Assignment:Week 6

1. What is meant by "External" analysis? What is the purpose of "PESTLE analysis" ?

External Analysis means the examination of external factors influencing the organization, i.e. 'Opportunities' and 'threats' which are independent from the organization. Opportunities refers to the positive changes an organization can gain from the environment where as threats refers to the negative factors that can harm the organizations functions.
"PESTLE" analysis is the in depth analysis of  political, economical, social, technical, legal and environmental factors. The study of these micro environmental factors is a must to determine the opportunities and threats for the organization. Through 'PESTLE' analysis the organization can have an idea of its external environment in which it is functioning.


2. Read the article about Big Mart Super Store- What external issues the super markets would have to consider at this time to have competitive advantage over others?

• Political factor

Nepal has been facing political instability over the past decade. Frequent strikes, conflicts have become normal in the country. This has directly hampered the normal function the supermarket. So Big Mart needs to develop some competitive strategies to overcome this problem.

• Economical Factors

Big Mart has many sub branches spread all over the valley but still it has not been able to attract as many customers as its competitors. Thus the supermarket needs to do some research on the customer’s expectation part and try to establish some more branches in suitable locations.

• Social Factors

Big Mart has been providing varieties of products to its customers but still it hasn’t been able to reach its determined sales level. The trend of customers has been changing according to the time. So the supermarket needs to understand the social factors involved with different social group of the customers and develop strategies to satisfy their different needs.

• Technological Factors

Technology has become a vital part in the operation of any business organization. Even though Big Mart has been using modern technology to record its sales and stocks, it still hasn’t been able to flourish properly. For this, Big Mart needs to add services like online shopping and delivery services to increase its customer volume.

• Legal Factors

Big Mart is a legally functioning organization fulfilling its taxes and other duties on time. It follows all the rules and regulations of the country, maintaining its accounts and ledgers as per the rule. But still, the supermarket has been facing the problem of fluctuating prices in its products.

• Environmental Factors

Environmental conservation has become a vital part in the operations of any organization. Big Mart too has been conducting its operations in any eco friendly manner. But still the supermarket needs to conduct more Eco friendly activities to attract more customers.

3. Discuss your presentations for the activity week field work. Have you arranged to meet your group? Have you been to Big Mart before? How are you planning to record your data?

Yes I have already arranged to meet with my group members and I have already been to Big Mart before. I am planning to use PESTLE analysis template to record my data.

References:

My Strategic Plan (2013). External Analysis. Available from (http://mystrategicplan.com/resources/external-analysis/) [accessed in 28-03-2013]