This document analyzes the PESTEL factors affecting P&G's Pampers business unit in Europe. Politically, there are strict regulations on waste disposal presenting both opportunities to develop recyclable diapers and threats of stricter regulations. Economically, fluctuations in currency exchange rates and increasing material costs pose threats while competitors present threats. Socially, fewer births and economic crises threaten sales while increased consumer spending presents opportunities. Technological advances allow for improved marketing, online sales, and lower costs through more efficient supply chains. Ecological concerns threaten sales but also present opportunities to develop more sustainable diaper options. Legally, waste and product safety regulations must be followed.

1. STRATEGIC MANAGEMENT:PESTEL ANALYSIS
Company: P&G SBU: Pampers
Geographic Region: Europe
Group Members: Dorine, Bogdan, Sonia, Gerardo, Miguel & Femke
PESTEL
Category
PESTEL Factor(s) Importance
Low, Medium,High
Impact
Opportunity,Neutral or
Threat
Political - Strictregulationsonthe disposal of the
solidwastes
- Solidwaste disposal actwhichregulate the
productionandthe managementof the solid
waste
- Variouscountriesalsopassedlawson
properdisposal of solidwastes
Medium Variousgroupsconducted
studiestoexamine the
damage causedby the use
of disposablediapers
Opportunitiesfor
developmentof recyclable
diaperstoprotectthe
environment
Stricterregulationsonthe
manufacturersof
disposable diapers
Increased customer
awarenessissuesand
resentmentforpurchasing
the disposable diapers
Economic - Increase of the dollarvalue. Pampers
producesthe diapersinUnitedStatessothe
increase of the dollarisreducingthe
revenuesfromcountriesthathave aweaker
currency.
- HigherCosts of raw materials.
Costsof raw materialsare alsoincreasing,so
the profitsof the companyare directly
affected.
- Fewersalesbecause of the introductionof
ecological diapers.The ecological diapers
are well receivedbypeople whocare about
environment;thisistraducedinlowersales.
- Competitors.Many competitorsinthe
actual market.
-High: The constant
change of currenciesis
alwaysan important
issue thatthe
companiesneedto
analyze andget
prepare.
- Medium:There is
alwaysa bettersupplier
youcan find.
- High: Maybe today is
not that important,but
ina few yearsitcould
be a real problemif
theydo notdo
somethingtoimprove
some technologythat
alsocares aboutthe
environment.
-Medium:Pampersis
the Nº1 initsmarket,
#49 of the most
valuable companies
(Forbes).
- Threat: Whena currency
as importantas the Dollar
increasesthatmuchyou
can’t increase yourprices
inthe same way,youhave
to take the risk of getting
fewerprofitsand start
searchingfora cheaper
wayto produce.
- Neutral
- Opportunity:They can
alsotry to start producing
ecological diapers,the
brand isalreadyknownso
it isa big chance to get a
new line of products.
-Threat: Competitorsare
alwaysa threat,which is
whyyou have to be always
doingnew strategiesto
keepyoursalesthe same.
Social - Lesschildrenborn
- The consumerhas more moneytospend
- Consumercompare more
- Crisis2008
- High: sell lesspampers
- Medium:theyhave
enoughmoneyfor
pampers
- High: Pampershasto
compete
- High: consumerssave
money
- Threat: sell lesspampers
- Opportunity
- Threat: has to prove they
are betterthan
competitors
- Threat: consumerwill
choose forcompetitors
that are cheaper

2. Technological - Improvementin communicationand
advertisingthroughthe Internetandsocial
networks.
- In recentyearsthere have beenmany
technological “advancesin datastorage,
whichisgood to understandconsumer
behaviorandexplore new business
opportunities”(Weisbrod,2012,p.150).
- Improvementin online sales(e-commerce)
and Internetsites hasenabledconsumersto
compare before theybuy.
- Costreductionbecause of more efficient
supplychain and stock management.
- Pampershasdecidedtoinvestheavilyin
research and development,whichisahuge
competitiveadvantage.
- Pampershascreateda machine that
produces400 diapersperminutesto
produce largerquantitiesinorderto reduce
production costs (Weisbrod,2012).
Ecological To preserve the ecosystempampersdecided
to do theirproductswithbiodegradable
material.
Both disposable andclothnappieshave an
effectonthe environment.
Both disposableandclothnappiesconsume
energy,waterandraw materials,botherof
them,have environmental emissions.,that’s
why Love and greenpartnershipprogramis
createdto decrease badeffects.
High: importante of
ecosysteem
Threat: In Germany,
Greenpeace accuses
nappiesmanufacturersof
puttingindangerthe
healthof the babiesand
alsothe environment.
Threat: competitorsas
Huggieswhowantto use
the same strategyas
Pampers
Opportunities:regular
innovationsinthe product
to maintaincustomers’
highinvolvement.
Legal - Laws and regulationsaboutwaste
segregationinEurope andUSA.
- Regulationsto the producersof disposable
diapers.
- Restrictionsinthe use of toxicelementsor
materials.anydoubtaboutthe use of toxic
productsrequire analyzesandcontrolsin
ordernot to endangerthe children,northe
environment.

3. References
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