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Great Lakes: Great Decisions. PESTEL General Lakes Chemical Corporation - Essay Example

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The PESTEL model is one of the most renowned models used for assessing the general environment of an organization. Hence it would be highly appropriate if PESTEL model is used to analyze the macro environment of General Lakes Chemical Corporation…
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Great Lakes: Great Decisions. PESTEL General Lakes Chemical Corporation
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"Great Lakes: Great Decisions. PESTEL General Lakes Chemical Corporation"

Download file to see previous pages The major political issue with General Lakes Chemical Corporation (GLCC) arises because of the company’s lead production via its subsidiary Octel Associates. Octel Associates, being a subsidiary to GLCC, produces many different chemical and one of their major products was Tetraethyl Lead (TEL). The issue with lead additives has been that the substance has been banned within the United States and other European countries because of its severe adverse affect. This ban has been imposed because of the extra pressure being mounted up by the environmentalist upon the governments. Hence as far as the political scenario is concerned, GLCC may not be in a good state politically because of ban being implemented upon the lead additives by the United States government.
As far as the finance is concerned, GLCC’s main share of profit comes up from Octel Associates production of lead additives, hence it can be said that lead additives had always been a favorite area for the whole organization because of the humongous profit being generated from it. Hence it would really unfruitful for GLCC to halt the production of TEL. As far as the developing countries are concerned, their economy relies heavily upon leaded petroleum, with Africa and the Middle East being the major users and because of this reason they may not want GLCC to close its operation as the developing companies may need time to evolve themselves towards the use of unleaded petroleum products. Finally it can be said that the company would ultimately be affected by halting the production of TEL with respect to a huge profit loss in the short-run but this can be brought back to normal in the long-run if the company follows proper procedures, Social/Demographic People all around the globe would have different perspective about the company’s current operation and the closure of these operations. The mixed emotions would include by some people, the people within the developed countries would strongly go against the production of TEL whilst many developing country’s population would favor the production because of their heavy usage of the product. Technological The Company itself does not face any technological issues. The only technological issue lies with the inability of the under developed countries to produce unleaded petroleum. The best way out in this scenario would be the GLCC can use it technological advancement and help the under developing countries with the production of unleaded petroleum, this as a result, would not only help the under developed countries to transition and it would also help GLCC to prosper and improve its global reputation in the long-run. Environmental/Geographic This is one of the largest issues that GLCC has to face. There has been severe pressure upon the company to halt the production of TEL. This immense pressure has been kept up because of the stern consequences of lead additives. Research showed that leaded gasoline resulted in harsh results for the people living within the environment with major cardiovascular as well as neurological setbacks for individuals. Children were considered to be more prone to the negative effects of leaded gasoline evaporating within the environment as compared to the adults. Finally the research concluded that lead was severely poisonous leading to a reduction in the IQ level of the children living in areas where ...Download file to see next pagesRead More
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Assignment 1: Case 11: Great Lakes: Great Decisions
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