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Thread: MGT211 Introduction To Business Assignment No.1 Solution Spring Semester 2013

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    18 MGT211 Introduction To Business Assignment No.1 Solution Spring Semester 2013

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    MGT211 Introduction To Business Assignment No.1 Solution Spring Semester 2013

    DUE DATE: 2ND MAY 2013
    MARKS: 20
    TOPIC: PEST Analysis for New Business
    Learning objectives
     To get knowledge about the importance of a PEST analysis.
     To know about the qualities of a good businessman.
    Learning outcomes
    After this assignment, student will:
     To understand the role of PEST analysis for goods and services.
     To understand the qualities of a good businessman required for the
    success of a business.
    Ali and Hassan are Master of Business Administration degree holders and
    they want to establish a new business in Fast Food Industry in partnership
    with the name AH Hot & Spicy Fast Foods. For this purpose, they made
    analysis of different market situations of this Industry; also for their business
    they analyzed different environments in which a business works that social,
    technological, political and economic. They are full of team spirit and
    having good technical skills and abilities to work and run the business.

    After analyzing the market internal and external factors, they received basic
    knowledge important for any new enterprise. Finally they decided to start
    the business in Islamabad.
    Perform a PEST analysis for AH Hot & Spicy Fast Food.
    Your analysis should be based on facts about your city and you are also
    required to mention the source of facts you will use for the PEST analysis in
    this assignment. IT is also suggested that first you read material about PEST
    24 hours extra / grace period after the due date is usually available to overcome
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     You may also compose your assignment in Open Office format.

     Use black and blue font colors only.
     Use APA style for referencing and citation. For guidance search “APA
    reference style” in Google and read various website containing
    information for better understanding or visit
    APA REFERENCE STYLE: Table of Contents
    Please note that your assignment will not be graded or graded as Zero (0), if:
     It is submitted after the due date.
     The file you uploaded does not open or is corrupt.
     It is in any format other than MS-Word or Open Office; e.g. Excel,
    PowerPoint, PDF etc.
     It is cheated or copied from other students, internet, books, journals etc.
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    Idea Solution

    PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.
    Political factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability.
    Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decision
    Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety.
    Technological factors include technological aspects such as R& activity, automation, technology incentives and the rate of technological change.
    Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.
    Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.The model’s factors will vary in importance to a given company based on its industry and the goods it produces. For example, consumer and B2B companies tend to be more affected by the social factors, while a global defense contractor would tend to be more affected by political factors. Additionally, factors that are more likely to change in the future or vusolutions.com more relevant to a given company will carry greater importance. For example, a company which has borrowed heavily will need to focus more on the economic factors (especially interest rates)

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