NEED GAP:

The need gap is that the home marketed is Saturated and the capacity to fulfill this market is complete. Hence now we need to look for a perfect location and an international market where the need is for a retailer with mid price quality garments. Hence the locations that we are looking at are: Malaysia Srilanka East Africa Central africa

PEST ANALYSIS OF SRI LANKA

Political
1. Form and type of govt.: Republic Takes place in a framework of a presidential representative democratic republic, whereby the President of Sri Lanka is both head of state and head of government, and of a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and parliament. Since decennia the party system is dominated by the socialist Sri Lanka Freedom Party and the conservative United National Party. The Judiciary is independent of the executive and the legislature. The Politics of Sri Lanka reflect the historical and political differences between the two main ethnic groups, the majority Sinhala and the minority Tamils, who are concentrated in the north and east of the island. 2. Foreign and Trade policies Sri Lanka opened its borders to allow free trade, dismantled price control, eliminated import tariffs and, in a broad sense, introduced an open economy. Free Trade Zones and Export Processing Zones were set up offering many concessions to foreign (and local) investors. The Board of Investment of Sri Lanka (formerly known as the Greater Colombo Economic Commission) was set up as a One-Stop-Shop to assist foreign investors.The granting of licenses to organizations situated outside the BOI Zones, but with all BOI facilities and concessions further enhanced the investor-friendly environment. 3. FDI structure

4. Treaties

Sri Lanka maintains good relationships with both Russia and United States at the same time; showing how important Sri Lanka is to the welfare of South Asia and Indian Ocean. Sri Lanka traditionally follows a nonaligned foreign policy; Sri Lanka now seeks to strengthen its diplomatic, economic and military ties with China, Pakistan, India, Russia, United States, Japan, Malaysia, Iran and European Union. Sri Lanka has also forged close ties with the member states of the Association of Southeast Asian Nations (ASEAN), African Union and Arab League. Sri Lanka has friendly relations with Bangladesh and Myanmar. Though Sri Lanka continues to have a traditional military relationship with Pakistan, China has emerged as Sri Lanka's largest military partner. Sri Lanka participates in multilateral diplomacy, particularly at the United Nations, where it seeks to promote sovereignty, independence, and development in the developing world. Sri Lanka was a founding member of the Non-Aligned Movement (NAM). It also is a member of the Commonwealth, South Asian Association for Regional Cooperation (SAARC), World Bank, International Monetary Fund (IMF), Asian Development Bank (ADB) and Colombo Plan. Sri Lanka continues its active participation in the NAM, while also stressing the importance it places on regionalism by playing a strong role in SAARC.

Economic

A) Monetary policy

One of the core objectives of the Central Bank of Sri Lanka is economic and price stability. The Central Bank formulates and implements its monetary policy, i.e. actions to influence cost and availability of money, to attain this objective. The Monetary Law Act (MLA), the legislation under which the Central Bank has been established and operates, has provided a wide range of instruments for monetary management. At present, the monetary policy framework of the country places greater reliance on market based policy instruments and the use of market forces to achieve the desired objectives. At present, monetary management in Sri Lanka is based on a monetary targeting framework. In this framework, the final target, price stability, is to be achieved by influencing changes in broad money supply which is linked to reserve money through a multiplier. Reserve money is the operating target of monetary policy. The monetary targeting framework is operated through a monetary programme. The monetary programme is prepared by the Central Bank taking into account economic factors such as the expected fiscal and balance of payments developments, economic growth, desired levels of growth in credit and inflation. Based on these factors, the monetary programme sets out the desired path for monetary growth and determines the path of quarterly reserve money targets necessary to achieve this monetary growth. The Bank would then conduct its Open Market Operations (OMO) within a corridor of interest rates formed by its policy rates i.e. the repurchase rate and the reverse repurchase rate, to achieve the reserve money target. Policy rates are periodically reviewed and adjusted appropriately, if necessary, to bring the reserve money to the targeted path.

B) Trade policy
Sri Lanka began trade liberalization policies in the late 1970s, well ahead the rest of South Asia. Since then Sri Lanka has operated a unified exchange rate under a "managed float" system which became fully floated in January 2001. Sri Lankas trade integration, measured by the trade-GDP ratio stood at 82 percent of GDP in 2004. While average tariffs are low, tariff escalation has increased in recent years and effective protection to agriculture remains high. Most QRs were removed in the 1980s and by the end of 1990s only a few remained on selected agricultural and industrial commodities. However, these were eventually removed in 1998 following a review by WTO.

Future trade agenda

With the abolition of the Multi-Fiber Agreement (MFA) since January 2005, Sri Lanka faces additional challenges to remain competitive in the market place. Against this backdrop, it will be important for Sri Lanka to further strengthen external sector policies and address remaining "behind the border constraints" (e.g., infrastructure bottlenecks and labor regulations). In terms of trade policies, a competitive exchange rate will need to be maintained and pressures to increase tariff protection will need to be resisted. It will also be important for Sri Lanka to maintain a selective policy towards FTAs, following those completed with India and Pakistan, given the substantial administrative costs associated these type of arrangements. For instance, it would be desirable for Sri Lanka to actively pursue an FTA with the US, Sri Lankas largest export market for garments. Since half of the garment

imports to the US occur under various preferential agreements, such an FTA would help Sri Lanka compete in the post-MFA period. 1. Banking structure

Sri lanka has more govt. owned banks as compare to the private banks. Here are the few names of popular banks of Sri lanka Nation trust bank sri lanka National apprenticeship board sri lanka National water board sri lanka National development bank sri lanka National savings bank sri lanka Hatton national bank sri lanka American express bank sri lanka

2. GDP GDP (purchasing power parity): $91.9 billion (2008 est.) $86.7 billion (2007) $81.18 billion (2006)

GDP - real growth rate: 6% (2008 est.) 6.8% (2007 est.) 7.7% (2006 est.) GDP - per capita: $4,300 (2008 est.) $4,100 (2007 est.) $3,900 (2006 est.) note: data are in 2008 US dollars GDP - composition by sector: agriculture: 15.5% industry: 27% services: 57.5% (2008 est.)

Social
Literacy ratio Literacy: definition: age 15 and over can read and write total population: 90.7% male: 92.3% female: 89.1% (2007 census) Sex ratio Sex ratio: at birth: 1.04 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 0.96 male(s)/female 65 years and over: 0.88 male(s)/female total population: 0.97 male(s)/female (2008 est.) Population: 21,128,772 Religions: Buddhist 69.1%, Muslim 7.6%, Hindu 7.1%, Christian 6.2%, unspecified 10% (2001 census provisional data)

Urban population

Main cities : Colombo (aggl.) Colombo (capital) Moratuwa Jaffna Kotte Kandy

3 700 000 people 850 000 people 180 000 people 135 000 people 115 000 people 110 000 people

Technology
1. Infrastructure

Sri Lanka has a well-developed transport system, including a road network of approximately 100,000 kilometers (62,140 miles). A rail network consisting of about 1,944 kilometers (1,208 miles) of tracks links Colombo with the rest of the country. Road networks are under severe strain due to the rapid increase in the number of vehicles since the 1980s. The number of registered vehicles nearly tripled from 478,000 in the mid-1980s to 1.38 million in 2000, generating severe traffic congestion. With a rising number of vehicles, and the need for a more efficient road network to facilitate the movements of goods and services, the government is actively engaged in improving, rehabilitating, and extending the existing network. Sri Lanka has 14 airfields, the largest of which is the Katunayake International Airport, the principal gateway to Sri Lanka. The country is serviced by 32 airlines, both domestic and foreign, and the national carrier, SriLankan Airlines, handles about 56 percent of international passengers to and from Sri Lanka. It has scheduled operations to 35 destinations in 26 countries covering Australia, the Indian subcontinent, the Far East, Europe, and the Middle East. The Sri Lanka Ports Authority (SLPA) is responsible for operating the ports. The SLPA operates 4 major ports in Colombo, Galle (in the south), Trincomalee (in the east), and Kankasanturai (in the north). In addition, limited shipping facilities are provided by the Ceylon Shipping Corporation and by several private sector shipping companies. A major restructuring of the cargo handling facilities in Colombo port is now taking place in conjunction with the British PNO company. Hydropower is the major source of electricity, accounting for 66 percent of the nation's electricity supply. One of the main sources of hydropower is the gigantic Mahaweli Scheme, which has harnessed the flow of Sri Lanka's longest river in several stages. The remainder is generated through thermal power (34 percent) and most recently, wind power. Electricity generation and distribution has traditionally been a government monopoly. However, the private sector has become much more involved in power generation during the past decades.
As of 2007 91,907 27,248 81 65 1422 1,640 3 3 1

Length of Roads Main Roads Paved Roads Access to All-Season-Roads Road Density - LAND Rail Track Length Total No. of Ports Total turnaround time Total No. of Airports International

Communication

Telecommunications is the fastest growing sector in the country. During the first half of 2000, the telecommunications sector grew by 11 percent. Sri Lanka Telecom Ltd. (SLT) is the major supplier; its network provided 44,228 new telephone connections during the first half of 2000, with total network subscriptions of 621,394. The demand for telephones is growing much faster than supply: at the end of June 2000, there were 246,560 applicants on the waiting list. To meet rising demand the SLT is expanding its capacity with assistance from international donors. In addition to the SLT subscriber network, there are 4 cellular phone operators with a subscription of 307,027. Other service providers include wireless local loop telephones (2 operators with 101,093 subscribers), data communication services such as Internet and e-mail (15 operators with 32,633 subscribers), and public phones (6 operators with 7,491 public phone booths) TV Setsa 1998 92 847 69 6 Cable subscribersa 1998 0.0 244.3 18.8 N/A Mobile Phonesa 1998 9 256 1 1 Fax Machinesa 1998 N/A 78.4 0.2 N/A Personal Computersa 1998 4.1 458.6 2.7 N/A Internet Hostsb 1999 0.52 1,508.77 0.18 0.00

Country Newspapers Radios 1996 Sri Lanka United States India Bangladesh 29 215 N/A 9 1997 209 2,146 121 50

Interne 1999 65

Usersb

74,100

2,800

Innovations
Mobitel (Pvt) Ltd recently introduced a new and improved range of banking facilities via Short Messaging Services (SMS) to its subscribers banking with Sampath Bank. This range of SMS related services allows subscribers the option to check balance inquiry

from multiple accounts, inquire the clearance status of cheques, access a mini statement of their last five transactions, inform the bank of a cheque number they wish to stop payment on, initiate transfer of funds between their own accounts, change their existing passwords, and request alerts on the basis of account balance changes and credit card transactions. The range of SMS services provided in the package is substantail to Sampath Bank customers utilising the Mobitel network..These facilities offer both security and convenience through various methods in initiating or even stopping transactions while also providing information regarding recent transactions. This aspect in banking thus ensures subscribers an additional level of security. Commenting on this new facility, Mobitel`s CEO Suren Amarasekera said that: ``This service will greatly help Mobitel and Sampath Bank customers to improve their productivity.` Among the services offered to their mutual customers is the ability to access bank balance inquiries on multiple Sampath Bank accounts. Commenting further Amarasekera said `It is our belief that this information will give our mutual customers a advantage in receiving updates and thereby be able to better manage their financial resources. It also provides customers additional security as they can check their accounts at

PEST ANALYSIS OF MALAYSIA

POLITICAL 1. Form And Type Of Government: constitutional monarchy In 1957 Selected from nine hereditary Sultans of the Malay states 2. ministerial hierarchy (separate ministers under each section)

Portfolio

Office Bearer

Party

Prime Minister of Najib Tun Razak Malaysia Muhyiddin Yassin Deputy Prime Minister of Malaysia Ministers in the Prime Minister's Department Koh Tsu Koon (Senator) Nazri Aziz Nor Mohamed Yakcop Jamil Khir Baharom (Senator) Najib Tun Razak Ahmad Husni Hanadzlah Muhyiddin Yassin Ong Tee Keat Bernard Dompok

UMNO UMNO

GERAKAN UMNO UMNO UMNO

Minister of Finance Minister of Finance II

UMNO UMNO

Minister of Education Minister of Transport Minister of Plantation Industries and Commodities

UMNO MCA UPKO

Minister of Home Affairs Hishammuddin Tun UMNO Hussein Minister of Infomation, Communications and Culture Rais Yatim UMNO

Minister of Energy, Green Peter Chin Fah Kui SUPP Technology and Water Minister of Rural and Regional Development Minister of Higher Education Minister of International Trade and Industry Minister of Science, Technology and Innovation Minister of Natural Resources and Environment Minister of Tourism Minister of Agriculture and Agro-based Industry Minister of Defence Mohd Shafie Apdal UMNO

Mohamed Khaled Nordin

UMNO

Mustapa Mohamed UMNO

Maximus Ongkili

PBS

Douglas Uggah Embas

PBB

Ng Yen Yen Noh Omar

MCA UMNO

Ahmad Zahid Hamidi Shaziman Abu Mansor Liow Tiong Lai

UMNO

Minister of Works

UMNO

Minister of Health

MCA

Minister of Youth and Sports Minister of Human Resources Minister of Domestic Trade, Cooperative and Consumerism Minister of Housing and Local Government Minister of Women, Family and Community Development Minister of Foreign Affairs Minister of the Federal Territories

Ahmad Shabery Cheek Subramaniam Sathasivam

UMNO

MIC

Ismail Sabri Yaakob UMNO

Kong Cho Ha

MCA

Shahrizat Abdul Jalil (Senator)

UMNO

Anifah Aman

UMNO

Raja Nong Chik Zainal Abidin (Senator)

UMNO

http://en.wikipedia.org/wiki/Cabinet_of_Malaysia 3. Axim policyForeign Policy A markedly anti-Communist and pro-western posture with close links to the Commonwealth under Tunku Abdul Rahman, our first Prime Minister, gave way to one based on non-alignment, neutralization and peaceful co-existence.

Under Tun Abdul Razak, as a member of the Organisation of Islamic Conference (OIC), Malaysia began to identify itself as a "Muslim nation." Malaysia's relations with other countries. These refer to sovereign equality and mutual respect for territorial integrity, mutual non-aggression, non-interference in each other's internal affairs, peaceful settlement of disputes as well as mutual benefit in relations and peaceful co-existence. Developing close bilateral relations with our neighbours remains a high priority..

http://www.kln.gov.my/?m_id=2 Trade Policy

is to pursue trade liberalisation through the rule-based multilateral trading system under the World Trade Organisation (WTO). Free trade agreements (FTAs) have traditionally been confined to trade in goods. However, after the establishment of the WTO, trade in services has been included in many FTAs.
4. FDI /FII structure The government has a generally favourable attitude toward foreign investment, especially regarding projects that facilitate technology transfers, create highskilled jobs and contribute capital to the economy. New ventures in the manufacturing sector may be 100% foreign-owned, the financial sector is being liberalized and capital controls on overseas investments have been relaxed. Any FDI that seeks to acquire assets in Malaysia including ownership of businesses without giving clear benefit to Malaysians will be actively discouraged. All industrial projects must be approved by the Malaysian Industrial Development Agency (MIDA) which has lately stopped granting approvals in what it views as low-productivity industries. In April 2009, the Malaysian government removed existing bumiputera (ethnic Malay) affirmative action requirements for companies in certain sectors (health, tourism, transport and IT services) to have 30% ethnic Malay ownership. This move was a bid by the ruling coalition to reach out to ethnic minority groups to strengthen its position.

http://www.edc.ca/english/docs/gmalaysia_e.pdf ECONOMIC

Free trade agreements were introduced by Badawi to Japan. These contracts will help these two countries minimize tariffs on trade of all industrial goods and large number of forestry, agricultural, and fishery products. Economic policies of Malaysia also state that it has to develop and focus more on its strengths, which is agriculture. It would also look in to fact that manufacturing base is not affected. By restructuring government financial assistance, it has increased price of petrol and electricity. Monetary policy Reserve requirements have been cut to reduce the cost of financial intermediation. Timely liquidity support in the inter-bank market has kept the overnight inter-bank rate close to the policy rate, suggesting orderly market conditions throughout. The base lending rate has declined, and broad money has continued to grow. Credit has expanded although the rate of expansion has decelerated as banks tightened lending standards and loan demand moderated in tandem with economic activity.

http://www.economywatch.com/economic-policy/Malaysia.html 1. banking structure both national and private and private banks exist 2. income patterns (GDP)In 2008 fiscal Malaysia GDP as per purchasing power parity was estimated to be $397.5 billion, while GDP as per official exchange was $214.7 billion for 2008. Statistical research work shows that real growth rate of Malaysia GDP of 2008 is approximately 5.5%. Malaysia GDP per capita has been shown to be $15,700 in 2008. http://www.economywatch.com/gdp/world-gdp/malaysia.html

SOCIAL 1. psycographics and sociographics (all possible ratios)

Full name: Federation of Malaysia Population: 27 million (UN, 2008) Capital: Kuala Lumpur Area: 329,847 sq km (127,355 sq miles) Major languages: Malay (official), English, Chinese dialects, Tamil, Telugu, Malayalam Major religions: Islam, Buddhism, Taoism, Hinduism, Christianity, Sikhism

Life expectancy: 72 years (men), 77 years (women) Monetary unit: 1 ringgit = 100 sen Main exports: Electronic equipment, petroleum and liquefied natural gas, chemicals, palm oil, wood and wood products, rubber, textiles

Sex ratio: at birth: 1.07 male(s)/female under 15 years: 1.06 male(s)/female 15-64 years: 1.01 male(s)/female 65 years and over: 0.78 male(s)/female total population: 1.01 male(s)/female (2008 est.) Rich: poor Malaysia has the largest gap between rich and the poor in Southeast Asia, where the top 10 percent is 22.1 times richer than the poorest 10 percentThe richest 10 percent in Malaysia controls 38.4 percent of the country's economic income as compared to the poorest 10 percent controlling 1.7 percent. Income parameters: 8.6 percent of households earn below RM1,000, followed by about 29.4 percent of households who earn between RM1,000 and RM2,000.19.8 percent of households are in the RM2001-RM3,000 income bracket, RM3,001-RM4,000 (12.9 percent), RM4,001RM5,000 (8.6 precent), RM5,001-RM10,000 (15.8 percent) and above RM10,000 (4.9 percent).In short, almost 40 percent of households in Malaysia earn RM2,000 and below.At the other end of the scale, about 20 percent of households earn more than RM5,000 a month.. http://www.geocities.com/easytocall/ TECHNOLOGICAL 1. infrastructure

Transport:
Airport Construction and Related Works Kuala Lumpur International Airport (KLIA) has a new passenger terminal for budget airlines. The terminal will have the capacity to handle 30mn passengers annually, thus increasing the airports annual capacity to 55mn passengers. It will be located next to the existing terminal and will be ready by 2010.

Communication
The press

New Straits Times - English-language daily The Star - English-language daily Business Times - English-language daily The Malay Mail - English-language daily Malaysiakini - English-language, online news service

Television

Radio Television Malaysia (RTM) - state-run, operates TV1 and TV2 networks TV3 - commercial network ntv7 - commercial network 8TV - commercial network

Radio

Radio Television Malaysia (RTM) - state-run, operates some 30 radio stations across the country and external service Voice of Malaysia Era FM - private FM station Hot FM - private FM station Time Highway Radio - private Kuala Lumpur FM station

News agency

Bernama - state-run

http://news.bbc.co.uk/2/hi/asia-pacific/country_profiles/1304569.stm

PEST ANALYSIS OF KENYA

POLITICAL 5. form and type of government Unitary Multiparty Republic 6. ministerial hierarchy (separate ministers under each section) chief of state: President Mwai KIBAKI (since 30 December 2002); Vice President Stephene Kalonzo MUSYOKA (since 10 January 2008); head of government: President Mwai KIBAKI (since 30 December 2002); Vice President Stephene Kalonzo MUSYOKA (since 10 January 2008); note -

the roles of the president and prime minister are not well defined at this juncture; constitutionally, the president remains chief of state and head of government, but the prime minister is charged with coordinating government business cabinet: Cabinet appointed by the president and headed by the prime minister, who is the leader of the largest party in parliament elections: president elected by popular vote for a five-year term (eligible for a second term); in addition to receiving the largest number of votes in absolute terms, the presidential candidate must also win 25% or more of the vote in at least five of Kenya's seven provinces. https://www.cia.gov/library/publications/the-world-factbook/geos/ke.html

7. Exim policy FOREIGN POLICY Kenya is a member of the Common Market for Eastern and Southern Africa (COMESA), the East African Co-operation (EAC), the Organization of African Unity (OAU), and the Inter Governmental Authority on Development (IGAD). TRADE POLICY Trade policy formulation is the responsibility of several Ministries, which constitute the Cabinet's Economic Sub-committee, and the Central Bank. Its the founding member of WTO. 8. FDI /FII STRUCTURE Investment Promotion Centre is a public funded institution, which was established in 1992 as a one-stop shop geared to promote investment in the country. IPC processes all applications for new investments and forwards recommendations to the Ministry of Finance and Planning for approval by the Minister. A General Authority license is issued within one month with prior approval from the relevant authority in charge of issuing \the license.

The Foreign Investments Protection Act (FIPA) (Cap518) guarantees repatriation of capital, after tax profits and remittance of dividends and interests accruing from investing in the country. The constitution also provides guarantee against expropriationof private property unless for security or public interest and when this happens fair and prompt compensation is paid.

investment allowance - is provided as an incentive for investment in the manufacturing and hotel sectors the rate of 60% countrywide; depreciation - liberal rates are allowed for depreciation of assets based on value as follows:

buildings and hotels machinery e.g. tractors and aircrafts; loss carried forward - business enterprises that suffer losses can carry forward such losses to be offset against future taxable profits; Duty remission facility - material imported for use in manufacture for export or for the production of raw materials for use in export oriented manufacture or for the production of duty free items for sale domestically are eligible for duty remissions. Applications for this facility may be made to the Export Promotion Programme Office in the Ministry of Finance and Planning.

Manufacturing Under Bond (MUB) To encourage manufacturing in Kenya for world markets, the Government has established an in-bond programme open to both local and foreign investors. IPC and Ministry of Finance and Planning (Department of Customs and Excise) administer the program. Enterprises operating under the programme are offered the following incentives: exemption from duty and VAT on imported plant, machinery and equipment, raw material and other imported inputs; and 100% investment allowance on plant machinery equipment and buildings. Export Processing Zones Authority (EPZA) 25. Export Processing Zones are coordinated by the Export Processing Zones Authority (EPZA). A number of EPZs have already been established. Enterprises operating in export processing zones in Kenya enjoy the following benefits: 10 years tax holiday and a float 25% tax for the next 10 years; exemption from all withholding taxes on dividends and other payments to non-residents during the first 10 years; exemption from import duties on machinery raw materials and intermediate inputs; no restriction on management or technical arrangement; exemption from stamp duty; and Exemption from VAT and operate on one license only.

9. treaties / economic integration WTO and stated above ECONOMIC 3. economic policy

fiscal policy - Expansionary fiscal policy, contractionary fiscal policy and neutral fiscal policy monetary policy trade policy

Banking structure (national and private) both private and govt controlled banks , Nairobi stock exchange one of the largest boards in Kenya. 4. income patterns (GDP) - $1,600 (2008 est.) 5. disposable income patterns 6. investment (domestic, national, individual) SOCIAL 2. psychographics and sociographics

Age structure: 0-14 years: 42.3% (male 8,300,393/female 8,181,898) 15-64 years: 55.1% (male 10,784,119/female 10,702,999) 65 years and over: 2.6% (male 470,218/female 563,145) (2009 est.) Population growth rate: 2.691% (2009 est.) country comparison to the world:25 Birth rate: 36.64 births/1,000 population (2009 est.) country comparison to the world: 31 Death rate: 9.72 deaths/1,000 population (July 2009 est.) country comparison to the world: 69 Net migration rate: 0 migrant(s)/1,000 population (2009 est.) country comparison to the world: 78 Urbanization: est.)

urban population: 22% of total population (2008) rate of urbanization: 4% annual rate of change (2005-10 Sex ratio: at birth: 1.02 male(s)/female under 15 Mass Total- 224,962 sq mi (582,650 sq km) Land years: 1.01 male(s)/female 15-64 years: 1.01 male(s)/female Land- 219,788 sq mi (569,250 sq km) 65 years and over: 0.84 male(s)/female Water- 5,173 sq mi (13,400 sq km) total population: 1 male(s)/female (2009 est.) Infant mortality rate:

http://www.tradeport.org/countries/kenya/01grw.html total: 54.7 deaths/1,000 live births country comparison to the world: 44 male: 57.56 deaths/1,000 live births female: 51.78 deaths/1,000 live births (2009 est.) Life expectancy at birth: total population: 57.86 years country comparison to the world: 188 male: 57.49 years female: 58.24 years (2009 est.)

3. Culture & religious- Mostly Christians with 27% of the population Protestant while 26% are Roman Catholic. Around 19% of the population follow local native tribal beliefs and 6% are Muslims country of diverse and rich cultural traditions, seeks to cultivate and develop those traditions to ensure that its valuable cultural assets are not irretrievably lost and that social cohesion is not undermined in the process of change to newer ways 4. mindset and lifestyle of people Kenyans love their beer almost as much as their dancing and there's a thriving local brewing industry Kenyans love music and the style known as benga is the contemporary dance music that rules http://au.encarta.msn.com/sidebar_1461501337/Kenya_Customs_and_Lif estyle.html 5. urban and subunban population Rural and urbanization is on the rise since the past two years. TECHNOLOGICAL 2. R & D R&D organization that constituted one of our case studies is the Kenya Industrial R&D Institute (abbreviated KIRDI). Like the Coffee Research Foundation, KIRDI's origin lies in the colonial period, when in 1942, the East African Industrial Research Organization was established to develop local industries, with the objective of relieving shortages brought about by World War II. After the collapse of the East African Community in 1977, the Kenyan government first transferred the Organization to the Ministry of Commerce and Industry, and then, two years later, gave it autonomy.