GOURMET BAKERS AND

SWEET
Presented By
NAUMAN BILAL 4714
UMAIR MAJEDD 4739
LAYOUT PEST ANALYSIS
OF BCG MATRIX
PRESENTATION SWOT ANALYSIS
STRATEGY
SCORPIO TECHNIQUE
Political Factor
The political environment directly influences all the business
working in the country. Gourmet’s products are also effected
by some federal laws, such as the Food and Drug Act

 Law and order

Act of terrorism as we know that the act of terrorism is increasing
day by day in Pakistan and it is not confined to any particular city,
terrorism is badly affecting the business in all over the Pakistan.
According to the statistics the terrorism percentage is increasing
continuously and its is not a good sign.
Crime rates
As the crime rate is prevailing in the city of Islamabad it is most
serious issue for the business running in Islamabad according to
the statistics the crime rate percentage increases by 17% in 2012. It
has adverse effect on sales of the retail outlet.
Political stability

Source of authority
Business flourishes if the source if authority is stable. If the authoritative
power is changes continuously there is inconsistency in the policies because
each individuals has its own mandate
Frequency of election
If we look at the history the frequency of election in Pakistan is not consistent
but from 2008 the trend is changing and the government is changing through
proper channel which is a good sign for businesses operating in Pakistan.
FORECAST
There is political stability in the country
Economic factor
Pakistan’s economy has shown resilience against shocks of high intensity
which include domestic factors such as political uncertainty, security
situation and international financial crisis, in addition to an
unprecedented rise in food and energy prices
According to Pakistan Biscuit & Confectionery Manufacturers
Association, Pakistan’s Bakery and Confectionary Industry has grown with
an average annual rate of 6.5% to 7.5% during 2002-10
Monetary policies

Exchange rate
Exchange has great impact on the bakery business because some ingredient
used in the products are imported from foreign countries and if the exchanged
rate of the currency of that country increases the cost of import for a particular
ingredient also increases. This increases the cost of production.

Inflation rate
As far as inflation rate is concerned it is increase in money supply in an economy
which ultimately result into increase in general price level of the commodity.
Pakistan is facing high inflation rate it was 5.37 % in May 2013 and now it is
8.55% in till September 2013.So most of the product ingredient show increase
in prices on the other hand as inflation rate increase the purchasing power of the
consumer also decreases and the sales of the business also affected by it.
 
Interest rate
Interest rate also effect the business because some people use credit cards for the
purchase of bakery product as the interest rate increase people stop
purchasing through credit card and the sales of bakery may be affected.
Consider the example of households and consumers who like to pay for their
goods and services using borrowing such as credit cards or a bank overdraft or
loan. Also think about households who have substantial balances outstanding on
a mortgage used to finance a house purchase
Fiscal policy

Tax

According to Sales Tax Act 1990, the Federal Government exempts the whole of
sales tax on the import and supplies of the goods
The items which are exempted mostly used in bakery product which is help full
in reducing the cost of production
similarly the government has increase the sales tax on sweets form 17% to 19%
Social factor
Geographic &Demographic
As 65% percent of the total population and youngsters are working
especially the women, their daily lives are becoming very fast and
they don’t have time to cook at home. Due to this reason more
people are now seeking convenience goods, which act as a
alternative to the traditional meals. Although people are becoming
more aware and more health conscious thus they demand high
standards of quality and hygiene along with a balanced nutrition.

FORECAST

Due to westernization and change in life style the demand for

bakery product is increasing day by day
TECHNOLGY FACTOR
Technology in this industry is therefore limited to function as a catalyst to improve
production capacities, speed of product manufacturing cycles, inventory
management. It has to pay attention to the new distribution techniques as well.
For example :that you put lots of pizza s on the conveyer belt of the Owen and
with in few minutes you have baked lots of pizzas .

FORECAST
It can be seen that there is more technological advancement in coming year
BCG MATRIX
OVERVIEW
STARS QUESTION
FOR THE YEAR 2011 MARKS

RELATIVE MARKET
70%

217% 60%

GROWTH
50%

40% 46%
33%
RELATIVE MARKET SHARE 30%
3 2.7 2.4 2.1 1.8 1.5 1.2 0.9 0.6 0.3 0
20%
CASH COWS DOGS
10%

0%
28%
-10%
WAR HORSES
DODOS
-20%
STARS
FOR THE YEAR 2012 QUESTION

RELATIVE MARKET
MARKS
70%

239% 60%

GROWTH
50% 42%
29%
40%
3 2.7MARKET
RELATIVE 2.4 SHARE
2.1 1.8 1.5 1.2 0.9 0.6 0.3 0
30%
CASH COWS DOGS
20%

10% 26%

WAR HORSES
DODOS
0%
SWOT ANALYSIS
Strength
Own Branded Product
Economies Of Scale
Technological Edge
Weakness
Weak R&D
No Paper Less Environment
Advertisement
Law suits against Gourmet
Opportunities
Change in eating habit of people
New housing schemes
Publicity through trade shows

Threats
Political risk
law and order
Increase in prices
SWOT BASED STRATEGY
OPPORTUNITIES THREAT
The company can open new
outlet.
STRENGTH

Backward
integration.
By growing through backward
integration we mean that we
will be the supplier for bakery
product.
WEAKNESS
STRATEGY
Pursue build strategy the company
should increase the level of investment
to open new franchise in Islamabad.
SCORPIO TECHNIQUE
Customer
The customers are the residents mostly working class, the youngster and
of Islamabad.
Segmentation and Target
Gourmet is serving just a small area in Islamabad according to statistics the
total population of Islamabad is around 1,740,000 and the majority of the
population lies in the age group of 15–64 years, around 59.38%. Only
2.73% of the population is above 65 years of age; 37.90% is below the age
of 15. Islamabad has the highest literacy rate in Pakistan, at 72.88%. 9.8%
of the population has done intermediate education (equivalent to grades
11 and 12). 10.26% have a bachelor or equivalent degree while 5.2% have
a master or equivalent degree. The labor force of Islamabad is 185,213 and
the unemployment rate is 11.70%. And our target customer are Resident
of F-10, F-11, E-11, And Sector Adjacent to F-10
 

Position and Branding

Gourmet is already doing business and they have got good reputation in the
market and their brand name is enough for the increase in the market share
by opening new outlet.
Offering
New variety in pastries, cake, donuts and other bakery item should be added
because eating habit of the people are changing.
Industry or market
Gourmet should do some R&D that customer wants because people are
moving toward western culture and they are more conscious about quality of
the products, either they fresh or stale
 

Customer retention
They can retain their customer by different offer like one small pizza on
buying of two large pizzas.
 
Organization process and culture
Gourmet need to hire more labor for their new outlets