Pest Analysis In Malaysia

1. Introduction
In recent years there has been a boost in the Malaysian economy and stable government regulations has created a great impact in the economic foundation of Malaysia. Various diversities in terms of culture and region have caught attention of many people around the globe. The field of Education and Tourism has been a rising up in Malaysia over the past few years. People from all over the world frequently come over to enjoy the tropical climate, diversities in cultures, traditions, architectural structures and the Asian aesthetics of this country.
The rise in tourism and education has brought individuals from around the world prompting to new business opportunities in Malaysia majorly focusing on food and beverages. There has been

Firstly, training cost for employees has gradually increased. There could be problems such as poor performance of the employee thus affecting the business and less customer satisfaction also including is whether the business gets its profit margin during the weekdays rather than weekends. The main challenge of this business is expecting a high profit margin which can be uncertain.

3. Environmental Analysis (PEST)
a. Political Factors:
• Since we will be planning to open more than one branch for the restaurant, political factors thus affect then performance of the business.
• These include, tax rates, acts of legislation and the stability of the country it operates in.
• Because of instability of finance in some parts of the city, our business plays its part in recruiting employees thus creating a employment opportunity, therefore increases the demand for our service.

b. Economic Factors:
• Economic factors play an important role in the matter of business as they are likely to gain profits, prices and demands.
• Hence , we should be certain of policy changes , such as changes in taxes (GST) or any other factors which can harm the gaining of

lease, equipment, staffing, taxes, marketing expenses, revenues.

4. Industry Analysis Porter’s 5 Forces Analysis:
a. Threat of Substitutes:
• Customers can choose where to eat i.e. they can choose whether they want to dine in the restaurant or take away or at home via delivery as it saves time and money.
• Food option availability is given to the customers to choose on what to eat and food of affordable price will be served in the restaurant. (Velasquez)

b. Threat of New Entrants:
• Economies of scale help large chains distribute fresh products and allow lower costs for promotions. Example: All-you-can-eat CHICKEN.
• Capital requirement starts moderate but can increase depending in the specialties and décor.
• Providing advertisements, promotions which will help to lower down the threat of new entrants. (Velasquez)

c. Rivalry amongst existing firms:
• The restaurant will have high completion throughout the industry as there as lots of evenly sized competitors.
• The differentiation is difficult and harder to sustain as there is an attempt in copying the dish or the style of how it is made.
• Lower differentiation will lead to lower growth for the industry.