Recently, China has experienced rapid industrialization, and its GDP has increased considerably. However, the industrialization phase materializes at the expense of the environment. There is insufficient consideration of the environmental resources, the overall environmental quality, and the health considerations in China1.
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This paper will take a stringent environmental analysis of Jiangsu province, China. Essentially, Jiangsu province is advanced economically, and it is one of the provinces with the highest economic growth rate in China. A PEST analysis will focus on the political, economic, social, and technological factors with regard to the environment.
A SWOT analysis will address the strengths, weaknesses, opportunities, and threats to the environment. Finally, a scrutiny of the nature of rivalry, demand for the products and services from Jiangsu, and an assessment of global industries related to those in Jiangsu will determine the competitive situation of the province.
Jiangsu SWOT analysis
Jiangsu province is an economically empowered province with advanced industries. The province has automobile industries, machinery industries, electronic industries, and chemical industries among others.
Most of the industries were formed in the 1980s, and the entrepreneurs have great experience in the manufacturing industry. The high demand for China’s products enables the large manufacturers to produce many items. This enables the firms to have reduced productivity cost associated with the large economies of scale.
Jiangsu is an overpopulated region with majority of its residents living in densely populated urban regions2. The high population is associated with environmental and health risks to the residents. Jiangsu has about 38,000 chemical enterprises, which are major environmental risky enterprises.
A great part of the region barely has land for natural plantations. In fact, the road capacity is inefficient, and the combined weaknesses have a potentiality of bringing all the activities in the town to a standstill. The pressures from the economic development sector leads to the desire to produce more chemicals for sale at the expense of the environment. Essentially, the main weakness of the policy makers is the lack of understanding of precise information on how to handle the environmental risks.
Chemical products, cheap electronic products, and cheap machineries are highly demanded in developing nations. This great opportunity enables China to have a ready market for their products. Jiangsu is one of the provinces with manufacturing industries that make huge sales that earn the province with massive profits. Moreover, the fact that China’s products are considerably cheap enables the country to have a competitive advantage over its competitors.
Although the chemical industries generate massive income to Jiangsu province, they are a great threat to the environment. Most of the chemical industries were built in the 1980s; therefore, they have outdated equipments. The chemical industries are located near water bodies, or near ecologically sensitive areas3. Since there was weak planning, the industries have installed underground pipes in populated areas, which threaten the environment and to the lives of the residents.
Jiangsu PEST analysis
As discussed, the industries in Jiangsu are a great threat to the environment and to the residents of the region. The government has thereby imposed a regulation that calls for environmental events with an effort to address the threats and weaknesses. According to research reports, Jiangsu had about 55 “Sudden Environmental Events” between 2004 and 2009.
The imposed government regulations are slowly addressing the issue, whereby, by 2009, more than 7000 chemical enterprises had employed environmental conservation strategies in their processes. Jiangsu government has established monitoring systems that warn enterprises dealing with harmful chemicals. By 2015, Jiangsu hopes to have established a stringent plan to supervise and prevent all actions that threaten the environment.
In spite of the environmental issues affecting the province, Jiangsu is economically sufficient. Jiangsu’ Gross Domestic Product (GDP) is among the highest GPDs in China. The increased production of industrial products has enabled the province to record an upward trend in the economic growth rates. However, as noted earlier, pressures from the economic sectors manipulate the level of production of the chemical industries.
The desire to have some economic empowerment risks the environment as well as the public’s health4. The environmental issues experienced in Jiangsu province, and in China as a whole accelerated during the industrialization era. While most industrialized countries experienced the environmental problems at different stages, China’s economic aggressiveness causes it to the experience the environmental issues at once.
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Due to enlightenment, the residents, company executives, and the Jiangsu government have realized the importance of staying in a safe environment5. Therefore, the three groups of people are working together to address the environmental issue, which an emphasis on safe production measures.
The government checks and addresses potential environmental safety hazards. The chemical enterprises’ executives employ safe production procedures, and safe waste disposal procedures, whereas, the residents take part in environmental events to bring awareness.
Having realized the adverse consequences of Jiangsu’s chemical productions, the provincial, municipal, and county executives employed mature technologies to address the issue. The emergency command systems, mobile command platforms, and the satellite communication networks are some of the greatest technologies that are helping in addressing environmental issues6.
Investment on emergency vehicles and equipments is another strategy that enhanced the monitoring of the environment. Technological factors enable Jiangsu government to address pollution matters in a scientific way7. The technical schemes of handling things enable environmental experts to study, discuss, and propose approaches to address environmental matters in an efficient way8.
From the discussions, it is evident that Jiangsu province is indeed doing great economically. The production capacity of its manufacturing companies facilitates the reduction of production costs. Therefore, the manufacturers are able to sell their products at considerably reduced prices.
This entry barrier strategy across the country and across the globe enables Jiangsu province to have a competitive advantage over all the electronic, chemical, and automobile manufacturers9. Moreover, the prices of the products are considerably low; therefore, the buyers have low bargaining power.
Similarly, the suppliers of the highly risky chemical products have a low bargaining power since there are few chemical manufacturers across the globe to sell their products. The chemical, electronic, and automobile products produced in other nations are expensive than China products. Therefore, price sensitive consumers will always prefer to purchase China’s products for convenience purposes.
As discussed, China’s products are highly demanded across the globe. The demand and the desire to reap maximally sanctions Jiangsu’s economic development sector to pressurize the manufacturers to produce extra products for sale at the expense of the environment. It is a high time that Jiangsu province realized that they might encounter adverse consequences in the future.
The environmental events are admirable, but the provinces’ executive should emphasize on Corporate Social Responsibility (CSR) for all the manufacturing companies. CRS will enable manufacturing firms to go beyond complying with the government regulations10. The firms will adopt measures that present some environmental and social considerations that will enable Jiangsu’s environment to flourish in future.
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1 H Wang, ‘Environmental Performance Rating and Disclosure: China’s Green Watch Program’, Journal of Environmental Management. vol. 71, no. 2, 2004, pp. 125.
2 E Schoolman, & C Ma, ‘Migration, Class and Environmental Inequality: Exposure to Pollution in China’s Jiangsu Province’, Ecological Economics. Vol. 75, no. 3, 2012, pp. 142.
3 W Yu, & X Zou, ‘The Distributional Characteristics of Heavy Metal in Jiangsu Province Shoal Sea’, Journal of Environmental & Public Health. vol. 24, no. 5, 2013, pp. 8.
4 B Li, C Qu, & J Bi, ‘Identification of Trace Organic Pollutants in Drinking Water and the Associated Human Health Risks in Jiangsu Province, China’, Bulletin Of Environmental Contamination & Toxicology. vol. 88, no. 6, 2012, pp. 884.
5 J Foulon, ‘Incentives for Pollution Control: Regulation or Information?’ Journal of Environmental Economics and Management, vol. 5, no. 44, 2002, pp. 177.
6 Z Zheng, X Luo, & J Zhang, ‘The Current Pollution Status and Control Technology of the Taihu Lake Basin, Jiangsu Province, China’, International Journal of Environmental Studies. Vol. 67, no. 2, 2010, pp. 200.
7 H Ye, C Zhou, & X Zeng, ‘Investigation of Pollution Characteristics of Polychlorinated Biphenyls in the Typical Drinking Water Sources in Jiangsu Province, China’, Environmental Monitoring & Assessment. vol. 158, no. 4, 2009, pp. 579.
8 V Kathuria, & G Haripriya, ‘Industrial Pollution Control: Choosing the Right Option’, Economic and Political Weekly. vol. 35, no. 44, 2000, pp. 3878.
9 O Ormanidhi, & O Stringa, ‘Porter’s Model of Generic Competitive Strategies’, Business Economics. vol. 43, no. 3, 2008, pp. 58.
10 B Zhang, J Bi, & Z Yuan, ‘Why Do Firms Engage in Environmental Management? An Empirical Study in China’, Journal of Cleaner Production. Vol. 16, no. 1, 2008, pp. 1040.