Halawni Pest Analysis

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Halawani Bros

Pest Analysis

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Table of Contents

Introduction:        2

Environmental analysis:        2

Pest Analysis:        2

1.1        PEST analysis Saudi Arabia (Halawani Bros)        3

1.1.1 Political:        3

1.1.2 Economic:        3

1.1.3 Social:        4

1.1.4 Technology:        4

1.2        Functional strategy:        5

1.2.1 Manufacturing strategy        5

1.2.2 Human resources strategy:        5

References        7

Introduction:

Environmental analysis:

The environmental analysis considered as skills which lead to understand the environments, as well help to understand the some specific environmental in order to analyze research or study in details. The environmental analysis ability give all the information about the environmental impact. There are many types of the environmental analysis which help the people and organization to understand all thing around them which they get affected by (Reeve, 2002).  

Pest Analysis:

Economy changes at any country are likely to influence on the economic cycle, commodity price, trading policy, market rates, labor market, capital market changes, currency rate and pattern of world trade. All those come from the country or government to effect the business and market growing as well on the suppliers and customer of each business (Gupta, 2013).

 Any business has an external environment which will an affect the business strategies and this external environment can be measure by the PEST analysis which willing Political, Economic, social and technology factors. This carry out in order to support the activities of the business strategy analysis. Also, Pest analysis is considered as framework that classified the factors of environment since those factors are located in the general organization environment. Pest analysis factors are macro-economic factors effecting the manager’s decision at any organization, for example: new laws, tax changes, demographic changes, trade barriers and government policy changes. Therefore, Pest analysis will help the organization to classify the issues by using this model. The important of pest analysis in the businesses is to think and put strategy in order react to changes by its external environment (HO, 2014).

So in this paper willing to explain and apply the model of PEST analysis on Halawani Bros manufacture at Saudi Arabia.  

1. PEST analysis Saudi Arabia (Halawani Bros)

1.1.1 Political:

Factors which mean the government effect on the industry and business. Kingdom of Saudi Arabia consider continuity of policies and stable government, the king has focus on development and modernization the whole country. The government has a friendly regulation for business in the country which assist to rapidly growth in the kingdom. Saudi Arabia has a diversity in the economy from non-oil sectors to oil sector, the political stability in Kingdom of Saudi Arabia help the food manufacturing to growth in the country, as the Saudi Arabia has good business environment and excellent infrastructure as well. So Halawani Bros. get the advantages of the good government policy which has attracted regulations for enhancing in investment that help Halawani Bros. to prove its manufacturing. Also the policy stability in the country that assist the company to grow in Saudi Arabia. Therefore, the commitment of the government in the business regulation and supporting the exporter help Halawani Bros.  To integrate its production and look for export and open branches outside the kingdom by new distribution channel in order to integrate the market. On the same side, the policy and regulation of Saudi Arabia will assist Halawani Bros. to grow more and increase its production power, also got a logistics support to its manufacture (George, 2015) (Data Monitor , 2010).  

1.1.2 Economic:

Factors which mean the effect of the country economy status on the industry. Saudi Arabica economy keep its own a good economy perform with growing 5% each year. The stability of economic in Kingdom of Saudi Arabia play a vital role to develop the food manufacturing sector and a positive factor for the investors. As well Saudi Arabia acceded to the World Trade Organization (WTO) which enhance the growth of the economy, increasing the Gross Domestic product (GDP) and personal income, government finance in health state and strong fundamentals of macroeconomic all those positive factors effect on the food manufacturing of Saudi Arabic to increase the contribution of the GDP as well increase the purchasing power, so Halawani Bros. has influenced by a lower inflation cost of the raw materials cost which raise the profitability of the company in the last decade, which include the packaging and food processing intergrated. Therefore, Halawani Bros. got the capacity for diversity of products to serve the market share, as well open new channel in the Middle East country, as well to US and Europe which are the major overseas market that Halawani Bros.  Serve it. (George, 2015) (Halawani Bros Co., 2017) (Data Monitor , 2010)  

1.1.3 Social:

Social factor means the social condition in the country which effect the consumers. The food manufacturing in Saudi Arabia target all the type of population, Saudi Arabia has social stability and young society as well. Also, the healthiness is the concentrated factor by government and consumers. The government has gave the authority to the healthy food manufacturing in order to organize the industry. Overall, all those factors help to increase the market share of Halawani Bros. that has diversity of it products halaw and tahina, cheese and dairy products, foods and jams with separates section for each of those types in order to serve the domestic market in Saudi Arabia, Halawani Bros.  Seek to extend it activity in the manufacture to get the benefits from the important opportunities in Kingdom which rising the demand of it products. Halawani Bros. has the opportunity to grow in Saudi Arabia based on the products quality as well opportunity to provide more divers of the new product (Data Monitor , 2010) (George, 2015) (Halawani Bros Co., 2017).