Magic Garage Cleaners Pestel Analysis (Research Paper Sample)

Magic Garage Cleaners PESTEL Analysis
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Magic Garage Cleaners PESTEL Analysis
Magic Garage Cleaners specializes in the cleanliness of home appliances, removal of junk and power washing. The firm’s many years of operation has ensured its expansion. Today, Magic Garage Cleaners has a branch in Oklahoma. It has introduced its services to the state of Oklahoma due to a growing need for home improvements, garage flooring and attic cleanings. The presence of business opportunities in Oklahoma does not imply that the firm is not subject to government regulation, economic, and technological advances. In fact, the management of Magic Garage Cleaners (MGC) has set up concrete strategies to boost its competition. As Oklahoma’s population grows, so does the requirement for MGC services. It prompts the need for PESTEL analysis for better service delivery.
Political
Politics plays a vital role in business performance: MGC is not an exception. America has volatile political environment characterized by a constant battle for dominance between Democrats, Republicans, conservatives and liberals. As such, policies that curb the MGC operations in Oklahoma are periodically revised. For instance, Oklahoma Tax Commission has introduced multiple tax policies aimed at extorting resources from firms operating within its area of operation. Between 2001 and 2010, taxes imposed on business entities, especially startups, have risen by not less than 30%. Oklahoma Tax Commission argues that the steep rise is due to the rising government spending on infrastructure and state development (OTC, 2011). In addition, Oklahoma State government has loosened its trade restrictions to encourage investors. The attractive tariffs lured MGC to join the state business even though it dawned later that the heavy business taxation outweighs sluggish trade restrictions. Notably the local government is relatively stable for business operations.
Economics
In the past, Oklahoma economy was driven by oil and gas. However, the industry has slumped since 2008 economic crisis. Still, other sectors grew to absorb the jobless population. Currently, the state is one of America’s technology and food processing hub, hence implying that it has good business prospects. In fact, up to 7 Fortune 500 companies have their headquarters in Oklahoma. Despite the economic crisis, the GDP grew by 10% to 147.5 billion between 2006 and the year 2010 (Goble, 2015). The implication of this development is that MGC has a better chance to boost its performance and to balance losses endured in the economically poor American states.
In the first four months of 2015, the employment rate in Oklahoma rose by 1.4% indicating that that more residents joined the middle-income class. Most MCG services and products target the employed population with disposable income to spend. Therefore, the rising employment rate is welcomed. National economic problems, however, impact the local business environment. A weakening dollar, high inflation and low interest rates are some of national crises taking toll on overall MGC business performance.
Social Factors
Magic Garage Cleaners targets working population for provision of their services. The friendliness of Oklahoma’s business environment has attracted large business firms. Consequently, there is a mass movement of professionals from others states to work on the top business entities, hence an increase in population. 2014 population estimates indicate that more than 3.8 million people reside in the state, which is a 4.2% increase from the previous year. As the population grow, so does MGC. Majority of the population are aged between20-45. Painting, home improvement and cleaning services are in high demand because most residents are preoccupied with office work, thus the need to hire experts to accomplish home tasks.
Oklahoma’s culture is molded on cleanliness, personal organization and fashion. All these traits marry with the mandates of MGC. Ethnic mix has shaped a culture unique to Oklahoma and its environs. It involves an embrace of proper service delivery and brand loyalty. Therefore, MCG has to upgrade its operations and comply with customer needs to earn their loyalty. There is a need to borrow a leaf from corporatios with a record of lengthy service in the region like Quick Trip, Hobby Lobby and Love Travel Stops & Country Stores. The firms rank 37th, 198th and 18th in the national list of largest firms.
Technology
It is hard for a business firm to launch a fierce competition without investing in technology. MGC management is aware of the importance of technological upgrade for efficiency in service and product delivery. That is why research and development activities have been adequately funded to improve on innovation. Garage cleaning, for instance, is conducted using high powered and sophisticated machinery to save on time and labor costs. In the end, the firm meets customer needs. Use of automated machinery in home and garage cleaning is on an upward trend not only in Oklahoma but also countrywide. International Federal Robotic (IFR) statistics show that use of automated cleaners rose by 11.5% between 2013 and 2014. The rise is a clear sign that business entities specializing in home and garage cleaning are quickly adopting robotic technology to tap into the growing local market. In fact, embracing technology cuts on labor costs by more than a half (Davenport et al., 2013).
Environment
Business’ concern for environment is surfacing as one of the major factors considered by government authorities, customers and business regulators. Rising levels of environmental pollution calls for immediate action to reverse the trend. In Oklahoma, most firms see the need of adopting environmental care policy for the betterment of business environment.
America’s water pollution index is 35.37 in 2013 (Conway et ...