Week 7: PESTLE analysis of Big Mart

1. EXTERNAL ANALYSIS: 
An external analysis can be defined as “the process of scanning and evaluating an organization’s various external environmental sectors to determine positive and negative trends that could impact organizational performance”(p. 66, Coulter 2005). 
It is the analysis or examine of external environment of any organisation. External analysis basically helps an organisation to recognize its existing threats and opportunities in the external environment. An organisation does it's external analysis so as to know how much threats it has from the external environment and then act upon it accordingly. This analysis helps an organisation to work on it's weaknesses that may affect on it's set goals.

2. PURPOSE OF PESTLE ANALYSIS:


PESTLE analysis being one of the external analysis refers to Political, Economical, Social, Technological, Legal and Environmental factors affecting any business. This analysis is the in-dept external analysis of any business firm. PESTLE analysis of any organisation differs according to its geographical allocation. Its main purpose is to analyse in detail the six external factors that may affect the business and accordingly plan and organize the lacking factors so as to achieve success. 



PESTLE ANALYSIS OF BIG MART SUPER MARKET:

  BIG MART SUPERMARKET, KATHMANDU, NEPAL
       

• 1st Big mart store was launched on 10th July, 2009 in the finest mall of Nepal, City Center, Kamalpokhari, Kathmandu.
• Covers an area of 11,000 sq.ft.
• 1st in Nepal to provide the Value and Savings concept to its shoppers.

POLITICAL FACTOR: 

Big mart being an established supermarket in Nepal, is affected by the political factor immensely in the present context. Nepal's unstable political conditions resulting in bands, strikes and many other problems influence big mart's operations.The bands and strikes stops the supply of goods and products which in turn results in scarcity of products in the supermarket. In the worst case, the supermarket also have to remain closed in those bands. Let me take an example of the worst political instability occurred in Nepal in the year 2006, when all of the Nepal was shutdown or in a way closed for a whole 19 days: no schools, no businesses, this directly affected the operation of any businesses as a whole. Thus, this is one of the important factor for Big mart to consider. 

ECONOMICAL FACTOR: 

Big mart being able to establish itself as a brand in the town in a short time period has been able to generate economy without a doubt. However, to maintain it's economy, big mart should fluctuate it's pricing policy as per the economy cycle of the country and as a whole the world's economy.


SOCIAL FACTOR:
After an observation, I found out that people living around have that mentality of Big mart being opened in a huge mall might provide everything in a high rate. In fact not only with Big mart but also with other established supermarkets in town is the same case. The society here, still has not developed a habit of shopping in a supermarket. People rather prefer shopping in the nearest small shops called 'kirana pasals'. In addition, Kamalpokhari being a place with several small and large shops, provides many options for the shoppers. However, Big mart introducing it's value and saving concept to its customers and  also Big mart's plan to open it's chain of stores in many other places is one of the good sign of fostering itself. Thus, Big mart if is able to adapt to the society and make the customers happy, may then flourish in the coming years.


TECHNOLOGICAL FACTOR:

My observation showed that Big mart practice the use of several technologies. Without technology, it would not have been able to compete with it's competitors such as bhat bhateni supermarket, being one of the famous and well established supermarkets in whole Kathmandu. The use of computers, billing machines and many other technological instruments has made Big mart operate and handle the customers in a fast rate with accuracy. Thus, if Big mart continues using new technologies may help it broom.

     

LEGAL FACTOR:

Big mart being a super market, mostly sells imported goods and products apart from selling the local manufactured goods, this may result in high tax charges on goods and products. Thus, if Big mart fails or avoids to pay those high taxes will be regarded as being operated illegally, which may put it in danger and also may create a bad impression in the society. Therefore, the Legal factor must be seriously looked after by Big mart.

ENVIRONMENTAL FACTOR:

Big mart should take a step further and should try to be Eco-friendly. With it's emerging plans and goals should emerge the idea of managing the unwanted, waste products and materials. So as to cope up with the environmental factor, it should probably be able to dispose every single waste in every single day. Likely, big mart should create a friendly environment inside the store. The smiley faces and friendly attitudes of working staffs inside the store helps create positive vibes among the customers. 

3. PREPARATION FOR ACTIVITY WEEK FIELD WORK BY GROUP:

We, the group of 5 basically planned to visit Big mart and observe it in the first place. We printed a copy of PESTLE analysis Templates provided by our tutor and then visited the supermarket. After that we all wrote short points on what we observed inside the supermarket and afterwards we surfed other information in the internet in detail.

REFERENCES:

 Big Mart. (n.d.). Retrieved April 6, 2013, from www.bigmart.com.np: http://www.bigmart.com.np/

Coulter, M. (2005). Strategic Management in action. 3rd Ed. New Jersey: Pearson Prentice Hall.