PESTEL analysis for Embraer Case Study Example | Topics and Well Written Essays - 500 words

PESTEL analysis for Embraer - Case Study Example PESTEL is an acronym for the Political, Economic, Socio-cultural, Technological, Environmental and Legal factors that contribute to the growth or decline of an organization. Embraer is the quintessential example of the success of neoliberal privatization of a government company. The political and social factors, to some extent, contributed to the growth of this company. The political environment of Brazil, despite being poor, has had little to no effect to Embraer. The privatization in 1994 excluded the government from the running of the company (Rothaermel, 2012). Similarly, the socio-cultural factors have had minimal contribution because this company does not focus on people. The company focuses on the building and selling of aircraft, which are bought by corporations and not bought by ordinary people. On the other hand, the economical and technological factors have contributed significantly to the prosperity of Embraer. Being based in Brazil, the company was at a unique position to benefit from the economic growth of the country (Rothaermel, 2012). Brazil is a world economic giant, ranked seventh, and is considered as the fastest growing economy in the world. Furthermore, the country is the largest economy in Latin America. This growth in Brazil’s economy has led to fertile economic environment for Embraer’s growth. There is availability of development capital in the country that led to the growth of the company. The government is a significant shareholder in the company giving it vast economic resources for gain. The Brazilian government was very instrumental in the present success of Embraer. After its inception, the Brazilian government gave the company license production contracts for the production of local aircraft. This contract was the catalyst for future growth because the company already had an available market (Rothaermel, 2012). The economical factors have had significant