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SEMESTER SPRING 2013
INTRODUCTION TO BUSINESS (MGT211)
ASSIGNMENT NO. 01
DUE DATE: 2ND MAY 2013
MARKS: 20
ASSIGNMENT:
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.
Case:
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.
Requirement:
Perform a PEST analysis for AH Hot & Spicy Fast Food.
Note:
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
analysis.
IMPORTANT:
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
to avoid any inconvenience.
IMPORTANT INSTRUCTIONS/ SOLUTION GUIDELINES/ SPECIAL
INSTRUCTIONS
OTHER IMPORTANT INSTRUCTIONS:
DEADLINE:
 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.
FORMATTING GUIDELINES:
 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.
REFERENCING GUIDELINES:
 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
http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html
RULES FOR MARKING
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!
As you know that Pre Mid‐Term semester activities have been
started and load shedding problem is also prevailing in our
country now a days. Keeping in view the fact, you all are advised
to post your activities as early as possible without waiting for the
due date. For your convenience; activity schedule has already
been uploaded on VULMS for the current semester, therefore no
excuse will be entertained after due date of assignments, quizzes
or GDBs.

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Replies to This Discussion

Now just think about ur city , and see political , economics.  social and technical analysis........ 

In ur assignment must mention about ur own city analysis.... be practical....... just think and do

Apni city ko mention kaisy kerna hai? Because they want to start business in Islamabad....

complete assignment With Ah Hot & Fast  food Analysis

Attachments:

INTRODUCTION TO BUSINESS (MGT211)

ASSIGNMENT NO. 01

DUE DATE: 6th MAY 2013

MARKS: 20

ID:Mc130202170

 

 

1:To get knowledge about the importance of a PEST analysis.

PEST analysis stands for Political, Economic, Social and Technological analysis and is used for business and strategic planning, marketing planning, organizational change, business and product development and research reports.

 

Political Factors

A political factor relates to the pressures and opportunities brought by political institutions and to what degree the government policies impact the business. Political factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided and those that the government does not want to be provided (demerit goods or merit bad). Furthermore, governments have great influence on the infrastructure, health and education of a nation.

  • Government policies
  • Government term and change
  • Trading policies
  • Funding, grants and initiatives
  • Wars, terrorism and conflicts
  • Elections and political trends
  • Internal political issues etc.

Economic Factors

Economic factors relates to economic policies, economic structures and to what degree the economy impacts the business. Economic factors are basically economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy

  • Local economy
  • Taxation
  • Inflation
  • Interest
  • Economy trends
  • Industry growth
  • Import/export ratios
  • International trade etc.

 

Social Factors

Social factors relates to the cultural aspects, attitudes, beliefs, that will affect the demand for a company's products and how the business operates. Social factors are basically the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers).

  • Advertising and publicity
  • Demographics
  • Media views of the industry
  • Work ethic
  • Brand, company, technology image
  • Lifestyle trends
  • Cultural Taboos
  • Consumer attitudes and opinions
  • Consumer buying patterns
  • Consumer role models etc.

 

Technological Factors

Technological factors relates to the technological aspects, innovations, barriers and incentives, and to what degree these impact the business. Technological factors are basically technological aspects such as R&D (Research & Development) activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation.

  • Competitor technology development
  • Emerging technologies
  • Maturity of technology
  • Technology legislation
  • Research and Innovation
  • Information and communications
  • Intellectual property issues




 

 

 

 

 

GREAT QUALITIES OF A GOOD BUSINESSMAN

In the modern age we can see the various changes in the business field. Due to technological advancement it is necessary that a good businessman should possess the basic skill and knowledge about his business. Following are the important qualities of a good businessman:

 

Honest: - It is the first quality of a good businessman that he should honest and sincere in public dealing. There should be no fraud and commercial bribery in business. If he fails to perform his moral and religious responsibility then he can’t become a good businessman.

 

Efficient and Hard Worker: - A good businessman must be hard worker and capable of working for long hours. A lazy and inefficient businessman can’t compete the market. Without have working no business can be successful. If the owner is not hard working then other workers of the business can’t be hardworking.

 

Ability of Planning: - It is a basic quality of a businessman that he should possess the ability to plan his business. For example there are various decisions like what to produce? Where to produce? Which are made by the businessman? A good planner can only make the best decision.

 

Careful about Future: - A businessman should be careful about the future expectations. If he fails to estimate the future demand for his product then he will suffer a loss. If he has a foresight about the future then he can earn profit.

 

Ability of Financial Management: - A good businessman tries to meet the financial needs from internal and external sources. He uses the finance in such a way in his business that it gives him maximum profit. A successful business has a quality that he can manage the finance easily.

 

Ability of Innovation: - In the modern age new product attracts the customer easily. So a good businessman should have an ability to produce new goods and services according to his new ideas.

 

Research on Business: - A good businessman always pays proper attention to the research work. He also uses his experiences to minimize the cost of production.

 

Technical Skill: - A businessman should have specialized knowledge and technical skill for understanding and completing the process of production. If he has no technical skill about his business, he can’t become a good businessman.

 

Sympathetic Attitude: - A good businessman always loves his workers. He should be aware of the temperament, feelings and limitations of his workers. He should always take interest in the problems of his workers and try to solve them. They will also reply positively. It will increase the profit of the business.

 

Good Reputation: - In business dealings good reputation is assets for the businessman. A good businessman always improves his goodwill and expands the business.

 

Foresighted: - It is the most important quality for the successful businessman. A businessman must keep an eye on the future. He may be able to predict for future.


Cool Minded: - In competitive market for the success of business it is necessary that businessman should be cool minded and a man of balanced personality.

 

Dependability: - The successful businessman should have the capacity of dependability. He should use every effort to hold it constant and dependable, so that those who work under it know what to expect as it remains unfluctuating from day today. It keeps him much to win the heart of both customers and workers.

Responsibility: - A successful businessman should have to realize his responsibilities. If he doesn’t do his duty then his business can’t go well.

 



 

 

 

Case:

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.

Requirement:

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

 

 

P: Political environmental factors such as: 
AH Hot & Fast Food’s food safety is of a very high-quality and is recognised as one of the best in the fast food retail sector. One of their main successes has been their training programme. They   1   train all of their staff before they begin work in one of their restaurants on all aspects of food quality, food safety and hygiene. This training, along with being made aware of the importance of cleanliness, continues throughout their employment. Another of their regulations they impose is in the food handling areas were staff must wear special aprons and hats to maintain hygiene, and also have to abide a strict washing procedure which is monitored on a day-to-day basis.   Due to the private sector of business being so competitive, businesses have to keep their overheads to a minimum in order to provide reasonable prices, and still make a profit. Large companies could raise the cost of their menu slightly in order to keep profits up but cost down. Smaller take-away businesses, such as local takeaways, have lower profit margins and therefore may have raise their prices significantly to keep staff employed and may consequently lose customers to their lower priced competitors.   Another political aspect that has affected the fast food retail sector comes from international pressure groups. Environmental organizations, such as Friends of the Earth International, have proven their influence in the political systems across the world.Stability of the government, government type, economic policy of the government, trade policy and events in surrounding countries, and fallow Pakistan hotels and Restaurants ACT, 1976.

 

E: Economical environmental factors: 

  • Higher interest rates may deter investment because it costs more to borrow. This could be a problem at the moment when we are trying to find people to invest in the project.
  • Inflation may provoke higher wage demands from employees and raise costs.
  • Increasing costs of material, storage or services used in the elaboration of the final product or service may make it more expensive.
  • Many of the smaller fast food businesses do not have the problem of the major fast food outlets, as they do not hold as much public interest.

 

 

S: Social environmental factors: 

  • As the smaller businesses in the fast food sector are once again not in the public eye as much as the big chains, many have not altered their menus as much. Many have lost business since the healthy living trend began, but most stick with the theory of ‘what you see is what you get’. 
  • Increasing Health Awareness.
  • Increasing change of eating habits towards healthier food.
  • Changing Attitude from Diet products to healthy products.
  • Increasing Working women. (Nobody cooking at home)
  • Increasing Media attention and incentives towards "healthy living" from governments and organization.


T: Technological environmental Factors: 

· Technological Innovations attracts people attention.

· Modernist-Technological themed places are getting more importance in consumer's mind.

 

 Arslan Ashraf gud keep it up & thanks for sharing ur idea 

Note for All Members: You don’t need to go any other site for this assignment/GDB/Online Quiz solution, Because All discussed data of our members in this discussion are going from here to other sites. You can judge this at other sites yourself. So don’t waste your precious time with different links.

P – POLITICAL ENVIRONMENTAL FACTORS :

 

The stability of the govt.& economic policies of the country plays the vital role in  the development of food business in our country. The factors like country stability govt. typ,govt. policies for economy ,govt. trade policies and the foreign and interior business conditions and events surrounding the country plays the role on business statistics of any enterprise .above that RESTUARANTS ACT ,1976 will be applicable over the business of ALI & HASSAN.

 

 

E-ECONOMICAL ENVIERONMENTAL FACTORS :

 

Economic factors are found to related to the performance of the fast food industry is positively correlated with the economic conditions of the environment, whereas the variation in the performance can be described by the economic condition, these results are at a certain level of the social behaviors of the people of the certain area of the location .the certain facts that may effect this factor are higher interest rates that depends on the cost they borrow the goods, finding the people to invest in the project, inflation in the economy that may provoke higher wage demands and may raise the costs .these factors may let the goods get more expensive. According to AH fast food case, the locality they should select shall be close the locality containing majority of youth  for an example the hostilities and the packages of the fast the food deals they may offer shall be up to their range to receive a better response from the very initial stage.

 

S- SOCIAL ENVRONMENTAL FACTORS:

 

The socio –cultural aspect of the society improves the efficiency of fast food restaurants with increased civilization of people those who prefer home delivery and prefer to enjoy the life by taking the meal outside home. Keeping in mind that in Pakistan the people take it as an amusement activity. This factors plays the vital role more than any other factors that may effect the sales of the fast food goods so AH FAST FOOD has to focus on this factor more then any other, primarily this factor focuses on Increasing health awareness ,change of eating habbit towards healthy food, increase of the media attention and incentives towards ‘’healthy living’’ from govt. and welfare organizations.

 

T- TECHNOLOGICAL ENVIRONMENTAL FACTORS:

 

According to the latest survey and the internet hype, it has proved that the technology has a great and quite high value impact on the performance and satisfying results to market and rapid results to the sales and growth of businesses.it can play a role in attracting the customers and grabbing their attention. It can play a major role in the publicity of the place as well as marketing of the products and the packages that offers the restaurant . apart of it in all aspects of sales control , management and time attendance system of the restaurant the technology factor is completely involved.

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& 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).

PEST_analysis_for_AH_Hot

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