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PEST analysis (India) For Colgate Palmolive ltd

Political environment
Situation before MAY-2014 elections:
In India the political situation is not supportive to people. The aim of political parties is not
the growth and development of the country but just to gain power for personal growth and
Most of the corruptions, scams and malpractices are happening at the cost growth and wellbeing of common man.
Current scenario

In some states there are regional parties based on caste (U.P) or based on fanaticism
(Tamil Nadu). Here people are willing to vote for them expecting their needs and
requirements will be fulfilled better than national parties. This seems to be partly right
when one sees Tamil leaders occupying better positions as central ministers and
bringing benefits to their state. While seems wrong when the expectations are not
fulfilled as in other states.

On the other hand in some states like Himachal there are only two parties with no
scope for growth of other parties. Thus people have no option but to vote for either
any one of them. Hence the party leaders there who win the election enjoy power and
resent into scams and other corruptions fearlessly

Mindset of politicians:

The politicians are willing to get power at any cost by any means. This includes
deceiving people, luring people with some favors like giving beneficial schemes,
dividing the states, eradicating the opposition etc.

No politician is willing to accept any allegation about them. They blindly deny the
allegations by not having responsibility to their positions.

They are always ready to run behind or support the mighty persons for sake of
position in the government or favors from it.

The government plays an important role in almost every country's economy. According to the
World Bank, "a substantial share of the nation's product goes to satisfy public wants, a
substantial part of the private income originates in the public budget, and public tax and
transfer payments significantly influence the state of private income distribution. Moreover,
the budget policy affects the level of employment and prices in the private sector." In socialist
economies government interference is greater. Hence, state control of economy is found in
every country of the world. However, the nature and extent of control differ widely from one
country to another depending upon political philosophy, social attitudes, and stage of
economic development and behavior of the private sector.
government has the responsibility of fulfilling the aspirations of public. Scarcity of economic
resources is the main problem in achieving the socio-economic objectives of growth and
social justice. Therefore, the government lays down national priorities for optimum allocation
of scarce resources through planning. The government of India had set up planning
commission in 1950 and the basic goal of five year planning have been balanced regional
development, rapid industrialization, employment generation and development of agriculture
and small scale industries.

Economic Environment

Indias economy will grow at a rate of more than 8 per cent in the 2015-16 fiscal year,
while consumer inflation will drop to between 5 and 5.5 per cent.

the economy would grow by 8.1-8.5 per cent under a new calculation method that
makes India the worlds top-growing big economy.

In the short run, growth will receive a boost from lower oil prices, from likely
monetary policy easing facilitated by lower inflation and lower inflationary
expectations, and forecast of a normal monsoon

The major reforms undertaken by the government include deregulation of diesel

prices, direct transfer of cooking gas subsidy, hiking FDI cap in defence and
insurance, Ordinance on Coal.

According IMF World Economic Outlook April, 2015, India ranks seventh globally in
terms of GDP at current prices and is expected to grow at 7.5 per cent in 2016.

Indias economy has witnessed a significant economic growth in the recent past,
growing by 7.3 per cent in 2015 as against 6.9 per cent in 2014. The size of the Indian
economy is estimated to be at Rs 129.57 trillion (US$ 2.01 trillion) for the year 2014
compared to Rs 118.23 trillion (US$ 1.84 trillion) in 2013.

The steps taken by the government in recent times have shown positive results as
India's gross domestic product (GDP) at factor cost at constant (2011-12) prices 201415 is Rs 106.4 trillion (US$ 1.596 trillion), as against Rs 99.21 trillion (US$ 1.488
trillion) in 2013-14, registering a growth rate of 7.3 per cent. The economic activities
which witnessed significant growth were financing, insurance, real estate and
business services at 11.5 per cent and trade, hotels, transport, communication
services at 10.7 per cent.

India has emerged as one of the strongest performers with respect to deals across the
world in terms of mergers and acquisitions (M&A). M&A activity increased in 2014
with deals worth US$ 38.1 billion being concluded, compared to US$ 28.2 billion in

2013 and US$ 35.4 billion in 2012. The total transaction value for the month of May
2015 was US$ 3.3 billion involving a total of 115 transactions. In the M&A space,
pharma continues to be the dominant sector amounting to 23 per cent of the total
transaction value.

Indias Index of Industrial Production (IIP) grew by 4.1 per cent in April 2015
compared to 2.5 per cent in March 2015. The growth was largely due to the boost in
manufacturing growth, which was 5.1 per cent in April compared to 2.8 per cent in the
previous month.

Indias Consumer Price Index (CPI) inflation rate increased to 5.01 per cent in May
2015 compared to 4.87 per cent in the previous month. On the other hand, the
Wholesale Price Index (WPI) inflation rate remained negative at 2.36 per cent for the
seventh consecutive month in May 2015 as against negative 2.65 per cent in the
previous month, led by low crude oil prices.

India's consumer confidence continues to remain highest globally for the fourth
quarter in a row, riding on positive economic environment and lower inflation.
According to Nielsens findings, Indias consumer confidence score in the first quarter
of 2015 increased by one point from the previous quarter (Q4 of 2014). With a score
of 130 in the first quarter (2015), India's consumer confidence score is up by nine
points from the corresponding period of the previous year (Q1 of 2014) when it stood
at 121.

Indias current account deficit reduced sharply to US$ 1.3 billion (0.2 per cent of
GDP) in the fourth quarter of 2015 compared to US$ 8.3 billion (1.6 per cent of GDP)
in the previous quarter, indicating a shrink in the current account deficit by 84.3 per
cent quarter-on-quarter basis.

India's foreign exchange reserve stood at a record high of US$ 354.28 billion in the
week up to June 12, 2015 indicating an increase of US$ 1.57 billion compared to
previous week.

Owing to increased investor confidence, net Foreign Direct Investment (FDI) inflows
touched a record high of US$ 34.9 billion in 2015 compared to US$ 21.6 billion in the
previous fiscal year, according to a Nomura report. The report indicated that the net
FDI inflows reached to 1.7 per cent of the GDP in 2015 from 1.1 per cent in the
previous fiscal year

Social Factors
ORAL HYGIENE PRACTICES Hindu Brahmins and priests, especially in the region of
Varanasi (Uttar Pradesh, India) clean their teeth using cherry wood for an hour, facing the
rising sun. This may promote oral health if it is done appropriately. Orthodox Jains clean their
teeth using fingers and without using the brush. This may have a negative impact on their oral
health. Muslims offer prayer in the form of namaz, five times in a day. During each namaz, as
part of the ritual, they use miswack stick, tooth picks and do gum massaging. This may
promote the oral health. Use of chewing twigs: The rural folk in Udupi region of Karnataka
use the twigs from mango or cashew tree. Neem and Banyan twigs are commonly used in the
rural areas of Tamil Nadu, coconut twigs in the rural areas of Kerala. Datun is used in North
India. In African countries, twigs from Salvaodora Persicca are used for cleaning the teeth.
The twigs offer mechanical cleaning action and some twigs may have antimicrobial
properties. The salvadora persicca twig has high concentration of fluoride, which may offer
anticaries benefit. The use of chewing twigs can be recommended in lower class people who
can not afford the brush and paste. These twigs have to be properly used and the method
should to be taught to them, otherwise, improper use may lead to gingival and periodontal
trauma over a period of time. Dentifrices: The rural people use brick, charcoal, rangoli
powder, mud, salt, ash etc for cleaning the teeth. This may result in gingival recession,
abrasion and dentin sensitivity.
Dietary habits: Tribal and primitive populations have diet patterns which are coarse and
fibrous in nature and free from refined carbohydrates. This may reduce the risk for dental
caries and also facilitate adequate stimulation of the jaws, jaw muscles and teeth eruption
which may reduce the risk for malocclusion to some extent. The western diet on the other
hand consists of refined foods which increase the risk for caries as well as malocclusion due

to inadequate stimulation of jaw and jaw musculature. Scandinavian food habits mainly
include variety of fishes, cheese etc which may offer some anticaries benefit. Similarly, the
Caribbean food habits in the form of local fruits and vegetables, cassava (a starchy root) and
great deal of fishes offer them some protection against dental caries.The trona salt is used
extensively as a preservative, tenderizer, flavoring agent in food as well as for medicinal
purposes (in the treatment of dyspepsia) by Africans. This salt contains high concentration of
fluoride (as high as 7900 PPM) and it may increase the risk for dental fluorosis. Fasting is a
frequent practice among orthodox Hindus. Muslims do fast during the time of Ramzan.
Excessive fasting leads to gastritis, peptic ulcer, malnutrition, nutritional anemia, and loss of
weight, which may have deleterious impact on health and oral health. Men eat first and
women last and poorly, in many rural families. This leads to maternal malnutrition, leading to
high maternal and infant mortality rates. Excessive consumption of spicy food in the form of
green chilies is commonly seen in some regions of Andhra Pradesh and Northern Karnataka.
This may predispose to the occurrence of peptic ulcer, oral sub mucous fibrosis and oral
malignancies as well.
Religious restrictions in food habits: Hindus dont eat beef, thinking it is a sacred animal
and Muslims dont eat pork, thinking it is a scavenging animal that feeds on human excreta
and garbage.
Food habits: Food habits are amongst the most deeply entrenched habits in any culture
having deep psychological roots, religious influence and influence of the local conditions in
the form of climate and soil. The family plays a vital role in shaping the food habits and this
runs in the families from generation to generation.
Vegetarianism is given a place of honor in Hindu religion. Orthodox Hindus are pure
vegetarians and hence may not take any foods of animal origin including the milk. This may
result in Vitamin B12 deficiency leading to Moellers glossitis. Adulteration of milk, though
is done with the motive of economic gain, there are some disbeliefs that if the pure milk is
boiled, it may dry the secretion in the donor animal. This results in over dilution of the milk,
there by reducing its nutritive value which may result in protein energy malnutrition among
the consumers. Adverse cultural practice in the cooking and preparation of foods such as
discarding the cooking water from cereals, which is commonly seen in the rural areas of the
country, reduces the nutritive value of food.

Role of family: Family is the primary unit in all societies. It is a group of biologically related
individuals living under the same roof and eating from the common kitchen. Family as a
cultural unit reflects the culture of the wider society of which it is a part and determines the
attitude and behavior of its members. Joint family system is commonly seen in Asia, Africa,
the Far East and Middle East countries, more so, in the rural areas than in urban places. The
presence of parents, grand parents, uncles, aunts, and other near relatives plays a vital role in
child rearing as well as in shaping the attitude and behavior of the child. Nuclear family
systems seen predominantly in most of the western countries and urban areas in developing
countries, place a greater burden on the parents in bringing up the child due to the absence of
other members in the family. This problem is magnified especially if both the parents are
earning members. The lack of parental attention in the nuclear families and peer pressure may
provoke the child into deleterious habits like smoking, alcoholism, drug addiction, dating etc
at an early age (a common practice seen in most developed countries). These adverse cultural
practices in turn increase the incidence of oral cancers, venereal diseases and mental

Technological factors in India

As the availability of new technology for the dental practice increases, the need to adequately integrate
these resources grows. There are many software, hardware and practice management issues that
surround the implementation and continued use of various technologies in the dental practice.

1. Establishment of technological and research institute Indian govt. has established 500
technological institutes for providing education to Indian students. It has also established
1080 research institutes. In these institutes major names like space research centre, medical
research centre and agricultural research centre have developed India technically.
2. Positive Technical policy India has strong and positive technical policy for technological
development. This policy opens door to import technology from foreign countries for
increasing agricultural and industrial developments.
3. High Growth Rate of Information Technology in India In India, IT sector is developing
with 35% growth rate, India is second country after China who is using internet at large scale
for e-commerce , e-education and e-accounting .

4. Incentive for promoting Technology in India Indian Govt. has given 100% income tax
exemption for expenses incurred in research of technology in India. State financial
corporation is uplifting domestic technology by supporting finance to domestic Industries.
Technological changes always bring quality improvement and more benefits for customers.
The recent technological changes of Indian market are:

Digital watches have killed the prospects and the business of traditional watches.

Color T.V. technology has closed the business of black and white T.V.

Artificial fabric has taken the market of traditional cotton and silk fabrics.

Photo copier and Xerox machines have led to the closure of carbon paper business.

Shift in Demand from vacuum tubes to transistors.

Shift from steam locomotives its diesel and electric engine.

From typewriter to World Processors.