ENVIRONMENTAL ANALYSIS
In this section of the business plan, we studied about the different factors in the
environment (internal and external forces) that affects or may affect the business that we will
start and run. This section includes the trends nowadays who may greatly contribute to the new
ideas of products that will be patronized by the consumers in the near future.
Each individual has different needs and wants and as we see such important factors this
serves as the way to come up with new products and new ideas. People’s needs and wants should
be the first thing to consider, this will be the basis of what product is needed in the particular
area. We must not also forget the laws and regulations in the locality where we will put our
business. Laws were implemented to be followed and to organize the society’s ordinance.
GLOBAL ANALYSIS
Philippine tourism is boosting and continuously growing as the tourists love the sceneries
and islands of the Philippines. One of the richest municipalities in the country is the Mariveles in
Bataan. Aside from its industrialized community, its natural sceneries attract local and
international people all over the world. With a lot of tourists passing by, tourism worldwide offer
foods that reflect the culture and traditions of the local people of the community. Along with the
emergence of modernity, innovation on foods is very evident nowadays.
PESTLE ANALYSIS
POLITICAL FORCES
This dimension of the PESTEL/PESTLE analysis model reflects governmental influence
on business and industry. In Whole Foods Market’s case, the following are the most significant
political external factors in the remote/macro-environment:
1. Regulations on organic and GMO food (opportunity)
2. Free trade agreements (opportunity)
3. Low labor standards in developing countries (opportunity)
Whole Foods Market has the opportunity to further improve its standards to ensure proper
labeling of organic and GMO-free products. The firm also has the opportunity to expand its
business based on advantages of free trade agreements, such as through new locations overseas.
In addition, Whole Foods Market can capitalize on its Whole Trade Guarantee to build its brand
and attract more customers. The Whole Trade Guarantee certifies suppliers based on criteria like
fair labor and employment practices. Thus, Whole Foods Market has already taken steps to
address the opportunities based on the political dimension in the PESTEL/PESTLE analysis
model.
McDonald’s considers the impacts of the political environment on its industry. This aspect of the
PESTEL/PESTLE analysis refers to the effects of governmental action on the remote or macro-
environment of businesses. In McDonald’s case, the most significant political external factors are
as follows:
Increasing international trade agreements (opportunity)
Pending tax reform (opportunity)
Evolving public health policies (threat and opportunity)
McDonald’s has the opportunity to expand its business based on improved international trade,
which can enhance global supply chains. McDonald’s also has the opportunity to reform its
practices and strategies to lessen the impact of taxation on the business without violating the law.
However, public health policy increasingly tends to discourage people from consuming fast
foods from firms like McDonald’s. Nonetheless, the company has the opportunity to address this
external factor by improving the healthfulness of its products. In this aspect of the
PESTEL/PESTLE analysis of McDonald’s, the political external factors present opportunities
that outweigh threats.
The operations of any organisation are heavily influenced by the individual state policies
enforced by each government and McDonald’s is no exception. For instance, there are certain
groups in Europe and the United States that protest to the state pertaining to the health
implications of consuming fast food. They claim that harmful elements like cholesterol and
adverse effects like obesity are attributable to consuming fast food. There are other factors such
as the tax law, employment law and related trade restrictions. Tax rates could affect the growth
of the organisation. In a diverse working environment employment restrictions like working
hour’s regulation require the organisation to employ more staff. Amendments like this increase
the overall cost involved. Certain restriction has very strong influence in the operation of the
organisation. Certain laws penetrate so deep that they even constrain the content of the food.
Trends affect the food industry. Fast food restaurants are adding “healthier options” on their
menus as public health policies are pushing for foods with lower sodium and sugar intakes.
Current policies push for the public to be more conscious when buying foods. For example, as
part of the Health Menu Choices Act, food services with over 20 locations in Ontario, Canada,
must now post the number of calories for food and drinks openly. A change like this could affect
purchases of foods (and the importing/exporting of ingredients) for their country.
The political factors affecting fast food industry can vary from country to country. Compliance is
of utmost importance. Globally, the fast food brands have to comply with these requirements.
There are regulations related to wages, hygiene and food quality that need to be complied with.
The minimum wage standards can differ from country to country. In countries where wage rates
are high, the labor costs are high. Apart from it, packaging regulations have also changed.
Governments can also press the fast food chains to include healthier items on their menus. These
are the most important political factors that affect the fast food industry. After all, it is the
attitude of the governments towards the businesses that affects their performance.
Government regulations and legal issues affect a company's ability to be profitable and
successful, and this factor looks at how that can happen. Issues that must be considered include
tax guidelines, copyright and property law enforcement, political stability, trade regulations,
social and environmental policy, employment laws and safety regulations. Companies should
also consider their local and federal power structure, and discuss how anticipated shifts in power
could affect their business.
ECONOMIC FORCES
SOCIETAL ANALYSIS
TECHNOLOGICAL FORCES
LEGAL FORCES
ECOLOGICAL FORCES
