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PESTEL ANALYSIS
PESTEL has been used to shorten the words Political, Economic, Social, Technological, Environment, and Legal; It is an acronym for the tools used to define the external forces affecting an organization.
Cardinal Health Inc is a manufacture of surgical medical and laboratory products. They also distribute drugs and health care supplies.
Political Factors has affected Cardinal Health Inc through the business policy, political instability, corruption and taxation. Services have ended up being expensive because of the taxes imposed on health care. The rise of corruption has lead to low customer services as those who are involved in corruption are the one who can access services easily.
Economic Factors such as interest rate, unemployment rates, foreign exchange rate, and raw material costs are considered economic factors. Unemployment has led to a decrease in the service rates to cater to those who cannot access expensive services.
Cardinal Health Company has also been affected by the social factor. The population growth rate has been a significant impact on health care. Due to the rise of the population, the number of people who need healthcare services has increased; hence, the company can generate more profits.
Cardinal Health Inc is located in a first-world nation, and basically, it means technology has grown a lot. Technology has played a more role in the marketing of health care. Social media and the internet have been used to achieve this.
Environmental Factors such as climate change have led to the rise of other diseases, which has made Cardinal Health care possible to provide possible medical help to the diseased.
Legal Factors such as employment laws, consumer protection law, and health and safety law, Cardinal Health Inc cannot offer its services to other countries since each country has its own sets of rules and regulations.
The PESTEL analysis has helped Cardinal health Inc identify the external forces; hence, they develop a good plan that has led the company to succeed.