Environmental forces affecting Greggs and their impacts
In today’s society there are a number of forces affecting how businesses run; in this essay I will explain how different forces affect a bakery chain called Greggs. Greggs is the largest bakery chain in the UK, over the course of its existence Greggs has already adapted numerous times to adapt to changing requirements in its target population and to try and maximise profits. In 1972 Greggs expanded outside of North Eastern England for the first time opening a regional division in Glasgow, twelve years after this happened Greggs started to trade on the London Stock exchange. Also in 1994 Greggs acquired 424 bakers oven shops which enabled Greggs to have an in store bakery this enabled them to put Greggs shops in built up busy areas and Bakers oven shops in smaller previously untouched areas with a lower population as the shops could bake what is needed for demand. Greggs offers take outs so it can be a quick and easy visit to the store whilst bakers oven offers seating and works similar to a restaurant for people on the move wanting a seat and something to eat. Greggs competes with all bakery chains and food outlets as well as coffee shops to gain customers as Greggs relies on people needing food so they must make their products affordable and of high quality in able to ensure that customers will choose their products rather than other food retailers. Greggs has also set the standard for other bakery chains by expanding outside of the UK with two shops in Belgium and plans for many more shops in Europe making them the first british bakery chain to attempt and expansion outside of the UK. In 2008 the global bakery products market is estimated to have been worth US$275 billion making it a very profitable market which is ever increasing. The forces I talked about earlier are environmental forces, which are made up of the macro and micro environment, macro environment is uncontrollable external factors to the business, which consists of political, economic, social, technological, legal and eco environmental factors. The micro environment is made up of stakeholders and how their ideas and demands affect how the business operates. For the purpose of this essay I will concentrate on the macro environmental forces in the form of a Pestle analysis. Greggs is British bakery chain which operates mainly in the UK with at least 1500 shops, the government in the UK is classed as stable so this is of benefit to Greggs as it does not have to keep changing because of an unstable government making changes to laws and legislations or with a shift of power between parties battling to gain power. Political factors affecting Greggs consist of health and safety regulations for employees which means that Greggs must operate in a safe way in order to prevent any injuries to staff or customers. All businesses must take great interest in health and safety but Greggs being a bakery chain that sell food products must pay extra attention to health and safety as a cut could contaminate products and cause waste. Staff members must be careful while working to ensure there are fire exits accessible and the floors are clear of obstruction along with suitable oven cleaning equipment and personal protective equipment. Greggs must adhere to food hygiene legislation set forth by the government such as the HACCP to ensure that no cross contamination has occurred and no bodily fluids or pathogens have come into contact with the food which could cause harm to a customer through food poisoning. Also any plasters worn must be blue in colour and waterproof so if it comes off in the baking process and comes into contact with any of the bread mixes or pastry mixes it is easily identified and taken out preventing contamination through blood etc. Therefore all food must be of optimum quality and not posing a risk to consumers health and wellbeing by being unhygienic or uncooked. This brings me onto my next point of...
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