Case Study

PESTLE Analysis- Fluor Corp

LaQuanda D. Williams

SC State University

Dr. David Jamison

BA563: Global Business Perspective

17 September 2021

Country and Background Info

Colombia, officially the Republic of Colombia, is a country in South America. It is

bounded on the north by the Caribbean Sea, the northwest by Panama, the south by Ecuador and

Peru, the east by Venezuela, the southeast by Brazil, and the west by the Pacific Ocean. Colombia

is composed of 32 departments and the Capital District of Bogotá, the country's largest city. It

covers an area of 1,141,748 square km, with a population of 50 million. Colombia's rich cultural

heritage reflects influences by various Amerindian civilizations. Spanish is the nation's official

language, besides which over 70 languages are spoken. Colombia has been inhabited by various

indigenous peoples since at least 12,000 BCE, including the Muisca, Quimbaya, and the Tairona.

Colombia has a vast market that involves technology needs, infrastructure, healthcare, and

development. In this regard, there is an imperative need to implement reliable business

environments to facilitate the growth of companies in Colombia. International markets have a

strong possibility of gaining clients in the Colombian market as Latin Americans strive to improve

their social status and improve the economy. It is possible for the Colombian market to work with

international companies since it involves international trade.

Fluor Corp has established its outreach in many countries that focus on promoting business

productivity and high standard construction. Therefore I shall analyze Fluor’s business dealings in

Colombia that offer a unique business environment whenever new companies venture into it. The

product getting marketed is Fluor Corp’s construction processes that offer high standard building

procedures a favorable business environment is evident since the country strives to improve its

manufacturing and transportation industries in conjunction with the gold, coffee, flowers, and coal

it exports1. There is a strong need to implement PESTLE analysis that offers diverse views on

1 Lustig, Nathan. 2017. The Advantages and Disadvantages of Doing Business in Colombia. Nathanlustig.com. https://www.nathanlustig.com/advantages-disadvantages-business-colombia/

different components, which would allow Fluor Corp to venture into the market again with

sufficient market share.

PESTLE Analysis

Political

 The Colombian market is exposed to individual trading policies that impact on type

business activities.

 Issues like terrorism, conflicts, and wars affect new businesses implementation.2

 During an election period, the business environment gets affected as politicians influence

business decision-making.

 Corruption is common in the area as it affects business ventures when businesses are

required to bribe officials for opportunities.

These factors can influence Fluor Corp’s venture in the area as there can be issues related to proper

business operations. The political environment is hostile and requires communication with locals to

determine Fluor’s viability.

Economic

 The local economy is focused on trade as the country boasts of international trade.

 Problems occur when the trade gets affected by tariffs and duties on goods, causing the

market to seem to be unfavorable for new businesses.

 Inflation is common when there are problems when analyzing economic environments for

productivity.3

2 Ibid 3 Ibid

These factors are crucial, yet it is possible for Fluor Corp to engage in construction activities in the

area. Availability of favorable international trade increases the possibility of the country to connect

with Fluor Corp’s mandate of improving economic outreach.

Social

 Demographic factors connected to business include cultural barriers that may affect

communication.

 Spanish is the national language, and it becomes difficult for foreign companies to engage

with all persons in the society.4

 Citizens get provided with reliable credit operations that facilitate the protection of their

loans from improper bank practices.

These factors generate an in-depth understanding that Fluor Corp can gain a large workforce and

customer base as long as there is the elimination of the communication barrier.

Technological

 The existence of energy, communications, and transportation industries is a commendable

factor in the country that allows it to collaborate with the current global market.

 Information technology gets adopted in Colombia as it is involved in foreign direct

investment with the US.5.

 Improvement of local business dealings activities gets conducted effectively in this way

based on the availability of technical improvements.

These factors classify Colombia as a reliable market for Fluor Corp since the company is involved

in construction that requires current technological innovations for high-standard operations.

Legal

4 Ibid 5 Trade.gov. 2020. “Colombia - Country Commercial Guide." Trade.gov. https://www.trade.gov/knowledge-product/exporting-colombia-market-overview

 Taxation is a strict action in Colombia since it is mandatory for all businesses to pay taxes.

 There is a strong need for all companies to collaborate with the Colombian social security

system to adhere to local business measures.

These factors indicate that Fluor Corp requires a legal term to analyze the Colombian market and

integrate proper organizational activities.

Environmental

 Environmental issues include deforestation and soil erosion that affects the

aesthetic value of the country.

 Construction activities result in more environmental issues

These factors influence Fluor Corp to develop a productive operational process that would allow

its construction activities to be productive and not harm the environment.

Summary

Analysis of the PESTLE factors indicates Fluor Corp needs to perform research to enable

its venture to become productive and generate required profits.

References

Quijano, Daniel Diaz. 2018. "Top 10 Challenges Of Doing Business In Colombia -

Corporate/Commercial Law - Colombia". Mondaq.Com.

https://www.mondaq.com/corporate-and-company-law/719528/top-10-challenges-of-

doing-business-in-colombia.

Lustig, Nathan. 2017. The Advantages and Disadvantages of Doing Business in Colombia.

Nathanlustig.com. https://www.nathanlustig.com/advantages-disadvantages-business-

colombia/.

Trade.gov. 2020. “Colombia - Country Commercial Guide." Trade.gov.

https://www.trade.gov/knowledge-product/exporting-colombia-market-overview