Question

What are the PEST factors analysis for TipTop iceream in NZ and ice cream industry includes small summary of overall PEST analysis key points for TipTop. Thank you

Answer 1

PEST factor analysis-

Political factor-

Political factors have significant impact on Ice cream industry in which TipTip ice cream operates. Government regulations, policy,labor law, Tax law etc impose threat to this business. for example- If government of NewZealand and government of Switzerland had political issue then it would create tension for business of TipTop because TipTop parent company is  Froneri which has jointventure with Nestle a Swiss company.Government regulations like safety standards and wages for workers also increase business of The company because company has to provide fair wages and safe conditions under labor law in its factories where ice cream are manufactured.

Economical factor-

Economy of a country is related to factors like employment rate, purchasing power of customers,income,growth, exchange rate etc. if Company source its raw materials from suppliers from other country then taxes and tariffs can impact business of TipTop because high tarrif means high price so ice creams will be high priced which would impact demand of customer and vice versa.  

Newzealand has strong economy so purchasing power of customer is good so it would benefit the company because customers will be able to purchase its ice cream on weddings, occassions, events etc.

Social Factor-

Society and its culture has great influence on TipTop company and its industry because we can see people are focusing more on health and healthy eating habits. People may consider eating ice cream unhealthy and cause sickness so this can affect business of TipTop ice cream.

Ice cream is made from Milk so people who are vegan or live vegan lifestyle can lower demand of ice cream based on Milk.

Technological factor-

Technology is the factor which is boon for this industry because innovation in manufacturing equipment can help company to manufacture huge amount of icecream in less time. also company can use technology in R&D to make more flavors of ice cream. use of digital media in marketing and promotion of The brand.

summary-

Overall TipTop must focus on complying government regulations and law in order to do business successfully. TipTip can grab opportunity with use of technology by keep innovating its ice cream and use social media to make better customer relationship. Company must focus on producing healthy ice cream like protein rich ice cream to meet trend of health in society.