Nimble Storage PESTEl Analysis
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Nimble storage is a technological company that majors in a flash storage solution. Nimble Storage organization is growing rapidly with its hybrid storage solutions and high capacity flash and drives that are integrated gaining market recognition. The drives are of all sizes and are characterized with better performance, storage capacity and come with affordable prices of company storage. Nimble storage has a mission, and a vision whereby earning global recognition and success is one of its goals. This cannot be achieved easily. An analysis of the external factors that affect the business will be crucial. Nimble needs to be successful with the employees in various locations having a good working environment to become productive. Since the organization aims at going global, it has to consider the external factors of each company that it will operate in.
From the company’s creation, Nimble has taken important steps to see itself at the top. The Smart Stack is the first implementation by Nimble which has seen it in being a global organization. It allows products to be created for the customer’s needs and proof of the testing and the initiation of their storage program is always proof tested and validated to ensure it has met the defined VDI storage workload. Also, with the Pan-European agreement with Ingram Micro, a global leader in IT supply chain, Nimble Storage is expected to grow rapidly since recently there was a Pan European agreement with Ingram micro (Bahrami, 2015). Nimble is expected to skyrocket in the competitor market.
Business Analysis
Many companies have decided to go international because of globalization which has been enhanced by improved technology, favourable legal factors, political stability, social-cultural trends, laws that are a favorable and stable economy. It is not easy to move a company from an ethnocentric setup to a geocentric setup.
Because it is hard, the first sted that Nimble storage needs to do is to conduct research. Researching on different cultures that exist in other countries will help the management to understand how to go with the different culture. Each culture has a preference be it on price storage among other factors. Understanding this will help nimble storage to penetrate new markets. Also learning the about the culture of other places will alleviate how employees will adapt to the new place since they have heard of the place. Focus groups in Nimble storage should be the one to give this information about the places they have been to, the experience there, and if the place is safe for the company to grow big,
It is also important for Nimble to learn about the location they are going to set up a new branch. For instance, if the place is prone to floods, drought and other natural calamities. The population of the are is also crucial since it determines the size of the company whether it is going to be big or small. Besides population also the economy of the place is important. There are some places with good populations but they become unfavorable for businesses similar to Nimble since the number of the poor is very high compared to the rich. According to Charmayne Smith, “A business’s location is key to successful operations and overall growth. When choosing your location, consider company needs, customers, employees and equipment needed to complete the services” (Smith, n.d.). Maybe the majority of the population do not understand what a computer is thus it won’t make sense of setting a company in such a place.
Nimble should understand that every country, state and city as laws. For instance, there are laws on taxes and incentives, laws on age of retiring, regulation on what to sell and what not to sell. If nimble storage gets to understand the products that are illegal in the country of interest, the company will not authorize the selling of a given product in such a location. Maybe Brazil does not allow the sale of certain computer hardware then due to assumptions Nimble hoes there, and they are returned back.
The business culture of the United States differs very widely with that of Brazil. Brazil has a culture known as “Jeitinho Brasileiro” meaning The Brazilian Way,” that is doing a process or procedure process for someone to reach something desired in spite of contrary determinations (laws, orders, rules, etc.)” (Mello, 2012). In the book there is an example; “Far ahead, he sees a co-worker in the number two spot in the line… the guy will insidiously skip the line, pretending he will talk to his colleague” (Mello, 2012). According to Brazilians, there is always a way out, and it is not a must for one to follow the right protocol. It is important to understand this culture for the employees to identify themselves with the Brazilians.
There are political trends that will affect or dictate how a business runs especially a foreign business. Political instability is a key factor for a company to note when researching political factors affecting a country. For example, although far reached, an aggressive takeover could overthrow a government. It could lead to riots, looting and general disorder in the environment, which I return will greatly affect business operations. (PESTEL Analysis, 2015). This kind of behaviour can also affect a business’s day to day operations because some of the employees may be involved, hurt, or mentally unstable.
Recommendations
External factors have significant effects on an organization; thus one needs to understand them very well before setting up a firm. Among the factors have been listed above. Not all the factors will affect the organization since they vary from country to country. From the excel sheet, we can tell that there are some factors which are favourable for business growth including technological inventions and the hardworking culture of the Americans. Of all the factors that may affect business, the political trends are amongst the most important and the least predictable element of the business environment. Some countries are democratic; thus Nimble should consider such factors since people are used to deciding for themselves. Therefore, regarding a recommendation for surviving the natural calamities such as hurricanes in the U.S and political risk of a global company is to consider buying insurance because such insurance enables the business to rebuild after it has been exposed to risk. Also, the company should have agents employees from the community where the company is located to enhance interaction and building customer relations since they are aware of the place(PESTEL Analysis, 2015). It is good to take go global and take the risk in business.
Conclusion
Nimble is at a better place to go global since it has already established the markets domestically. If the company stays keen on the PESTEL factors in every region, then there are very high chances of gaining global recognition in many countries across the world. Some of the PESTELs can be changed whereas some cannot. Besides the external factors, the company should also look into internal factors since it affects the company.
References
Bahrami, H (2015, June 10). Nimble Storage: Scaling Talent Strategy Amidst Hyper-Growth. Retrieved from https://cb.hbsp.harvard.edu/cbmp/content/68864359.
Mello, J. (2012, March 26). The Brazilian way of doing things. Retrieved from http://thebrazilbusiness.com/article/the-brazilian-way-of-doing-things.
PESTEL Analysis. (2015, February 24). Political Factors Affecting Business. Retrieved from http://pestleanalysis.com/political-factors-affecting-business/.
Smith, C. (n.d.). Why Is the Location of a Business Important? Retrieved October 26, 2017 from http://smallbusiness.chron.com/location-business-important-43239.html