PEST Analysis for Prekoka Beverages Ltd:

1. Political Factors:
   • Government Regulations: The proposed increase in regulations on the manufacturing of alcoholic beverages due to health concerns poses a potential challenge for PBL, which could impact its operations and product offerings.
   • Political Stability: The strong political stability in the country provides a favorable environment for business operations and growth, supporting PBL’s long-term strategy.
     (2 marks)
2. Economic Factors:
   • Increase in Disposable Income: The rising disposable income of the population increases purchasing power, potentially leading to higher sales of PBL’s products.
   • Economic Stability: The strong economic stability in the country offers a conducive environment for business growth and expansion, contributing to PBL’s optimism about the future.
     (2 marks)
3. Socio-cultural Factors:
   • Health Consciousness: The increasing health consciousness among consumers, particularly those with purchasing power, poses a challenge for PBL’s sugar-based beverages, as consumers may avoid these products.
   • Demographic Shifts: The recent population census showing a higher female population, who typically consume less alcoholic beverages, may affect the demand for PBL’s alcoholic products, necessitating adjustments in their product strategy.
     (2 marks)
4. Technological Factors:
   • Modern Automation System: PBL’s use of modern automation and lean manufacturing systems enhances operational efficiency, reducing costs and improving productivity.
   • Research and Development (R&D): The presence of an efficient R&D team allows PBL to develop new products that can meet the changing needs and preferences of consumers, helping the company stay competitive in the market.
     (2 marks)