Detailed PEST Analysis of Mamee Double Decker for Business Strategy

This report provides a PEST (Political, Economic, Social, and Technological) analysis of Mamee Double Decker, a Malaysian food and beverage company operating in over 100 countries. The analysis examines the impact of political factors, including regulations and legal aspects, on the company's profitability. Economic factors, such as demand and supply, recession, and growth rates, are also discussed. Social factors like consumer preferences, online shopping trends, and health consciousness are assessed for their influence. Finally, the report explores the role of technological advancements, including online platforms and robotic technology, in shaping Mamee Double Decker's business environment. The report concludes by emphasizing the importance of addressing these factors to make informed decisions and mitigate risks for the company's success.

PEST analysis of Mamee
Double Decker

Table of Contents
INTRODUCTION...........................................................................................................................1
Pest analysis of Mamee double decker.......................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3
Online..........................................................................................................................................3

INTRODUCTION
In following report, Mamee Double decker is taken into consideration. It is Malaysian
based company that manufactures food and beverages and transports it to around more than 100
countries. Thus, various factors that affects business has been highlighted in following
assignment with help of PEST analysis.
Pest analysis of Mamee double decker
Pest analysis is a measurement tool of a business that helps in measuring external factors
that affects business (What is PEST Analysis?, 2013). Thus, pest analysis of Mamee double
decker has been discussed below:-
Illustration 1: Pestle analysis
(Source: What is PEST Analysis?, 2013)
Political factors-
This includes all regulations and legal factors of government that are assessed in terms of
ability in affecting business environment of Mamee double decker along with its trading market.
It includes study of tax policy, labour law, etc. Thus, this factor affects cited company's ability to
be profitable and successful. The main factors that are addressed includes political stability,
employment laws, safety regulations etc. (Policy, 2016). The manager of this company has to
address factors and make decisions accordingly that helps in minimizing risks. As government
tightens regulations on advertising the fast foods, they await for the further information that is
required by malaysias information ministry. The advertising was banned and it was forced to
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explore promotional channels once the options of mass media are closed. Mamee double decker
may lead to major loss due to this factor.
Economic factors-
This factors are connected with goods, services and money, so it plays a vital role in
deciding about decisions taken by the Mamee double decker (Rahman and et.al., 2016). Hence,
main economic factor that affect business includes demand and supply. The demand is willing
and desire of a customer to purchase goods and supply refers to company's ability to provide that
particular product to customers. Economic factors also refers to socio economic infrastructure,
business cycles etc. it is an aggregate of economic system's nature of a particular country.
Mamee double decker is affected by economic factors that are prevalent in the growing market.
Thus, recession is also the major element that affects them. Due to recession people are willing
to buy less this affects the cited company with low profitability. It has also influenced MDD in
positive way as they have growth rate of 5.8% in 2017 and it has been analysed to stay above this
in upcoming years. Therefore they have an opportunity top overcome this issues.
Illustration 2: Statistics
(Source: Mamee ! Double Decker, Double Decker, 2010)
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Social factors-
The tastes and fashions are a great and trendy examples of these factors that affects
business environment. As today's generation are continuously in touch with social media and
they prefer to shop online. As there is majority of young population in Malaysia they prefer fast
foods more that helps them in increasing customer loyalty base. They have become health
conscious and choose goods or products that is good for their health. So quoted company has to
change its production as per demand of the customers. Thus, it affects company's way of
operations to a great extent. Company is engaged in community building and fostering moral
value and with such social factors, Mamee double decker has to analyse socio economic
environment of it market with various elements like customer demographics, cultural limitations,
lifestyle attitude and education. Due to this analysis, selected company understands requirements
of customers that brings them to competitive market in order to purchase particular product.
Illustration 3: Consumers statistical data
(Source: Consumer: Mamee-Double Decker (M) Bhd, 2010)
Technological factors-
This factor plays a significant part in business environment that affects in either negative
way or positive way (Sridhar and et.al., 2016). It includes variables that relates to existence,
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availability and development of technology. Thus, to maintain strong customer loyal base,
advanced technology is very much important in business. As online shopping has become wide
trend in everyone's life, so technology helps customers to meet desired needs directly to place
they want. So cited company has to update websites of the company in order to attract customers
towards it. This helps in increasing productivity and rise in reputation of Mamee double decker.
Mamee has adopted Japanese robotic technology that will help company in instant cup noodles
production which attracts large customers towards it. With help of this updated technology,
MDD can increase the customers' engagement towards the brand as they can easily compare the
products and services offered.
CONCLUSION
Thus, it has been analysed that there are many factors that affects business negatively and
positively. So manager of Mamee double decker has to address those factors and thus make
decisions accordingly to overcome such factors that creates great impact on its environment.
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REFERENCES
Books and Journal
Policy, P., 2016. What is pestle analysis.
Rahman, N.S.F.A and et.al., 2016. A descriptive method for analysing the Kra Canal decision on
maritime business patterns in Malaysia. Journal of Shipping and Trade. 1(1). p.13.
Sridhar, R and et.al., 2016. A Political, Economic, Social, Technological, Legal and
Environmental (PESTLE) approach for assessment of coastal zone management practice in
India. International Review of Public Administration. 21(3). pp.216-232.
Online
What is PEST Analysis?. 2013. [Online] Available through: <https://www.visual-
paradigm.com/guide/strategic-analysis/what-is-pest-analysis/>
Mamee ! Double Decker, Double Decker. 2010. [Online] Available through:
<http://xabiespara.blogspot.com/2010/04/mamee-double-decker-double-decker.html>
Consumer: Mamee-Double Decker (M) Bhd. 2010. [Online] Available through:
<http://aboiwealthpot.blogspot.com/2010/05/consumer-mamee-double-decker-m-
bhd.html>
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