Halifax PESTEL Analysis
Introduction
Halifax province is also known as Halifax Regional Municipality. It is the capital city of the Canadian province. Initially, the region was comprised of four municipalities that were later conjoined 1n 1996. The municipalities included Bedford, Halifax county, Halifax, and Dartmouth. The region is a critical economic bloc for the country as there are numerous private incorporation and government services. The major employers are in this region, thereby contributing significantly to the economy. The major economic activities in this region include forestry, mining, natural gas extraction, and agriculture. The four municipalities’ functionalities are mostly achieved through the Metropolitan Authority (Halifax, 2020). Marketing managers use PESTEL analysis to understand external factors that can affect their products and services’ sales and marketing. These macro-environmental factors can affect how managers sell and do not sell products and services in emerging markets. These major external factors and indicators analyzed by PESTEL analysis include political, economic, social, technical, environmental, and legal. These factors are out of control but affect organizational decisions, strategies, and outcomes throughout the business lifecycle.in most cases, economies are greatly influenced by these factors adversely of positively as discussed in the subsequent sections. This discussion will be based on the PESTEL analysis of Halifax.
PESTEL Analysis
PESTEL analysis is a tool that marketers use to assess macro-environmental factors that can significantly impact a company’s business strategy. The purpose of PESTEL analysis, which often appears as an opportunity and threat in SWOT analysis, is to accurately assess how these factors affect the performance of competitors in the same industry. PESTEL stands for analysis (political, economic, social, technical, environmental). PESTEL analysis can be used to assess the strategic relevance of the six key components of the macro-environment: political, economic, social, technical, environmental, and legal/regulatory. The benefits of PESTEL analysis are simpler, providing insights into a broader business environment, facilitating strategic thinking, raising awareness of project threats, and identifying opportunities for organizations to seize.
Political aspect
A strong political framework, along with politics, creates a comfortable business environment around the world. Difficulties are exacerbated by high forex regulations, which can seriously complicate businesses and affect associations with foreign trading companies and exports. Government seriousness is, at best, necessary to protect the protected intellectual property rights of the business, and the constant threat of theft of ideas and proposals discourages new entrepreneurs from investing in the business. Let me.
Political factors have a significant impact on the industry. Political and government stability controls the dynamics of the industry. The tranquility and tranquility of this area guarantee the smooth operation in a region and contribute to the region’s development. This activity is highly dependent on the situation in each region. Unlike a peaceful country, it is difficult to find a business based in a military-toned region. Inventors and owners are keen to open offices in areas they consider to be politically oriented, so political orientation also determines which corporations are created in different locations. Policies that also regulate taxation affect the performance and presence of the industry and favorable policies are incentives. Within the same category, we assume that union groups and strengths dominate industries around the world.
These factors have a significant impact on a region or company’s profitability and resilience and can be a major competitor in the market. Its presence on a global scale extends to the logic of organizations and makes a big difference in various countries’ world politics. At the political stage, the path to achieving a dynamic business situation increases the risks that may be beneficial soon. Political turmoil can be an obstacle for financial professionals, undermine partner confidence in the economy, and reduce regional economic agents’ efficiency.
Halifax province has enjoyed a conducive political environment as no political wrangles have been reported in the regions. The election, which is a major source of political violence, is always held peaceful. The leadership is well agreed upon. The political environment is perhaps one of the most unpredictable external factors that influence business entities and state members. This is due to the dynamics of the political class as far as the decision-making process is concerned.
Current strengths
The political class is responsible for establishing the different taxes paid by individuals. Halifax province has suitable tax rates, ensuring a balance between the “haves” and the “have nots” prevails. This is through the harmonized Sales tax aimed at protecting small business owners. The province has also established the Industrial Development Authority, whose aim is to protect the industries and enhance trade development by bringing in a governmental, non-profit organization, manufacturing industries to establish enterprises in the region for economic empowerment of the people and the county at large. The Industrial Development Authority, therefore, has been bequeathed the role of acquiring, owning, disposing, and leasing any property. Investors must liaise with the authority to participate in any economic activity in the region.
Various regulations have been put in place to protect everyone. Halifax province is influenced by the Virginia regulations, which stipulates that discrimination is illegal. Discrimination may be based on race, gender, and origin. This ensures that the area is conducive for all individuals as legal statutes govern their wellbeing.
Current challenges
Halifax’s tax regulations may not be conducive for business entities due to the effect of state taxes that determine the course. Generally, each province or county add more tax to the tax regulations. For instance, recently, there was an additional tax in Halifax province. The increased use and retail tax were added by Halifax county. However, they were considerate as it was not imposed on consumable goods. Generally, the system does not have an independent tax policy. It relies on state laws, which give various stipulations. This leads to an unnecessary increase in tax as the counties must add their own taxes. For instance, in this case, the use and retail tax were raised to 6.3% due to an additional Halifax county tax of 1%. Initially, the tax included a 4.3% tax for the state and the 1% local tax. This indicates that the tax policies are not fixed, and in this case, they are influenced by various factors that may affect the running of businesses.
Prospects
The Halifax Regional Municipality is the center for Canada’s economic development. The institution aims at ensuring that there is increased labor and services for the prosperity of the county. The platforms build the confidence of future business enterprises. This is through an assurance of suitable taxes for the business world. The diversity of the economic spectrum in the regions offers better future fortunes. The Industrial Development authority aims to harmonize the economic developments for the betterment of the citizens’ lives. This is through the various policies that are formulated by the county.
Future risks
Like any other government, the county’s political future is unpredictable due to the dynamics associated with policies made. There will be possibilities that there will be an increase in taxes due to government regulations, which result from inflation and global economic changes. The leadership changes might also affect the business’s running as leaders come up with their own policies. More so, there are legislative risks. The political environment is unpredictable. In Halifax, the changes in the federal and local governments might affect the business operations.
Economic Aspect
Economic factors such as inflation and unemployment have a direct impact on the economy. They determine parameters such as industry operating costs, salaries, and margins. Other important elements of this group in this group include Gross National Product (GNP) and ownership patterns that affect hotel management. According to Finch, economic factors are variables that reflect health and economic conditions. Variables such as consumer confidence, unemployment, inflation, and exchange rates are some of the variables that significantly impact product and market-level decision-making (Finch, 2017).
Current strengths
The Halifax Regional Municipality (HRM) comprises various industries, including financial services, ocean technology energy, ICT technologies, and transport and logistics. This makes the economy so diverse. The Industrial Development Authority also focuses on establishing industries that aim to promote economic growth in the regions. The established industries offer employment opportunities to the educated workforce (PNS, 2020).
The area has a large concentration of private and government incorporation. Trade, which is a major economic activity, offers employment opportunities to a substantial number of citizens. The government also offers more employment opportunities for individuals. Halifax’s port plays a significant role in Halifax’s economy due to the number of containers handled. Mining, forestry, natural gases, and fishing are the main industries that effectively contribute to the economy’s GDP. The economy reported in 2015 a GDP per capita was Canadian Us dollars amounting to 49188. The economy’s strengths are based on the diversity of the economy, which offers revenue to the citizens. The unemployment level was at 5.9%, which is very low (Halifax n.d).
Generally, the economy has been categorized as the home of R&D related to oceans business, the defense forces, and tourists. Most of all, research and development carried in this region are based on oceanic studies. Since the city is a smart city characterized by educational institutions, the economy has a steady flow of skilled labor produced by the three community colleges and six universities. This workforce plays a critical role in the development of knowledge-based industries.
Current challenges
Like any other economy, the Halifax Regional Municipality is bound to global economic effects that affect activities’ running. For instance, some economic recession is attributed to the emergence of COVID-19, which had greatly affected the global economy. The tourism industry, which plays an essential role in the economy, has been affected; changes in oil price also affect the economy, relying on industries, transport, and logistics. The low population in the area may lead to the availability of labor leading to low production rates. Low population also reduces the ready market, which makes the economy heavily rely on external markets.
Future prospects
Every economy hopes to make positive changes as far as development is concerned. This is the case of Halifax, which focuses on making positive changes regardless of the economic changes. In this case, the province hopes to align development goals in an economic aspect. For instance, the economy hopes to increase its populations and increases its Gross Domestic Product. Since the economy has an advantage on the ocean, the economy aims at focusing on the aspects that they are best in. in this case, the economy hopes to invest alloy in innovation and education in the sector which will bolster its economy. There is a need for the city to be developed into a prosperous and vibrant city. To increase the labor force, the economy heavily relies on immigrants.
Future risks
The low population might inhibit the economic development of the state. Its aim of focusing on immigrants is immature as various factors interplay in the immigration process. This will, therefore, not guarantee ready labor and market for their produce goods. The economy is also uncertain, based on global developments. New trends are emerging due to the technological developments that must be aligned with economic policies. The economic aspects are also affected by government regulations, which are dynamic based on the prevailing leadership. The foreign exchange rates may affect the Canadian Us dollar. The political climate interacts with the economic aspects as a possible political crisis may affect investment policies. The future is unpredictable as it is in the contemporary world where Corona Virus has greatly affected economies. The future of the pandemic is also unpredictable. The pandemic has significantly affected the flow of goods amongst states. Generally, the economic risks are difficult to identify, which calls for economies to have ready strategies to mitigate the challenges.
References
Finch, J. (2012). Managerial marketing [Electronic version]. Retrieved from https://ashford.content.edu
Halifax (n.d). Introduction to Halifax https://www.halifax.ca/sites/default/files/documents/city-hall/budget-finances/2019-20_Budget_Introduction.pdf
Halifax (2020). Your City https://www.halifax.ca/about-halifax/newcomers/your-city
Province of Nova Scotia (2020). Finance and Treasury Board https://novascotia.ca/finance/statistics/news.asp?id=15003
