PEST analysis (India) For Colgate Palmolive ltd

Political environment

Situation before MAY-2014 elections:

In India the political situation is not supportive to people. The aim of political parties is not

the growth and development of the country but just to gain power for personal growth and

development.

Most of the corruptions, scams and malpractices are happening at the cost growth and well-

being of common man.

Current scenario

In some states there are regional parties based on caste (U.P) or based on fanaticism

(Tamil Nadu). Here people are willing to vote for them expecting their needs and

requirements will be fulfilled better than national parties. This seems to be partly right

when one sees Tamil leaders occupying better positions as central ministers and

bringing benefits to their state. While seems wrong when the expectations are not

fulfilled as in other states.

On the other hand in some states like Himachal there are only two parties with no

scope for growth of other parties. Thus people have no option but to vote for either

any one of them. Hence the party leaders there who win the election enjoy power and

resent into scams and other corruptions fearlessly

Mindset of politicians:

 The politicians are willing to get power at any cost by any means. This includes

deceiving people, luring people with some favors like giving beneficial schemes,

dividing the states, eradicating the opposition etc.

No politician is willing to accept any allegation about them. They blindly deny the

allegations by not having responsibility to their positions.

They are always ready to run behind or support the mighty persons for sake of

position in the government or favors from it.

The government plays an important role in almost every country's economy. According to the

World Bank, "a substantial share of the nation's product goes to satisfy public wants, a

substantial part of the private income originates in the public budget, and public tax and

transfer payments significantly influence the state of private income distribution. Moreover,

the budget policy affects the level of employment and prices in the private sector." In

socialist economies government interference is greater. Hence, state control of economy is

found in every country of the world. However, the nature and extent of control differ widely

from one country to another depending upon political philosophy, social attitudes, and stage

of economic development and behavior of the private sector.

government has the responsibility of fulfilling the aspirations of public. Scarcity of economic

resources is the main problem in achieving the socio-economic objectives of growth and

social justice. Therefore, the government lays down national priorities for optimum allocation

of scarce resources through planning. The government of India had set up planning

commission in 1950 and the basic goal of five year planning have been balanced regional

development, rapid industrialization, employment generation and development of agriculture

and small scale industries.

Economic Environment

India’s economy will grow at a rate of more than 8 per cent in the 2015-16 fiscal year,

while consumer inflation will drop to between 5 and 5.5 per cent.

the economy would grow by 8.1-8.5 per cent under a new calculation method that

makes India the world’s top-growing big economy.

In the short run, growth will receive a boost from lower oil prices, from likely

monetary policy easing facilitated by lower inflation and lower inflationary

expectations, and forecast of a normal monsoon

The major reforms undertaken by the government include deregulation of diesel

prices, direct transfer of cooking gas subsidy, hiking FDI cap in defence and

insurance, Ordinance on Coal.

According IMF World Economic Outlook April, 2015, India ranks seventh globally in

terms of GDP at current prices and is expected to grow at 7.5 per cent in 2016.

India’s economy has witnessed a significant economic growth in the recent past,

growing by 7.3 per cent in 2015 as against 6.9 per cent in 2014. The size of the Indian

economy is estimated to be at Rs 129.57 trillion (US$ 2.01 trillion) for the year 2014

compared to Rs 118.23 trillion (US$ 1.84 trillion) in 2013.

The steps taken by the government in recent times have shown positive results as

India's gross domestic product (GDP) at factor cost at constant (2011-12) prices 2014-

15 is Rs 106.4 trillion (US$ 1.596 trillion), as against Rs 99.21 trillion (US$ 1.488

trillion) in 2013-14, registering a growth rate of 7.3 per cent. The economic activities

which witnessed significant growth were ‘financing, insurance, real estate and

business services’ at 11.5 per cent and ‘trade, hotels, transport, communication

services’ at 10.7 per cent.

India has emerged as one of the strongest performers with respect to deals across the

world in terms of mergers and acquisitions (M&A). M&A activity increased in 2014

with deals worth US$ 38.1 billion being concluded, compared to US$ 28.2 billion in

2013 and US$ 35.4 billion in 2012. The total transaction value for the month of May

2015 was US$ 3.3 billion involving a total of 115 transactions. In the M&A space,

pharma continues to be the dominant sector amounting to 23 per cent of the total

transaction value.

India’s Index of Industrial Production (IIP) grew by 4.1 per cent in April 2015

compared to 2.5 per cent in March 2015. The growth was largely due to the boost in

manufacturing growth, which was 5.1 per cent in April compared to 2.8 per cent in

the previous month.

India’s Consumer Price Index (CPI) inflation rate increased to 5.01 per cent in May

2015 compared to 4.87 per cent in the previous month. On the other hand, the

Wholesale Price Index (WPI) inflation rate remained negative at 2.36 per cent for the

seventh consecutive month in May 2015 as against negative 2.65 per cent in the

previous month, led by low crude oil prices.

India's consumer confidence continues to remain highest globally for the fourth

quarter in a row, riding on positive economic environment and lower inflation.

According to Nielsen’s findings, India’s consumer confidence score in the first

quarter of 2015 increased by one point from the previous quarter (Q4 of 2014). With a

score of 130 in the first quarter (2015), India's consumer confidence score is up by

nine points from the corresponding period of the previous year (Q1 of 2014) when it

stood at 121.

India’s current account deficit reduced sharply to US$ 1.3 billion (0.2 per cent of

GDP) in the fourth quarter of 2015 compared to US$ 8.3 billion (1.6 per cent of GDP)

in the previous quarter, indicating a shrink in the current account deficit by 84.3 per

cent quarter-on-quarter basis.

India's foreign exchange reserve stood at a record high of US$ 354.28 billion in the

week up to June 12, 2015 – indicating an increase of US$ 1.57 billion compared to

previous week.

Owing to increased investor confidence, net Foreign Direct Investment (FDI) inflows

touched a record high of US$ 34.9 billion in 2015 compared to US$ 21.6 billion in the

previous fiscal year, according to a Nomura report. The report indicated that the net

FDI inflows reached to 1.7 per cent of the GDP in 2015 from 1.1 per cent in the

previous fiscal year

Social Factors

ORAL HYGIENE PRACTICES Hindu Brahmins and priests, especially in the region of

Varanasi (Uttar Pradesh, India) clean their teeth using cherry wood for an hour, facing the

rising sun. This may promote oral health if it is done appropriately. Orthodox Jains clean

their teeth using fingers and without using the brush. This may have a negative impact on

their oral health. Muslims offer prayer in the form of namaz, five times in a day. During each

namaz, as part of the ritual, they use miswack stick, tooth picks and do gum massaging. This

may promote the oral health.  Use of chewing twigs: The rural folk in Udupi region of

Karnataka use the twigs from mango or cashew tree. Neem and Banyan twigs are commonly

used in the rural areas of Tamil Nadu, coconut twigs in the rural areas of Kerala. Datun is

used in North India. In African countries, twigs from Salvaodora Persicca are used for

cleaning the teeth. The twigs offer mechanical cleaning action and some twigs may have

antimicrobial properties. The salvadora persicca twig has high concentration of fluoride,

which may offer anticaries benefit. The use of chewing twigs can be recommended in lower

class people who can not afford the brush and paste. These twigs have to be properly used

and the method should to be taught to them, otherwise, improper use may lead to gingival and

periodontal trauma over a period of time.  Dentifrices: The rural people use brick, charcoal,

rangoli powder, mud, salt, ash etc for cleaning the teeth. This may result in gingival

recession, abrasion and dentin sensitivity.

Dietary habits: Tribal and primitive populations have diet patterns which are coarse and

fibrous in nature and free from refined carbohydrates. This may reduce the risk for dental

caries and also facilitate adequate stimulation of the jaws, jaw muscles and teeth eruption

which may reduce the risk for malocclusion to some extent. The western diet on the other

hand consists of refined foods which increase the risk for caries as well as malocclusion due

to inadequate stimulation of jaw and jaw musculature.  Scandinavian food habits mainly

include variety of fishes, cheese etc which may offer some anticaries benefit. Similarly, the

Caribbean food habits in the form of local fruits and vegetables, cassava (a starchy root) and

great deal of fishes offer them some protection against dental caries.The trona salt is used

extensively as a preservative, tenderizer, flavoring agent in food as well as for medicinal

purposes (in the treatment of dyspepsia) by Africans. This salt contains high concentration of

fluoride (as high as 7900 PPM) and it may increase the risk for dental fluorosis.  Fasting is a

frequent practice among orthodox Hindus. Muslims do fast during the time of Ramzan.

Excessive fasting leads to gastritis, peptic ulcer, malnutrition, nutritional anemia, and loss of

weight, which may have deleterious impact on health and oral health. Men eat first and

women last and poorly, in many rural families. This leads to maternal malnutrition, leading to

high maternal and infant mortality rates. Excessive consumption of spicy food in the form of

green chilies is commonly seen in some regions of Andhra Pradesh and Northern Karnataka.

This may predispose to the occurrence of peptic ulcer, oral sub mucous fibrosis and oral

malignancies as well.

Religious restrictions in food habits: Hindus don’t eat beef, thinking it is a sacred animal

and Muslims don’t eat pork, thinking it is a scavenging animal that feeds on human excreta

and garbage.

Food habits: Food habits are amongst the most deeply entrenched habits in any culture

having deep psychological roots, religious influence and influence of the local conditions in

the form of climate and soil. The family plays a vital role in shaping the food habits and this

runs in the families from generation to generation. 

Vegetarianism is given a place of honor in Hindu religion. Orthodox Hindus are pure

vegetarians and hence may not take any foods of animal origin including the milk. This may

result in Vitamin B12 deficiency leading to Moeller’s glossitis. Adulteration of milk, though

is done with the motive of economic gain, there are some disbeliefs that if the pure milk is

boiled, it may dry the secretion in the donor animal. This results in over dilution of the milk,

there by reducing its nutritive value which may result in protein energy malnutrition among

the consumers. Adverse cultural practice in the cooking and preparation of foods such as

discarding the cooking water from cereals, which is commonly seen in the rural areas of the

country, reduces the nutritive value of food. 

Role of family: Family is the primary unit in all societies. It is a group of biologically related

individuals living under the same roof and eating from the common kitchen. Family as a

cultural unit reflects the culture of the wider society of which it is a part and determines the

attitude and behavior of its members. Joint family system is commonly seen in Asia, Africa,

the Far East and Middle East countries, more so, in the rural areas than in urban places. The

presence of parents, grand parents, uncles, aunts, and other near relatives plays a vital role in

child rearing as well as in shaping the attitude and behavior of the child. Nuclear family

systems seen predominantly in most of the western countries and urban areas in developing

countries, place a greater burden on the parents in bringing up the child due to the absence of

other members in the family. This problem is magnified especially if both the parents are

earning members. The lack of parental attention in the nuclear families and peer pressure may

provoke the child into deleterious habits like smoking, alcoholism, drug addiction, dating etc

at an early age (a common practice seen in most developed countries). These adverse cultural

practices in turn increase the incidence of oral cancers, venereal diseases and mental

illnesses.

Technological factors in India

As the availability of new technology for the dental practice increases, the need to adequately integrate

these resources grows. There are many software, hardware and practice management issues that

surround the implementation and continued use of various technologies in the dental practice.

1. Establishment of technological and research institute Indian govt. has established 500

technological institutes for providing education to Indian students. It has also established

1080 research institutes. In these institutes major names like space research centre, medical

research centre and agricultural research centre have developed India technically.

2. Positive Technical policy India has strong and positive technical policy for technological

development. This policy opens door to import technology from foreign countries for

increasing agricultural and industrial developments.

3. High Growth Rate of Information Technology in India In India, IT sector is developing

with 35% growth rate, India is second country after China who is using internet at large scale

for e-commerce , e-education and e-accounting .

4. Incentive for promoting Technology in India • Indian Govt. has given 100% income tax

exemption for expenses incurred in research of technology in India. • State financial

corporation is uplifting domestic technology by supporting finance to domestic Industries.

Technological changes always bring quality improvement and more benefits for customers.

The recent technological changes of Indian market are:

Digital watches have killed the prospects and the business of traditional watches.

Color T.V. technology has closed the business of black and white T.V.

Artificial fabric has taken the market of traditional cotton and silk fabrics.

Photo copier and Xerox machines have led to the closure of carbon paper business.

Shift in Demand from vacuum tubes to transistors.

Shift from steam locomotives its diesel and electric engine.

From typewriter to World Processors.