PEST ANALYSIS

PEST analysis is used to assess that what environmental factors affecting different organization and which of them are more important and how they affect the organization. It is indicator of political, economical, social and technological influences on organization.
Political & Legal Factors
As far as the Lever Brothers Pakistan Limited concerns according to them that political instability have do affect but not particularly Lever Brothers Pakistan Limited same as it affects any other organization around and specially they are in consumer products business which never make them out of business.
In case of legal factors, any trade policy or import duties is not affecting particularly Lever Brothers Pakistan Limited. In Pakistan right now following liberalization policy under SAP by IMF made which they have to waive off all restrictions and moreover due to huge investment by Lever Brothers Pakistan Limited no government can afford to create hurdles in the way of an organization like Lever Brothers Pakistan Limited.
And they don’t have to go for only lobbying or what so ever as not action of Pakistan government has affected them adversely as such.
Economical Factors
Economical factors affect Lever Brothers Pakistan Limited in the same way as it affect any other organization like current economic situation in Pakistan and inflation has reduced consumer’s disposable income too, which in turn has reduced the purchasing power of consumer but affect is same for every organization and according to them Lever Brothers Pakistan Limited have edge that they have targeted all possible segments through their vast product category i.e. the width and length too. So one way or other they find way to cover it up.
Capital Markets
In other economic factors like “interest rates” and “inflation” has affected the borrowing ability of organization but Lever Brothers Pakistan Limited stayed unaffected as a company having business in billions and when in need of financing no single bank can fulfill the need, they have to make a consortium to finance Lever Brothers Pakistan Limited and with very good credit standing and very low risk definitely they get the lowest or justified interest rate as well.
Socio-Cultural Factors
In socio-cultural factors, factors like lifestyle changes and level of education affects an organization. In case of change in lifestyle, the world has converted into global town now and people have readily access to every sort of information and they are becoming more quality conscious. Now more concerned towards environmental issues now and demand more social responsibility on the part of organizations now. To cope up with all these factors now Lever Brothers Pakistan Limited which always maintained the quality standards needs to work towards other social factors like social responsibility and environmental concerns like P&G did in its Arial campaign and image of a society responsible organization. Technological Factors
In technological factors comes R&D first and foremost that how much an organization spending in terms of product improvement or development of new products or improvement in production process or in the raw material etc. and what is the trend in the industry as Pakistan is not that big and not very much innovation seeking as the other developed countries. Yet they keep on finding new ways of doing things and new things as well they continuously launched variants in brands etc. and moreover in the market like Pakistan in product categories of consumer products “rates of obsolescence” is not very high rather very slow so no great pressure to launch new products,.
Other than the factors smuggling affects Lever Brothers Pakistan Limited’s sales very negatively. This issue would be discussed more in detail in the problem statement.