By Wendell Godinho

International Trade PoliciesPakistan

01

If US dollar appreciate then : The price of Pakistan rugs fall. More rugs are imported from Pakistan. Profit of importers, such as pier one imports The price of American machinery, to Pakistani retail firm. Demand for American dollar.

If us dollar depreciate the: Farmers will be benefited. Favorable for line worker in auto plant Not good for ONGC. Agriculture product will be affected.

CURRENCY: $1 = 104.82 PRs

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Effect of Currency

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Balance O f Payment Systematic record of a nation’s total payments to foreign countries, including the price of imports, the outflow of capital and gold, and the total receipts from abroad, including the price of exports and the inflow of capital and gold

MEANINGCURRENT BOP OF PAKISTAN

According to the Economic Survey of Pakistan 2013-14, It is showing a deficit of $ 8.3 billion

A -     LIMITED EXPORT CAPACITY 1. Consumption Oriented Society 2. Less Modernization of Machinery 3. Foreign Debts Servicing

B - UN-RESTRICTED IMPORT NEEDS 1. Rise in Oil Prices 2. Import Oriented Industry 3. Defence Needs

MEASURES TO CORRECT ADVERSE BOP

Export Manufactured goods Export Marketing Import of Only Essential Items Substitutes for Imported Items

The Foreign Ministry contributes towards safeguarding Pakistan’s security and advancing Pakistan’s development agenda for progress & prosperity.

Dynamic, progressive, moderate & democratic Islamic country. Friendly relations countries of the world. Security and geo-strategic interests. Commercial and economic cooperation. Safeguarding the interests of Pakistani Diaspora abroad. Ensuring optimal utilization.

International Policies

04

http://www.mofa.gov.pk/content.php?pageID=objectives

Franchise Model McDonalds granted the franchise license to Lakson Group of Companies.Lakson Group is a conglomerate whose business portfolio includes Tobacco, Insurance, and consumer goodsFast-food industry thrives on footfall of customers and high volume sales at low prices instead of premium pricing strategies.A service fee of 4% of monthly gross sales is charged from the franchisees.McDonalds do not provide any financial assistance to the franchisee.Presence in more than 120 countries and 20% revenue comes from these Franchise.

04

(2012). Retrieved Jan 25, 2012, from www.McDonalds.com.pk.

Mc Donald's Franchise

Lahore, Pakistan in 1998.34 restaurants in 8 major cities of Pakistan.Launched in Gulbarga and Lahore (mostly middle class people lives).The market share of fast food industry in Pakistan is around 13 percent.McDonalds has 43% market share in fast-food industry in PakistanA strong low-cost leadership as its business strategy. Adults desire change more often; while, children remain more loyal in Pakistan.Mc Donald opted for Value pricing in Pakistan “giving more for less”.

05

http://www.mcdonalds.com.pk/

Mc Donald's

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The first threat faced by the company was to convince the public that “halal” meat or chicken is used for preparation Of products.Competition from newer formatted chains like Subway, coffee shops & grilled outlets, which are perceived healthier.Bird flu and Mad cow fear resulted in the fear of eating at Mc D.McDonalds has invested Rs. 30 billion in the country and pays Rs. 10 billion towards taxes.

(2012, Jan). Retrieved Jan 25 Jan, 2012, from www.McDonalds.com.pk.

Main threats faced by Mc Donald

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PESTALPOLITICAL FACTORGovernment policies do not affect the company. Weak Consumer protection law

ECONOMICAL FACTORMiddle classProfits of Mcdonald Pakistan dwindled.

SOCIAL FACTORAcceptance of the fast food by

youthsTECHNOLOGICAL FACTORMcDonalds has an edge over others

in terms of technology

LEGAL FACTORsocio-cultural market signs e.g Halal

requirements.Tax obligations, employment standards, and

requirements to a degree of quality

ENVIROMENTAL FACTOR Decompostion of bio

degradable and non bio degradable waste

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STRENGTHS• Strong image.

• Less Cost.• Quality.

OPPORTUNITY profit potential.

Increasing disposable income

THREATS• Double digit inflation

prevailing in the country.

• Entry of new Competitor

WEAKNESS• middle- income

class.• Prone to attack by

niche players

SWOT

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