Week 7

About Big Mart Supermarket

A supermarket needs wide variety of quality products and services, customer friendly environment, convenience and affordable price to be well known among customers and Big-mart Supermarket has it all. Big-mart is one of the renowned supermarkets in Nepal operating since 2009. Currently, it has 2 branches in Kathmandu the capital city of the country and is planning to operate in new places as well. It provides large variety of grocery products from chewing gum and candies to snack foods and meat in really affordable prices.

PESTLE Analysis of BigMart Supermarket

Political:

Nepal is a politically in-stable country and this has been affecting many organizations including Big-mart. Big-mart has to analysis and consider the sub-factors that come under political factors so that its business does not get affected.



The political factors are:

· The main problem could be considered is “No  Constitution” has been made as of now, which is really a big problem.

·         Political Instability

·         Insecurity

·         Frequent demands of donations and political help from different political parties.

·         Frequent strikes that hampers the business.

·         Labour problems & Political influence over employees selection.

·         They feel that the tax policy for imports are not very favorable for Organizations as well as Big Mart.

Economic:

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Since Economic forces has a direct influence in the business, i would like to list different economic factors that Big Mart is facing:-

· Big Mart is in a very good position because, right now the economic situation of Nepal is very stable and sustainable.

· The earning of people is increasing, and with the increase in earning, the spending's are also increasing which is very good for Big Mart too.

· The economic trend of Nepal is rising and improving from 1950s, which is very good for Big Mart.

· There was not any effect of the recent recession which occurred in United States and Europe in Nepal, its another motivating and important indicator to Big Mart that its business wouldn't be affected even if recession occurs in overseas economies.

· Big Mart management seemed to be a bit miffed by the government’s tax policies. They have the complain that the government imposes higher tax on their imported products, which results in high pricing of those products ultimately affecting their sales.

· As for weather issues, they said that during winter season and rainy season it is very difficult to import goods from outside or inside the country. They said that in winter season they have to face many delayed cargo shipments to be imported due to bad weather (fog) and, in rainy season they have to face the delay from within the country due to landslides and road blocks resulted from heavy rain.

· The increment in labour cost has also effected Big Mart.

· Globalization has a good impact on Big Mart because due to globalization they are being able to offer products which are found in United States, England and other countries.

· Rapid change in the exchange rates is also giving problems to Big Mart.



Sociocultural:

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Everything which is cultural and social within a country or society is embodied by social environment. Here are the list of different social forces that have or could have influence on Big Mart:-

· Consumers attitude have changed over the years regarding shopping, now they like to shop in places like Big Mart where they can get everything they want at one place, which is very good for Big Mart.

· People feel prestigious to buy in places like Big Mart.

· Big Mart also does social contribution by organizing blood donation programmes, placing water jars in public places, fund raising programmes for natural disaster victims, which gives a very good message in the community.

Technology :.

World is being technically advanced. New technology comes every now and then. Every

organizations have to get updated with new technologies, in order to get competitive advantage over others. Big mart is also updating with the technology, for the convenience of customers and to be competitive in the industry. Big mart currently possess following technologies:

• Installation of CCTV for security and surveillance.
• Electronic counters
• Digital membership cards
• Product information on its website
• Use of EFTPOS machines.

Environment:

People are very conscious about the environment these days. Therefore they try to avoid things that are not environment friendly. For this reason, to remain competitive and care for the environment and the customers, Big mart is planning to use solar power for lighting purpose at the time of load-sheding instead of using diesel generators in near future.

Other environmental factors to be considered are

• Use of environment friendly products such as paper bags.
• Environment protection campaigns.
• Awareness among people regarding global warming due to business activities.

Legal:

Every organizations have to follow legal aspect according to the country they operate in. Every organization have to sell products and provide service that are legal and at reasonable price. Below are some of the things that Big mart is following to carry out its operation in legal manner.

• They are registered business organization with permission from register office.
• Big mart has legal authority to provide goods and services.
• They don't sell products that are restricted by the government.
• They sell only genuine products.
• And they have reasonable price for their products.