Transurban Pestle analysis


Transurban is an international group of companies which was founded in 1995 in Melbourne Australia. The company has interests in infrastructure and development. It is a leading company in toll road development and managing especially in Australia and North America. Pestle analysis is an important business framework that helps determine the strategic position of an organization (Davis, (2008). It is concerned with the macro economic factors that influence the performance of the organization. This paper will shed more light on political, economic, social, technological, legal and environmental factors that influence the performance of the Transurban Group.


Political factors are concerned with how the government of the day intervenes with the economy. Transurban Group experience different political interferences due to its presence in different parts of the world. However, it is important to note that several of the countries in which TCL has its operations experience political stability and good will. This has been critical for the company’s sustainability over the years.

Economic factors

This forms another vital macro environmental factor that has great influence on the strategic position of a business organization. Important economic factors such as rate of economic growth, inflation, interest rates are fundamental for sustainability of any business organization. Transurban Group is mainly concerned with infrastructures and development which can only thrive where the economic growth is experienced. Australia has been an ideal place of business for the company since it has experienced steady economic growth over the years. However, it is worth noting that the great global recession of 2008 had significant impact on the company’s operations. This is because the economic growth declined from   4.33% to 2.68% from 2007 to 2008. However the growth rate thereafter has been commendable.

Social factors

These are critical factors that have a great impact on the strategic position of an organization. They include cultural aspects such as age distribution, population growth, and health among others. Transurban Group has benefited positively from the social factors experienced in its areas of operation (Rogers, 2013). For instance, Australia is experiencing a growth in population which provides the company with skills and manpower needed in the company’s daily operations. The increase in population is also critical in providing the necessary market for the services offered by the company such as toll management.

Technological factors

Technological factors include automation, technology incentives, R&D activity, and rate of technological change among others. These factors are critical to sustainability of a business organization since they have great significance in efficiency and cost. Infrastructure and development industry calls for updated technology in order to increase efficiency and save on cost. Transurban has embraced technological change in almost all its operations. For instance, the group has automated all its toll stations and uses state of the art technology in its infrastructural operations.

Legal factors

Legal factors are also vital for consideration in determining the strategic business position. Several legal factors such as employment law, antitrust law, consumer law, health and safety laws are very critical in determining a good a business environment. Legal factors have great influence on demand and cost for the goods and services offered by a business organization (Levy, 2011). It is important to note that Transurban Group has thrived well especially in Australia due to the mature and transparent legal system that is put in place.

Environmental factors

These form the last category of the macro environmental factor analysis. They are concerned with ecological and environmental factors that may have influence in the operations of the business. The environmental factors have little significance in the operations the company. However, it is important to note that it countries of operations experience good weather which ensures sustainability of the company.



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