Strategic Analysis of Parcelforce Worldwide

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If we consider the PESTEL analysis of Parcelforce Worldwide the political forces that affect the long-term profitability of Parcelforce Worldwide are operating in different countries in the world. Parcelforce Worldwide exposes itself to different types of political environments and political system risks. These risks occur because of a lack of political stability in some countries, the risk of military invasion, and high levels of corruption. Moreover, bureaucracy and interference in the partners of Parcelforce Worldwide, changes in legal frameworks, and trade regulations can cause political threats to Parcelforce Worldwide. Since Parcelforce Worldwide is operating worldwide its operations can be adversely affected by conflicts in Russia, Ukraine, Myanmar, and Afghanistan. Changes in pricing regulations, changes in taxes, and wage laws can affect the business of Parcelforce Worldwide.

Economic factors: Since, Parcelforce operates worldwide; several economic factors may impact its operations. These include the inflation rate, foreign exchange rate, and the economic cycle that affects aggregate demand and investment. The current financial crisis in the UK has hurt real wages. In addition, the economic environment of the UK is adversely impacted by high-interest rates, high inflation, and tight fiscal policy. Moreover, the continuing inequalities in the UK can adversely affect the demand for Parcelforce Worldwide services.

Social factors that affect Parcelforce include the culture of the service in the global environment. Globally, the shared beliefs and attitudes of the people support logistics and courier services because of the importance of keeping connected, increase in international trade, and boosting business. Courier services such as those provided by Parcelforce Worldwide are favored because it provides jobs, and is interconnected with other industries. The current levels of education, social conventions, and entrepreneurial spirit encourage the use of courier and logistics services.

Technological factors that impact Parcelforce Worldwide include the technology in the transportation industry, Currently, technology affects the speed at which parcels are delivered globally. The demand for express delivery is high and technology supports fast delivery. Changes in technology can affect the relative performance of Parcelforce Worldwide. Changes in technology can improve route planning, make tracking of goods easier, and increase the flexibility of delivery. Simple changes in technology used can give a competitor of Parcelforce a competitive advantage. For example, the introduction of rugged multitools that support software, applications, barcode system, and communications can increase productivity in the logistics industry. Changes in the way logistics and courier companies use radio frequency technology, transport management software, and warehouse management applications can give companies a competitive advantage. The technology being used by Parcelforce's competitors, the effect of technology on the speed of operations, and the impact of technology on the cost of couriers will play an important role in the position of Parcelforce Worldwide.

The environmental factors that will affect Parcelforce are the environmental norms and standards that can affect the profitability of an organization in those markets. Within a country, there can be different environmental laws in different states. These differences affect the profitability of the company. Moreover, the environmental factors that affect the business of Parcelforce include weather, climate, and air/ water pollution. Also, laws relating to recycling, waste management, and the inclination of people toward green services will affect the demand for Parcelforce's services.

Legal factors that impact Parcelforce Worldwide include laws of different countries for protecting intellectual property rights. Also, the legal requirements relating to licenses required by a courier service, the legislation for goods vehicles, and insurance can change leading to challenges for Parcelforce Worldwide. Besides, the legal requirements for goods and services, health & safety/ fire, and employment laws must be complied with. Also, Parcelforce Worldwide must have insurance for the courier service including employer's liability, public liability, and premises and premises contents. Additional insurance requirements include insurance for cash, goods in transit, and business interruption (a).
The PESTEL analysis of Parcelforce Worldwide shows that it functions in a rapidly changing business environment. Parcelforce has to adapt quickly to changes and develop new ideas for its service to keep up with trends and technology.

If we conduct a VRIN analysis, we find that Parcelforce Worldwide has competencies that are valuable to help Parcelforce in getting opportunities in the current environment. These competencies enable Parcelforce to grow and expand. ...