INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2 Pros & Cons of Macro Environment (PEST Factors) on New Product Development in Fast Food Industry of Pakistan for Sustainable Competitive Advantage Rizwan Ahmad Ch. MS Scholar , Riphah Int. University, Islamabad, Pakistan Jamshed Khattak Ph.D Scholar , Muhammad Ali Jinnah University, Islamabad, Pakistan Muhammad Nizam Khan & Nabeel Abbas Khan MS Scholars , Riphah Int. University, Islamabad, Pakistan
Fast Food is now becoming the most favorite food around the world due to trend shifting; quick home delivery and people are kept busy in their extensive work. Many companies trying to maximize their market & profit share after launching new product in the era of competition, therefore scanning of market environment now centre of focus to get completive advantage via new product development. Despite the facts, the rationale right behind for investigate the Impact of Macro Environment on New Product Development of Fast Foods Companies (FFC’s) is to uncover the level of macro environment Scanning by FFC’s operating in Pakistan. The Renewal Associates (2003) PEST sheet used & descriptive statistics analysis were used to estimate the intensity of Macro Environment on New Product Development. The result shows that FFC’s were not scan Macro Environment too much & consider different factors of Macro Environment for new product development. Key Words: Macro Environment, PEST Factors, New Product Development, Sustainable Competitive Advantage, Strategic Marketing, Strategic Management, Sargodha Pakistan.
As per Bender and Bender (1995), Fast foods are broad term used for a restricted menu of foods that lend themselves to production-line techniques; suppliers tend to specialize in products such as hamburgers, pizzas, chicken, or sandwiches”. Smith et al. (2001) undoubtedly demonstrated the production-line approach with speciﬁc allusion to sandwich production. The fast food industry in World has grown significantly during the last decade and now fast food outlets providing a diverse range of food products according to consumer’s choices. As Fieldhouse. (1996), found that the steep size of the fast food enterprises assured that it has a substantial inﬂuence in contemporarily world on the eating habits of big segments of the population. At present in contemporary world a novel consumer standard of living has emerged about dining of fast food due to the global village, trend shifting & busy life of people. The stipulate for fast food has been mounting radically across the globe. Jennifer L. Harris et. all. (2010), and the trend of fast food is also on the rise in Pakistan from last decade. Therefore need for the new Product development greater than before to get sustainable competitive advantage. Product Development needs to scan Business Environment, which comprising of Internal & External Environment, Further External environment divided into Micro & Macro Environment (Vignali, C., Vrontis, D, 2003). Macro Environment always plays a vital role in New Product Development as per Vrontis, D., Kogetsidis, H., Stavrou, A. (2006). In this context, to find the impact of Political, Economical, Socio-Cultural and Technological COPY RIGHT © 2011 Institute of Interdisciplinary Business Research
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011 VOL 3, NO 2
Factors on marketing activities of Fast Food Industry in Pakistan, the research has been carried out. In rejoinder to a cutthroat business environment, NPD has been playing a vital role in the accomplishment of many Organizations (McCarthy, Tsinopoulos, Allen, & Rose-Anderssen, 2006). The aim of this research is to find the impact of PEST Factors on New Product Development in Fast Food industry. PEST is a word comprising of four External Factors, i.e. Political, Economic, Socio-cultural & Technology (Goodnow,...
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