leisure interest enable union pacific corporation B u s i n e s s F i n a n c e

Perform an analysis of the social/demographic, technological, economic, environmental/geographic, and political/legal/governmental segments to understand the general environment facing Union Pacific. Describe how Union Pacific will be affected by each of these external factors.

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Perform an analysis of the social/demographic, technological, economic, environmental/geographic, and political/legal/governmental segments to understand the general environment facing Union Pacific. Describe how Union Pacific will be affected by each of these external factors.

The Union Pacific is a freight hauling railroad that operates 8,500 locomotives over 32,000 route-miles in 23 states west of Chicago and New Orleans. Hauling goods such as agricultural, chemical products and automotives.

To tackle this question, you need to understand the concept of PESTLE analysis which is a strategic tool that is used to analyze the external factors affecting a firm. The analysis includes the following:

Political

• Political stability – role in Railroads sector in a country’s economy as well as possible risk of military invasion.
• Corruption – levels of regulation in Services sector such as anti-trust laws related to railroads and regulations of prices-based tax rates and incentives.
• Legal framework for contract enforcement – wage legislations and safety regulations in the industry.
• Intellectual property protection – labeling of products and other requirements in railroads.

Economic

• Rate of inflation rate, savings, interest, foreign exchange and economic cycle determine the aggregate demand and investment hence facilitates forecast of the growth trajectory of Pacific Union and railroads industry.

Social/demographic

• Class structure and hierarchy, level of education, culture, entrepreneurial spirit, attitudes and leisure interest enable Union Pacific Corporation to understand its customers design in the marketing message for Railroads industry customers.

Technological

• Recent technological developments by Union Pacific Corporation competitors, technology’s impact on product offering, effect of technology on cost structure in Railroads industry and value chain structure in Services sector as well as level of technological diffusion help to determine the best actions for coping and enhance profitability.

Environmental/geographic

• Weather, climate change, laws regulating environment pollution regulations of air and water pollution in Railroads industry, recycling and waste management that may affect operations of Union Pacific when entering a new market.

Legal/governmental

• Laws such as Anti-trust, discriminatory copyright, consumer protection,employment, health and data protection in Railroads industry and overall in the country may result to theft of organization’s secret sauce thus the overall competitive edge.

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