PESTEL

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San Jose State University *

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1104

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Nov 24, 2024

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PEST Analysis Business Administration, University of the People BUS 4407-01 Strategic Management - AY202 4 -T 2 Instructor: Erin Stresow Due date: December 13, 2023 1
Introduction This written assignment will address the PEST analysis for Target Malaria in Uganda. Target Malaria is a project funded by the Bill and Melinda Gates Foundation, focused on developing novel technologies as tools to fight malaria. A specific tool being worked on is a genetically modified mosquito, which is still in the early research phase. PEST analysis is useful to determine their position given the absence of legislative guidance regarding GMOs in Uganda. What is PEST analysis PEST analysis is a method of strategic planning that outlines four essential external factors that can affect an organisation. Frue (2017) lists these four factors as: political, economic, social (or socio-cultural), and technological - hence the abbreviation PEST. A more detailed version of PEST is PESTEL, which, according to Jurevicius, includes environmental and legal factors (2023). Maybe to exploit the reasoning behind conducting a PEST and PESTEL analysis some more, we should consider them to "find out the current external factors affecting an organization, identify the external factors that may change in the future, and to exploit the changes (opportunities) or defend against them (threats) better than competitors would do" (Jurevicius, 2023). There are questions to ask when conducting PEST or PESTEL. For a thorough analysis, we can borrow any of the templates available online, but employing critical thinking and responding to these template questions in context is essential for a good result. Target Malaria PESTEL analysis 2024 Political factors The government is reasonably stable, with some political dissent. Bureaucracy and corruption are strongly present. Regulation/de-regulation is present but not always implemented. 2
Economic factors It is a foreign-funded project, so there is no major impact from the local economy. The inflation rate and the exchange rate are fevourable, which may be beneficial. Labour costs for highly qualified employees are manageable. Social factors Health consciousness and awareness about malaria treatment and prevention are generally low. Education level and attitudes towards family, future, planning, and work are poor. Multiethnic (many tribes) and multireligious. Traditions influence beliefs. Very high population growth rate, poverty. Extremely young country - 75% are younger than 35. Broken families are common - one breadwinner, usually the mother. Technological factors Overall low spending on research & development. Reasonable communication infrastructure and internet. Access to the newest technology through Target Malaria in other locations. Import restrictions exist on biomaterial. Permits are required. In addition to the PEST analysis above, it is important to add Environmental and Legal factors for Target Malaria, because these two areas are directly connected to the project and they have a very high impact. Environmental Factors Climate change is changing mosquito breeding and feeding patterns. Poor waste management and the absence of recycling allow mosquitoes to breed closer to the people and their homes. Future GMO mosquito release is of concern to some environmentalist groups. 3
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Legal Factors Uganda has no law regulating GMOs. The Bill presented to Parliament is focused on crops more than animals, and insects weren't mentioned. It needs revision, and the President returned it for improvements. Copyright, patents, and intellectual property laws are weak, but Target Malaria works on open-source technology and is happy to share research results. Without the law, Target Malaria is regulated by the National Council for Science and Technology. Sudden advancement in technology Target Malaria would be embracing any sudden advancements in technology to advance its research. Arriving at a solution to reduce the number of malaria-transmitting mosquitoes may be the only hope, as both the medication and the insecticides are failing. Social unrest Target Malaria have experienced some negative publicity due to a group of activists who are advocating against GMOs. Any sudden social unrest connected to GMOs would not reflect well on the Target Malaria project. The strategy would be to arrange for core staff to manage the activities while the top management engages the activists and conducts discussions and agreements. Enhanced economic stability Under economic factors, there would be a potential for reducing poverty, enabling more people to have more tools available to fight malaria. The potential reduction in malaria cases may help Target Malaria reach its objective sooner. 4
Conclusion After diving into PEST and PESTEL analysis, the Target Malaria strategy should remain firm and decisive on the issues of developing novel technologies for combatting malaria. In Uganda, where the political and economic situation is not ideal, Target Malaria can work with scientists to reach its goal, as it is a project and not a business, and philanthropists outside of Uganda are the main funders. With a focus on the goals and clear, decisive, and open communication with all the stakeholders, the project will succeed. Word Count: 767 5
References Frue, L. (2017, November 7). 14 critical questions to ask in PEST analysis. https://pestleanalysis.com/14-critical-questions-ask-pest-analysis/ Jurevicius, O. (2023, December 1). PEST & PESTEL Analysis. Strategic Management Insight. https://strategicmanagementinsight.com/tools/pest-pestel-analysis/ 6
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