What is a PESTLE ANALYSIS.

An analysis of the Political, Economic, Social, Technological, Legal, and Environmental arena firms operate.

Political:

a) A government may change during port operations or port development, such as the country's general elections. As such, the newly appointed government may stop or delay port development or reduce the budget assigned to develop the port by the previous government whereby the firm will suffer or incur revenue loss, and by extension, business.

b) The newly appointed government may wish to employ certain individuals who may not have the necessary skills or education needed to manage or operate the port.

c) The newly appointed government may decide to operate the port through unethical practices, by creating conflicts or disputes.

d) Improve the port sector, and create employment.

e) Terrorism and civil unrest.

f) Political stability or instability as well as bureaucracy and corruption.

g) As the port is located on state-owned land, this gives the state control over what the port can do, and more so, how to run the port.

Economic:

a) The economy of the country can decline resulting in a reduction in staff to operate or manage the port.

b) In the event foreign exchange rate increases, the cost of developing, and managing the port can considerably increase driving business to other countries proving to be more economically feasible.

c) Business can reduce in the event the government decides to increase the cost to operate the port.

d) Business transparency.

e) Increase in labor cost.

Social:

a) The firm will need to recruit local people to work on the port in an effort to prevent community conflicts as well as to strengthen the local economy through employment. As such, work attitude vary among people, and those with a poor or delinquent attitude will affect the port operations causing delays.

b) Culture differences can result in conflicts between local people, and expatriates.

c) Local people may refuse to take instructions from expatriates or have an expatriate as their superior.

d) Because the country may not have adequate or suitable people needed to manage the port, the company will have to import workers from other areas of the country or countries. This may prove negative because of dislike of foreigners, and create disharmony.

e) Peoples standard of living will increase as a result of employment, and as such, the port's business will thrive.

Technological:

a) Continual advances in technology allows the port to equip themselves with state-of-the-art products and equipment making the job easier, and running the port more cost-effective.

b) New technology brings in a significant cost as workers will need continual training and development.

c) Older employees may not have the intellectual ability to learn new technology, and offer resistance.

d) Accommodation for large vessels.

Legal:

a) Expatriates will need work permits before working resulting in delay.

b) The country's law may require the company to recruit a certain number or minimum number of local labor reducing the amount of expatriates needed for the port.

c) In the event a conflict between a local, and expatriate arise, this scenario may find itself in an industrial court whereby the firm finds itself in a legal battle. Depending on the country, the accused would have to be taken their home country for trial.

d) Countries' laws vary, and as such, the Port must become familiar with these laws to conduct business within its boundaries.

e) A mismanaged port can have legal consequences.

f) Demonstrate best practices, and comply with rules and regulations.

g) Regulatory approvals can delay port operations.

Environmental:

a) The organization must adhere to each country's environmental laws; the rules and regulations governing the environment.

b) Tropical climate proves positive for port development and operations.

c) Guarantee safety for employees, vessels, equipment, and cargo.

d) Risk of accidents or spills.