Dear students,

In course of our discussion during the last few weeks, you could gain a little familiarity with the process
and techniques of Business Environment analysis.

Our discussions on the syllabus-topics will continue. But, I believe, the time has now come when you
should also proceed toward application of your knowledge.

You had earlier chosen your respective companies. All groups should start working now towards
preparation of PEST Reports for their respective companies. That will be your Home Assignment in the
current semester.

All groups must positively submit their PEST Reports on or before 30th March.

A full day session (from 10.00 AM to 5.00 PM) will be arranged preferably on 2nd April, 2011 (Saturday)
where all groups will make Power-point presentations of their respective PEST reports.

Remember, PEST Report preparation is a job of purely technical nature. You proceed in the following
manner:

1. Each group should sit separately (in anyone’s home or hostel room) on this Saturday, discuss
thoroughly and chalk out your game plan. Group leader/coordinator will decide where to sit and
when.
2. Make an assessment of your total workload and divide the load amongst yourselves. To the
extent possible, load should be divided equally among group-members and no one should feel
overloaded.
3. Next, go for collection of data. Most of the information will be available in internet. Collect the
data from reliable websites – like the company’s own website, govt websites, newspaper
websites etc. On this, you may seek some help/advice from your seniors. In all cases, you must
get hold of the company’s Annual Report (including Balance Sheet) for the last 5 years.
4. Collection of data might not be that much difficult. But what is really challenging is
interpretation of the data. You will have to go for vigorous brain-storming while analyzing the
data.
5. Group members must work closely maintaining perfect coordination. If at the time of
presentation, I find that coordination among members was lacking or was less than optimal; this
will be taken as a serious lapse and will earn negative marks.
6. If any group member is not serious or is creating problem for others that should be brought to
my notice by the respective Group-coordinator immediately. Our mission is to create
“Resources”, not “liabilities”.

While preparing the PEST Report for your respective companies, you are to strictly follow the format
that I am prescribing in the next page. My warm wishes to all of you.

AM
Sl.No. Section Title Section Contents
1. Company Name
2. Head Quarter Address
3. Product line
4. Factories located in:
5. Chairman of the Board of Directors
6. CEO/Managing Director
7. Total Employee Strength
8. Paid up capital as on 31st March, 2010
I Corporate Profile 9. Total Number of shareholders as on 31st march, 2010.
10. Turnover/Sales during 2009-10
11. Current market share in India in major product categories
12. Division between Domestic Sales and Export sales.
13. Who are its major competitors in Indian market?
14. Has the company any foreign Branch/subsidiary?
15. If so, in which countries does the company operate other than in India?
16. Whether registered with BSE/NSE?
17. Market capitalization
1. When did the company come into existence?
2. Who were the founders/promoters?
II Historical Profile 3. What were the original product lines?
4. Where it was established?
5. What were the major events in course of the company’s growth?
1. The turnover/sales data for the last 5 years; the Trend Line & the
Exponential Growth Rate
2. Net profits for the last 5 years; the Trend Line & the Expon. Growth Rate
III Growth Profile
3. Profit to Net Worth (last 3 years)
4. Capital Turnover ratio (last 3 years)
5. Earnings per share (last 3 years)
1. Geographical Expansion plan
IV Strategic Profile 2. Product expansion/diversification plan
3. The major strategic issue at the moment
1. Identification of the crucial PESTEL variables vis-à-vis the identified
strategic issues.
2. The status of the crucial POLITICAL variables
3. The status of the crucial ECONOMIC variables
V PESTEL Analysis
4. The status of the crucial SOCIO-CULTURAL variables
5. The status of the crucial TECHNOLOGICAL variables,
6. The status of the crucial ENVIRONMENTAL variables, IF ANY
7. The status of the crucial LEGAL variables, IF ANY
1. The Opportunities Profile
PEST Sum-up &
VI 2. The Threats profile
Recommendations
3. Recommendations/Suggestions to Company-management.