PEST Analysis essay
PEST analyses provide tools to identify opportunities and threats.
Political – Globally operated organization must have up to date knowledge regarding rules and regulations relating to taxation and competition regulation.
Economic – Interest and Exchange have impact on consumer spending and could affect their profitability.
Social – The cultures of people in different countries can affect the marketing strategies of a company will use as market their products. The industry players has to consider vary many factors of the marketing, market place, some of these are political factors, social factors, economic and technological factors.
Looking at the social cultural factors ethnocentricity is a major factor especially if a country has diverse cultures. This is a major challenge because most of these people hold so much to these cultures that it is very difficult to make them adopt your product and your marketing strategies. To enter a market like the middle market one must understand that they do not consume other products like toilet papers in large quantities as an example because that’s some of their cultural beliefs and practices.
This means that in order to operate in such markets one has to understand the practices of the people in these regions, their cultures and other
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Ethnocentricity has also a great impact on the type of media to use in communication of the product preferences to people of diverse cultures i. e the way the company will advertise its products and services in Britain will be different from the way the product will be advertised in Britain and the advertising media to use. The advertising medias range from print visual, audio- visual, billboards and small adverts done in between movies i. e in between football matches. In France and Britain the best media to use are the print media and audio visual like T.
Also read Burger King SWOT Analysis
Vs. However, billboards can also be used especially if they are to be set up in roundabouts in towns to remind the people on the product. China and Japan on the other hand need entirely advertisements over the Radio because this is the best media to reach a large number of people. Technology – Stay up to date with technological factors such harvesting method. SWOT analysis The industry has the following Strengths and weaknesses, opportunities and weaknesses Strengths: – helps in environmental conservation therefore customer confidence high
-Low product costs – raw materials are cheap. -Highly experienced management and staff available in the market -Growth by increasing market share through diversification of products that supports sustainable development -Able to promote several products from waste material. -High operation margin due abundant waste materials, no risks relating to profitability Weaknesses -Barriers to expansion due to environmental regulations by governments -Licensing problems -Highly competitive market -Raising money from banks rather than shareholders.
Fast food products has become an important industry player by investing in diversified products and services, winning consumer confidence and by providing them various products from waste products. Opportunities – Sustainability reporting requirement by government to companies thus increasing the food. -Growth by increasing market share through mergers and acquisitions within the industry. -Develop new foods which link to changing peoples lifestyles. -Incorporate new technologies in production to stay ahead of the competition
Threats -Lack of knowledge, Investors unhappy -Economy – Expensive borrowing -Expansion, Mergers and Acquisitions – could lead to failure -Competition – other major companies entering the market could affect their revenue -Rules and Regulations of different countries Strategic Analysis and Choice The company’s recent strategy focuses on: -Developing new state of the art products -Continuing the past legacy of innovation -More acquisitions -Developing and building an efficient and aggressive marketing technique
-Reaching out to the overseas market The company’s objectives The organization’s objectives and objectives include: • Assisting citizens to have health foods with the aim of reducing obesity cases in the country. • To provide meals to both local and travelers to the UK. • To be the best service providers in fast foods and hospitality industry. • To offer customers services on 24 hour basis to the customers. • To ensure that the employees are given the best reward to share the profits of the company
• Introduce brands to the customers and make foods industry very competitive. • Lowering of prices of in the fast foods industry • To have a steady market growth. Vision:-To win the lion share in fast foods industry. Goals:-To achieve a growth rate of 10% in the next five years. Operational Macdonald operates all over the world with a variety of products and • Focus on customer needs • Promotions e. g. special days • Highly skilled employees to keep it running effectively • Investments in key products such as Burgers and many products