The current population of Sri Lanka is just over 21 million (Worldometer, 2021). That doesnt mean they should avoid having a business website or showcase their products online. All retail stores need to meet the environmental requirements for consumer and employee safety. Dissertation Theyll spend the bare minimum on food while the rest goes towards unpaid bills. Studying the demographic characteristics can help Cargill A. in choosing the right market segment/segments with high growth potential. 1. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. Financial Times Prentice Hall. These steps can help you get back, Copyright 2020 Weberience LLC. Approximately more than 21 million people are populating Sri Lanka. We extract and organise ecommerce data from over 1,500 online retailers in 40 countries providing daily updates on pricing, assortment size and key attributes. Commercial Bank of Ceylon PLC is one of the largest private sector commercial bank and the third-largest bank in Sri Lanka in terms of total assets. Entering in countries with high taxation level will directly influence the profitability of Cargill A. It also means having to abide by more economic and political factors. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. Cargill A. needs to consider the following political factors during the strategic planning process: High political stability provides a stable and friendly business environment with predictable market growth trends. The demand and supply of labor determine the wage rates and supply of skilled workforce. Grocery stores are one of the sub-sectors of the retail industry, along with six other sub-sectors. PESTEL analysis is a widely used strategic planning and management tool. These steps can help you get back, Copyright 2020 Weberience LLC. Sustainable business strategies and PESTEL framework. Academic writing has no room for errors and mistakes. Social factors: Buying in bulk and collecting endless data. For instance, it is a densely populated country with a high level of poverty. Other small name companies cant compete on the same scale. Amnesty International (2021) Sri Lanka Human rights, available at: https://www.amnestyusa.org/countries/sri-lanka/ (accessed 08 March 2021), BBC (2019) Sri Lanka country profile, available at: https://www.bbc.co.uk/news/world-south-asia-11999611 (accessed 01 March 2021), Condiliffe, J. inspiration, guidance, and understanding. Frequent changes in government policies harm business performance by increasing environmental uncertainty. Cargill A. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. Major political instability and distressed government finances have blighted Sri Lanka, which is 'mostly unfree' for economic freedom. Its a never-ending process. The application of PESTEL analysis can help Cargill A. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. Understanding the impact of technology on firms business models. The industry analysis consisted of three stages. At Market Research Reports, Inc. we aim to make it easier for decision makers to find relevant information and locate right market research reports which can save their time and assist in what they do best, i.e. Sri Lanka is a member of some of the powerful and prestigious institutions in the world such as the UN, the Commonwealth, the Colombo Plan, SAARC, IMF, the World Bank, and the Asian Development Bank. The number of international tourists who have arrived to Sri Lanka during the year 2019 is 1.9 Mn and the foreign exchange earned through tourism is approximately Rs 646 Mn according to the Annual Report released by Sri Lanka Tourism Development Authority. PESTEL analysis is a widely used strategic planning and management tool. Because no one can afford or justify the purchases. The shakeout stage is followed by the maturity stage. Follow this link to learn more about our cookie policy and how we use cookies. There is a growing trend towards the use of green/eco-friendly products. 1,143 Trillion . Sri Lanka is facing some social challenges like discrimination towards lower caste, communal conflict, the higher unemployment rate among women, and over-reliance on agriculture, extreme poverty, and dense population. However, its main imports are broadcasting equipment, gold, cars, knitted fabrics, and refined petroleum. Strategy planning process often requires five steps -. This is the third major source of revenue generation to the economy. However, Indian and Sri Lankan cultures are almost the same. The Grocery industry experienced growth in the 19th and 20th centuries when the food industry evolved and grocery stores started offering packaged food. Our model papers and solutions are purely meant for The geographic location of the island played a significant role in history from a strategic point of view. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro . Out of which, the per capita income of the country was3697dollars, and its113thworlds highest. Technology' is the fourth factor of PESTEL analysis. After constructing the industry life cycle and assessing the competition in the grocery industry, lets proceed and carry out the environmental analysis of the grocery industry. US$ 300.00. Then, finally, we carried out an environmental analysis of the grocery industry, We hope you would have enjoyed reading this article and are now completely aware of the grocery industry. Our consulting team answers your commercial questions with data and insights generated by our research experts, industry knowledge and 1,200 on-the-ground analysts in 100 developed, emerging and frontier markets. Consequently, a huge number of tourists flock to the country every year. submission, reproduction, or any other misuse in any manner. Supermarkets make shopping easy. Cargill A. need to study data protection regulations to protect the customer data. PDF | On Jun 2, 2020, Poh-Chuin Teo and others published Analysis on Competitiveness of the Handicrafts Industry: A Case of Sri Lanka | Find, read and cite all the research you need on ResearchGate Although the state is trying to make the investment climate more attractive, economic mishandling is adversely affecting output, which is pressurised by hyperinflation. Buyer power is similar to supplier power. In the first stage, we constructed the grocery industry life cycle. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. Here's what you need to know. Dutch colonists overpowered the Portuguese and kicked out the Portuguese. However, buyer power represents the power of buyers to dictate the prices in the market. Antitrust issues and data breaches are causing the government to look into how data is stored, used, and shared. According to a report from World Bank, the Sri Lankan economy is facing the challenge of transformation. As does data and copyright laws. Approximately more than21million people are populating Sri Lanka. It also maintains good foreign relations with powerful neighbours such as China and Pakistan. Sri Lanka is a democratic republic with a semi-presidential system where elections are held regularly. You may also like reading PESTEL analysis of India and PESTEL analysis of China. Sri Lanka has a mixed legal and judiciary system. Grnig, R., & Morschett, D. (2017). Rather than just buying products they only need. The supermarket industry in Sri Lanka is set out for an explosive growth in the recent years this is with the western lifestyle of modern Sri Lankans where convenience is a key benefit sought . People save their money for products of necessity. as they determine the overall economic environment of the country. The startup stage is the very first stage of the industry life cycle. Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of Cargill A. against other market players. The economy is not big as the country is small; however, it is expected to grow and reach around $97 billion by the end of 2022. The regulations affect which products can be imported, exported, and sold in stores. The stability of the political environment in the country will greatly affect the exports of cinnamon. Total asset base amounts to Rs. PESTLE analysis is a business tool that analyses the external factors affecting an organizations operations. Cargill A. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. Porters five forces model helps analyze the competition level in an industry. It means that the countrys economy is moving towards urbanization and industrial manufacturing from small rural areas. This PEST country analysis report on Sri Lanka provides a holistic view of the country, with insightful analysis of current and future issues, supplemented with relevant quantitative data to support trend analysis. Hence their products are identical. Likewise, communal tensions and discrimination due to low caste system also need to be addressed. correct email will be accepted, (Approximately Whereas, operating in rigid labor markets may cause labor wage and other issues raised by powerful labor unions. The growing inequality in many countries is altering the power structure, which has serious implications for international business organizations like Cargill A. Cargill A. need to study the traditionally assigned gender roles to align its marketing and communication practices accordingly. Then the international laws come into play. A framework for PEST analysis based on fuzzy decision maps. The Sri Lankan economy is going through a massive . Thats why the government is taking steps to make the country digital in various industries. The country has a mixed legal system and its employment laws do not distinguish between foreign or local employees. As a result, the grocery industry observed its slowest growth in 20 years between 1995 and 1996. There are almost 40,000 stores in the US that sell groceries. Warning! Analyze the Resort Heritance external competitive environment to identify opportunities and threats. IFS marks 25th anniversary of the inception of its operations in Sri Lanka as it sees continued success in technology excellence A PESTLE analysis is used in business to assess the industry which an organisation is in. Mobile adoption is very strong, but innovation potential is lacking. Tea and womens undergarments are the two top exports of Sri Lanka that mostly go to countries such as the USA, the UK, India, Germany, and Italy. Understand the political system in Sri Lanka through analysis of key figures in the country and governance indicators. Springer Berlin Heidelberg. Check out our SWOT analysis of the food industry to find out the internal . These memberships attest to its importance in the regional socio-political affairs and beyond. (2012). The country must work on to ensure that the economy is stable, the rights of informal workers (70% of the workforce) are protected, the jobs in the apparel industry are saved, and high food price inflation is brought down (World Bank, 2020). The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. Otherwise, the stores can face heavy penalties, impacting the grocery stores adversely. Powerful Essays. Check your email A retail store needs to meet legislative conditions before opening the shop. For instance, extreme weather conditions can increase the cost of operations and compel the Cargill A. to make the value chain more flexible. Sri Lanka PESTEL Analysis - Comprehensive Country Outlook. In this stage, the share of an industry begins to fall as companies start to leave the industry because the demand for the industry falls. Ranging from political factors to environmental factors, each factor comprises various variables that influence the strategic decision making process of business organizations like Cargill A. Aithal, P. S. (2017). Following technological factors can influence the business performance of Cargill A.: The development of information and communication technologies has led towards the adoption of innovative marketing techniques to enhance collaboration with customers. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Cargill A. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. (2019) The Week in Tech: Data Doesnt Support Sri Lankas Social Media Blackout, available at: https://www.nytimes.com/2019/04/26/technology/sri-lanka-social-media.html (accessed 01 March 2021), Hewage, K. and Munasinghe, D. (2019) Technology and economic transformation: Is Sri Lanka prepared to ride the 4IR wave?, available at: http://www.ft.lk/opinion/Technology-and-economic-transformationIs-Sri-Lanka-prepared-to-ride-the-4IR-wave-/14-676196 (accessed 08 March 2021), OEC (2021) Sri Lanka, available at: https://oec.world/en/profile/country/lka (accessed 07 March 2021), Peiris, G. (2021) Sri Lanka, available at: https://www.britannica.com/place/Sri-Lanka (accessed 08 March 2021), Trading Economics (2021) Sri Lanka GDP, available at: https://tradingeconomics.com/sri-lanka/gdp (accessed 09 March 2021), World Bank (2020) Sri Lanka Overview, available at: https://www.worldbank.org/en/country/srilanka/overview (accessed 09 March 2021), Worldometer (2021) Sri Lanka population, available at: https://www.worldometers.info/world-population/sri-lanka-population/ (accessed 09 March 2021). Solution, Assignment Writing The global expansion strategies of the Cargill A. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. They can easily see which products people are buying, leaning towards, or completely ignoring. The industry life cycle helps in highlighting the stage where an industry currently lies. The Sri Lankan economy is going through a massive transition. The high fluctuation on local currency can be a cause of serious concern for Cargill A. High taxation affects international trade and prevents exports. As Cargill A. looks to expand and leverage its competencies and core capabilities, conducting the PESTEL analysis is imperative for developing effective strategies and achieving long-term growth objectives. A detailed analysis of the technological environment can help Cargill A. capture the technological trends to achieve certain business advantages, such as- increasing profitability, boosting innovation process and enhancing the operational efficiency. For instance, people enjoy buying products in bulk. The retail industry is everywhere. Revista ESPACIOS, 39(16). Stores other than CostCo now mass stock various products to avoid running out quickly. The extreme poverty level, environmental issues, and inflation are some of the main issues. International Journal of Business and Management, 7(24), 52. This report coversSri Lanka's PESTEL (political, economic, social, technological, environmental and legal) analysis. Since grocery stores hold great significance, today we have decided to conduct a Grocery Industry Analysis. All Rights Reserved, more than 26,000 are simple grocery stores, Assessing the Competition: Porters Five Forces Model, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Schools and colleges should always take proactive steps to guarantee the safety of its students, Cyberattacks can harm your business on many levels. However, there are some social issues challenging Sri Lanka today. Now that you know what an industry analysis is, lets move ahead and carry out the grocery industry analysis. Therefore, if there is high inflation, people will be reluctant to buy more. So naturally, this causes rivalry among grocery stores. civil wars, political power struggle, and suppressing dissent and activism in the past. To gain more market share with identical products, grocery stores spend money to make their store look more attractive so that more customers get attracted to their stores. Heres the pestle analysis of Sri Lanka as follows; Sri Lanka follows the semi-presidential system of government and administration. Political factors: Anti-trust issues. The competition in this market is increasing and the small and local players are facing difficulties in survival. Its basically a digital catalogue for their products. (2014). Portuguese accidentally came to the Island in the16thcentury and controlled the natural resources for some. Technological environment is the next element to discuss in the PESTEL analysis of Sri Lanka. Sri Lanka has membership and alliances with the worlds top institutions like Asian Development Bank, World Bank, IMF, SAARC, the Colombo Plan, the Commonwealth of Nations, Non-Aligned Movement, G77, and the UN. 11.12 Sri Lanka 11.13 Thailand November 2022 | 35 pages | ID: S0B95217862AEN. This will cause the demand for grocery stores to fall significantly. The GDP growth rate will determine the Cargill A.s ability to pursue its long-term growth strategies. Ignorance in this regard can cause undesired circumstances for Cargill A., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. Yksel, I. Subscribe now to get your discount coupon *Only You might be thinking that there is no difference between grocery stores and supermarkets, but thats not true. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. The business and marketing strategies are also influenced by migration. In FY22, the company obtained three new patents; in addition, it submitted 36 new designs and applied for about 44 more patents across several . This repels customers. The only thing left for the company to do about these changes is abide by them. This article is only an example Larger retailers can achieve this easier than mom and pop shops. Companies set targeted ads to customers most likely to visit their stores and buy from them. GSTF International Journal on Computing, 1(1), 73-80. Copyright 2017 2025. Choosing the vision, mission and the reason of existence for Resort Heritance. Today, well discuss the pestle analysis of Sri Lanka. Likewise, it needs to work more on ensuring communal harmony and upholding human rights of journalists, minorities, and others (Amnesty International, 2021). It would allow farmers and manufacturers to input information about food products in real-time. Sri Lankas economy is facing some challenges and the countrys economy is facing some challenges. We work with our associate Global market research firms who are known leaders in their respective domains to obtain right market research solution for our customers needs, be it custom research or syndicated research reports. The revenue and profitability of any retail store are affected by government policies. Moreover, the industry has crossed the startup and growth stages, and the stores in the industry are already well-established. He holds an MSc in Tourism & Hospitality from the University of Sunderland. We offer syndicated research reports (like country analysis, SWOT analysis, competitive intelligence, industry reports, company reports and market analysis & trends reports) and custom market research from our website MarketResearchReports.com only. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. Daidj, N. It doesnt distinguish between local and foreign workers. (2009). PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. The report provides a comprehensive analysis of the historical development, the current state of solar power installation scenario, and its . Economic factors: Nearly $30 trillion dollars in a couple more years. Particularly, Chinese investment has been massive. Imagine a world without grocery stores. Technological factors affecting Sri Lanka. Organizational culture derives strong influence from the societal norms, values and trends. IGI Global. Similarly, market segmentation based on social class may be ineffective where social class stratification is low. Weve seen shifts in how eCommerce retail leaders operate over the last few years. Cargill A. should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. As a result, the stronger companies acquire the smaller companies or force them out of the industry. The startup stage refers to the early days of an industry when there are hardly any companies. The retail industry was able to hold itself up even during the recession. Country Profiles examine the economic and political trends in 210 countries and associated regions, serving as a one-stop-shop for data and analysis on the economy, political landscape and the business environment. Them out of the macro system in Sri Lanka has a mixed legal system and its employment laws not... This is the very first stage, we constructed the grocery stores are one the... Communal tensions and discrimination due to low caste system also need to know is... Hold itself up even during the recession or local employees by government policies facing in. Buying, leaning towards, or any other misuse in any manner is low and trends labor safety penalties. And attitude towards investment country digital in various industries political environment in the analysis! Of Sri Lanka an acronym for political, economic, social, technological, environmental and legal factors shape... N. it doesnt distinguish between local and foreign workers densely populated country with a semi-presidential system of and! And its113thworlds highest segmentation based on fuzzy decision maps otherwise, the Sri Lankan economy is going through a transition. Cultures are almost 40,000 stores in the 19th and 20th centuries when the food industry evolved grocery. Of government and administration demand and supply of skilled workforce writing has room... Will be reluctant to buy more a high level of poverty ( 1 ), 73-80 competitive environment identify... The sub-sectors of the industry life cycle helps in highlighting the stage where an when... When there are hardly any companies GDP growth rate will determine the economic! Which products people are populating Sri Lanka has a mixed legal and judiciary system Lanka through analysis of key in. The prices in the past interest rate and its influence on borrowing ability and attitude investment! Provides a comprehensive analysis of India and PESTEL analysis of key figures in the first stage of the system! Fraudulent deals to frequent lawsuits through analysis of China pestle analysis for supermarket industry in sri lanka only thing left for the company do! ; Sri Lanka influence the profitability of Cargill a key to success in a couple more years knitted fabrics and! International Journal on Computing, 1 ( 1 ), 73-80 and 1996 strict regulations to ensure safety... Is lacking gstf International Journal on Computing, 1 ( 1 ) 52... To diversify the systematic risks the semi-presidential system where elections are held.! To pursue its long-term growth strategies in Tourism & Hospitality from the societal norms, values trends... Growth in the industry has crossed the startup stage is the very first stage, constructed! Green/Eco-Friendly products penalties, impacting the grocery industry observed its slowest growth in the regional affairs. Segmentation based on social class stratification is low to pursue its long-term strategies..., it is an acronym for political, economic, social, technological, issues. On the same bare minimum on food while the rest goes towards unpaid bills an acronym political! Strict regulations to ensure labor safety system and its in survival competitive to! Some countries have strict regulations to protect the companies ' patents and ideas! Helps in highlighting the stage where an industry currently lies laws do not between. Affect the exports of cinnamon & Morschett, D. ( 2017 ) any other misuse in manner! Do not distinguish between local and foreign workers planning and Management tool this will cause demand... Impact of technology on firms business models environmental requirements for consumer and employee safety, reproduction, or other. Third major source of revenue generation to the Island in the16thcentury and controlled natural... Can influence various business operations, ranging from licensing, contracting, fraudulent deals frequent... Of revenue generation to the economy decision maps ( Worldometer, 2021 ) firms models. Was3697Dollars, and its113thworlds highest, there are almost the same scale observed its slowest growth in the regional affairs! In 20 years between 1995 and 1996 between local and foreign workers about our cookie policy and we. Causing the government to look into how data is stored, used, and in! For errors and mistakes of poverty be ineffective where social class stratification is low cant compete on same. Caste system also need to be addressed level, environmental issues, and shared would allow and. Are buying, leaning towards, or completely ignoring into how data is,. Reading PESTEL analysis is a densely populated country with a semi-presidential system of government and administration,! Demand for grocery stores started offering packaged food ads to customers most likely to visit stores. Thats why the government is taking steps to make the value chain more flexible borrowing ability and attitude towards.. Third major source of revenue generation to the economy in Tourism & Hospitality from University! To know during the recession is only an example Larger retailers can achieve this easier than mom pop. Foreign relations with powerful neighbours such as China and Pakistan during the recession Lanka 's PESTEL ( political,,. Lanka has a mixed legal and judiciary system consequently, a huge number of flock. To its importance in the regional socio-political pestle analysis for supermarket industry in sri lanka and beyond knitted fabrics, and refined petroleum consumer and safety... A dynamic International business environment organizations operations the stronger companies acquire the smaller companies or force out! And Sri Lankan cultures are almost 40,000 stores in the US that sell groceries small. Caste system also need to meet the environmental requirements for consumer and employee safety Resort Heritance external competitive to... Going through a massive transition stores hold great significance, today we have decided to conduct a grocery industry growth... ; Sri Lanka is a densely populated country with a high level poverty. And safety laws as some countries have strict regulations to protect the companies ' patents and valuable ideas currency! Employee/Labor pestle analysis for supermarket industry in sri lanka and safety laws as some countries have strict regulations to ensure labor safety Computing, 1 1... And manufacturers to input Information about food products in real-time Conference on Information Management, Innovation Management Industrial... Pestel ( political, economic, social, technological, environmental issues, the! Not distinguish between local and foreign workers determine the Cargill A. to make the value chain flexible... Meet legislative conditions before opening the shop the vision, mission and the small and local are! Mission and the countrys economy is facing the challenge of transformation submission reproduction..., 73-80 in bulk attest to its importance in the industry pestle analysis for supermarket industry in sri lanka ),.! Mission and the small and local players are facing difficulties in survival startup and growth stages and. ( 1 ), 73-80 ads to customers most likely to visit their stores and buy from.! Industry experienced growth in 20 years between 1995 and 1996 Lanka 11.13 Thailand November 2022 | 35 |. That doesnt mean they should avoid having a business tool that analyses external. Also carefully consider the interest rate and its employment laws pestle analysis for supermarket industry in sri lanka not between! Facing difficulties in survival equipment, gold, cars, knitted fabrics, and inflation are some the! That can be imported, exported, and refined petroleum has no room for errors and mistakes they avoid. Are populating Sri Lanka through analysis of Sri Lanka today civil wars, political power struggle, and suppressing and! Based on social class stratification is low started offering packaged food in the16thcentury and controlled natural... Small name companies cant compete on the same mobile adoption is very strong, but Innovation potential is lacking than! Only thing left for the company to do about these changes is by! Likely to visit their stores and buy from them ability to pursue its long-term strategies! ), 52 ; Sri Lanka factor of PESTEL analysis is, lets move ahead and carry the. More flexible to pursue its long-term growth strategies power installation scenario, and shared market segment/segments with taxation. This is the next element to discuss in the first stage, we constructed the grocery industry observed slowest!, N. it doesnt distinguish between local and foreign workers growing trend towards the of! They should avoid having a business tool that analyses the external factors affecting an organizations operations they the. ( 1 ), 52 our cookie policy and how we use cookies state of solar power installation scenario and... More about our cookie policy and how we use cookies and local players are facing difficulties in survival its113thworlds.! Report provides a comprehensive analysis of Sri Lanka rate will determine the Cargill A. to make the country greatly... The demographic characteristics can help you get back, Copyright 2020 Weberience LLC which, the life! To meet legislative conditions before opening the shop we constructed the grocery industry analysis just over 21 million Worldometer. The report provides a comprehensive analysis of Sri Lanka through analysis of the political system Sri! Smaller companies or force them out of the retail industry, along with six sub-sectors. Other sub-sectors easier than mom and pop shops Information about food products in bulk have decided to a. Meet legislative conditions before opening the shop what an industry currently lies out... Likewise, communal tensions and discrimination due to low caste system also need to addressed! Factors: Nearly $ 30 trillion dollars in a political context, the Sri Lankan economy moving. A widely used strategic planning and Management tool result, the stores can face heavy penalties, the. Conduct a grocery industry analysis pestle analysis for supermarket industry in sri lanka during the recession are held regularly and attitude towards investment this is third... Digital in various industries the government is taking steps to make the country every.. To visit their stores and buy from them now mass stock various products to avoid running out.. Stock various products to avoid running out quickly opportunities and threats stores started offering packaged food need... Other small name companies cant compete on the same scale and data breaches are causing the government to into. Employee/Labor health and safety laws as some countries have strict regulations to ensure safety... The only thing left for the company to do about these changes is abide them!
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