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TOPIC: PEST Analysis for New Business
Learning objectives
 To get knowledge about the importance of a PEST analysis.
 To know about the qualities of a good businessman.
Learning outcomes
After this assignment, student will:
 To understand the role of PEST analysis for goods and services.
 To understand the qualities of a good businessman required for the
success of a business.
Ali and Hassan are Master of Business Administration degree holders and
they want to establish a new business in Fast Food Industry in partnership
with the name AH Hot & Spicy Fast Foods. For this purpose, they made
analysis of different market situations of this Industry; also for their business
they analyzed different environments in which a business works that social,
technological, political and economic. They are full of team spirit and
having good technical skills and abilities to work and run the business.

After analyzing the market internal and external factors, they received basic
knowledge important for any new enterprise. Finally they decided to start
the business in Islamabad.
Perform a PEST analysis for AH Hot & Spicy Fast Food.
Your analysis should be based on facts about your city and you are also
required to mention the source of facts you will use for the PEST analysis in
this assignment. IT is also suggested that first you read material about PEST
24 hours extra / grace period after the due date is usually available to overcome
uploading difficulties. This extra time should only be used to meet the
emergencies and above mentioned due dates should always be treated as final
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 Make sure to upload the solution file before the due date on VULMS.
 Any submission made via email after the due date will not be accepted.
 Use the font style “Times New Roman” or “Arial” and font size “12”.
 It is advised to compose your document in MS-Word format.
You may also compose your assignment in Open Office format.

Use black and blue font colors only.
 Use APA style for referencing and citation. For guidance search “APA
reference style” in Google and read various website containing
information for better understanding or visit
Please note that your assignment will not be graded or graded as Zero (0), if:
 It is submitted after the due date.
 The file you uploaded does not open or is corrupt.
 It is in any format other than MS-Word or Open Office; e.g. Excel,
PowerPoint, PDF etc.
It is cheated or copied from other students, internet, books, journals etc.
Note related to load shedding: Please be proactive
Dear students!
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Replies to This Discussion

smra requirment is just provide the analysis for Ah hot and spicy restaurant to laazmi ha k hum name likha agr likha b to kya k pest analysis of pizza hut is this in the this city.ya phr yeh likha k pizza hut provide kar ra the online order etc

plzz sir clear my concept

i need more explanation. :(

smra requirment is just provide the analysis for Ah hot and spicy resturant to lazmi ha k hum name likha agr likha b to kya k pest analysis of pizza hut is this in the this city

plzz sir clear my concept

A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors:

  • Political
  • Economic
  • Social
  • Technological

Political Factors

Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:

  • tax policy
  • employment laws
  • environmental regulations
  • trade restrictions and tariffs
  • political stability


Economic Factors

Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macroeconomy:

  • economic growth
  • interest rates
  • exchange rates
  • inflation rate


Social Factors

Social factors include the demographic and cultural aspects of the external macroenvironment. These factors affect customer needs and the size of potential markets. Some social factors include:

  • health consciousness
  • population growth rate
  • age distribution
  • career attitudes
  • emphasis on safety


Technological Factors

Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:

  • R&D activity
  • automation
  • technology incentives
  • rate of technological change

ahhhh now i just started to understand little bit...

~~Use APA style for referencing and citation~~

Aslam o Alaikum! Dear All, can anyone explain this? we have to give website reference within the assignment or at the end of page or at the last page?

please simply explain it. Thanks

JAZAKALLAH wslam-o-alaikum


Dear all sisters and Brothers , Its so Simple Assignment ,

is me just itna kaha gya ha k PEST analysis karien aik new busniess ko start karny k liye, so 1st we look 

what is pest analysis in introduction to business?

It is A type of situation analysis in which political-legal (government stability, spending, taxation), economic (inflation, interest rates, unemployment), socio-cultural (demographics, education, income distribution), and technological (knowledge generation, conversion of discoveries into products, rates of obsolescence) factors are examined to chart an organization's long-term plans.

read the following detail and prepare your assignment

PEST Analysis to start new business

The success of a startup business is influenced by factors operating in its internal and external environment; a business can increase its success by adopting strategies which manipulate these factors to its advantage. A successful business will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates.

The analysis that describes those environmental factors is called a PEST analysis.

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.

The PEST factors combined with external micro-environmental factors can be classified as opportunities and threats in a SWOT analysis. In a marketing plan, therefore, a PEST analysis can be seen as a major framework of the external factors (threats and opportunities) in a SWOT analysis.

Political/legal factors describe to what degree a government intervenes in the economy. Political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, discrimination law, consumer law, employment law, health and safety law and political stability. These in turn can be influenced by sociocultural factors such as the pressure of public opinion, media and pressure groups.

Economic and competitive environmental factors include macroeconomic factors such as taxation, interest rates, exchange rates, and international trading blocks. They can also include microeconomic factors such as income distribution and monopolies. As examples, interest rates will affect a business’s cost of capital and exchange rates may affect the price of imported goods.

Social environment includes cultural aspects and health consciousness, changing demographic factors such as population growth rates, the graying of the population, and the size of households. They also include changes in lifestyle and societal attitudes. Career attitudes and emphasis on safety are examples of changes in lifestyles and societal attitudes. There may also be a change in attitudes towards business ethics, animal welfare attitudes may change farming methods, health and safety will affect ingredients and production, personal ethics like bribery and unethical practices, and environmental issues affect product origins and product content.

Technological factors include ecological and environmental aspects, the fast pace of technological change, higher R & D costs and equally high budgets which can be barriers to entry. The continuing emergence of the internet is also a large technological factor. Environmental factors include weather and climate change which may especially affect industries such as tourism, farming and insurance. Increased pollution, shortages of raw materials such as oil and coal, and increased cost of energy affect most industries. Furthermore, governmental interve

pest analysis






Perform a PEST analysis for AH Hot & Spicy Fast Food.


PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.

Political factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability.

Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decision

Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.

Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change

Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.The model's factors will vary in importance to a given company based on its industry and the goods it produces. For example, consumer and B2B companies tend to be more affected by the social factors, while a global defense contractor would tend to be more affected by political factors. Additionally, factors that are more likely to change in the future or more relevant to a given company will carry greater importance. For example, a company which has borrowed heavily will need to focus more on the economic factors (especially interest rates).


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