EAF Analysis

Solution 1:
Applying EAF (Environmental Analysis Framework)
• EAF aims to identify the impact of external factors on the goals and functioning of any firm.
• Helps in understanding the interaction of different environmental factors at different levels.
• Various Environmental Factors are:
 Economic: Economic
 Natural Resources
 Labour
 Capital
 Infrastructure
 Technology Political EAF Cultural
 Cultural:
 Social Structure
 Perspective on Human Nature
 Religion
 Gender Roles Demographic
 Language
 Demographic:
 Population Growth
 Age Structure International National
 Urbanisation 4- LEVELS
 Migration Industry Company
 Health Status
 Political:
 Stability
 Ideology
 Institution
 Geopolitical Links
Sweden Country Analysis using EAF:
International National
• Major Exports: timber, iron ore, • Contracts and rules are followed diligently
hydropower, pulp, heavy machinery and • Dominance of regulations by labour
motor vehicles market parties.
• Exports (2010)–SEK 728.2 billion (U.S. • Tax revenue: 47.8% of GDP
$102.9 billion) • Focused on social welfare spendings like
• Member of UN, EU and OECD education and health.
• Stable and excellent diplomatic relations
with neighbouring states and other
countries worldwide.
Economic Culture
• Export oriented, open market and

highly liberalised economy
• GDP Growth rate: 1.2 % (2019)
• Inflation: 1.7% (2019)
• Unemployment: 9.1% (2020)
• Ease of doing business: 10/190
Demographic Political
• Population : 10.3 Million • Democratic and stable
• Migrant Population : 2.6 Million • Constitutional monarchy (King just holds the
(~25%) symbolic power)
• Urban Population : 87% • Independent judiciary
• Literacy Rate: 99%
• Life Expectancy: 82.31 Years
• HDI: 0.933
Opportunities for Indian Companies:
We have previously discussed the four Environmental Factors in Sweden and country analysis at
International and national level. Sweden imports various items from India such as chemicals, food,
tobacco, beverages etc. There are various opportunities for brands like ITC and food brands like
Haldirams, Britannia, Parle, Amul, Balaji etc.
Source: Folkhälsomyndigheten, SE; Statistisk sentralbyrå (SSB), NO; Sundhetsstyrelsen
Solution 2:
• I think along with country like USA (which forms 27% global bicycle market), we can target
countries like India and China which are facing population, pollution and traffic issues specially
in Urban areas.
• People after COVID are likely to become more health conscious which may reflect as a part in
the increase in demand for bicycles around the globe. Is has already been mentioned that the
demand and the market size of bicycle is increasing at a significant rate and after lockdown
opened across the various countries in Europe, demand for bicycles have increased.
• Also, we can see that there is an increasing demand for E-bikes specially after the pandemic for
the reasons like people are not preferring to commute by public transports and looking for more
affordable options of daily transportation.
Target Countries:
USA: Opportunities:
• 27% global bicycle market.
• People becoming more health conscious
• Highest no of COVID cases found which lead to people not preferring to commute by public
transport
• People looking for more affordable means of daily commute.
India: Opportunities:
• Population advantage.
• Pollution and traffic problems in urban areas.
• Lower income levels.
• Increased fuel prices.
• Subsidies on Electric Vehicles by the govt. (For E-bikes)
China: Opportunities:
• Population, Pollution and Traffic issues in urban areas.
Manufacturing Setup:
• Manufacturing units can be set up in India due to cheap labour.
• Applying CAGE Framework:
Cultural: There is huge gap in cultural norms but bicycles are common means of transport
across Europe and India.
• Administrative: Indian govt providing subsidies in E-Vehicle to attract innovations and the
usage of green modes of transportation.
• Geographic: There is already a huge demand of bicycles in India in Rural areas specially.
However, there is a monopoly of a single type of bicycle in rural India which is very basic in
design and very cheap and easy to maintain. There is also an increased demand of mountain
bikes in India due to mountain biking activities promoted by Govt of Uttarakhand and
Himanchal Pradesh.
• Economic: India witnessing the highest unemployment specially in the past five years, labour
will be available at a significant cheaper rate. Also, India is significantly improving in ease of
doing business and try to attract FDI.

EAF Analysis

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Solution 1:

Applying EAF (Environmental Analysis Framework)

• Helps in understanding the interaction of different environmental factors at different levels.

• Various Environmental Factors are:

Sweden Country Analysis using EAF:

• Export oriented, open market and

Opportunities for Indian Companies:

Source: Folkhälsomyndigheten, SE; Statistisk sentralbyrå (SSB), NO; Sundhetsstyrelsen

affordable options of daily transportation.

• 27% global bicycle market.

• People becoming more health conscious

• People looking for more affordable means of daily commute.

• Pollution and traffic problems in urban areas.

• Lower income levels.

• Increased fuel prices.

• Subsidies on Electric Vehicles by the govt. (For E-bikes)

• Population, Pollution and Traffic issues in urban areas.

• Applying CAGE Framework:

across Europe and India.

usage of green modes of transportation.

doing business and try to attract FDI.

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