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MBT-FA11-157
Prepared By
Feburary 25th 2013
Submitted to
Bilal Javed
Contact Me
0343-4347631
PEST analysis
INTRODUCTION:PEST analysis is concerned with the environmental influences on a business.
The PEST stands for the Political, Economic, Social and Technological issues that could affect
the strategic development of a business.
Identifying PEST influences is a useful way of summarizing the external environment in which a
business works.
Our Vision
To become a market leader in ready to drink segment while adding best-in-class value to all
stakeholders.
Our Mission
Coca-Cola Pakistan exists to refresh the consumers, inspire moments of optimism through our brands and
actions as well as benefit all stakeholders, which we will do with highest social responsibility and with
uncompromising commitment towards quality of our products and integrity in our operations
Our Values
Our Core Values underlie everything we do. We live by them for two reasons; they are good and right in
themselves, worthy of adherence even at the risk of loss of profit-making opportunities, and they
epitomize our Companys integrity, which we believe will produce value for our stakeholders over the long
term.
Accountability We act with high sense of responsibility and hold ourselves acountable.
Integrity We are open, honest, ethical and we trust and respect each other
POLITICAL FACTORS
POLITICAL
FACTORS,
ARE
HOW
AND
TO
WHAT
DEGREE
A GOVERNMENTINTERFERENCE IN HIS ECONOMY. SPECIFICALLY, POLITICAL
FACTORS INCLUDE AREAS SUCH AS
TAX POLICY
Pakistan
Income Tax Rate
Pakistan
Corporate
20%
Tax
Rate
Pakistan
Sales Tax / VAT Rate
35%
16%
Coca cola hired local resident tax manager to cope up with Pakistani taxation policy.
BASIT AHMAD Tax Manager at Coca-Cola Pakistan & Afghanistan Region Office. Coca cola
increased its prices accordingly to shift burden of taxes.
LABOR LAW
An essential ingredient in every one of our products is our profound commitment to human
rights and workplace rights. Respecting human rights and protecting workplace rights is
fundamental to our culture and imperative for a sustainable business. In our Company and across
our system, we are working to make sure all people are treated with dignity and respect.
TRADE RESTRICTIONS
THERE ARE NO TRADE RESTRICTIONS IN PAKISTAN
TARIFFS
cup
sponsor
1. Here are customs tariffs on import of Waters, including mineral waters and aerated
waters, containing added sugar or other sweetening matter or flavoured, and other
non-alcoholic
beverages,
not
including
fruit
or
vegetable
juices,
Customs
Sales
Add
Income
duty
Tax
Sales
=
=
Tax
Tax
=
=
35%
16%
3%
5%
POLITICAL STABILITY
For the first time in history of Pakistan PPP have completed its tenure but now in Baluchistan,
queta , Peshawer and leari are those areas where government is unstable and elections are
expected to be held in Pakistan.
Now there is care take Government in Pakistan. Pakistan inching toward political uncertainty
ECONOMIC FACTORS
Here the coca cola analyze the economy of Pakistan and know how the
economic factors are influence on company the factors may be include of
Economic growth,
The Gross Domestic Product (GDP) in Pakistan expanded 3.67 percent in the fiscal year 2011-12
from the previous year. GDP Growth Rate in Pakistan is reported by the Pakistan Bureau of
Statistics. Historically, from 1952 until 2012, Pakistan GDP Growth Rate averaged 5.0 Percent
reaching an all time high of 10.2 Percent in the fiscal year of 1953-54 and a record low of -1.8
Percent in the fiscal year of 1951-52. Pakistan is one of the poorest and least developed countries
in Asia. Pakistan has a growing semi-industrialized economy that relies on manufacturing,
agriculture and remittances. Although since 2005 the GDP has been growing an average 5
percent a year, it is not enough to keep up with fast population growth. To make things even
worst, political instability, widespread corruption and lack of law enforcement hamper private
investment and foreign aid.
PAKISTAN INTEREST RATE
The benchmark interest rate in Pakistan was last recorded at 9.50 percent. Interest Rate in
Pakistan is reported by the State Bank of Pakistan. Historically, from 1992 until 2013, Pakistan
Interest Rate averaged 12.75 Percent reaching an all time high of 20 Percent in October of 1996
and a record low of 7.50 Percent in November of 2002. In Pakistan, interest rates decisions are
taken by the State Bank of Pakistan. The official interest rate is the discount rate. This page
includes a chart with historical data for Pakistan Interest Rate .this thing affected
Exchange rates
1 US Dollar equals 98.20 Pakistani Rupee
Pricing strategy
Pakistan inflation rate is affecting the consumer purchasing power of
consumers.
This pricing strategy makes consumers perceive the products to be affordable. They have had the
privilege of a worthy competitor constantly driving them to be smarter, faster, and better. Coca
Cola planned to use the lower price point to penetrate new cities that were especially price
sensitive. The carbonated soft drink market in Pakistan is nearly 57% of the total beverage
market there.
Consumer protection
SOCIOCULTURAL FACTORS.
IN THE SOCIOCULTURAL FACTORS THE COCA COLA COMPANY WILL ANALYZE
THE SOCIAL FACTORS INCLUDE THE
HEALTH CONSCIOUSNESS
RESULTS
A total of 393 patients were surveyed. The majority were young married men, in either private or
government service (Table-I). Respondents preference for consumption or otherwise, of fats and
oils, sweets, spicy foods, salt, fruits and vegetables, tea, coffee, cola drinks and alcohol are listed
(Table-2).
Table-1: Demographic Profile of the Study Population (n=393)
PARAMETER
NUMBER (%)
SEX:
Males
254 (65)
Females
139 (35)
32.912.13
Marital Status:
Single
144 (37)
Married
245 (62)
Others
(Divorced/widowed)
4 (1.0)
Educational Status:
Illiterate
13 (3.0)
Primary
18 (5.0)
Secondary
38 (10)
Matriculation
65 (16)
Intermediate
102 (26)
Graduate
117 (30)
Post-graduate
35 (9.0)
Diploma
5 (01)
Occupational status:
Private service
124 (32)
Government service
25 (6.0)
Self employed
36 (9.0)
Unemployed
12 (3.0)
Student
76 (19)
Laborer
35 (9)
Othersincluding
housewives
85 (22)
Table-2: Respondents attitude towards consumption of food and drink items (n=393)
Prefer to consume
Avoid consumption
Do
prefer/avoid
Number
Number
Numbe
r
103
26
63
16
227
58
Sweets
84
22
72
18
237
60
Spicy food
86
22
56
14
251
64
Salt
110
28
27
256
65
239
61
16
138
35
319
81
70
18
Food/Drink Item
Fruits
vegetables
Tea
&
not
Coffee
117
30
271
69
Cola drinks
253
64
134
34
Alcohol
13
371
94
Number
69
17
324
83
Yes
79
20
No
314
80
Total
393
100
Tobacco
Yes
chewing
No
Betel nut chewing
Waris Qidwai, Danish Saleheen, Sadia Saleem, Marie Andrades, Syed Iqbal Azam
Community Health Sciences, Family Medicine Division, The Aga Khan University, Karachi, Pakistan
Age structure
0-14
years:
35.4%
(male
34,093,853/female
15-64
years:
60.4%
(male
58,401,016/female
65 years and over: 4.2% (male 3,739,647/female 4,157,870) (2011 est.)
32,278,462)
54,671,873)
Median age
total:
male:
female: 21.6 years (2011 est.)
21.6
21.5
years
years
(2010)
birth:
15
years:
1.05
years:
1.06
1.07
male(s)/female
male(s)/female
male(s)/female
65
years
and
over:
total population: 1.06 male(s)/female (2011 est.)
0.89
male(s)/female
live
live
births
births
CAREER ATTITUDES
66.35
years
years
The money will be spent on two new bottling plants, one each in Karachi and Multan, as well as
investing in more coolers, which will be distributed amongst retailers to help with the companys
retail sales efforts. Company officials were quick to point out that the investment is not simply
the recycling of profits and cash flows from existing operations in Pakistan, but green-field
foreign direct investment that will flow into the country over the next two years.
The expansion plans come as rising demand makes it difficult for Coca Cola to keep pace with
its existing production capacity in Karachi and Punjab. The new plants will follow the
establishment of a Coca Cola facility, already completed in 2011, which manufactures Coke
cans. Previously, Coca Cola used to import cans from its factories in other countries.
Coca Cola
Consumers become more health conscious then company lunch new product to
address consumer needs, such as diet coke and coca cola zero.
Workplace Diversity
Diversity is at the heart of our business. We strive to create a work environment that provides all
our associates equal access to information, development and opportunity. By building an
inclusive workplace environment, we seek to leverage our global team of associates, which is
rich in diverse people, talent and ideas. We see diversity as more than just policies and practices.
It is an integral part of who we are as a company, how we operate and how we see our future.
Yasir
Times
Business
is
Reporter
Fahad
Qadir
has
been
with
Coca-Cola for nearly five years. He leads the ongoing stakeholder engagement with the
government, media, non-governmental organisations (NGOs) and others. He also manages the
corporate and brand personal relation (PR) strategy and Coca-Cola's corporate social
responsibility
(CSR)
programme.
As a result of his advocacy for socio-economic development of local communities in Pakistan,
Coca-Cola has initiated various projects to support environment conservation, education and
rehabilitation
of
physically
challenged.
Qadir is leading key PR projects for Coca-Cola's Eurasia and Africa Group, comprising 92
countries. He is a member of International Government Relations Network of the company and
leads
Partners
for
a
New
Beginning
(PNB)
projects
in
Pakistan.
Prior to Coca-Cola, Qadir worked for Lahore University of Management Sciences and Din
Media
Group.
Technological:
Pakistan
spending
less
than
two
percent
of
budget
on
research
KARACHI (May 24 2007): Pakistan is among 162 countries in the world for contributing less than two
percent of the budget on research, which is the major reason for deterioration in economics and technology.
Electricity shortfall
The electricity shortfall in the country has risen to 5,800MWs. According to PEPCO sources,
presently 7,500MWs of electricity were being generated while the demand had soared to 13,300MW.
Responsibility
(CSR)
programmes
in
Pakistan.
The CCBPL involved in the Resettling The Indus (RTI) project. Zohair Mahmood, Director of
CCBPLs external affairs, highlighted the importance of the project and the people of Sindh and
Punjab whose homes were being rebuilt.
9.
Internet!
References
http://www.defence.pk/forums/social-issues-current-events/69796-coca-cola-pakistans-workerexploitation-harassment.html#ixzz2MAioFDvI
http://www.dailytimes.com.pk/default.asp?page=2012%5C03%5C30%5Cstory_30-32012_pg5_10
http://www.viewpointonline.net/fulls...&y=2010&m=july