BUSS1000 PESTLE Analysis on Mecca Brands Ltd
PESTLE Analysis on Mecca Brands Ltd
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PESTLE Analysis on Mecca Brands Ltd
Mecca Brands Ltd, established in the globally competitive beauty industry, distinguishes
itself with a unique blend of exceptional service, innovation, niche brand collection, and
industry expertise. This comprehensive analysis capitalises on the PESTLE analysis
framework, focusing on the yet unexplored factors - Political, Environmental, and Legal.
Additionally, it incorporates the intersecting Megatrends, identified by Sydney Business
Insights, to provide a more in-depth, relevant, and systemic analysis.
Political Factors and Megatrends Integration
Political ecosystems across the globe are transitioning rapidly, leaving perceivable impacts on
the economies and industries operating within their regulatory parameters. One such
manifestation is the volatility of international trade policies that have influenced consumer
goods sectors, including the beauty industry. These evolving landscape has necessitated a
shift in sourcing and supply chains, leading to companies like Mecca adopting strategic
measures to navigate through these changes.
Mecca, acknowledging the influence of these political shifts, has strategically moved towards
fostering local sourcing, promoting "Australian Made" products, and nurturing domestic
partnerships (Mecca, 2021). This counteractive measure is not just an internal adjustment but
resonates strongly with a global trend identified by Sydney Business Insights - The 'Great
Fragmentation' Megatrend. This trend observes companies worldwide pivoting locations of
their supply chains to resist disruption from political fluctuations (Sydney Business Insights,
2018).
While the implications are commercial, the shift towards local sourcing and domestic
partnerships has a discernible environmental benefit. Shifting closer to the achievement of
SDG 6, Mecca can promote responsible water practices amongst local suppliers and
manufacturers. Additionally, supporting local goods brings an indirect advantage to SDG 5
by enhancing and encouraging national economic participation, fostering gender equality in
the process.
Environmental Contributions & Role of Megatrends
The global consciousness towards environmentally sustainable practices has required
industries to rethink their operational methodologies. The beauty sector is no exception, given
its history of resource consumption and waste generation. Recognising the urgency to take
action, Mecca has prioritised ecological duty, aligning with the 'Going Green' Megatrend
(Sydney Business Insights, 2018).
Responding to the environmental concerns, Mecca introduced "MECCA-Made", an initiative
thread that weaves sustainability into the very fabric of this range of products. Mecca's
commitment to employing responsibly sourced ingredients, ensuring minimal environmental
disruption during the product life-cycle, marks the dawn of the era of "green" beauty (Mecca,
2021).
BUSS1000 S2 2023
The environmentally friendly shift holds substantial potential towards achieving both SDG 6
(UN, 2015) and SDG 5. Clean production processes are essential for safeguarding water
resources, thereby promoting sanitation and hygiene for all. Simultaneously, making
available sustainable options to the consumers allows women, making up a substantial
proportion of beauty industry clientele, to participate consciously in sustainable consumption
- a stride towards gender equality.
Legal Adjustments
Not only do regulations, concerning product safety, packaging, and overall sustainability,
have a profound influence on the operational workflow, but they also dictate the industries'
course. With laws becoming more stringent in favour of environmental protection, businesses
like Mecca have had to comply and orient their operations accordingly.
Being compliant to regulation, and often exceeding legal minimums, Mecca has voluntarily
set high standards concerning product safety, transparency in ingredient sourcing, and
reduction in packaging waste (Mecca, 2021). While regulations restrict businesses, Mecca
has succeeded in transforming them into opportunities for innovation and differentiation.
On aligning legal factors and compliance with the Sustainable Development Goals, the
implications are notable. Stricter product formulations and reduced packaging waste directly
translate into decreased water pollution, a significant step towards achieving Score 6 of the
Sustainable Development Goals (UN, 2015). Moreover, transparency in manufacturing
promotes gender equality (SDG 5), providing consumers encompassing women, with
comprehensive product knowledge, conferring them the power to make informed and
conscious choices.
Conclusion
Mecca Brands Ltd, through its strategic orientation to the Political, Environmental, and Legal
influences, moderated by the overarching Megatrends, offers a case study in versatile
business modelling. This conscious and strategic business adaptation aligns Mecca with the
achievement of UN Sustainable Development Goals - Clean Water & Sanitation and Gender
Equality. However, the foundation of Mecca Brands Ltd's future growth and industry
leadership depends on its ability to maintain this momentum and adaptability in the face of
ever-evolving market dynamics and an increasingly stringent legal landscape.