Food industry is a continuously on demand industry that people are always needed and want. Some economists and analysts claim that food industry is one of the most proofs to economic slowdown. This makes this industry a resilient, reliable and profitable industry. The products and foods that are part of the booming industry includes, confectioneries, health products, biscuits, kids foods, animal foods, crackers, bakeries, cakes, vegetables etc. The wide range of products available offers ample of opportunities for business in this line, growth and progress in line with the advancement of technology and new channel of marketing. Definition of Strategic analysis
This includes an implementation of strategy and approaches after taking into consideration various factors i.e. internal and external that directly and indirectly affects the company. Strategic analysis will analyze and assess various forms of strategy after considering the threats potential opportunities etc that the company could exploit in order to succeed and remain relevant to customers. A proper action and steps towards strategic decision and analysis will enable the company view all the potentials and weaknesses within the company and therefore will ensure the positive move in the future. The PEST analysis
A PEST analysis is a business measurement tool that assesses and analyzes the factors of. Political, Economic, Social and Technological which then translated to the proper implementation of strategic decisions prior the results of PEST analysis. Factors affecting the Food Industry (PEST Analysis)
1) Political factors
Political factors are the factors that include government intervention and barriers in terms of tax/tariff that could benefits the citizen or the government. Apart form that, it also includes the policy and systems that government adopt in regards of business friendly particularly in food industry. The likes of importing policy, regulation and procedures, policy of taking over, merger and acquisition that could affect the constant supply of foods to the country etc are part of political factors. 2) Economic factors
Economic factors include stability, income parity, income status, purchasing powers, exchange rate, unemployment rates, interest rates etc. This will certainly affect the decision and actions taken by the company economically. As food is part of necessity and demand by people around the world, as every needs food to survive and living, we could say the industry is not much sensitive on the economic change and volatility. 3) Social factors
Social factors include the trends and patterns of demands which due to the cultures, nationality, religious etc. Brand awareness on a country might differ with each others, income distribution, age, demographic, preferences, local and global attitudes towards certain things are different. As for food industry, it's known that local preferences will determine the acceptance of food products. The local taste and likes must be met and this will require the business and companies to understand the local market before embarking into the local ones. 4) Technological factors
Technological factors really affect the production and effectiveness of the plant and operation. As for the food industry we are seeing the advancement and improvement in terms of technology employed in food industry that as a result improve the yield, making it more efficient and reliable. Product innovation and improvement is also produced with the help of new technology, systems or techniques, This will then help the companies to produce high quality and better food products in terms of taste, health ingredients, safety etc. SWOT analysis.
SWOT is analysis of all the possible factors of strength, weaknesses, opportunities, and threats. As PEST are just a tool that addresses the external factors that potentially affect the business, the SWOT seems will give better result and pictures...