Swot and Pest of Fast Food Industry

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Holborn College

Subject : Corporate Strategy | Course Work Title : Fast Food Industry Analysis| Module Code : WAMB 4006| Module Leader : G.Bowen| Student Name : Parineeta Ubhiryane| Student ID : 37754 No. of words : 1987 (Word limit :2000)| Student’s signatureDate:| |

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MBA 2009-2010

TABLE OF CONTENTS

Macro-Environment (Intro)……………………………………………….……………………….. 03 Pestle Analysis(Intro) …………………………………………………...…………………03 Pestle Analysis(Benefits)……………………………………………….………………… 03 UK fast food industry(Intro)…………………………………………………………………...……04 PESTLE analysis(UK Fast food industry) ………………………….………………………….. 04 Political Factors………………………………………………………..………………….. 04 Economical Factors ……………………………………………..……………………….. 05 Social Factors …………………………………………..………………………………… 05 Technological Factors ………………………………………………………………..…. 06 Legal Factors ……………………………………………………………..………………. 06 Environmental Factors ………………………….....……………………………………...07

SWOT Analysis(Intro)……………………..…………………….………………………………….08 SWOT Analysis(Diagram)………………………………………………………………..08 Limitations(SWOT analysis) ………………………...……………………..……………..09 Conclusion………………………………………………………………………………….10

REFRENCES…………………………………………………………………………………….11-12
Websites……………………………………………………………………………………13

Question 1
Macro-environment:
It refers to the highly volatile external environment surrounding the business. Gaining an in-depth knowledge of the macro-environment is very crucial for any firm’s success or failure. (Bourgeois, 1996) Thus, exploring the different ways in which the macro-environment might change is done through its various tools. Pestle analysis:

It is a strategic management tool that helps organisations to develop strategies in accordance with the macro-environment in which it operates. (David, 1997) Pestle stands for the political, economical, social, technological, legal and environmental factors. Pestle analysis refers to those factors that have an indirect as well as direct affect on all the firms in the industry. (Wheelen and Hunger, 1998) For e.g.: Inflation has an indirect affect whereas VAT has a direct effect on the company’s product. Mintzberg states that pestle analysis is no more than a check-list that should be kept in mind while drawing up a strategy. Identification of key environmental factors that have long term impact on the industry is done through pestle analysis. (Mintzberg, 1994) Benefits of pestle analysis:

Pestle analysis alerts the firm about the factors that could have a negative or a positive impact on its overall performance. (Wheelen and Hunger, 1998) For eg: some factors have both positive as well as negative impact,  thus the firm can function accordingly keeping in mind those factors and their effect on the firm. It also draws attention towards the changes that take place in the environment relating to the rules and regulations, government policies etc that might affect the firm.(Mintzberg, 1994) For e.g.: If the company is aware about the technological change that is about to occur in the near future and basis its strategy on it, it can easily adapt to it and continue with its operations without any damage. It develops a better understanding of the external environment of the firm. It draws a list of factors affecting in the firm in some way or the other thus providing a better perspective for achieving success. (Johnson; Scholes & Sexty,1989)

The UK fast food industry (Introduction):
Fast Food can be defined as “ the meal which can be quickly made, but do not have enough nutrition and can also be termed as junk food”. In other words, it can be said that it is made  for...
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