PEST Analysis Essay
Q) On the basis of PEST analysis launch a Pakistani product in Belgium? In order to launch a Pakistani product in foreign country we have to look macro economic conditions of that country. There are different accept and measurement. As to market Pakistani product certain thing are important for instance culture, area, age, group, buying power, availability of raw material etc. Macroeconomic play vital role to sell a product in any country of the world. In macroeconomic PEST analysis is very important. PEST analysis means political economical social and technological condition of a country where we launching our product. I am launching Shan plain spices in Belgium.
INTRODUCTION OF BELGIUM CUISINE Belgian cuisine is widely varied with significant regional variations while also reflecting the cuisines of neighboring France, Germany and the Netherlands. It is sometimes said that Belgian food is served in the quantity of German cuisine but with quality of French food. Outside the country, Belgium is best known for its chocolate and beer.
Belgian cuisine traditionally prizes regional and seasonal ingredients, leading to distinctive dishes Belgians typically eat three meals a day, with a light breakfast, light or medium sized lunch and large dinner. Though Belgium has many distinctive national dishes, it should be noted that many internationally-popular foods like hamburgers or spaghetti Bolognese are also eaten in Belgium. The list incorporates dishes of Belgian origin, or those which can be considered typically Belgian. Fries and other fast-food establishments tend to offer a number of different sauces for the fries and meats.
INTRODUCTION OF SHAN FOODS Shan Foods started from a single small room some twenty five years ago. Management decided to launch its very own brand and start a full-scale manufacturing unit to cater to the taste of the local public. Shan is one of the largest exporters of premium quality packaged spices, recipe mixes, pickles and desserts with products adding taste and flavors .Shan Foods (Pvt) Ltd. Is a rapidly growing food company with presence in over 50 countries Strengthening their departments with candidates having extraordinary positive energy, obtain and edge in technology, and determined in execution, with a passion for excellence.
The main objective of Shan foods sourcing department is to work with quality suppliers. The department diligently pick and select the best quality spices. Company pays extra attention in obtaining raw material. The planning process of Shan foods is depending on S&OP. The planning purpose of Shan foods is to achieved the target of R=R.. The make process of SCOR model is referred to the production or manufacturing facilities. Shan foods are dedicated to ensure the consistency of product by using well equipped production techniques. The supply chain team ensure that the goods or shipments reach their destinations well in time to match market trends and customer demand.
PICTURE OF SHAN FOODSShan Foods started from a single small room some twenty five years ago. Management decided to launch its very own brand and start a full-scale manufacturing unit to cater to the taste of the local public. Shan is one of the largest exporters of premium quality packaged spices, recipe mixes, pickles and desserts with products adding taste and flavours .Shan Foods (Pvt) Ltd. Is a rapidly growing food company with presence in over 50 countries. Strengthening their departments with candidates having extraordinary positive energy, obtain and edge in technology, and determined in execution, with a passion for excellence.
The main objective of Shan foods sourcing department is to work with quality suppliers. The department diligently pick and select the best quality spices. Company pays extra attention in obtaining raw material. The planning process of Shan foods is depending on S&OP. The planning purpose of shan foods is to achieved the target of R=R. Shan foods believed that planning should be right and in efficient manner. The make process of SCOR model is referred to the production or manufacturing facilities.Shan foods are dedicated to ensure the consistency of product by using well equipped production techniques. The supply chain team ensure that the goods or shipments reach their destinations well in time to match market trends and customer demand.
PEST ANALYSIS P = Political E = Economical S = Social T = technological
B) ECONOMICAL FACTORS IN BELGIUM
1)Nature of the Belgium economy: The modern, private enterprise economy of Belgium has capitalized on its central geographic location, industrial and commercial base. Most traditional industrial sectors are represented in the economy. Belgium developed an excellent transportation infrastructure of ports, canals, railways to integrate with its industry. Belgium has one of the most open economies in the world. This nature of economy suitable for Shan product
2) GENERAL ECONOMIC SITUATION IN THE REGION: Belgium currency is Euro. Belgium is a very open economy. This country allows foreign investor to invest in their economy. Euro is strong currency because of strong hold in economy as Shan product earn profit which in return help Belgium’s economy to rise more.
3) STRENGTH OF BELGIUM MARKET: Belgium has a well-developed free market economy, based on both industrial and service sectors. It is heavily dependent on international trade. Strong research and development team. Our lay man giligentally pick and select best quality species. Company pays extra attention in obtaining raw material. Our product is certified from international standards like ISO 9000 which is globally recognized throughout the world.
4)PRUCHASING POWER OF CONSUMERS: Belgium’s economy was based on the nation’s manufacturing capabilities. The country was the first in continental Europe to undergo the Industrial Revolution. Belgium depends heavily on world trade. Belgium’s trade advantages are derived from its central geographic location. We introduce our product in family pack as well as sachet so that every individual can take pleasure of spices in their cuisine.
5) PRODUCT DISTRIBUTION PATTERN: Supply chain team ensures that the goods or shipment reaches their destination well in time to match the market trends and customer demand. There Should in some stock in ware houses as a backup line ounce’s the stocks end in the store we immediately fill up store shelves through our product. Belgium developed a highly efficient and capable transportation infrastructure that included roads, ports, canals, and rail links.
6) DEVELOPMENT PROCESS IN BELGIUM: Food Industry is highly developed in Belgium, is devoted mainly to the processing of imported raw materials into semi finished and finished products, which are then Consume by Native.
7) Level of the economic income of the country: The rate of inflation in Belgium, this often refers to the rate of inflation based on the consumer price index, or CPI for short. The Belgian CPI shows the change in prices of a standard package of our product Belgian house holds purchase for consumption.
8) GROWTH OF OTHER BUSINESS: A unique strategic vision of the market in Belgium is presented, in particular identifying the numerous companies present together with their market shares and major brands by country and product. Standard data tables for each product provide a panorama of companies’ strengths and presence
9) INFLATION IN BELGIUM: The inflation is based upon the Belgian consumer price index. The index is a measure of the average price which consumers spend on a goods and services. Inflation based upon the consumer price index (CPI) is the main inflation indicator in Belgium. Our Shan product is easily adjust in the market.
A) POLITICAL FACTORS IN BELGIUM
1) POLITICAL STABILITY: Political environment refer political and governmental and legal environment. It has close relationship with the economic system and economic policy. for instance Belgium is a constitutional monarchy in which ultimate power rest with bicameral parliament. Belgium is an EU member state and as a member of EU Belgium have to follow regulation on trade treaties, import treaties, custom duties and other trade regulations. This political stability help Shan product to launch easily and archive the desire result.
2) GOVERNMENT SUPPORT: The Belgium government welcomes foreign investment and once established foreign owned company Is treated in the same way as Belgium owned company. Belgium tax incentive tend to favour new service industries and high tech companies.
3) TAXATION SYSTEM IN BELGIUM: The principle taxes effecting the companies are the cooperate income tax, pay tax on remuneration paid to employes and directors, insurance premium tax and depending on the location of the company certain regional and local taxes. Belgium has fully implemented the EU parent subsidiary intrest royalties and saving directive into domestic law.
4) CHEAP LABOUR: Belgium labor law encompasses laws on the terms of environment on rules of health and safety. All major Belgian companies have European work council agreement. Foreign employee who want to work in Belgium must have work permit and this work permit can be obtained relatively fast and easy. As permission form the Belgium government Shan food company easily take cheap labor from Pakistan which help the company to reduce its liability.
5) LAW AND ORDER SITUATION: As a law and order situation in Belgium is far better than Pakistan. no hap hazards, blast or other issues regarding the security. Suppler deliver the product on time. There’s no peril of theft of product aur raw material.prdust arrive on time in the market,at the right palce and on the right time.
6) CORRUPTION Belgium has a very open economy and offers a reliable environment for direct inbound investment. Because the country has a federal structure and is also subject to European regulations, decisions affecting the investment climate are taken at a variety of levels. Changes in corporation tax are making Belgium an increasingly interesting place. Belgium is least corrupt country. Corruption is minimal, and the government prohibits and punishes all forms of bribery.
7)ACCOUNTING,FILLING AND AUDITING REQUIREMENT: The annual report of Belgian companies must be drafted in accordance with Belgian GAAP(generally accepted accounting principle).foreign companies are required to deposits each year financial report in central bank. Financial statement must be audited by a statutory auditor because of well organized accounting system this country help a lot to accomplish Shan plain spices.
8) OPEN MARKETS: Belgium has low tariffs along with other members of the European Union, and non-tariff barriers are relatively low. The investment regime is largely open. The Financial Crisis Law passed in June 2010 grants the government stronger powers to step in during crises. In order of loss in sale of Shan plain spices Belgian government come forward to help the company. In rainy days government help company to pay its liabilities.
9)REGULATORY EFFICIENCY: The cost of establishing a company has been reduced to below 20 percent of the level of average annual income, and starting a business takes only three days and four procedures. price control policies continue to affect a range of products and services.
10) AVAILABILITY OF LAND: Belgium is a federal state consisting of three culturally different regions: Flanders, Wallonia, Brussels. In the 19th century, the area began to industrialize, and Wallonia was the first fully industrialized area This brought the region great economic prosperity. Regulation duties apply on leasing of real state located in Belgium at rates ranging from 0.2% to 12.5% is depending on the area where the company is located.