Spur Steak Ranches Pestle Analysisand Porters Five Forces Model

Topics: Fast food, Restaurant, Food Pages: 7 (1953 words) Published: May 29, 2012

This paper shall involve and include a discussion and analysis of the macro environment of business using the extended PESTLE tool and an analysis of the micro environment in which the business operates by use of the Porters Five Forces Model as a tool. From the analysis of the micro environment of the business, one trend and one crisis will be identified and there will include a short strategy in which the business can address each of these issues. In this case, the situation surrounding Spur Steak Ranches shall be taken into consideration.

About the business
Spur Steak Ranches is a steakhouse franchise restaurant chain originating from South Africa. Its menu mainly features beef burgers, steaks and ribs, along with salads, chicken, seafood and vegetarian options. The company was founded by Allen Ambor in 1967, when he opened the Golden Spur in Newlands, Cape Town

P²E²STLE Analysis on Micro Environment


The operations of Spur Steak Ranches are highly influences by the laws and policies in traduces and enforced by the government of South Africa. Regarding restaurants in South Africa, health legislations are enforced to ensure that the premises and equipment of restaurants are of the correct health and hygiene standards. In the case of restaurants in South Africa, a license from the local health department is commonly required to operate and proceed in such a venture. The government of South Africa controls the license given for the opening and operating of food restaurants and other businesses. A good relationship with the governing body is vital and a must in ensuring that the business succeeds in the South African market.


there are many requirements regarding the physical location of a business operating in the food industry. Regarding a food premises such as Spur Steak Ranches, the location is pivotal to the success of the business as it has to be easily accessible to its customers and in close proximity of its suppliers so as not to affect the their products. The location itself has to be in such a condition that it can be used at all times for the purpose of which it was designed , without creating a health hazard, being of appropriate hygiene standards and having affective protection from outside odours, pollution or any contamination


Like any business operating in the food industry, Spur Steak Ranches have their own set of troubles and disputes, specifically involving their individual concerns associated with economic factors. A franchise such as Spur Steak Ranches has a tendency to experience times of hardship during times in which the economy is hit by changes in the exchange rate and inflation, resulting in fewer customers as the price of their products increase as a result of the increase of the prices of resources used to produce these products.

The life style of consumers is another important impact factor affecting consumer buying behaviour. With the general increase in the average economic status of the population of the country, there will be a general change in the interests, opinions and activities of customers. With more money to spend, a higher percentage of the population will look to pamper and indulge themselves by eating out at restaurants more frequently.


As a restaurant held in such high esteem by its consumers, Spur Steak Ranches has to not only focus on maximizing their profits, but also not contradicting their own beliefs and values and going against the values and beliefs of their customers. For example, they have recently introduced a Halaal menu in an effort to broaden their target market even further. The company has to ensure that their Halaal certification does not become a concern to their Muslim consumers. The business should protect their integrity and the confidence of its consumers by ensuring that the materials, processes and products are exactly as claimed to be.


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