Pest Analysis of Gourmet Bakers and Sweets

Presented By NAUMAN BILAL 4714 UMAIR MAJEDD MA JEDD 4739 4739

POLITICAL FACTORS a) Law and order b) Political stability ECONOMIC FACTORS a) Monetary policies b) Fiscal policy SOCIAL FACTORS a) Geographic &Demographic b) Psychographic TECHNOLOGICAL FACTORS  Forecasting  Trend •

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The political environment directly influences all the  business working in the country. Similarly the  production distribution and use of Gourmet’s  products are also effected by some federal laws, such as the Food and Drug Act 

Law and order Act of terrorism  as we know that the act of terrorism is increasing day by day in Pakistan and it is not confined to any  particular city, terrorism is badly affecting the business in all over the Pakistan. According to the statistics the terrorism  percentage is increasing continuously and its is not a good sign. Crime rates As the crime rate is prevailing in the city of Islamabad it is most serious issue for the business running in Islamabad according to the statistics the crime rate percentage increases by 17% in 2012. It has adverse effect on sales of the retail outlet .

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Political stability Source of authority

Business flourishes if the source if authority is stable. If the authoritative power is changes continuously there is inconsistency in the policies because each individuals has its own mandate Frequency of election

If we look at the history the frequency of election in Pakistan is not consistent but from 2008 the trend is changing and the government is changing through proper channel which is a good sign for businesses operating in Pakistan.

Pakistan’s  economy has shown resilience against shocks of high intensity which include domestic factors such as political uncertainty, security situation and international financial crisis, in addition to an unprecedented rise in food and energy prices According to Pakistan Biscuit & Confectionery Manufacturers Association, Pakistan’s Bakery and Confectionary Industry has grown with an average annual rate of 6.5% to 7.5% during 2002-10

OWNERSHIP TYPE 12% 21% 67%

Private limited comoany Partnership Sole proprietorship

Monetary policies Exchange rate Exchange has great impact on the bakery business because some ingredient used in the products are imported from foreign countries and if the exchanged rate of the currency of that country increases the cost of import for a particular ingredient also increases. This increases the cost of production. Inflation rate As far as inflation rate is concerned it is increase in money supply in an economy which ultimately result into increase in general price level of the commodity. Pakistan is facing high inflation rate it was 5.37 % in May 2013 and now it is 8.55% in till September 2013.So most of the product ingredient show increase in  prices on the other hand as inflation rate increase the purchasing power of the consumer also decreases and the sales of the business also affected by it.

Interest rate Interest rate also effect the business because some people use credit cards for the  purchase of bakery product as the interest rate increase people stop  purchasing through credit card and the sales of bakery may be affected. Consider the example of households and consumers who like to pay for their goods and services using borrowing such as credit cards or a bank overdraft or loan. Also think about households who have substantial balances outstanding on a mortgage used to finance a house purchase

Fiscal policy Tax

According to Sales Tax Act 1990, the Federal Government exempts the whole of sales tax on the import and supplies of the goods The items which are exempted mostly used in bakery product which is help ful in reducing the cost of production similarly the government has increase the sales tax on sweets form 17% to 19%

Geographic &Demographic As 65% percent of the total population and youngsters are working especially the women, their daily lives are becoming very fast and they don’t have time to cook at home. Due to this reason more  people are now seeking convenience goods, which act as a alternative to the traditional meals. Although people are becoming more aware and more health conscious thus they demand high standards of quality and hygiene along with a balanced nutrition. Due to westernization and change in life style the demand for  bakery product is increasing day by day

Technology in this industry is therefore limited to function as a catalyst to improve production capacities, speed of product manufacturing cycles, inventory management. It has to pay attention to the new distribution techniques as well. For example :that you put lots of pizza s on the conveyer belt of the Owen and with in few minutes you have baked lots of pizzas

POLITICAL FORECAST ECONOMIC FORECAST SOCIAL FORECAST TECHNOLOGICAL FORECAST