PESTEL analysis is very important for every
kind of organization to know about their external factors and their effect in
the organization. PESTEL analysis deals with the political, economic, social,
technological and legal factors of the industry. It plays very important role
in the planning of the organization to achieve the pre determined goal of organization
by setting specific pathway.
Fig: Big Mart Kathmandu
Political factor
Political is one of the
factors that affect the Big mart industry directly or indirectly in many ways.
As we know the political condition of Nepal is not so stable which is affecting
the Big mart industry. Political factors like strikes change in the rules and
regulation, instable system affects the industry to close or restricts them to
work freely. In order to run the industry smoothly the political factors must
be studied well and plan for future.
Economic factor
The economic factor of
the country also directly or indirectly affects the Big mart industry. If the
economic condition of the country is not good then there will be no value of
opening the industry because in order to run the industry people income must be
good which depend upon the economic condition of the country. Therefore,
political factor must be analyzed in order to run the industry efficiently.
Every people has its own
kind of need and demand according to their cultural or social aspects so, big
mart must have to understand and satisfy their need and demand according to
their cultural aspects, goods and products must be provided according to the age
group of the people living in the country. As we know there are many different
people living in different style like student, family, youngsters etc they all
have different demand of goods and product so the industry must take care of
that in order to archive its goal.
Technological factor
Now a day’s technology
has been increasing rapidly and making a revolutionary history in every field
of business and one of them is in shopping industry where people get various
ways of buying the product. Technology like ATM, online buying etc helps people
to buy the product from the Big mart. In order to keep on doing the business in
the market the Big mart industry must study or analyze the technological factor
of the country.
Environmental factor
Big Mart should have
excellent knowledge about the environmental factors. Environmental factors
includes the climates, natural disasters, etc that may impact on the
transportation. As a result this will also affect the demand pattern in the
business opportunities.
Legal factor
Legal factor of the country is also one of
the factors affecting the Big mart industry. Rules and regulation of the
country must be analyzed well in order to achieve the goal. As for now the big
mart industry has done well in the market where people are being satisfied till
now. Better understating of the legal factor of the country helps big mart to
achieve its goal for longer period of time.
Reference
Reference
Books
JohnsonG,ScholesKandWhittingtonR(2009),FundamentalsofStrategy,PrenticeHall.
LynchR(2008)StrategicManagement,5thEdition,PrenticeHall.
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