PESTLE stands for “Political, Economic, Social, Technological, Legal and Environmental” and is used for business and strategic planning, marketing planning, organizational change, business and product development and research reports. By understanding these external environments, organizations can maximize the opportunities and minimize the threats to the organization. PEST Analysis Fast Foods
The various Political, Economic, Social and Technical factors that a firm needs to consider and research in order to enter the restaurant business in a new environment may be depicted as follows:- Political Factors:
Government regulations regarding hygiene, health and food regulations, food standards, etc. Economic policies of government regarding the restaurant industry and running eating joints; these may include licenses, inspections by Health and Food Ministry departments, etc. Economic Factors:
Interest rate would impact the cost of capital, the rate of interest being directly proportionate to the cost of capital. Rate of inflation determines the rate of remuneration of employees and directly affects the price of the restaurant’s products. Again, the proportion between the inflation rate and wages/prices is direct. Economic trends act as an indicator of the sustenance and profitability of your business in the chosen region and help you in deciding your marketing strategy. Social Factors:
Certain cultures abhor certain foods. For instance, Hindus will not eat beef and Muslims would not even touch pork. Therefore knowledge of these cultural facts about your business environment will help you decide whether or not you’ll be able to do any business there. Eating habits of the people in your chosen business environment may, and certainly will, affect your marketing decisions. Ratio of people preferring to eat out regularly.
A good technical infrastructure would lead to better production, procurement and distribution...