National Foods Limited
National Foods Limited. Pakistan.
National Foods was established in 1970 as a spice company. Its aim was to make hygienic food, foster health and contribute towards personal attractiveness, so that people would be able to experience a more rewarding life-style. National Foods developed innovative food products based on convenience and quick preparation in line with modern lifestyle and yet retains traditional value through its diverse collection of food products.
The wide range of National Food products acclaim across the world due to their freshness, taste, hygiene and value for money. It is aim of National Foods to be a Rs. 50 billion food company by the year 2020 in convenience food segment by launching the products in domestic and international markets.
Task 1
External Analysis:
1. PEST Analysis:
(a) Political: Government is supporting food industry due to its potential and increasing demand of convenience food items by consumers. Food products’ good quality is assured by implementation of law like Pakistan Pure Food Ordinance 1960 and others are mainly concerned with processing and manufacturing of food products. These laws are not fully enforced and they do not take into consideration the quality of raw material to be used. This negligent attitude is a threat for the safety of consumers and towards the image of Pakistani food items in the world.
(b) Economic: Cost of inputs is continuously rising due to inflation in the country. Electricity tariffs are now highest in the world. As a consequence, it’s not just food industry but every industrial sector of Pakistan is suffering. The inflation and hence high prices affected industry as people are not using packed spices to save money or else using packed spices on special occasions only.
(c) Socio Cultural: There is a change in the preferences of consumers as they are now opting convenient food items. Women have started working to support their families financially apart from handling family
National Foods was established in 1970 as a spice company. Its aim was to make hygienic food, foster health and contribute towards personal attractiveness, so that people would be able to experience a more rewarding life-style. National Foods developed innovative food products based on convenience and quick preparation in line with modern lifestyle and yet retains traditional value through its diverse collection of food products.
The wide range of National Food products acclaim across the world due to their freshness, taste, hygiene and value for money. It is aim of National Foods to be a Rs. 50 billion food company by the year 2020 in convenience food segment by launching the products in domestic and international markets.
Task 1
External Analysis:
1. PEST Analysis:
(a) Political: Government is supporting food industry due to its potential and increasing demand of convenience food items by consumers. Food products’ good quality is assured by implementation of law like Pakistan Pure Food Ordinance 1960 and others are mainly concerned with processing and manufacturing of food products. These laws are not fully enforced and they do not take into consideration the quality of raw material to be used. This negligent attitude is a threat for the safety of consumers and towards the image of Pakistani food items in the world.
(b) Economic: Cost of inputs is continuously rising due to inflation in the country. Electricity tariffs are now highest in the world. As a consequence, it’s not just food industry but every industrial sector of Pakistan is suffering. The inflation and hence high prices affected industry as people are not using packed spices to save money or else using packed spices on special occasions only.
(c) Socio Cultural: There is a change in the preferences of consumers as they are now opting convenient food items. Women have started working to support their families financially apart from handling family
References: 1. http://www.scribd.com/doc/37193856/Strategic-Management-Comparision-of-Shan-Foods-and-National-Foods 2. http://www.brecorder.com/brief-recordings/0/1151502/ 3. http://www.pakreviews.com/food/national-foods-limited