Learning Journal Week 6
1. What is meant by the term "External Analysis"? What is the purpose of "PESTLE‟ analysis?
1. What is meant by the term "External Analysis"? What is the purpose of "PESTLE‟ analysis?
The External analysis is the examining the opportunities and threats that occurs in the business environment. As the firms has to face both opportunities and threats which are Independent. These environment are outside the control of the firm. The external analysis like Interest rate increase, Change in trend etc are to understood well which is need to make a strategic decision for the firm.On external analysis we have analyze the Industry Environment, National environment and Macro Environments like Technological, Social, Legal, Government and the international factors which mat influence the environment.
The Purpose of "PESTLE" analysis are
Political : This refers to the government policies in intervention in the economy of the country. Political situation may impact on business and starting of new comers.
For eg: International Trade policy on export of Pashmina Scarf and also taxation policy on the goods fro local sales.
Economic : Economic condition of the country is seen before investing it or starting a new business. Business man may consider this factor while starting a business.
For eg: Interest rate provided by the bank on Loan, and economic condition of the country and per capita income.
Social: Change in social trend may impact on business and economy. It also impact its business demand.
For eg: In Nepal most of the people prefer to Nepali Cuisine instead of KFC.
Technological: Effect use of technology to make it easier market and establishment of new business.
For eg: Using a bar code reader and easy payment by Credit card will help the customer satisfy.
Environment: We must look into the environment factors while venturing into business.
For eg: We must use AZO free color as most of the country has been strict on using of harmful chemicals.
Legal: This is related to the legal environment where the firms are operated.
For eg: Nepal government has not been able to implement the sale of cigarette to under 16 age group.
All the PESTLE analysis helps to implement the business to operate with acknowledged of the environment and helps in making a strategic decision.
2. Read the article about Big Mart Super Store – what external issues are the Super Markets would have to consider at this time to have competitive advantage over others?
The external issues for super Market would be
Political: Nepal has a political problem so the big mart is considering slowly to open new branches in different places.
Economical: Economic condition of Nepalese people are moderate so big mart must provide quality product but at the cheaper rate. It should also increase the profit margin as i may have negative impact on the customer. Like : Big Mart is providing the a product for Rs 200 but other stores are providing for Rs 195 then should also consider such small things.
Environmental: Environment condition of Big mart must be friendly to customer and also clean. It is the sole responsibility of the mangers to see that customer are treated well in friendly environment.
Social -Cultural: Nepalese people have become modernized and smart slowly taking the western culture as well. People would like to refer to buy the quality goods at the one stop as Big mart contain hassle free service. It has also considered the peoples needs and demand as per the location. It has also catered to the provide high class as well as middle class people needs.
Technology: Big mart has also used the technology in an effective manner. It has provided the foreigner to pay for the purchase by credit card instead of cash transaction. Big mart has still been in lack systematic management of the technology as there is only one swap machine which is common for all the counter so the customer has to wait in a queue for their turn.
Legal: Big Mart may have legal problems like license for opening a new branches. Also big mart has to set the minimum wage for the employees without bios of the place factor.
3. What are the key factors for success in this industry? (what do you have to do really well to survive and prosper in this industry?)
We have formed a group of five people to meet up on 16th December for the activity work on competitive analysis of Big Mart.
We have formed a set of question by each member in our group.
My questioner were on Technology component.
1. How have your company used the technology?
2. Has it helped to make the things easier?
3. What sort of technology has been used?
4. Are you updated with the latest technology?
I have recorded all the details of feedback by had written method.
References:
PESTLE. [Online] Available at: <http://www.free-power-point-templates.com/articles/how-to-make-a-pest-diagram-in-powerpoint/> [Accessed on 9 Dec 2012]
Educate Nepal, 2011. Higher education in Nepal: issues and challenges. [online] Available at : <http://www.educatenepal.com/contributors/articles/higher-education-in-nepal-issues-and-challenges > [Accessed 9 Dec 2012]
My Strategic Plan [Online] Available at: <http://mystrategicplan.com/resources/external-analysis> [Accessed at 9 Dec 2012]
Index mundi, 2012. Nepal economic profile 2012. [online] Available at : <http://www.indexmundi.com/nepal/economy_profile.html > [Accessed 10th December 2012]
Political : This refers to the government policies in intervention in the economy of the country. Political situation may impact on business and starting of new comers.
For eg: International Trade policy on export of Pashmina Scarf and also taxation policy on the goods fro local sales.
Economic : Economic condition of the country is seen before investing it or starting a new business. Business man may consider this factor while starting a business.
For eg: Interest rate provided by the bank on Loan, and economic condition of the country and per capita income.
Social: Change in social trend may impact on business and economy. It also impact its business demand.
For eg: In Nepal most of the people prefer to Nepali Cuisine instead of KFC.
Technological: Effect use of technology to make it easier market and establishment of new business.
For eg: Using a bar code reader and easy payment by Credit card will help the customer satisfy.
Environment: We must look into the environment factors while venturing into business.
For eg: We must use AZO free color as most of the country has been strict on using of harmful chemicals.
Legal: This is related to the legal environment where the firms are operated.
For eg: Nepal government has not been able to implement the sale of cigarette to under 16 age group.
All the PESTLE analysis helps to implement the business to operate with acknowledged of the environment and helps in making a strategic decision.
2. Read the article about Big Mart Super Store – what external issues are the Super Markets would have to consider at this time to have competitive advantage over others?
The external issues for super Market would be
Political: Nepal has a political problem so the big mart is considering slowly to open new branches in different places.
Economical: Economic condition of Nepalese people are moderate so big mart must provide quality product but at the cheaper rate. It should also increase the profit margin as i may have negative impact on the customer. Like : Big Mart is providing the a product for Rs 200 but other stores are providing for Rs 195 then should also consider such small things.
Environmental: Environment condition of Big mart must be friendly to customer and also clean. It is the sole responsibility of the mangers to see that customer are treated well in friendly environment.
Social -Cultural: Nepalese people have become modernized and smart slowly taking the western culture as well. People would like to refer to buy the quality goods at the one stop as Big mart contain hassle free service. It has also considered the peoples needs and demand as per the location. It has also catered to the provide high class as well as middle class people needs.
Technology: Big mart has also used the technology in an effective manner. It has provided the foreigner to pay for the purchase by credit card instead of cash transaction. Big mart has still been in lack systematic management of the technology as there is only one swap machine which is common for all the counter so the customer has to wait in a queue for their turn.
Legal: Big Mart may have legal problems like license for opening a new branches. Also big mart has to set the minimum wage for the employees without bios of the place factor.
3. What are the key factors for success in this industry? (what do you have to do really well to survive and prosper in this industry?)
We have formed a group of five people to meet up on 16th December for the activity work on competitive analysis of Big Mart.
We have formed a set of question by each member in our group.
My questioner were on Technology component.
1. How have your company used the technology?
2. Has it helped to make the things easier?
3. What sort of technology has been used?
4. Are you updated with the latest technology?
I have recorded all the details of feedback by had written method.
References:
PESTLE. [Online] Available at: <http://www.free-power-point-templates.com/articles/how-to-make-a-pest-diagram-in-powerpoint/> [Accessed on 9 Dec 2012]
Educate Nepal, 2011. Higher education in Nepal: issues and challenges. [online] Available at : <http://www.educatenepal.com/contributors/articles/higher-education-in-nepal-issues-and-challenges > [Accessed 9 Dec 2012]
My Strategic Plan [Online] Available at: <http://mystrategicplan.com/resources/external-analysis> [Accessed at 9 Dec 2012]
Index mundi, 2012. Nepal economic profile 2012. [online] Available at : <http://www.indexmundi.com/nepal/economy_profile.html > [Accessed 10th December 2012]
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