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Enigmo stem3/24/2023 ![]() Skill level of workforce in Japan market – The skill level of human resources in Japan is moderate to high in the Services sector. Efficiency of financial markets in Japan – Enigmo can access vibrant financial markets and easy availability of liquidity in the equity market of Japan to expand further globally. Increasing liberalization of trade policy of Japan can help Enigmo to invest further into the regions which are so far offlimits to the firm. Downward pressure on consumer spending – Even though the consumer disposable income has remain stable, the growing inequality in the society will negatively impact consumer sentiment and thus impact consumer spending behavior. Enigmo can access the present infrastructure to drive growth in Services sector in Japan. Availability of core infrastructure in Japan – Over the years Japan government has increased the investment in developing core infrastructure to facilitate and improve business environment. Economic Performance of Japan – I believe the economic performance of Japan in the near future 5-10 years will remain stable given – government expenditure, stable demand because of disposable income, and increasing investment into new industries. Given the wider acceptance of the suggested policies among population, it is safe to assume that the time scale of these policies will be longer the mandated term of the present Japan government.Įconomic factors includes – consumer disposable income, the stage of economy of countryname, interest rate, economic performance of countryname, inflation rate, exchange rate, labor market conditions, taxation rate etc. Government resource allocation and time scale – The Japan new government policies can improve the investment sentiment in the Services sector. Secondly local governments are also looking into Retail (Catalog & Mail Order) specific taxation policies to contain the carbon footprint of the Services sector. The increasing inequality in Japan can lead to changes in the taxation policies. It has resulted in high profits and increasing spending in the research and development. Taxation policies – Over the last two decades Enigmo has benefitted from lower taxation policies throughout the western hemisphere. Enigmo has to prepare for this eventuality as it will lead to change in governance priorities of Services sector. Changing policies with new government – Studying the current trends it seems that there can be a transition of government in Japan in next election. Government of Japan has come under increasing global pressures to adhere to World Trade Organization’s regulations on Retail (Catalog & Mail Order) industry. Enigmo has to keep a close eye on the industry wide government priorities to predict trends. ![]() Governance System – The present governance system in Japan has served its purpose for the long time and I don’t think much will change in the process even though it may throw up leaders that can lead divergent policy making from the historical norm. ![]() Enigmo has to closely follow the states and territories it has presence in rather than devising nation-wide policies in Japan. Importance of local governments in Japan – Unlike in most other countries, local governments play critical role in policy making and regulations in Japan. Government policies and governance system plays a huge role in nature and objectives of the policies. Political factors are often related to the level of intervention and nature of intervention of the local and national government in the business and economic environment. What are Political Factors in PESTEL Analysis? PESTEL stands for – Political, Social, Economic, Technological, Environmental and Legal factors that impact the macro environment of the company that it operates in.Įnigmo operates in a dynamic environment where it is influenced by – regulatory framework, increasing regulatory framework for environmental factors, increasing environmental activism among consumers, consumer spending behavior, government decisions, collective social trends, technological changes, and ever evolving legal system. PESTEL Analysis is a strategic management tool that Enigmo strategy makers can use to make better decisions. What is PESTEL Analysis and Why PESTEL Analysis is Important? ![]()
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