WEEK 7

External Analysis:

The External Analysis examines opportunities and threats that exist in the environment. both opportunities and threats exist independently of the firm.

PESTLE Analysis:

It is a method of reviewing the macro environment (external forces that impact a company's ability to plan). It stands for:

• Political
• Economic 
• Sociological
• Technological
• Legal
• Environment

It looks at the external business environment and is an appropriate strategic tool for understanding the "big picture" of the environment in which the business operates, enabling it to take advantage of the opportunities and minimize the threats faces by its business activities.

A PESTLE analysis enables the company to take long-term perspective, and clarify strategic opportunities and threats that it faces. (www.coursework4you.co.uk, 2013)

PESTLE Analysis of BIG MART SUPERMARKET:

Big Mart is a retail store in Kathmandu established in 2009. It has two outlets in Kathmandu, Kamalpokhari and Lazimpath. It aims to open more branches across the city.

Political Factor:

• influenced by political and legislative condition of the country
• employment legislation, the government encourages retailers to provide a mix of job opportunities from flexible, lower-paid and locally based jobs to highly-skilled, higher-paid and centrally -located jobs.  
• unstable political situations could create problems regarding the law and policies of the country for the mart to successfully carry their activity.    

Economical Factors:

• likely to influence demand, costs, prices and profits
• increase inflation and unemployment rate may decrease effective demand for goods, adversely affecting the demand for producing the goods
• increase in the living standard of Kathmandu may increase potential buyers  

Social Factors:

• customers more interested in 'one stop' and 'bulk' shopping due to various social changes
• customer are becoming more health conscious than before, so strategy of the supermarket must also change by increasing the stock of organic products.
• customer satisfaction can be driven by customer care by being helpful and also providing various services as discount to members, and adding schemes on various occasion that benefit the customer.

Technological factors:

• new technological benefits both customer and company because shopping becomes more convenient, goods can be readily available and services can be personalized
•  BIG MART is keeping up with the technology as it has different LCD screens, CCtv all over the places and also has a credit card payment system. 

Legislative Factors:

• Established powerful competitor such as Bhat-Bhateni  may create a threat of intense price war and strong requirement for product differentiation
• It mostly gives importance to the imported products that are high in number which may increase tax and hence increase in the price of the good

Environmental Factors:

• the store must take steps to become eco friendly
• they must take steps in managing the usage of plastic and also managing the waste 
• provide the people a message and spread knowledge about environmental issues by funding or joining different campaign.

3) For the research, we made a group of five members and went to BIG MART for a quick visit. We closely observed the market and also had some talk with the employees. After discussing about the research we had done so far, we came t o a conclusion and did our PESTLE research. 

Reference:
E-Kantipur, 2012. eKantipur.com. [Online] Available at: http://www.ekantipur.com/2012/08/01/business/big-mart-to-open-seven-stores-in-kathmandu-by-2012/358057 [Accessed on 7 April 2013].
What is pestle analysis. [Online] Available at: http://www.coursework4you.co.uk/essays-and-dissertations/pest-analysis.php [Accessed on 7 April 2013]

Big Mart, [Online] Available at http://www.bigmart.com.np/ [Accessed on 7April 2013]