Analyzing the Food Industry with PESTLE

This assignment tasks students with conducting a PESTLE analysis of the food industry. Students must examine the various political, economic, social, technological, legal, and environmental factors influencing this sector. The analysis should consider both opportunities and threats presented by these forces to provide a comprehensive understanding of the current state and future prospects of the food industry.

Running Head: Introduction to Management
Mr Bean
Introduction to Management

Introduction to Management 1
Table of Contents
1.0 Description of company..............................................................................................2
2.0 PESTLE analysis....................................................................................................... 3
2.1 Explanation of PESTLE analysis............................................................................3
2.2 Impact of PESTLE factors on company..................................................................4
3.0 Porter’s five forces..................................................................................................... 5
3.1 Porter’s five forces..................................................................................................5
3.2 Impact of porter’s forces over organization.............................................................6
4.0 Strategic Recommendations......................................................................................7
4.1................................................................................................................................. 7
4.2................................................................................................................................. 7
4.3................................................................................................................................. 7
4.4................................................................................................................................. 7
5.0 Conclusion................................................................................................................. 8
6.0 References.................................................................................................................9

Introduction to Management 2
1.0 Description of company
Mr Bean Group Limited is a Singapore based retailer company. This company is a part
food and beverage retailer industry and mainly known for producing soya bean-based
drinks and food products. The company is situated in more than 65 locations across the
globe and they majorly deal in South-east Asian countries. Mr Bean was founded in
1995 and currently the company is managed by the Super Bean International. The
company was founded by Kang Puay Seng and Loh Jwee Poh and today it is one of the
leading manufacturer and retailer of soya bean beverages and food retailers across the
Singapore. Company is now planning to expand its operations in the international
market and for the same reason, they have asked their management team to analyse
the organizational pestle analysis and the competitive analysis in order to determine the
strengths and the capabilities in relevance with the external business environmental
conditions.
The report will include the competitive analysis, pestle analysis and the impact of those
factors over the performance of the organization. With the help of analysis, organization
could easily determine the requirement of the strategies through which the performance
could be increased along with the expansion related objectives would be attained (Mr
Bean, 2018).

Introduction to Management 3
2.0 PESTLE analysis
This is the tool through which organization could be able to analyse the external
environmental condition of the industry. This technique consists of various factors such
as political, economic, social, technology, legal and environmental. Analysis would be
made in relation with the factors which could affect the functionalities of the organization
(Chung & Parker, 2010).
2.1 Explanation of PESTLE analysis
Political: National political frameworks and rules and regulations developed by
government authorities are the major factors which affect the functionalities of the
organizations. Mr Bean Group Limited is engaged in providing soya bean beverages
and food products, thus, political barriers will not affect their functionalities. In order to
increase the efficiency, organization is required to consider all the regulations and the
frameworks described by the government in relevance with smooth functioning of the
organization (Baakile, 2011).
Economic: People are becoming more aware about the health conditions and with the
effect from this, diamond for the soya products are increasing in the international
market. Thus, Mr Bean has great opportunities to set up their place in the emerging
markets with its soya products and beverages (Massoud, Fayad, El-Fadel & Kamleh,
2010).
Social: Consumers’ demand and the requirements are changing constantly and with
the introduction of soya based products and beverages, organization could increase its
effectiveness along with the fulfilling the demands of the consumers. It is crucial for Mr
Beans to produce soya products as per the taste of customers along with the business
functionalities to remain successful in the global markets (Tamang & Kailasapathy,
2010).
Technology: Technology is changing rapidly and organizations are required to adopt
those changes in their functionalities with the motive to increase the efficiency of the

Introduction to Management 4
organization. Demand for soya products are increasing and with the increase in the
demand, production should also be increased and this could easily be done with the
help of technological improvements in order to bring the technological up gradation in
the workplace (Damron & Damron, 2013).
Legal: Soya products produced by Mr Beans should be done on the basis of
consumer’s requirements as well as on the basis of laws and regulations. Non-fulfilment
of the laws may generate issues for the organization and it may also lead to shut down
of the business. Thus, all the laws in relation with the production of the soya products
need to be considered for conducting the smooth functionalities (Ho, 2014).
Environmental: Mr Beans is following the rule of art of sharing and giving. With this
rule, organization is required to precede its functionalities through considering all the
environmental aspects. Along with this, it is required to adopt certain steps by the
organization through which environment do not get affected. Company believes
production through recycling, adopting the strategies for saving the energy and water
resources and with the help of eliminating the waste from the production process
(Morden, 2016).
2.2 Impact of PESTLE factors on company
Political: Non-fulfilment of the political policies and the framework will affect the
functionalities of organization and this will affect the effectiveness and efficiency of the
organization. Mr Beans is engaged in the food and beverage industry and it is required
for them to adopt certain strategies through which quality standards and the ethical
practices must be followed in relevance with producing the appropriate qualitative soya
based products and beverages (Peppard & Ward, 2016).
Economic: With the increase in the demand for soya products and drinks, Mr Beans
needs to fulfil those needs in an appropriate manner through maintaining the same level
of quality. Along with this, all the nutritious ingredients should be used in order to satisfy
the consumer’s needs. Price of the product should also be set on the basis of effective

Introduction to Management 5
pricing strategy which could increase the effectiveness of the organization (Srdjevic,
Bajcetic & Srdjevic, 2012).
Social: Social factors such as consumer’s demand, their taste, preferences and other
attributes have huge impact over the organizational performance. Ignorance of these
factors may lead to decrease in the demand of the products and beverages (Zalengera,
Blanchard, Eames, Juma, Chitawo & Gondwe, 2014).
Technological: Amendments in the technology should be adopted on the basis of
environmental conditions. This helps the organization to increase its productivity and the
level of customer satisfaction could also be increased. Non-adaptation of the
technological factors may affect the efficiency of the organization (Kolios & Read, 2013).
Legal: Legal factors such as policies, laws, regulations and the frameworks developed
by the legal authorities may affect the organizational performance. Thus, it is required to
perform the functionalities on the basis of rules and regulations in order to attain the
desired goals and the objectives (Chen, Chiang & Storey, 2012).
Environment: Environmental conditions are being affected rapidly and this is the
primary reason, people are concentrating towards saving the environment. Thus, it is
required for the organizations to initiate certain projects through which environmental
conditions could be improved and with the help of these projects, organization will be
able to develop a positive image in the consumer’s mind-sets (Quer, Claver & Rienda,
2012).

Introduction to Management 6
3.0 Porter’s five forces
This technique is being used for analysing the competitor for the company in the target
market and determination of the competitor’s strategies are also analysed from this
technique. Apart from this, this technique helps the organization to develop and adopt
certain advanced strategies through which organization could be able to uplift the
performance along with gaining the adequate competitive advantage (Martin & Swank,
2012).
3.1 Porter’s five forces
Threat of new entrants: Mr Beans is a food and beverage retailer brand based in
Singapore. They are known for producing soya beans products and drinks in order to
provide healthier drinks and food items to its target audience. Organization has set up
an effective goodwill in the market and in these scenarios; entries of new companies in
the same industry will affect the business functionalities of the existing organizations
along with the functionalities of Mr Beans (Dobbs, 2014).
Threat of Substitutes: This factor does not have huge impact over the performance of
Mr Beans because they deal in health conscious products while its substitutes will be
cold drinks, fast food items, etc. which are totally unhealthy. Apart from this, Mr Beans
concentrates over the demands of the consumers and then delivers them the products
on the basis of their requirements. Organization needs to maintain the quality of its
products along with the taste in order to gain the advantage in the market otherwise,
substitutes of soya bean products and beverages will overtake the current position of
the organization (Yunna & Yisheng, 2014).
Bargaining power of suppliers: Suppliers to this industry are limited and in order to
maintain the same position in the target market and to expand the business, it is
required to adopt certain strategies through which effective relationship could be
developed amongst the suppliers. Apart from this, suppliers plays crucial role in the
success and failure of an organization in the business market. Regular switching the
suppliers may affect the quality of the products and services delivered by the company;

Introduction to Management 7
thus, it is required to deliver the appropriate quality and quantity of the products in order
to retain the consumers and to attain appropriate goals and the objectives ( Dobbs,
2014)
Bargaining power of customers: Customers does not have huge choices in terms of
soya bean products and beverages in the Singapore. Thus, this factor’s impact over the
organization is quite weak and in order to enhance the performance of the organization
and to retain its consumers, it is required for the organization to uplift the quality of its
products in relevance with the developing and maintaining an effective image of the
organization in the competitive business environment (Dälken, 2014).
Industry Rivalry: When huge number of companies is available in the market, rivalry is
intense. In order to gain the competitive advantage, organizations are required to adopt
the innovative and effective strategies in relevance with fulfilment of the target
audience’s demands along with developing a unqiue position in the target market
(Perdana, Roshetko & Kurniawan, 2012).
3.2 Impact of porter’s forces over organization
Impact of these forces may affect the organizational performance and it may lead to
decrease in the efficiency of the organization. Following are certain elements which
could affect the performance of the organization:
Threat of new entrants: New organizations in the food and beverage industry may
provide better quality and wide range of products which could attract the target
audience. With the effect of this, existing organization’s functionalities and performance
may get affected. Thus, it has been recommended to the existing organizations to adopt
dynamic strategies which could help the existing companies to maintain their effective
image in the competitive business environment along with gaining the competitive
advantage in the target market (Vanthoor-Koopmans, Wijffels, Barbosa & Eppink,
2013).
Threat of Substitutes: Substitutes will not be able to create much impact over the
demand of the soya bean products and beverages. Apart from this, introduction of other

Introduction to Management 8
healthy drinks may generate negative impact over the soya bean products. It has been
reviewed that consumer’s taste, preferences and demands are changing constantly as
per the dynamic business requirements. Thus, it has been recommended to the Mr
Beans that they needs to adopt innovative and advanced strategies through which the
demand for soya bean products could be remained constant.
Bargaining power of suppliers: Suppliers plays vital role in the success and failure of
the organization and in order to increase the efficiency of the organization, relationship
amongst the suppliers should be developed in order to gain the positive results from the
organization. In order to get the materials from the suppliers at affordable prices,
positive relations should be developed amongst them (Jiang, Cai & Xu, 2013).
Bargaining power of consumers: Bargaining power consumers may affect the
business performance when the organization will fail to adopt the strategies on the basis
of business requirements. Along with this, it is essential for the organization in order to
uplift their performance and the efficiency in the target market. Management of the
organization is required to adopt the techniques in relevance with the business
environments and target audience’s demand.
Industry Rivalry: Impact of industry rivalry on the Mr Beans’ performance will be huge.
New comers and the existing organizations will adopt unique strategies for increasing
the effectiveness and the efficiency in terms to attain their desired goals and the
objectives. While, it is also necessary for the Mr Beans to adopt the same in order to
maintain their effective image as well as to uplift their performance through which the
expansion and growth related objectives could be enhanced.

Introduction to Management 9
4.0 Strategic Recommendations
4.1 Expansion
It has been recommended to the company to adopt certain innovative and dynamic
strategies and tools through which the desired goals could be attained easily. Apart
from this, it is also crucial in order to uplift the organizational performance in the target
market along with expansion related objectives in the overseas as well as in the
domestic market could be done easily.
4.2 Merger and Acquisition
In order to enhance the organizational performance in the international and in the
domestic markets, it has been recommended to the company to adopt the strategies of
partnership and making a joint venture type of firm with the highly reputed and well-
known brands. This will help the company to develop a positive goodwill in the target
market. Apart from this, organization could also utilise the merger and acquisition
strategy in order to set up an effective image in the target market. Merging with a
reputed brand or acquiring a domestic brand in the target market will help the
management to understand the market environment. This strategy will help them to
attain the goals and the objectives in relation with the expectations of the management.
Joint venture is another form of effective business and with the help of this, two
companies can simultaneously work upon the desired project for accomplishment of
targets.
4.3 Modifications in organizational structure
For increasing the organizational effectiveness along with increasing the efficiency of
the organization, it has been recommended to the organization to amend or to improve
the organizational structure in order to improve the functionality of the organization.
Apart from this, innovative marketing activities and the strategies could also be utilised
in order to spread the awareness amongst the target audience in relevance with the
organizational products and services.

Introduction to Management 10
4.4 Introduction of new product or service
Along with the above strategies, Mr Bean could introduce certain improvised and
innovative soya based food items and the beverages with good taste and on the basis
of its target audience’s requirements. This will help the organization to increase its
effectiveness along with the development of unique image in the target market.
Introduction of the new products and services will help the organization to gain the
market share along with development of the effective goodwill in the market.

Introduction to Management 11
5.0 Conclusion
From the aforesaid discussion, it can be concluded that the Mr Beans is a company
engaged in the production of soya bean food products and beverages through which the
consumer’s requirements are fulfilled in relevance with healthier cum tasty drinks and
food items. In order to analyse the organizational effectiveness, this report concluded
the various aspects such as macro environmental factors and competitive analysis and
its factors have been discussed in relevance with expanding the business in the
overseas markets. The last part of the report included the recommendation part through
which the desired goals and the objectives could easily be attained.

Introduction to Management 12
6.0 References
Baakile, M. (2011). Comparative analysis of teachers' perception of equity, pay
satisfaction, affective commitment and intention to turnover in Botswana. Journal
of Management Research, 3(1), 1.
Chen, H., Chiang, R. H., & Storey, V. C. (2012). Business intelligence and analytics:
From big data to big impact. MIS quarterly, 36(4).
Chung, L. H., & Parker, L. D. (2010). Managing social and environmental action and
accountability in the hospitality industry: A Singapore perspective. In Accounting
Forum (Vol. 34, No. 1, pp. 46-53). Elsevier.
Dälken, F. (2014). Are porter’s five competitive forces still applicable? a critical
examination concerning the relevance for today’s business (Bachelor's thesis,
University of Twente).
Damron, W. S., & Damron, W. S. (2013). Introduction to animal science: global,
biological, social, and industry perspectives.
Dobbs, M. E. (2012). Porter's five forces in practice: Templates for firm and case
analysis. In Competition Forum(Vol. 10, No. 1, p. 22). American Society for
Competitiveness.
Dobbs, M. E. (2014). Guidelines for applying Porter's five forces framework: a set of
industry analysis templates. Competitiveness Review, 24(1), 32-45.
Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic
analysis. European academic research, 2(5), 6478-6492.
Jiang, S., Cai, W., & Xu, B. (2013). Food quality improvement of soy milk made from
short-time germinated soybeans. Foods, 2(2), 198-212.

Introduction to Management 13
Kolios, A., & Read, G. (2013). A political, economic, social, technology, legal and
environmental (PESTLE) approach for risk identification of the tidal industry in
the United Kingdom. Energies, 6(10), 5023-5045.
Martin, C. J., & Swank, D. (2012). The political construction of business interests:
coordination, growth, and equality. Cambridge University Press.
Massoud, M. A., Fayad, R., El-Fadel, M., & Kamleh, R. (2010). Drivers, barriers and
incentives to implementing environmental management systems in the food
industry: A case of Lebanon. Journal of Cleaner Production, 18(3), 200-209.
Morden, T., 2016. Principles of strategic management. Routledge.
Mr Bean. (2018). Accessed on 21st January 2018 from http://www.mrbean.com.sg/
Peppard, J. and Ward, J., 2016. The strategic management of information systems:
Building a digital strategy. John Wiley & Sons.
Perdana, A., Roshetko, J. M., & Kurniawan, I. (2012). Forces of competition:
smallholding teak producers in Indonesia. International Forestry Review, 14(2),
238-248.
Quer, D., Claver, E., & Rienda, L. (2012). Political risk, cultural distance, and
outward foreign direct investment: Empirical evidence from large Chinese
firms. Asia Pacific journal of management, 29(4), 1089-1104.
Srdjevic, Z., Bajcetic, R., & Srdjevic, B. (2012). Identifying the criteria set for
multicriteria decision making based on SWOT/PESTLE analysis: a case study of
reconstructing a water intake structure. Water resources management, 26(12),
3379-3393.
Tamang, J. P., & Kailasapathy, K. (Eds.). (2010). Fermented foods and beverages of
the world. CRC press.

Introduction to Management 14
Vanthoor-Koopmans, M., Wijffels, R. H., Barbosa, M. J., & Eppink, M. H. (2013).
Biorefinery of microalgae for food and fuel. Bioresource technology, 135, 142-
149.
Yunna, W., & Yisheng, Y. (2014). The competition situation analysis of shale gas
industry in China: Applying Porter’s five forces and scenario model. Renewable
and Sustainable Energy Reviews, 40, 798-805.
Zalengera, C., Blanchard, R. E., Eames, P. C., Juma, A. M., Chitawo, M. L., &
Gondwe, K. T. (2014). Overview of the Malawi energy situation and A PESTLE
analysis for sustainable development of renewable energy. Renewable and
Sustainable Energy Reviews, 38, 335-347.