Académique Documents
Professionnel Documents
Culture Documents
Political environment
The main concern of the political factors are the government intervention, entry
barriers, and tax or tariff structures and so on. The company need a good political
environment with stable political, government and legislation to growth. Malaysia is a multiparty democracy country with a stable politic environment and fair trade law and regulations
for the company to growth.
IRIS Corporation BHD had enjoyed the stability of political environment in Malaysia
due to Malaysia was a democratically-election coalition government. With the good politic
condition, Malaysia able to provide the healthy competition business environment with good
policies to Iris Corporation BHD.
Besides, Malaysia also charge the very low corporate tax rate which is just only 25%
compare to others country like Australia, India, Japan, Philippines and US who are charging
the corporate tax rate higher than 30%. In the others hand, Malaysia also established the
Kuala Lumpur Regional Centre for Arbitration in years 1978 for the purpose to provides
efficient and confidential system for the settlement of trade, commerce and investment
disputes within the region.
For Iris Corporation BHD which are the Malaysian company responsible to provide
software and documentary service to the government to produce the citizens Identity Card
(IC), Passport and others documentary, the government have set the regulations and law that
to only protect and benefit to Iris corporate BHD like entry barrier to its industry. But due to
the corruption issue getting more serious in the country, there will be some potential issue and
barriers will increase company cost and causing problems for company
Economics environment
The economics environment is the most important issue for macro-analysis because
the economics environment included the country citizens income status, purchase power,
unemployment rates, interest rate and so on which can directly decide the successful or
failure of the company strategy.
In Malaysia economics environment, the statistics shows that the Malaysias
economic growth are keep climbing to increase very stable which is average growth 7% per
year and 37% of Malaysias GDP and the country achieves a healthy current account surplus.
It shows that the Malaysia economics environment are very stable and suitable for the
company to increase their investment in the country. The location of Malaysia makes it
become the ideally location for the international trade.
The healthy economic environment in Malaysia provided IRIS corporate BHD a good
macro environment to growth and make the company strategy able to implement in smooth
and successful to achieve their target. It is because the economy policy and environment in
Malaysia are good enough to support IRIS corporation BHD strategy to ensure the successful
of the company.
Social analysis
Malaysia is an ethics diversity country for many races group like Malay, Chinese,
Indian and aboriginal. According to the statistics from Malaysian population and Housing
census department, Malaysia have 50.4% Malays, 26% Chinese, 11.8% of Indigenous, 7.7%
of Indians and 1.2% of other racial group to form the Malaysian population. Due to the multiracial of population, Malaysia also have a lot religious background like Islam, Buddha, and
Hindus and so on. In the Malaysia social cultural, the old generation still believed in their
traditional value but the younger generations are adopting with the western cultural rapidly.
Therefore the social environment are effecting the company strategy because the
future population group are changing their cultural. The IRIS Corporation BHD need to
change their strategy to provide their service like digital identity, business, farming and
environmental solutions to suit the younger generation habits. Besides, the company also
have to adapt the Malaysia mixture religions and cultural to ensure the company will adapt
their products and business practices.
Technology analysis
Compare to others country with high technology like Australia, US, UK and so on.
Malaysia still consider as a developing country and the technology level still not able to
compete with them in the international markets. Therefore, Malaysia government had invest
high volume of capital for research and development to enhance countrys technology level to
continuously compete in international market.
The IRIS Corporation BHD are one of the famous technology based company in
Malaysia which are the first electronic passport and national multi-application smart card.
The technology level of Malaysia also indirectly influence to the company because the need
to develop their product based on Malaysia current technology level to ensure that the
citizens of Malaysia able to use the product, and user friendly to the consumer.
Therefore, the E-passport which are invented by IRIS co BHD are adapt rapidly in
Malaysia because this technology provided convenient and secure to the Malaysian citizen
for facilitates safe, secure travel and prevent fraud which the traditional passport are not able
to do that.
Ecology analysis
According to the Ministry of Natural Resources and Environment, the business
activities in Malaysia are threaten the environment due to nearly two million hectares of
forest are lost between 1990s to 2010s and the depletion rate is faster than others Asian
countries. Therefore the ministry demanded the government to give up the nuclear power
option, halt the rare earth project, stop the use of incinerators and establish an efficient public
transportation system to reduce the pollution to the environment.
To encourage environmental awareness among the people, IRIS Corporation BHD
introduced the Autopot system which is an innovative farming solutions and environmental
friendly fertigation system designed to supply water and nutrient to the exact needs of a plant.
Besides, IRIS also designed a environmental pollution solution by invented the green gaspowered waste disposal system capable of environmental-friendly incineration of solid and
liquid waste.
Threat of substitution
This is a threat that the consumer able to find another company that providing the
similar product or services which are offer by the company. When the consumer able to do
this, they are able to switch to other company if the consumer feel unsatisfied with the
company product or services.
As the only manufactures in Malaysia which are developed the digital identity card
and Electronic passport for Malaysia citizens. The company are being protected under
Malaysia government because if there are another company in this industry to producing
Malaysia citizen identity card and passport, it will cause mass confusing and fraud, besides
the government also very hard to manage this citizens information storage. To prevent this
happen, Malaysia government have to make sure there are no others company that able to
produce the identity card and passport.
http://www.slideshare.net/aliceburavitskaya/pestle-analysis-on-malaysia
http://www.iris.com.my/index.html
http://www.itchybrainscentral.com/example-essays/ecology-impact-technology
http://www.quickmba.com/strategy/porter.shtml