Macro Environmental Analysis of Nepal for JB Hi-Fi Expansion

INTERNATIONAL
BUSINESS

Executive summary
The report has found that the country has the potential of adequate natural resources
and hydropower that can help the JB Hi-Fi to establish the venture. Further, the country has
adequate amount of human resource that will lead to decrease in the cost of the company
when hiring at low cost. The country has poor physical road density that is lowest in south
Asia. It is seen that 60 percent of the road networks that is mostly rural roads and it do not
provide connectivity in severe weather. It is centralised in terms of economic spending, local
government agencies so as the corruption is high. Political instability and economic
instability generates lack of proper plans. Poor infrastructure, landlocked situations that have
increased the cost of transportation leading to high cost economy which have adversely
affected the competitiveness in order to strengthen and expand the international trade and
making the economy as shopping centre in the world.

Contents
Executive summary....................................................................................................................1
-Introduction to the report..........................................................................................................3
-Country identification...............................................................................................................3
Macro environmental analysis...................................................................................................4
-Economic / Financial Analysis.................................................................................................4
-Political & Legal Analysis........................................................................................................6
-Social, Cultural, and Ethical Analysis......................................................................................7
-Technology issues (if any)-.......................................................................................................9
-Environmental issues..............................................................................................................10
-SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis........................................11
Strengths...............................................................................................................................11
Weaknesses...........................................................................................................................11
Threats..................................................................................................................................12
Opportunities........................................................................................................................13
-Conclusions.............................................................................................................................13
Reference list............................................................................................................................14

Introduction to the report
The report undertakes to analyse the macro environment of Nepal where JB Hi-Fi
plans to expand its business. The report oversees the actual market situation in order to
overlook demand of home appliances and consumer electronics and measure the supply of
invaluable resources as per the requirement of the company. Under the country`s analysis, the
report will conduct the analyse through two important frameworks such as PESTLE Analysis
and SWOT analysis. Pestle analysis gives a holistic overview of Nepal with the insight in the
current and future issues that will be further supplemented with the qualitative data so that it
can support the trend analysis. Further, the report will undertake the country`s analysis
through SWOT analysis. PESTLE analysis includes political, social, legal, technological, and
environmental analysis, which affect JB Hi-Fi business to move into Nepal. The company
was started in 1974 in Australia. JB Hi-Fi is a largest Australian home entertainment retailer,
which is famous for low prices and wide range of offerings with its brand name such as Ultra
HD TV, laptop, headphones, wireless speakers, tablet, and headphones and iPads.
Furthermore, the company provides car sound JB HI-FI homes, GPS nav, apple camera,
digital Marketing, drones, activity trackers, memory cards, fitness watchers, printers, activity
trackers, and musical instrument with the JB- Hi-Fi and this company have full range of
appliances and whitegoods. The company operates mainly in Australia and New Zealand.
Apart from this, the organisation is planning to expand its business in Nepal by identifying its
potential benefits and threats so that the organisation can get maximum by ending.
Country identification
Nepal is a federal democratic republic that has been situated in the south Asia. The
state is located mainly into the Himalayas that includes indo-genetic plain. Kathmandu is the