Case Study

PESTLE Analysis- Fluor Corp

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PESTLE Analysis- Fluor Corp

Fluor Corp has established its outreach in many countries that focus on promoting business productivity and high standard construction. This paper 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 of gas fields in Colombia that is a valid direction since the company got a contract to handle the construction in the Cusiana and Cupiagua fields .

Background Information

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. 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 exports . Regardless, there has been negative impact of large-scale construction and technology in Colombia. A case study revealed that issues like pollution, negative environmental footprint, and development of non-environmentally sustainable constructions .

There is a strong need to implement PESTLE analysis that offers diverse views on different components, which would allow Fluor Corp to venture into the market again with sufficient market share. Application of the PESTLE analysis as conducted below is a valid method for Fluor Corp to operate in the country.

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.

· 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.

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.

· 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

· Issues of use of technology to construct gas facilities in Colombia result in 0.46% emission of greenhouse gases from the country .

· 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. .

· 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. Problems created by negative environmental impact can get alleviated once Fluor Corp analyses its gas facilities construction to determine a better and more environmentally friendly approach.

Legal

· 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

AP New. 2018. Stork Awarded Integrated Operations and Maintenance Contract Renewal by Ecopetrol. APNews.com. https://apnews.com/press-release/pr-businesswire/80cfd00db12945c59298962fe0db0032 .

Gómez, Christian Camilo, León-Daza, William-Miguel, Moggio-Bessolo, Andrés-Felipe, Alvarado, Angélica & Ponz-Tienda, José. (2020). Lean Construction Impact on the Environmental Footprint of a Construction Project in Colombia: A case study. ResearchGate.Com. https://www.researchgate.net/publication/341549921_Lean_Construction_Impact_on_the_Environmental_Footprint_of_a_Construction_Project_in_Colombia_A_case_study .

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

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 .

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

� AP New. 2018. Stork Awarded Integrated Operations and Maintenance Contract Renewal by Ecopetrol. APNews.com. � HYPERLINK "https://apnews.com/press-release/pr-businesswire/80cfd00db12945c59298962fe0db0032" �https://apnews.com/press-release/pr-businesswire/80cfd00db12945c59298962fe0db0032�.

� 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/

� Gómez, Christian Camilo, León-Daza, William-Miguel, Moggio-Bessolo, Andrés-Felipe, Alvarado, Angélica & Ponz-Tienda, José. (2020). Lean Construction Impact on the Environmental Footprint of a Construction Project in Colombia: A case study. https://www.researchgate.net/publication/341549921_Lean_Construction_Impact_on_the_Environmental_Footprint_of_a_Construction_Project_in_Colombia_A_case_study.

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� Gómez, Christian Camilo, León-Daza, William-Miguel, Moggio-Bessolo, Andrés-Felipe, Alvarado, Angélica & Ponz-Tienda, José. (2020). Lean Construction Impact on the Environmental Footprint of a Construction Project in Colombia: A case study. ResearchGate.Com. https://www.researchgate.net/publication/341549921_Lean_Construction_Impact_on_the_Environmental_Footprint_of_a_Construction_Project_in_Colombia_A_case_study.

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

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