week 7

PESTEL analysis of Big Mart

 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.

Social-cultural factor

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

Books
JohnsonG,ScholesKandWhittingtonR(2009),FundamentalsofStrategy,PrenticeHall.
LynchR(2008)StrategicManagement,5thEdition,PrenticeHall.