Pestel Analysis on Imperial Tobacco

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PESTEL analysis of Imperial Tobacco Imperial Tobacco is a company specialising in tobacco related products such as; cigarettes, cigars, rolling paper and tobacco. With the host company being located in United Kingdom, the firm is the world's fourth largest tobacco company and the largest in terms of share of the UK market. There are various factors in the company that will affect the decisions of the managers of the company and the company itself. In order to analyse these factors managers can categorise them using the PESTEL analysis which consists of Political, Economic, Socio-cultural, Technological, Environmental and Legal issues. In preparing the report references were made to internet, textbook and lecture notes. Company overview: Imperial tobacco was formed in 1901 and is currently a leading international tobacco company. The company’s products are sold in over 160 countries worldwide and the Group currently has around 37,000 employees and operates 47 manufacturing sites across the globe. Political factors: the political dimension refers to government rules and regulations that the company must follow such as health and safety regulations, taxation policy, public expenditure controls and government stability. 1. Due to many public health campaigns warning of the dangers of tobacco smoke, in 1st July 2007, the British government ban public smoking. This decision was made due to the scientific and medical evidence claims that Smoking tobacco has been linked to a number of health problems including lung cancer, emphysema and cardiovascular disease. Therefore the government banned public smoking to “protect everyone from second-hand smoke, while making it easier for smokers to quit” as stated by Ms Hewitt. 2. Range of new legislation such as the “five principles of good regulations” have been proposed that will impact on the provision and legislative

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