PEST ANALYSIS OF INSAF GENERAL STORE

POLITICAL FACTORS
Tax Policy:
In Pakistan sales tax rate for the year 2014-15 is 17%. This rate was 16% for last
five years. So trend show that expected sales tax rate must in between 16 to 17%.
On the other hand corporate tax is 34% and it was 35% in previous year. So we
expect that this rate will not be more than 35 %. These taxes not only reduce the
profitability of the company but also affect the disposable income of the consumer.
As for our company is concern we pay monthly inome tax on monthly generated
income including we also pay sale tax on different product which we later on transfer
to ultimate consumer.
Political Stability:
Political instability is another factor that affect productivity of an organization. In
Pakistan political instability and it is expected to continue for future. Strikes road
blockage and dharnas are reasons, that company does not received goods from
supplier on time and thus consumer face shortage of goods.

ECONOMICS FACTORS:
GDP Growth:
GDP annual growth rate is 3.6 in Pakistan. The lowest rate for last 10 year is .36 and
the highest 5.82 but our average GDP is 4. Which is not enough for business
entities. In india GDP rate is 6(Average).
Inflation and interest rate:
Inflation and interest rate is also considered as an affecting factor for business. High
inflation decrease the value of money and thus buying power too. The highest
inflation rate 20% between 1994 to 2014 and it was 13.94%in 2009 13.85 in 2010
11.97 in 2011 9.73 in 2012 and in 2013 it was 7.68. However our average inflation is
8.3%.
If we look at interest rate history we will found that highest interest rate is 20% an the
lowest rate was 7.5% where is current rate is 10%. To see the current interest rate
we can say that in future the rate will near about 10%.
Business Location:
We have four shop in Rawalpindi and Islamabad. And if we look at our business
location it is very economical to us. We are dealing with bakery product, fruits and
vegetable and general daily usage products. Our ship is near to Sabzi mandi and
different bakers product companies. Similarly the rent expenses is also not too much
as compare to other sectors of Islamabad.

Energy crises: Energy crises do not directly affected our operation too much
however if affect operations of our supplier. So due to these energy crises some time
we face shortage of goods as supplier do not meet their target on time due energy
crises.
Capital availability:
Business has already four shops where the get reasonable monthly income which is
more their consumption and thus save for future expansion too.
SOCIAL FACTORS:
Population rate:
If we look at population rate we can see that it is slightly decreasing. In 2008 it was
1.81 but later on it gradually decrease and in 2013 it was 1.65 and expected to
further decrease in future too. Total Population of Pakistan is 184.35 million. Insaf
general stores is located in the areas where population trend is increasing and thus
demand for the product too.
Consumption pattern:
Pakistani are considered as high consumption oriented nation and we are dealing in
products which are daily needed so the consumption of these product cannot be
decrease. It is expected to be increase in future as shams colony is a developing
sector and population here increasing with the construction of new houses.
Technological Factors:
Roads and Transportation and communication:
Company stores are situated at the place where there is no problem of
transportation. Road mobile internet and telephone services are available easily.
Furthermore company store are near to Pak railway track so this is also an edge for
the company
Storerooms and warehouses:
Company has warehouses near to its store and thus store its extra stock there and
use these stock at the time of need.
Research and Development:
As u know we are dealing with finish product so we cannot further research in the
product that already finish. However the companies of which we deals their products
are constantly doing research on their product and change it time to time. And this
trend is increasing as in market there is very tough competition and in order to be in
competition you must change your product according to your consumers demand