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Assignment On PEST ANALAYSIS

Course code:

CSE -122

Course Title:

Strategic Management

Level:

Semester:

II

Date:

Submitted By: Names: Syed Wajahat Ali R .

Submitted To: Name: Md. Kamrul Hasan Lecturer Business Administration Faculty, LLU.

Members: Tanveer Ahmad

Program: (M.Com)

Semester: 1st

Kamran Asad Mehdi

(M.Com) [MBA Professional (Banking &Finance)]

1st 1st

PEST Analysis

Introduction: Pest analysis is the analysis of macro-external environment that affects all firms. PEST is the acronyms of the Political, Economical, Social and Technological factor of Macro-environment. Such external factors usually are beyond the firms control and sometimes present themselves as threats. Political or legal forces Taxation Law: If government imposes heavy taxes on the industry then it badly effects the industry growth. The taxes impose is from government side and it varies from industry to industry. Juices have no tax except sales tax 16% and 3% value addition Tax. But juice some product has like butter and cream which has more taxes Labor Laws Labor is being privileged here having all the laws. Juice Industry also follows these laws like government announced minimum salaries of an employee Rs 7000. Laws on hiring & promotions Hiring & promotion is followed by law. People with better capabilities are privileged because they deserve it, for the betterment of the organization. As well as a well educated & skilled experienced person is a precious asset for the Industry suit should be hired on better term & conditions and be promoted on the basis of it capabilities. Environmental protection Laws They do concern for environment and contribute more and more for the betterment of environment. Foreign trade Regulations Foreign trade regulation affects the overall policy and the working of the juice because they operate nationally internationally butt few courtiers like Afghanistan, India and Bangladesh. Political instability The government stability also plays a great role for any industry. In Pakistan government face lot of difficulty from the side of terrorism and also its activity that badly effect environment of the country which is totally very upset. Recently in Punjab instability of government creates lot of problem for the industry like shortage of electricity that badly affects the industry operational process Juices Industry have not much affect this condition but in future it may be face some difficulty for operating.

Economic forces Inflation Rate: Now in Pakistan inflation rate is almost 22.3% so if increase in inflation rate then increase in prices of JUICES but if in Pakistan economy. Economic growth rate Economy growth rate accelerate is 7+ Social factor Health consciousness Today people are more health conscious so juices are by identifying this need of the people they are also producing health conscious juices with more vitamins. Demographic trend In Pakistan the population growth rate is 1.573% in 2011 and total population is 187,343,000 (July 2011 EST.) Age structure 0-14 years: 15-64 years: 65 years and over 36.7% (male 33,037,943/female 31,092,572) 59.1% (male 53,658,173/female 49,500,786)) 4.2% (male 3,495,350/female 3,793,734) (2009 EST.)

Key Indicators Population: Growth rate: Birth rate: Death rate: 187,343,000 (July 2011 EST.) 1.573% (2011 EST.) 31 births/1,000 population (2011 EST.) 8 deaths/1,000 population (2011 EST.)

Environmental concerns: About the environmental concerns of juices is good for health. Work life quality: Quality of work life is very safer & environment friendly. No danger in this industry.

Lifestyle changes: They consider quality life changes and take advantages of accordingly so that customer can convinced as well as it plays a vital role to attain & retain the customer. Consumer adopts the trend of changing environment because of modern facility as well as globalization they are aware about each and every thing happening all around them. Technological forces New Products Juices Industry also focusing concentric and conglomerate diversification because in present era it is not possible for any organization to exist in market for long run by providing just one product. So Nestle juices are diversifying according to changing demand of customers and trends. Product innovation Product innovation is becoming more necessary for the organization because of globalization people are becoming aware about the changes being taken place around them so in order tactical the situation nestle juices is focusing on product innovation by introducing new flavor of juices with the passage of time NESTLE JUICES use new tetra packing like easy open cork of pack. Productivity improvement through automation Automation doesnt matter a lot but to some extent it contributes towards productivity and improvement. Imported pulp is filled in machines for processing after the final form of juice it is packed in 300ml 500ml and 1 liter packing. New communication technology All the modern as well as traditional ways of communication are being adopted by Nestle juices including own emails, letters, faxes and monthly visit in different offices of Nestle juices for better communication among supplier, distributor and customers. Nestle juices has also established own web site which can be visited any one for most recent news innovation and activities being taken in the organization.

Market analysis

Currently in Pakistan, there are 24 fruit juice/pulp processing units and a number of small units in the informal sector are working. The present installed capacity is estimated around 400,000 metric tons per annum with a demand for juices growing at a combined annual growth rate of 27%. The fruit juice industry reported sales of 8.526 billion Rupees in year 2008. 250 200 150 100 50 0 2001 2002 2003 2004 2005 2006 2007 2008
East

The outlook for the canned food industry - which can exploit rising demand for convenience and consumer fears over food origin and hygiene - and the soft drinks and beverages industry - which can capitalize on the asp rational demands of Pakistan's young population - have both been moderately accelerated. Forecast canned food sales growth to 2012 now stands at 46.7%, while soft drinks sales growth to 2012 is forecast to stand at 36.4%. Both have contributed to a per capita food consumption growth forecast amendment to 15.4%. It is also expected that the average consumption of the single person will be 85.5 hundred litters per years in 2012.

2500,000 liters juices approx drink by Pakistani people in a month. And per day there is 83330 liters approx juices drink by people. The market of juices is growing because the consumption of juices increases every year and expected it increase continually due people change the life style and more health conscious. They prefer juices on other soft drink.

The market share of the nestle juices is 60%. Which mean 1500,000 litters in a month and 50,000 litters in a day. Nestle is name of pure life so quality is their guarantee. So if they lose their quality then they lose their sale because these dont operate on the given image. And increase in rates of raw materials also influence the level of demand because due to increase in cost the sale price also increase and due to price war in a market of Pakistan demand level is effected. Or increase in tax there will be increased cost price which also effect in decreased in demand. Increase in inflation rate in Pakistan then this also effect in decrease in demand level.

The nestle juices are at growing stage of product life cycle.

Competitors analysis Competitor analysis in marketing and strategically management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment In order to evaluate the competitive position we have to take a look on the competitors of Nestle juices in JUICE CATEGORY. Competitors in market Minte Mude Feasher Malee Country

Shezan is the main competitor of Nestle juices nestle juices compete their customer on quality basis because In Pakistan their in no big name in pure fruit juices. Nestle provide their customer pure fruit juices.