1. PESTEL RESULTS
It is very paramount for Ice cream newcomer in the Dutch market such as Snoggle to analyze it'
Political, Economical, social and technological an legal environment.
Political factors have a strong influence on ice-cream industries. This can give the company
advantages, opportunities but it can also give them sanction when the company is not acting
accordingly. These factors can be government regulations or individual politicians who can
control the operations of a company. The analysis of political factors will help Snoggle
determine how to proceed in that particular market. Political factors can be;
Legislation such as the minimum wage or anti-discrimination laws.
Voluntary codes and practices
Type of government regime e.g. communist, democratic, dictatorship
(international minimum wage rates, 2013).
The federal legislation is the biggest source of labor law, there is not one consolidated labor
code. The labor law standards are put in separate Acts on several issues related to labor, which
are added by the government ordinance. The labor legislation are dictated by labor courts, but
in some cases like strike they are partly or total left to case law. (International Labour
Working time is defined as the time from the beginning until the end of work without breaks. The
legal working time is 8 hours per day, except for Sunday and statutory holidays, which are
normally seen as a resting period. The normal weekly working hours are 48hrs but in many
cases it can reduced to 38,5 and 35 hours by mutual agreement. The normal working hours
cannot be exceeded to mothers, young workers lower than 18 or pregnant women. In other
cases order than to ones mention before the working hours can be extended to 10hrs, this can
only happen if for the first six months the regular working hours were eight hours per day.
(International Labour organization, 2011).
Voluntary Codes & Practices
when social standard are not maintained, the International Labour Organization (ILO) cannot
impose sanctions. For this reason voluntary codes of conduct, private initiatives and quality
labels are important when it comes to implementing labor standards worldwide. The private
sector and unions are working together in introducing social standards. Code of Conduct for
It’s very complicated for small and medium sized companies and organizations to develop a
code of conduct for their particular business. For this reason several industries of different
branches had the initiatives to develop codes of conduct that apply to entire sectors. An
example of code of conduct is the Common code for the Ice-cream community. ( BMZ Federal
Ministry for Economic Co-Operation and Development, 2012).
The Netherlands is a parliamentary democracy, and parliament therefore has the last word. It
has an elected government and a head of state, the king or queen. The basic structure of
government is set down in the Constitution, which also deals with citizens' rights vis-à-vis the
government and the government's duties towards its citizens.
All businesses are affected by national and global economic factors. National and global interest
rate and fiscal policy will be set around economic conditions. The climate of the economy
dictates how consumers, suppliers and other organizational stakeholders such as suppliers and
creditors behave within society. An economy undergoing recession will have high
unemployment, low spending power and low stakeholder confidence. Conversely a booming or
growing economy will have low unemployment, high spending power and high stakeholder
For Snoggle, the economy aspects of The Netherlands is very important, Why? Because we
want to know whether or not our target group will be able to pay for high quality ice-cream. If the
economy is not growing it means there is a possible risk of unemployment and low spending.
Factors that we need to research on the economic environment of The Netherlands are;
• Interest Rates
• The level of inflation Employment level per capita.
• Long term prospects for the economy
These factor is related to the changes in laws and regulations in the future. Governments tend
to add laws or regulations to many activities that has to do with businesses. Any law that don’t
favor the business market can lead companies and organizations to loss in profit and even to a
more tense working environment. Since Snoggle is planning in working on an international
market, the company will have to focus on the legal factors for that particular country in this
case The Netherlands. These factors can be;
Trade agreements, tariffs or restrictions
Tax levies and tax breaks
as labeling, packaging materials and quality control. (Taxation and Custom Union, 2013).
1. European Commission (2013) “ Taxation and Custom Union” [Online]. Available at;
2. European Commission (2013) “ Customs Tariffs Database” (TARIC) [Online]. Available
riff/index_en.htm (accessed 12-03-2013).
3. Germany Trade & Invest (Aug. 2010) “ Your Export-Guide to the German Market”
[Online]. Available at; http://www.musavirlikler.gov.tr/upload/D/your-export-guide.pdf
4. Trading Economics (2013) “Germany- National Statistics” [Online]. Available at;
http://www.tradingeconomics.com/germany/indicators ( Accessed 12-03-2013).
5. Trading Economics (2013) “Germany Interest Rates” [Online]. Available at;
http://www.tradingeconomics.com/germany/interest-rate (accessed 13-03-2013).
6. Trading Economics (2013) “Germany Inflation Rate” [Online]. Available at;
http://www.tradingeconomics.com/germany/inflation-cpi (accessed 13-03-2013).
7. Trading Economics (2013) “Germany Unemployment Rate” [Online]. Available at;
http://www.tradingeconomics.com/germany/unemployment-rate (accessed 13-03-2013).
8. Deutsche Bundesbank Monthly Report (June 2012) “Outlook for the German Economy-
Macroeconomic projections for 2012 and 2013” [Online]. Available at;
es/2012/2012_06_outlook.pdf?__blob=publicationFile (accessed 13-03-2013).
9. The German Business Portal (2013) “Your Business in Germany” [Online]. Available at;
duty/duties,did=270820.html (accessed 11-03-2013).
10. International Minimum Wage Rate (2013) “Germany minimum wage” [Online]. Available
at; http://www.minimum-wage.org/international/en/Germany (accessed 19-03-2013).
11. International Labour organization (2011) “National Labour Law Profile: Federal Republic
of Germany” [Online]. Available at ; http://www.ilo.org/ifpdial/information-resources/
12. BMZ Federal Ministry for Economic Co-Operation and Development (2012) “Corporate
social responsibility: voluntary codes of conduct” [Online]. Available at;
rung/index.html (accessed 19-03-2013).