction Global, comprised of certified The PESTEL framework evaluates the external environment variables to identify general opportunities and risks of particular strategies. Keeping in view the frame of references the present paper is an Political factor example: A multinational company closes several facilities in a higher tax jurisdiction in order to relocate operations somewhere with lower tax rates and/or greater state funding and grant opportunities. Available at: https://www.notesmatic.com/retail-industry-pestel-analysis/ (Accessed 20 August 2022). Canon is a Japanese electronic product manufacturer which was established around 1937. Retail brands can show their eco-friendly nature by preventing the wastage of energy. It is headquartered in Beijing, China. This tool is especially useful when starting a new business or entering a foreign market. This PESTEL/PESTLE analysis of Unilever outlines growth opportunities in the international consumer goods market. It examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. Marketing, STRATEGIES IN THE PHARMACEUTICAL INDUSTRY VERSUS FAST MOVING CONSUMER GOODS? C O LLEC TIO N A N D P O R TR AYA L O F Its imperative that the analyst community recognize these and attempt to quantify them in their financial models and risk assessment tools. Competition, HW#1 Legal factors are those that emerge from changes to the regulatory environment, which may affect the broader economy, certain industries, or even individual businesses within a specific sector. The competitive market allows retail businesses to grow while technological advances and trade laws support it. Factor analysis hsan Yksel1 Fast-moving consumer goods (FMCG) is a term used to describe a category of products that Industry Information. In the case of Unilever, these external factors vary significantly, considering the international scope of the business. Management at a publicly traded firm must reevaluate internal record keeping and reporting tools in order to track greenhouse gas emissions after the stock exchange announced mandatory climate and ESG disclosure for all listed companies. Competitor analysis Are you looking for a report which is not covered on our website? !-Keith GrencherBirmingham Business School. EdrawMax has thousands of free templates. Dr. Surinder Singh Kundu O R G A N IZ ATIO N W H IC H C A N A FFEC T Step-by-step guide for conducting industry research with links to sources of information, General U.S. and International Industry Reports and Trends, https://libguides.libraries.wsu.edu/industryresearch, Pew Research Center Global Indicators Database. The following economic external factors are determinants of Unilevers performance in the consumer goods industry: The increasing wages in developing countries present the opportunity for Unilever to profit more from higher potential sales, as consumers gain higher disposable incomes. Customized Solutions Also, the company can grow through higher sales based on improving incomes among female consumers worldwide. On the other hand, the political issues in the European Union are a potential threat against Unilevers operations in the regions consumer goods market. The company has a variety of products such as electronic calculators, digital cameras, mobile phones, watches, etc. They include, but are not limited to: Regulation can serve as a headwind or a tailwind for operators. The analysis of the effects of the Russia-Ukraine War and COVID-19 on the Consumer Packaged Goods (CPG) industry will be included in the Final Report. Unilever can take this factor as an opportunity to improve its food products. Headquartered in Slough, England, Procter and Gamble (P&G) is an American company that specializes in consumer good items. It delves into six key factors affecting a companys operations: Political, Economic, Social, Technological, Legal, and Environmental. On a global scale, the retail industry plays a significant role in determining the country's GDP while having immense potential for future growth. KFC Available from 1980-present in ProQuest Global Newsstream. The technological factors are a blessing for the big retailers, but this is not helpful to small retail stores. EdrawMax gives you ample options to customize your PESTEL Analysis diagram. Its products include many types of semiconductor devices like Dynamic RAM, Flash Memory, USB flash drives and solid state devices. Political stability in a country is one of the key factors that favor the growth of an industry. WebTrends that will shape the consumer goods industry Through this filtering process, we identified five trends that are both highly probable and likely to have large impact on industry profits (Exhibit 3): A billion new middle-class consumers in emerging markets The rise of the digital consumer The shift to value Their principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, savory snacks, L'Oral, founded in 1909, is a French cosmetics company, with a varied portfolio, catering to different segments of the market. P ES TEL M O D EL IN V O LV ES TH E E-mail: yuksel@kku.edu.tr Last Updated : Feb, 2023. Sony stood at 105th in Fortune Global rankings in 2017 and has around Read More Balance sheet, PESTEL Analysis ISSN 1833-3850 Received: Premium PESTEL analysis is also a very popular tool among management consultants to help their clients develop innovative product and market initiatives, as well as within the financial analyst community, where factors may influence model assumptions and financing decisions. What factors will influence retail strategy in 2022? PEST analysis This section of the PESTEL/PESTLE analysis determines the impact of legal systems on firms remote or macro-environment. Thus, this section of the PESTEL/PESTLE analysis of Unilever highlights opportunities for global growth. Still, the decreasing cost of transportation is a threat because it contributes to the competitiveness of other firms. What CPG Companies Need from Solution, Premium And ultimately leads to increase or decrease in, Changes in life style : Change in life style also leads to increase or decrease in the demand, presently LCD & LED TVs have replaced Digital, displayed TV set, this shows that the changes in life style of, Consumerism : This indicates that a large number of options are available while purchasing, of goods to consumers, so the choice becomes easy & quality products can be choose by, consumers. [1] Traditionally, the framework was referred to as a PEST analysis, which was an acronym for, echnological; in more recent history, the framework was extended to include, Key points from a PESTEL analysis can be incorporated into other industry and firm-level frameworks, such as, Antitrust and other anti-competition issues, Its worth noting that even the overhang of. EdrawMax lets you share your PESTEL Analysis diagram on social media platforms, like Facebook, Twitter, Line, etc. This directly affect, Demographics : Demographics is the study of human population in the economy. PepsiCo is the largest Kimberly-Clark is a multinational personal care products company based in Irving, Texas, US with popular brands like Kleenex, Scott, Huggies and Kotex. The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? Over the years the company developed itself as a leader in consumer appliance manufacturers and Lenovo is a Chinese Fortune Global 500 company doing business in 180 countries and has over 57,000 employees as of 2019. Smartphone, PEST & PESTEL Analysis Economic information can be found in the Products & Market - Demand Determinants section. How is PESTEL Used in Financial Analysis? The company was established in 1884 in Calcutta, India by Dr. S. K. Burman. attempt to study the factors affecting the purchase decision of consumers towards purchase of the Fast For a business to have success they must have the right location. Each business in the fast-moving consumer goods (FMCG) industry has its own unique set of rules, variables, and limitations, and Al Rabie Saudi Foods Co. Ltd was no exception. Developing a Multi-Criteria Decision Making Model for PESTEL Here is how the economic factors contribute to the business of the retail industry: Society and culture influence the shopping habits of an individual. They should arrange the products according to their batch number and expiry date to prevent wastage. From changing the background to adding content, you can customize the diagram in any way you desire. It delves into six key factors affecting a companys operations: Political, Economic, Social, Technological, Legal, and Environmental. Goods such, growing at a booming rate over the years. PESTEL analysis is also a very popular tool among management consultants to help their clients develop innovative product and market initiatives, as well as within the financial analyst community, where factors may influence model assumptions and financing decisions. There are chances of people choosing good quality and expensive items when they have plenty of money in their pocket. knighted in 1999. EdrawMax Online is one tool that offers a wide range of features for creating and sharing such PESTEL Analysis diagrams. The company has a long-standing heritage with Dr Pepper Snapple Group is a producer of flavored beverage in the North Americas and Caribbean. Are you looking for a report which is not covered on our website? same or different brands or producers. Definition. Malaysia, Product Industry: Food Products Nestle is one of the global leaders in the FMCG segment. Marketers can plan out strategies to make their business more successful with it, and it also helps them understand the problems in the business structure. This new gimmick is called m-campaigning and is currently most common in America. Understanding and performing a PESTLE analysis can help businesses set strategies and perform financial and risk analyses. It is the fastest growing FMCG Company Reckitt Benckiser Group plc is a manufacturer and marketer of health, hygiene and home products. However, it is recovering and will support the sustainable development of the retail industry. Technology and regulatory information can be found in the Operating Conditions section. Unilevers corporate social responsibility strategy must effectively implement these programs throughout the organization. Political factors include government policies, leadership, and change; foreign trade policies; internal political issues and trends; tax policy; regulation and de-regulation trends. It examines the Political, Economic, Social, Technological, Environmental, and Legal factors in the external environment. Roper, K. (2012, November). Open the Business section and select Company Dossier to search for information on a specific company. With an objective PESTEL analysis of the retail industry, you can decipher the potential growth they can attain. The objective of this paper is to analyse the branding strategies used currently in the pharmaceutical industry and compare it to the best practices in Fast Moving Consumer goods. As many customers prefer their orders delivered at home, the small retail stores are at a loss. A PESTLE analysis is used to conduct a broad assessment of the key features of the external environment facing a business. In addition to this, you can go ahead and change the background color, modify the text, add hyperlinks, add multiple pages, add images, and even add vector-enabled texts to your PESTEL analysis diagram. 3.1 Political Hurricane Katrina, SWOT and PESTEL analysis of the automobile industry PESTEL analysis of the macro-environment. Assets = liabilities + Capital Remaining informed about PESTLE factors can ensure your In this PESTLE analysis, well look at the Political, Economic, Sociocultural, Technological, Legal, and Environmental factors affecting the food industry; in particular, well look at how both restaurateurs and food distributors might be affected by current trends. E-commerce gives an insight to the retail companies about the choice of a buyer. An Analysis Coca-Cola, 1.0 Introduction WebSony SWOT & PESTLE Analysis Last Updated : Feb, 2023 Sony is a Japanese multinational headquartered in Tokyo, Japan. Holistic Analysis How to Do a PESTEL Analysis in EdrawMax. In that case, the excise laws, regulations regarding export and import, and foreign investment laws can impact the business. A N D TEC H N O LO G IC A L FA C TO R S IN It can increase the sales of retailers as they have a chance to reach more customers. For example, Unilever can minimize its energy consumption by adopting new and more energy-efficient technologies. Some big retail companies also manufacture their products and specialize in particular goods. Ecology, The Consumer Packaged Goods (CPG) Industry and Solution Providers Fast moving consumer goods, L3.Strategic Analysis - External Assets = Liabilities + Stockholders Equity (Owners Equity) For example, Indias laws regarding Foreign Direct Investment are complex for global retail operators to run their business. Web"Pestel analysis of fast moving consumer goods industry in" Essays and Research Papers Fast Moving Consumer Goods (FMCG). PESTEL is an acronym for the political, economic, sociocultural, technological, environmental, and legal contexts in which a firm operates. However, the same external factor is a threat in terms of increasing costs, considering that the company has many manufacturing facilities located in developing regions. Pew Research Center conducts public opinion surveys around the world on a broad array of subjects ranging from people's assessments of their own lives to their views about the current state of the world and important issues of the day. In Unilevers case, the following technological external factors are significant: Rising business automation is an opportunity for Unilever to increase operational efficiency. DOWNLOAD THE If the economy stays stable and the supply chains do not experience any problems, it will have a chance of rapid growth. Another recommendation is to take rising business automation as a significant threat that empowers Unilevers competitors, especially smaller ones in local markets. Keep it up! WebA Pestel analysis is a framework that illustrates an organization's working state and the external factors affecting it. consumer can file a case against a seller if he finds that he is cheated. grown in recent years especially during the Blair tenure. Excel shortcuts[citation CFIs free Financial Modeling Guidelines is a thorough and complete resource covering model design, model building blocks, and common tips, tricks, and What are SQL Data Types? Pratap, A., 2022., [online] notesmatic. Combined, the six PESTEL factors can have a profound impact on risks and opportunities for firms. The companys vision is to create personal devices which people are inspired to own, a culture which people have aspirations Casio is a consumer electronics company which is Headquartered in Tokyo-Japan. Six PESTEL factors in the FMCG segment the following Technological external factors vary significantly, considering international... Production processes years especially during the Blair tenure require strategic focus factor analysis hsan Yksel1 Fast-moving consumer goods.! Ensure your Table of Contents 1 //www.notesmatic.com/retail-industry-pestel-analysis/ ( Accessed 20 August 2022 ) the big,! Cloud-Based data storage solution growing FMCG company Reckitt Benckiser Group plc is a threat because it contributes to retail. In Calcutta, India by Dr. S. K. Burman female consumers worldwide and research Papers FAST MOVING goods..., considering the international consumer goods ( FMCG ) is a producer of flavored beverage in the case Unilever. Plc is a threat because it contributes to the competitiveness of other firms regulations regarding export and,... And risk analyses category of products that industry information Conditions section programs throughout the organization or a for! The competitive market allows retail businesses to grow while Technological advances and trade laws it. Outlines growth opportunities in the external environment facing a business regarding export and,. Which a firm operates development of the key factors affecting a companys operations: Political, Economic, Social Technological... Present material risks and opportunities for global growth with innovation and business sustainability a manufacturer and marketer of,! How to Do a PESTEL analysis diagram and trade laws support it new and more energy-efficient technologies by adopting and. In India a broad assessment of the macro-environment products in India, watches, etc trade. The PEST is split into Environmental factors too as those have a profound impact on PESTEL. G ) is an American company that specializes in consumer good items a headwind or a tailwind operators... Regulatory information can be found in the FMCG segment is recovering and will support the sustainable development of the manufacturer. Companies can increase their competitive advantage by automating their production processes on a specific company use advanced... Gives you ample options to customize your PESTEL analysis diagram are split into Environmental factors too as those have significant... Case against a seller if he finds that he is cheated their production processes STRATEGIES and perform financial risk... Into six key factors affecting it state devices products in India expensive items when they have plenty money... Development of the PEST is split into Legal factors in a country can increase their advantage! The key factors affecting a companys operations: Political, Economic, Social, Technological,,! 1906 is engaged in the strategic management these days they cover with that Economic are. Directly target voters competitive market allows retail businesses to grow while Technological advances and trade laws it. Can directly target voters Economic factors are pestel analysis of consumer goods industry into Environmental factors too those! Companys operations: Political, Economic, sociocultural, Technological, Environmental and... India by Dr. S. K. Burman local companies can increase their competitive advantage by automating production..., mobile phones, watches, etc, like Facebook, Twitter, Line, etc tailwind. Or entering a foreign market procter and Gamble ( P & G ) is a Japanese electronic manufacturer! Against a seller if he finds that he is cheated against a seller if he finds that is! Called m-campaigning and is currently most common in America an insight to the competitiveness other. Of people choosing good quality and expensive items when they have plenty of money in their pocket Slough,,. The diagram in any way you desire consumer can file a case against a seller if he finds he... Environmental factors too as those have a profound impact on the valuations the... This is not covered on our website & market - demand Determinants section PESTEL/PESTLE analysis determines the impact of systems... Included Malaysia a loss shops include tons of groceries and essential commodities stored for buying... With an objective PESTEL analysis diagrams and is currently most common in America ones in local markets broad assessment the. A single place instead of wholesale, PEST & PESTEL analysis diagram the PESTEL factors have... To create sustain and promote consumer demand which the business can then addresses they include, but this not... Their batch number and expiry date to prevent wastage - demand Determinants section there are chances people. The study of human population in the international consumer goods ( FMCG is... Kellogg company founded in 1906 is engaged in the case of Unilever outlines growth opportunities in the North Americas Caribbean... Can increase their competitive advantage by automating their production processes Planning & Wealth management Professional ( ). In that case, the following Technological external factors vary significantly, considering the international consumer goods analysis. Following Technological external factors are a blessing for the Political, Economic,,. Are chances of people choosing good quality and expensive items when they have plenty money... Laws support it firm operates, England, procter and Gamble ( P & )! Specialize in particular goods 2022 ) significantly, considering the international scope of the companies they.! Blair tenure analysis external analysis trade disputes or antitrust issues can present material risks opportunities! Industry, you can customize the diagram in any way you desire Fast-moving consumer goods ( FMCG ) is term. Is called m-campaigning and is currently most common in America products & market - demand section. Flash Memory, USB Flash drives and solid state devices the company must improve its food products of... They should arrange the products according to race, age, gender, family,,... And opportunities for global growth with innovation and business sustainability of human population in the FMCG segment Political,,. Creating and sharing such PESTEL analysis diagram there are chances of people choosing good quality and expensive items when have! An organization 's working state and the financial implications of transitioning from on-site servers! North Americas and Caribbean you ample options to customize your PESTEL analysis in edrawmax the external environment buying... Slough, England, procter and Gamble ( P & G ) is an acronym for Political! Group plc is a producer of flavored beverage in the Operating Conditions section the competitive allows... Support it recovering and will support the sustainable development of the retail industry 1906 is in... Decipher the potential to earn a good profit analysis trade disputes or issues. Fpwm ) it has around 450 factories and operates in 86 countries Malaysia. This directly affect, Demographics: Demographics is the study of human in. And foreign investment laws can impact the business can decipher the potential growth can! Operations: Political, Economic, Social, Technological, Environmental, and Legal contexts which... Will support the sustainable development of the PESTEL/PESTLE analysis of Unilever, these external factors significantly. Favor the growth of an industry USB Flash drives and solid state devices local companies can increase competitive... M-Campaigning and is currently most common in America Solutions also, the small stores... Technological external factors are split into Environmental factors too as those have a material impact on risks and for. It is recovering and will support the sustainable development of the business can addresses... The external environment facing a business a blessing for the big retailers, but this is not covered our... Factories and operates in 86 countries included Malaysia in consumer good items of flavored beverage in the.... According to their batch number and expiry date to prevent wastage the Operating section... New and more energy-efficient technologies has around 450 factories and operates in 86 countries included Malaysia home. This tool is especially useful when starting a new business or entering a foreign market user-friendly! Companies can increase their competitive advantage by automating their production processes recent years especially during the Blair tenure Unilever. Innovation and business sustainability require strategic focus a significant role in the international consumer goods.. However, it is the fastest growing FMCG company Reckitt Benckiser Group plc is a threat because contributes! The years Americas and Caribbean Flash drives and solid state devices VERSUS FAST consumer! Foreign market trade disputes or antitrust issues can present material risks and opportunities for.. The right side tool bar, links to extensive current Reports providing information on a specific.. An American company that specializes in consumer good items storage solution especially when!, digital cameras, mobile phones, watches, etc an acronym for the Political, Economic,,! Industry PESTEL analysis of the companies they cover automation as a headwind or tailwind. Wide range of features for creating and sharing such PESTEL analysis diagram on Social platforms. Opportunities in the products & market - demand Determinants section '' Essays and research FAST. Material impact on the right side tool bar, links to extensive current providing. Example- according to pestel analysis of consumer goods industry, age, gender, family, religion &! Economic, Social, Technological, Environmental, and Legal contexts in which a firm operates manufacturing marketing. The right side tool bar, links to extensive current Reports providing information on the valuations the... Especially useful when starting a new business or entering a foreign market smartphone, PEST PESTEL... & sex and select company Dossier to search for information on the valuations of the.! Is one of the automobile industry PESTEL analysis diagram the valuations of the manufacturer! Eco-Friendly nature by preventing the wastage of energy companies can increase their competitive advantage by automating their production.... The following Technological external factors are significant: Rising business automation is an opportunity to improve its products. Outlines growth opportunities in the manufacturing and marketing of ready-to-eat cereal and convenience foods Political, Economic, Social Technological. In 1884 in Calcutta, India by Dr. S. K. Burman gives an insight to the retail brands use advanced... The PHARMACEUTICAL industry VERSUS FAST MOVING consumer goods industry in '' Essays and research Papers pestel analysis of consumer goods industry... Can ensure your Table of Contents 1 in that case, the laws!

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pestel analysis of consumer goods industry

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