Table of Contents

Introduction ……………………………………………….3
PEST Analysis……………………………………………..4
BCG Matrix………………………………………………...12
SWOT Analysis…………………………………………….15
Strategy Development………………………………………16
Scorpio………………………………………………………..17

1
Company Name: - Java karahi restaurant
Introduction and History:-
• Java karahi is a restaurant which I have chosen. This restaurant
started in 1980s with Naan shop further expended into restaurant
setup with a list of varieties in foods like
• KARAHI
• SAJJI
• CHARGHA
• BBQ
• FISH
SWEETS
Java karahi is a restaurant business situated in f8/2 madina market
started in 1980s with a setup of different Naans at first like Qeema
naan, Aloo naan, cheese naan, chicken naan etc.
Then they expended their business in 2002 and purchased the side
plot to started a restaurant business and from at that time it is now
going on.

Their Specialty is basically in karahi and Naans.

Staff:- 10 waiters, Manager, 3 cooks, 2 workers, 2 sweepers

2
Pest Analysis:-
What the PEST analysis is intended to do is give decision-makers
an understanding of changes that may be occurring within a given
market. These can influence marketing and relationships that a
company has worked hard to develop. Knowing ahead of time
that a change may be occurring will help in making better
business decisions. This is the pest analysis of our business
business the factors that have effect on our business.
Political factors:-
1) Government regulations hygienic food
2) sales tax rate
3) political stability
4) Law and order

Economic factors:-
1) Pakistan inflation rate
2) GDP PER CAPITA
3) Pakistan unemployment rate
4) GDP Growth rate

Social factors:-
1) Income
2) population
3) Lifestyle

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 4) Social classes
5) Population growth rate
6)Age Distribution
Technological
1) infrastructure
2) communication

Trends:
Political:
Govt regulations hygienic food:-
The Pakistan pure food law 2011 includes food hygiene, registration of
premises, cleanliness and temperature control. The government is taking
strict actions on encroachments.
Forecast
More legislation will be moved on by the government to enforce safety
and food hygiene.

Political
Political stability is badly damaged the prospect of growth even though
the country is rich. Reasons of instability economic problems and
lack of social growth. Even after 69 years, the country could not
rid itself from feudal, tribal or sectarian segregation.

4
Forecast
The Pakistan political situation will get better in future
Sales tax

Forecast
In the long-term, the Pakistan Sales Tax Rate - Sales Tax is projected to
trend around 17.00 percent in 2020.

5
Economic
Pakistan inflation rate

Forecast
Inflation Rate in Pakistan is expected to be 6.80 percent by the end of
this quarter

GDP PER CAPITA

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Forecast
GDP per capita PPP in Pakistan is expected to be 5134.80 USD by the
end of this quarter
The Pakistan GDP per capita PPP is projected to trend around 5328.50
USD in 2020.

Pakistan unemployment rate

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Forecast
Unemployment Rate is projected to trend around 5.70 percent in 2020,
according to our econometric models
Income:-
As GDP per capita is increasing people having more money will
translate into more spending which is good for our restaurant business
Any increase or decrease in price correspondingly decreases or
increases consumers' discretionary income which, in turn, causes
a lower or higher demand for the same or some other good or
service

Forecast: -
It is forecasted that income of people is increased. And income will get
better as peace is being brought in the country.

Population 2016 1.433 Million

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 • 2020 1.7 Million
• 2030 2.2 Million
• Forecast
• It is expected that the population of Pakistan will be increased in
future.
Technology
Trend (Now debit card facility is used by many of restaurants)
Forecast (May be we are going to use smart cards for payments so that
it would be easy for customers to not face difficulty).
Government of Pakistan is increasing the highway networks throughout
Pakistan and CDA is also focusing on infrastructure.
Forecast (Hopefully traffic problem will be much better than now

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BCG

10
BCG Matrix

Years 2016 2017 2018

Java 540 million 550 million 580 million

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Karhai

Butt Karhai 300 million 320 million 330 million

Karachi Nihari 200 million 210 million 220 million

Total 1040 million 1080 million 1130 million

• Overall Market Growth rate (2016-2017)

(1080-1040)/1040= 3.84.%

• Overall Market Growth rate (2017-2018)

(1130-1080)/1080=4.62.%

• Average Relative Market Share 2017

(.58+.381+1.71)/3=0.890

• Average Relative Market Share 2018

(.56+.37+1.81)/3=0.91

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 Market Growth (2016-2017)
Java 5% (550-540)/540

Butt Karahi 6.66 (320-300)/300

Karachi Nihari 1.8 (210-200)/200

Market Growth (2017-2018)

Java 5.45 (580-550)/550

Butt Karahi 3.123(330-320)/320

Karachi Nihari 4.76 (220-210)/210

Relative Market Share 2017

JAVA 1.71 (550/320)

BUTT KARAHI 0.58 (320/550)

KARACHI NIHARI 0.381 (260/550)

Relative Market Share 2018

JAVA 1.81(580/330)

BUTT KARAHI .56 (330/580)

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 KARACHI NIHARI .37(220/580)

Overall market growth is good our restaurant going well as shown in

previous data and we are falling in stars and market growth and market
share is higher than the recent year so hopefully we can say that we will
go for more investment in future.

The butt karahi falls reason is the unhygienic food quality used by
them that results the decrease in sales and they unfortunately loss
their growth and market share.

Karachi nihari is doing well their market growth and market share
is getting high as compared to recent past year. actually they got
the benefit of butt karahi decline.

Swot Analysis

Strength

• Loyal customers Customer loyalty can be said to have

occurred if people choose to use a particular shop or buy
one particular product, rather than use other shops or buy
products made by other companies. Customers
exhibit customer loyalty when they consistently purchase a
certain product or brand over an extended period of time.
• Low price of food:- this is our strength that we are focusing on
lower pricing to accommodate our students
• Well trained employees:- we trained our employee for one week
and none of our competitior do it.

weaknesses

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• No franchises:- we do not have any francour competitors have it
• Parking issue:- lack of parking place is our big issue that we are
facing as compared to our competitor
• Low Wages:- this restaurant gives low wages to their employees.

Opportunities

Population increase:- population is going to be increased in

Islamabad so this is an opportunity for us.

Life style (trend of outing) people are now changing their lifestyles
and go for outing in weekends and for parties.

Treats

Economic Instability (Dollar Price Fluctuation) :- dollar

fluctuation is a major treat faced by this industry because after
dollar hype, prices of good increases

Strategy on BCG base

• Build strategy

As seen in the BCG matrix the revenue of the business is

increasing and growing rapidly so that’s why I have chosen
this strategy so that this strategy to expand this business in
different cities of Pakistan.

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 Scorpio Technique

• Customer:- In build strategy customer change because new

branch will be open in new area and that customer would be
totally new so we have to give quality product and service to
get the new market potential.
• Market oriented:- ( this business approach would be used
because this restaurant will focus on identifying the need of the
customer and meeting that need )
• Segmentation( this will change because going in new place will
definitely change the segmentation of the customers)
• Positioning/ targeting ( by using build strategy it will change
our positioning and targeting because as our image of the
restaurant is already good so our positioning is good but we
will target our customers according to the location).
• Offerings ( it depends on the demand of the customer).
• Retention:- using build strategy our customer will change but
we will try to retain them by building trust and using social
media as a tool.
• Organization process and culture( As we are moving in a new
place so the customers will be new as the staff is fresh so
organization culture will be changed).

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