BUSINESS ENVIRONMENTAL ALAYSIS

BUSINESS AND BUSINESS 1

ENVIRONMENT
OUTLINE
01 Overview of Thalawakelle Estate

02 Business Environment

03 PEST Analysis

04 SWOT Analysis

05 TWOS Analysis
Linkage between SWOT AND
06
PESTLE
07 Critical Key Reflection

08 Conclusion 2
OVERVIEW OF THE COMPANY
Profit
LKR 412.7 Mn
Public Limited
Company

CEO
Ethical Tea Mohan
Annual Revenue Partnership Pandithage
4.02 Bn
Number of
Employees Source: Thalwakelle PLC
Annual report(2018/2019) 3
6650
 VISI MISSION
ON
“Produce and
market quality
“To be the most teas that delight
admired Plantation our customers...
Company in Sri Drive sustainable
Lanka” growth... Enhance
shareholder
value...”

Source: Thalwakelle PLC

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Annual report(2018/2019)
 PRODUCT PORTOFOLIO
Figure:1 Thalawakelle Teas
 BLACK TEA - BOPF Pack

 BOP - Single Origin Tea (Loose Tea)

 TEA BOOK (Gift Pack)

 SIX IN ONE (Gift Pack)

 GREEN TEA - Radella Estate

Source: Thalwakelle PLC

5
Annual report(2018/2019)
Figure1:TTE PLC

High Grown
Talawakelle Region &
Nanu Oya Region

Low Grown
Galle Region

Low Grown
Deniyaya Region

Figure 2: TTE PLC crops

Source: Thalwakelle PLC
6
Annual report(2018/2019)
Figure 3: No.of Thalawakelle PLC estates
making profits

10 Estates of TTE
PLC are High grown
estates in
2018/2019
5 Estates of TTE
PLC are low grown
estates in
2018/2019
Source: Thalwakelle PLC
Annual report(2018/2019)

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BUSINESS EVIRONMENT

• Business environment is the sum total of all external and

internal factors that influence a business. The internal factors
and External factors can influence each other and work
together to affect a business

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 BUSINESS
ENVIRONMENT
Table 1: Business Environment

Internal External
Environment Environment

 Value system
 Mission & Micro Macro
objectives
 Organizational Entrepreneur political

structure Manager Economical

 Human resource
Customer Social
 Labor Union
Source: Author developed  Cooperate Culture Employee Technological 9
MICRO ENVIRONMENT

• Microenvironment is the environment which is in direct

contact with the business organization and can affect the
routine activities of business straight away.

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MACRO ENVIRONMENT

Macro environment is the major external and uncontrollable

factors that influence an organization’s decision making, and
affects its performance and strategies.

PESTEL Analysis: A PESTEL analysis is a tool used by marketers to

analyse and monitor the macro-environmental factors that have
an impact on an organization.

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 PESTLE ANALYSIS
Political Economic
Factors Factors

In 2019- 2011.per capita

Sri Lankan government Alcohol consumption declined
imposed taxed on companies
exporting teas In 2012 the GDP increased to
$1,819 Mn
FTA and NAFTA agreement

Municipalities in Canada issues Importers of tea significantly

building permits worth 7.2Bn increased from $487.9Mn in 1999
to $845,3Mn in 2009 Canada

Source: Thalawakelle PLC Annual report(2018/2019 ) 12

Source: Thalwakelle PLC Annual report(2018/2019 )
Social
Factors
In 2012,employment rate
increased and the
unemployment rate held steady
at 6.9
Tea grew by 3% to reach C$517,
Million from 2011 to 2012
Canadians drink more than nine
Billion cups of tea a year
Technological
Factors
79.2% of the total
population are internet users
In cooperating the highest
technological standard in
Production of teas
Being highly labor intensive 
technological factors is least 
affecting the tea industry
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Source: Thalwakelle PLC Annual report(2018/2019 )

Legal Environmental
Factors Factors

Have to maintain a product TTE teas may keep the people

license warm in a cold environment

Change in current regulations Sustainable farming

Sales tax is exempted for Decline in the number of plant

certain beverage such as tea
in other countries

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Source: Thalawakelle Estate Annual Report(2018/19)

Figure 4:Sustainable Farming of Thalawakelle PLC 15

 SWOT ANALYSIS
Strengths

S
W Weaknesses

O Opportunities

T
Threats

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Strengths Weaknesses
Technical Man power skill Increase in cost of production
Effective Communication Limited land area
Online Growth Labor intensive

Opportunities Threats
Emerging market and expansion abroad Fluctuation of tea prices
Growing demand for good quality teas Declining competitiveness
New Flavors and formulations Change in consumption pattern

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Source: Thalwakelle PLC
Annual report(2018/2019) 17
TWOS ANALYSIS OF Strengths
THALAWAKELLE  Technical Man power skill
 Effective Communication
ESTATE
 Online Growth
Weaknesses
Table 2 SWOT AND
 Increase in cost of production TWOS Analysis
 Limited land area
 Labor intensive

Opportunities SO- STRATEGIES WO- STRATEGIES

 Emerging market and • New market penetration • Increase the efficiency in

expansion abroad • Customer retention supply chain management

 Growing demand for • Cutting down the production

good quality teas cost to the maximum.

 New Flavors and

Source: Thalwakelle PLC
formulations
Annual report(2018/2019)

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Threats ST-STRATEGIES WT-STRATEGIES
Linkage between SWOT and PESTLE
• Technological factor gives their service on the online process and get the
review from the customer(strength)
• Social factors may influence the business in negative way like CSR
responsibility of the organization thus business is liable to do social
activities(weakness)
• Imposing of tax when exporting bulk of teas (Threat)
• Canadians drink more than 9 billion tea per year(opportunities)
Source: Thalwakelle PLC Annual
report(2018/2019)

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Critical Key Reflection
• Bring new flavors of tea into the market
• Improve the input of quality raw material
• Brining new innovations into the market
• Improvement in their online marketing strategies

(Thasfiha, 2020)

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Conclusion
Throughout this author analyses about micro and macro environment and
that applies to Thalawakelle Estate. Accordingly, the author analyses the
meaning of PESTEL, it refers to the strategic analysis of a business’s macro
environment, containing Political, Economic, Social, Technological,
Environmental and Legal. Gradually, the author analyses the external forces
and how it impacts Thalawakelle Estate. Subsequently, the author identifies
the SWOT and TOWS analysis and the linkage between the PESTLE AND SWOT
and finally Author gives the critical reflection for the decision making

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 References
Thasfiha. (2020). Thasfiha. Retrieved from researchgate:
https://www.researchgate.net/publication/280917771_Sri_Lankan_Tea_Industry_Pr
ospects_and_Challenges
Thalawakelle Annual Report. (2018/2019). Annual report. Retrieved from cdn.cse:
https://cdn.cse.lk/cmt/upload_report_file/726_1559215664124.pdf

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Q & A
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THANK YOU
NAME: RUKSHANI REFAI
BATCH: HND in Business Management Batch 42
EMAIL ID:rukshanirefai1999@gmail.com
STUDENT ID:1018455

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