The environment around a company is more important than the company itself, and as business environment becomes more complex, strategic management is more important than ever before (Sanders, 1992). It is hard to implement a strategy without knowing the surroundings, so to understand the economic environment around a business is a necessity. Round Table Pizza has been in the pizza serving industry for over 50 years and has over 500 franchised and company-owned locations around the world. Round Table is known to be the 14th largest pizza industry in the business (Kuhl, 2008). The location specific that was closer looked at was the one located in Temecula, CA. Just at this location alone, there were many competitors within walking distance, making it hard to run a successful pizza place. General Environment
The external environment towards Round Table Pizza was complex. The economic dimension alone is enough to put this business into a deep hole, and the struggle is existent. It is hard for a food business to stay up in the recession that our nation is currently in. Upon talking to a manager at Round Table, numbers have decreased deeply which is due to the lack of spending power the customers have and the doubt in many people’s minds. There are many salient factors that can contribute to these issues, and it is easy to see the effect that it has on Round Table Pizza.
As of now, the economy is struggling deeply. Our debt is increasing at an exponential rate and for every dollar the government spends; 36 cent of it is borrowed (Jackson, 2012). Market uncertainty is near an all-time high, but has recently turned around. The debt now is much different than the last recession and this makes it much more complicated for the US to handle it (Gokhale, 2012). We are in a very unstable time and for any business to succeed is challenge enough. These hard economic times can only be countered by effective...