PEST Analysis Political or legal forces

Taxation Law If government imposes heavy taxes on the industry then it badly effects the industry growth. The taxes impose is from government side and it varies from industry to industry. Juices have no tax except sales tax. But nestles some product has like butter and cream which has more taxes Labor Laws Labor is being privileged here having all the laws. Nestle company also follow these law like government announce minimum salaries of a employ Rs 6000. Laws on hiring & promotions Hiring & promotion is followed by law. People with better capabilities are privileged because they deserve it, for the betterment of the organization. As well as a well educated & skilled experienced person is a precious asset for the company suit should be hired on better term & conditions and be promoted on the basis of it capabilities. Environmental protection Laws They do concern for environment and contribute more and more for the betterment of environment. Foreign trade Regulations Foreign trade regulation does not effect the over all policy and the working of the Nestle juices because they operate nationally not internationally. Attitudes towards foreign companies They have no any agreement with any foreign company but if any company will offer the business to them related / unrelated they would think about it according to terms and conditions. Political instability
The government stability also plays a great role for any industry. In Pakistan government face lot of difficulty from the side of terrorism and also its activity that badly effect environment of the country which is totally very upset. Recently in Punjab instability of government creates lot of problem for the industry like shortage of electricity that badly affects the industry operational process. Nestle juices have not much affect this condition but in future it may be face some difficulty for operating.

Economic forces Inflation Rate:

Now in Pakistan inflation rate is almost 22.3% so if increase in inflation rate then increase in prices of Nestle JUICES but if in Pakistan economy. Economic growth rate Economy growth rate accelerate is 7+

Social factor
Health consciousness Today people are more health conscious so Nestle juices by identifying this need of the people they are also producing health conscious juices with more vitamins. Demographic trend In Pakistan the population growth rate is 1.828% in 2008 and total population is 167,762,040 (July 2008 est) Age structure 0-14 years: 15-64 years: 65 years and over 40% (male 33,293,428; female 31,434,314) 56.9% (male 48,214,298; female 46,062,933) 4.1% (male 3,256,065; female 3,542,522)

Key Indicators Population: Growth rate: Birth rate: Death rate: 164,741,942 (July 2007 est.) 1.828% (2007 est.) 27.74 births/1,000 population (2007 est.) 8 deaths/1,000 population (2007 est.)

Environmental concerns: About the environmental concerns of Nestle juices is good health. Work life quality: Quality of work life is very safer & environment friendly Lifestyle changes:

They consider quality life changes and take advantages of accordingly so that customer can convinced as well as it plays a vital role to attain & retain the customer. Consumer adopts the trend of changing environment because of modern facility as well as globalization they are aware about each and every thing happening all around them. Technological forces New Products Nestle juices focusing concentric and conglomerate diversification because in present era it is not possible for any organization to exist in market for long run by providing just one product. So Nestle juices are diversifying according to changing demand of customers and trends. Product innovation Product innovation is becoming more necessary for the organization because of globalization people are becoming aware about the changes being taken place around them so in order tactical the situation nestle juices is focusing on product innovation by introducing new flavor of juices with the passage of time NESTLE JUICES use new tetra packing like easy open cork of pack. Productivity improvement through automation Automation dont matter a lot but to some extent it contribute towards productivity and improvement. Imported pulp is filled in machines for processing after the final form of juice it is packed in 250 and 1 liter packing.

Total spending on R&D Spending on R&D is long term investment for any organization. Nestle has R&D department and head of R&D department is Mr Arshad Bhati. Nestle total spending on R&D 70 millions. New communication technology All the modern as well as traditional ways of communication are being adopted by Nestle juices including own emails, letters, faxes and monthly visit in different offices of Nestle juices for better communication among supplier, distributor and customers. Nestle juices has also established own web site which can be visited any one for most recent news innovation and activities being taken in the organization.