Gourmet 2

Micro and Macro effect on GOURMET and Recommendations on GOURMET
Sub-mitted To:
Mr. Mazhar Hayyat
Sub-mitted By:
Muhammad Khawar Azeem 50
Muhammad Awais Khan 08
University of Agriculture, Faisalabad.

History of Gourmet
Gourmet Bakers and Sweets is the largest food retail chain of Pakistan. It is
based in Lahore, the second largest city of Pakistan known for its traditional
foods and passion for eating. With our 4 processing units and 42 sales outlets we
outreach to a huge population for their food needs.
The company has shown an explosive annual growth of more than 25 % in its
business since 1987, when Mr. Muhammad Nawaz Chatha started this unique
business with only one sale outlet. With his commitment and strenuous effort to
provide the consumers with best quality food products in a convenient and
unmatched displaying manner, Gourmet has become a success story of
business growth in Pakistan. At moment we have more than 1700 employees
working in the organization.
We produce and sell all kinds of breads, buns, rusks, cookies, biscuits, cakes,
pastries, pizzas, patties, meat rolls, vegetable rolls, sandwiches, hotdogs, nimko
and doughnuts etc. In sweets, (traditional milk based Indian sweet products) we
deal in all sorts of traditional products like burfi, chum chum, gulab jaman,
rassgulla, patisa, jalebee, amrati, ladoo and rass malai etc. We dedicate our
shelves for retail of products like juices, soft drinks, pickles, jams and jellies, dairy
products, ice creams and desserts, baby formulas, canned vegetables and fruits,
drinking water and cereal products from the world leading brands. In this regard
we have a self-milk collection system and a dairy plant for the production of raw
cheese and khoya (the two main raw materials of all sweet products).
Micro Environment
The micro environment is also known as the task environment and operating
environment because the micro environmental forces have a direct bearing on
the operations of the GOURMET.
“The micro environments consist of the actors in the company’s immediate
environments that affect the performance of the company. These include the
suppliers, marketing intermediaries, competitors, customers and the public”
The micro environmental factors are more intimately linked with the company
than the macro factors. The micro forces need not necessarily affect all the firms
in a particular industry in the same way. Some of the micro factors may be
particular to a firm. When the competing firms in an industry have the same micro
elements, the relative success of the firms depends on their relative effectiveness
in dealing with these elements.
Suppliers
An important force in the micro environment of a company is the suppliers, i.e.,
those who supply the inputs like raw materials and components to the company.
The importance of reliable source/sources of supply to the smooth functioning of
the business is obvious.
Customer
The major task of a business is to create and sustain customers. A business
exists only because of its customers. The choice of customer segments should
be made by considering a number of factors including the relative profitability,
dependability, stability of demand, growth prospects and the extent of
competition.
Competition not only include the other firms that produce same product but also
those firms which compete for the income of the consumers the competition here
amon gthese products may be said as desire competition as the primary task
here is to fulfill the desire of the customers. The competition that satisfies a
particular category desire then it is called generic competition..
Marketing Intermediaries
The marketing intermediaries include middlemen such as agents and merchants
that help the company find customers or close sales with them. The marketing
intermediaries are vital links between the company and the final consumers .
Financiers
The financiers are also important factors of internal environment. Along with
financing capabilities of the company their policies and strategies, attitudes
towards risk, ability to provide non-financial assistance etc. are very important.
Public
Public can be said as any group that has an actual or potential interest in or on
an organization’s ability to achieve its interest. Public include media and citizens.
Growth of consumer public is an important development affecting business.
Macro Environment
Macro environment is also known as General environment and remote
environment. Macro factors are generally more uncontrollable than micro
environment factors. When the macro factors become uncontrollable, the
success of company depends upon its adaptability to the environment. Some of
the macro environment factors are discussed below:
Economic Environment
Economic environment refers to the aggregate of the nature of economic system
of the country, business cycles, the socio-economic infrastructure etc. The
successful businessman visualizes the external factors affecting the business,
anticipating prospective market situations and makes suitable to get the
maximum with minimize cost.
Social Environment
The social dimension or environment of a nation determines the value system of
the society which, in turn affects the functioning of the business. Sociological
factors such as costs structure, customs and conventions, mobility of labour etc.
have far-reaching impact on the business. These factors determine the work
culture and mobility of labour, work groups etc.
Political Environment
The political environment of a country is influenced by the political organizations
such as philosophy of political parties, ideology of government or party in power,
nature and extent of bureaucracy influence of primary groups etc. The political
environment of the country influences the business to a great extent.
Legal Environment
Legal environment includes flexibility and adaptability of law and other legal rules
governing the business. It may include the exact rulings and decision of the
courts. These affect the business and its managers to a great extent.
Technical Environment
The business in a country is greatly influenced by the technological development.
The technology adopted by the industries determines the type and quality of
goods and services to be produced and the type and quality of plant and
equipment to be used. Technological environment influences the business in
terms of investment in technology, consistent application of technology and the
effects of technology on markets.
Analysis and recommendations
The analysis of the data provided by the supervisor shows that the Gourmet
bakers and sweets are striving to get a competitive advantage against its
customers but there are some problems too on which the company should
concentrate because they serve many other factors respectively:
 First of all the company should concentrate on offering incentives and

benefits to its old employees who are serving the company for more
than one year. they should be given family benefits and compensation
by doing this the company could reduce its turn over rate. Because
when the employees are satisfied they can serve the customers more
efficiently and they are also committed to the job and company.
 And secondly they should reduce the employee work hours.10 hrs job
is a long period and the employee gets bored and loose interest in the
sales .Therefore it should be 8 hrs .
 The company haven’t advertised themselves through media; they
should have adopted some other source of advertisement to cater the
market. Well they are well known in the market but they should use
TV media for their advertisement, they could also advertise
themselves on the cable in the areas in which they are having their
chains
 The name of the company is easy to pronounce for those people who
know that they have to keep the ‘T” silent in the logo of Gourmet but
some people pronounce it with “T” and then the pronunciation of the
name of the company becomes very difficult.
 The Gourmet bakers have their branches only in Lahore which is the
draw back of their marketing strategies. The company should also
open its outlets in other major cities. And spend capital on advertising
the company in those cities.
 The employees of the company should be aware of the marketing
plans of the company; they should know that how much profit the
company is earning and what place they owe in the market.
 The company has no system of motivating its employees. So that, they
could work with more interest.
 The company is not planning for the loyalty of its customers. They
should give discounts to its regular customers. in this way the
customers sincerity with the company will grow.
 The Parking area of the Gourmet bakers should be enhanced if their
customers face problems in parking .then the customer would prefer
to go on some other store to find convenience rather than buying for
the Gourmet.
 The company should increase the quality of the new products the
company has offered (milk and ice-cream) and they should also
concentrate on the advertisement of the new product seriously.
 The company should take feedback from the customers by personally
surveying home to home and asking questions about the products and
improvement they should do .they should concentrate on the
requirement of the customers.
 As the people are weight and diet conscious today so the Gourmet
bakers should introduce sugar free sweets and cakes for those people
this will help in their promotion and it will give an impact that the
company is customer conscious. And it will also be a competitive
advantage for the company.
 They should be concentrating on the quality of their products so that
the customers wouldn’t be returning the goods back and thus the
image of the company wouldn’t be lost in the eyes of the customers.
 The company should communicate its goals to its employees.
References:
http://www.scribd.com/doc/15887197/gourmet-Bakery
http://www.scribd.com/doc/24453664/Internal-and-External-Business-
Environment

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Micro and Macro effect on GOURMET and Recommendations on GOURMET

Mr. Mazhar Hayyat

Muhammad Khawar Azeem 50

Muhammad Awais Khan 08

University of Agriculture, Faisalabad.

 First of all the company should concentrate on offering incentives and

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