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


SEMESTER SPRING 2013
INTRODUCTION TO BUSINESS (MGT211)
ASSIGNMENT NO. 01
DUE DATE: 2ND MAY 2013
MARKS: 20
ASSIGNMENT:
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.
Case:
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.
Requirement:
Perform a PEST analysis for AH Hot & Spicy Fast Food.
Note:
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
analysis.
IMPORTANT:
24 hours extra / grace period after the due date is usually available to overcome
uploading difficulties. This extra time should only be used to meet the
emergencies and above mentioned due dates should always be treated as final
to avoid any inconvenience.
IMPORTANT INSTRUCTIONS/ SOLUTION GUIDELINES/ SPECIAL
INSTRUCTIONS
OTHER IMPORTANT INSTRUCTIONS:
DEADLINE:
 Make sure to upload the solution file before the due date on VULMS.
 Any submission made via email after the due date will not be accepted.
FORMATTING GUIDELINES:
 Use the font style “Times New Roman” or “Arial” and font size “12”.
 It is advised to compose your document in MS-Word format.
 You may also compose your assignment in Open Office format.

 Use black and blue font colors only.
REFERENCING GUIDELINES:
 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
RULES FOR MARKING
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.
Note related to load shedding: Please be proactive
Dear students!
As you know that Pre Mid‐Term semester activities have been
started and load shedding problem is also prevailing in our
country now a days. Keeping in view the fact, you all are advised
to post your activities as early as possible without waiting for the
due date. For your convenience; activity schedule has already
been uploaded on VULMS for the current semester, therefore no
excuse will be entertained after due date of assignments, quizzes
or GDBs.

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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)