Tuesday, April 9, 2013

WEEK 7

Week: 7 
                                                   
Introduction
Big mart Supermarket stands out as one of the most valuable brands in Nepalese supermarket industry in a very short span since its inception. The first store was launched on 10th July, 2009 in the finest mall of the country - City Centre Mall, Kamalpokhari, Kathmandu covering an area of 11,000 sq ft. It has been recognized for its innovation in introducing super marketing to the Nepalese market with a very different and organized approach. It stands out as being the first in Nepal to provide the VALUE & SAVINGS concept to its shoppers. (Big mart, 2013)
The PESTLE analyses of Big Mart are as follow
Political      
a.       The political instability of Nepal is directly affecting the Big Mart for day to day operation.
b.      Strike of different parties make unable for mart to open and meet the demand of customer.
c.       Political instability has direct influence in union of staff on mart. And make different unnecessary demand on the name of betterment.
d.      They are not able to expand their mart and also very hard to open a new branch.
e.       There is no any direct or indirect support from government to Big Mart.
f.       Big Mart collect product from domestic as well as international market. But in case of international market no subsidy and tax benefit is provided. 
Economic
a.       The overall economic for Big Mart refers to customer demand, customer satisfaction, government regulation etc,
b.      Big Mart has very tough competition with Bhatt Bhateni. In comparison, Bhatt Bhateni offers more products in number of branches in different part of country. So it’s very difficult for Big Mart to expand and have a loyal customer.
c.       Due to different political factor mart is not able to meet customer demand properly.
d.      Tough tax and subsidy lead Big Mart to high the price which directly effect on competition. In this scenario to mart can’t offer any discounts and gift to attract customers.
e.       The inflation in country affecting the mart externally and internally. Externally seems to increase price of product whereas internally seems increasing demand of employee union in terms of salary and facilities.
f.       Due to certain reason mart is not able to meet the demand of the entire customer they are high level, medium level and low level.
Social
a.       The taste and demand of customer varies on time so it’s very difficult for mart to make long term plans.
b.      The product that mart if offering should be authentic like if the product is expired than it’s a very disadvantage for the mart. Means while there will be bad rumors of mart in society result decreased in customer.
c.       The mart should manage there disposal properly. If not its very hard for mart to exist in that society.
d.      To meet the customer demand the mart must have knowledge of taste of every customer. Example in Nepal society, there are different people with different culture and religion. In time of occasion the mart must offer the product that is require for people of same culture.
e.       The mart must meet the life style and life standard of domestic people.
f.       The mart must contribute something positive for society. For example providing donation for educational program.
Technological
a.       The technology shows how advance and smart the business is. The mart must have similar or better technology than competitor.
b.      There is a specific department for IT in Big Mart. It assist to record consumer’s data and transition on there database and maintain supply chain order to run day to day operation activities and functioning well.
c.       The systems make direct effect on Big Mart decision. Like it helps to know the specific customer taste and preference as well as customer onion and ideas.
d.      The advance technology records the entire product in and out of the mart. And helps to make new order with supplier.
e.       The system helps to manage money properly. There is no chance of money leakages.
f.       Overall the system helps mart a lot to add value to the customer and provide better service to their customer.
Legal
a.       It includes all the rules and regulation made by the nation. In addition it has direct effect on organization.
b.      It includes like enlargement of minimum employee wages system, the foreword of age discrimination and other inducement and service has forced retailer business like Big Mart for cost increase.
c.       Any changes in legal sector may increase the price of the product and cause inflation.
d.      The competition law which is made to save small retailer business and confirm that there is no subsistence of monopoly in retail firm and consumers are not demolished from the monopoly power from the individual store.
e.       The consumer laws are made to look after the right of consumer next to the ambiguous and unfair practices.
f.       The health and safety laws are made to facilitate workers a protected and sound environment where they works using the safe products.
Environment
a.       There is a direct effect for Big Mart of environment like environment change, climate or weather condition.
b.      The mart need to make decision according to the environment like offering more umbrella in rainy season, offering more warm clothes in winter etc
c.       The mart must focus on using paper or renewable product then plastic to save the environment.
d.      The using technology and offering product should be environment friendly. And it’s better to organize the awareness program in society.
e.       The more they contribute to environment the more there brand value is added and gets positive feedback from customer as well as from government.


Reference
1.       Big mart, (2013) (online) www.bigmart.com.np, (Accessed on April 7, 2013)



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