This report focuses on PEST analysis of UK’s food producing industry and giving some particularly essential ratios of some food producing companies. With the diversification of economic and geography environment, food producing companies, especially multinationals need to consider more about what situation they will be in and what barriers they will meet. The main work of this report is to identify what will influence the businesses, profits, and strategies of food producing industry throughout deeply analyzing these important board macro-environmental factors.
2. PEST Model
PEST is a model that being used to analyze the board macro-environmental of a company or an industry. The key factors of an external environment will possibly influence particular strategies successful or failure. These factors mainly divide into four aspects: political, economic, social, and technological(PEST Analysis, 2012). As a traditional industry, food producing is also influenced by these external factors. However, with the development of neoteric agriculture and the evolvement sense of food producing of modern people. This industry faces more risks, and the PEST factors are becoming more important than before.
1. Food safety controls of government
With more and more scandals about food safety arose, how to set customers’ minds at rest and to win their trust are becoming big troubles to food producers’ developments. Thus, controls of government are essential, and have a strong influence to food producers. During the summer of 2011, the E. coli cucumber scare had made lots of people lose their lives and had caused huge amount of loss(BBC, 2011). Definitely, the food producing industry was the worst one, because most of European countries had banned their vegetables’ import and many companies had to stop their producing then bore millions of loss because of lack of raw materials. On the...