Week 7

Pestle analysis is needed to study about the macro factor of the industry. It helps to understand about the political, economic, socio- cultural, technological and legal factors of the industry (I. o. C. A. o., 2010).

Political Factor

Due to frequent change of government, it is directly or indirectly affecting Big Mart. Although the governing party would encourage continuing with the business, some opposition political parties will call off for strikes and harm the business. Likewise, with unstable government there might be change in rules and regulations too.  Today, different trade unions who are involved with various political parties are influencing business by their unachievable wants.  So, the political condition of the country should be well known for smooth operation of business.

Economic Factor

Since its establishment in 2009 till today it has been doing some good business. The purchasing power of people has increased. Although the inflation rate is increasing people are consuming more, this could help Big Mart to bring up with new products or diversify their products so that all age groups people could consume goods from their mart.

Social Factor

When we talked with some of the customers in Big Mart, they were very happy with the services provided by the store. Customers were more attracted by the diversification of product. They could find all kind products under one roof so it was easy for them to shop. Customers were happy with the quality management and their pricing strategy.

Technological Factor

Nowadays people are most attracted to the place where it is convenient and easy for them to shop. Big Mart is actually lacking its competitive advantage in this factor. Although they have computerized cashier system, there was queue of people to in cash their purchased goods. If Big Mart can open an ATM lounge or come up with online shopping they can help customers to shop easily and gain competitive advantage.

Legal Factor

Big Mart is not much affected by this factor. They have fulfilled all kind of procedure to register their company in Nepal. Only if there is any kind of change from national level then they could be affected. Otherwise they are on the safe side of this factor. In case of any other legal issues they have hired some top lawyers to look after their cases.

Environmental Factor

Big Mart is located at one of the prime location in capital of nation, so they are not much affected by the surroundings. Only if there is some kind of life threatening natural disaster or calamities it could get affected.

References:

India, I. o. C. A. o., 2010. Strategic Management. New Delhi: Sahitya Bhawan Publications.