Micro Food Processing Enterprises of Andhra Pradesh: Growth Opportunities Using the PEST Analysis

Abstract

Aims: This study aims to use PEST analysis to comprehend the strategies implemented by micro food processing enterprises in Andhra Pradesh, India, with regard to political, economic, social, and technological factors to provide an overview of their growth potential. Study Design: This study is designed as an observational study, utilizing both secondary and primary data. Methodology: The study uses PEST analysis, which is a framework used to analyze and understand the external macro-environmental factors that affect an organization. Secondary data was obtained from the Andhra Pradesh Food Processing Society (APFPS), while primary data was collected from micro food processing enterprises in Andhra Pradesh. Results: Based on the study's observations, it was found that the state government of Andhra Pradesh provides a favorable and friendly environment for initiating an enterprise by providing subsidies and incentives. Additionally, micro food processing enterprises adopt specific strategies to sustain competition. Andhra Pradesh was found to be the top South Indian state in net value-added products.