Pestle and SWOT Analysis of Gourmet Burgers

In this report, we conduct a comprehensive Pestle analysis of Gourmet Burgers, examining the company's business environment, including political, economic, social, technological, legal, and environmental factors. We also perform a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. The results provide valuable insights for management to develop effective growth strategies and increase market share.

BUSINESS AND THE
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1: Analysis of Different types, size and scope of organizations..............................................................3
TASK 2..........................................................................................................................................................6
P2: Relationship between organizational function and organizational objectives...................................6
TASK 3..........................................................................................................................................................8
P3: PESTLE analysis for identifying the impact on business.....................................................................8
TASK 4........................................................................................................................................................10
P4: SWOT analysis of Gourmet Burgers.................................................................................................10
CONCLUSION.............................................................................................................................................13
REFERENCE................................................................................................................................................13

INTRODUCTION
Business environment is consists of two words 'Business' and 'environment'. Business
environment is the setup of various conditions like institutional, political or social that influences
the growth of organization. Both internal and external factors are linked with each other and
hence affect each other. The taken company for this assignment report is Gourmet Burger, which
is a restaurant chain based in London. This company is a medium sized organization. In this
report different types, structure, size, scope and purposes of organization are explained. This
report will also explain the relationship between different organization function and their link to
organizational objectives. Also the PESTLE and SWOT analysis is been used for studying
various macro factors and their impact on organization. Further the report also connects the
strengths and weakness with the macro environmental factors.
TASK 1
P1: Analysis of Different types, size and scope of organizations
There are various types of organizations based on their size, structure and revenue.
Although three types of organizations i.e. Public, Private and Voluntary organizations are
discussed in detail along with an example.
Public organization:
These types of organizations are owned and run by the government without worrying
about the profit. Such type of organizations aims to provide better services to the various
communities. The taken company for this organization is Oxfam, which is a United Kingdom
based organization present at a global level. This organization is consist of 20 independent
charities organizations aim to remove poverty. It was founded in 1942 by Oxfam international. It
is a nonprofit group with a variety of operations in different countries (Hilton and Platt, 2013).
In 2010, Oxfam adopted the rights based approach as the tool for evaluating the work of
organization and of the partners associations. Oxfam recognizes the need of human rights and
adopted several aims to explain these rights practically. These are described below:

 the right to sustain their lives
 the right of social services
 the right of safety and security
 the right to be heard
 the right to an identity
Oxfam believes that poverty can be removed by human actions and political will. It believes in the
right to sustain the lives and human rights to participate in social services and bring positive
changes to individuals life. Oxfam states that peace and reduction of weaponry arms are required
for development of a country and its people (Reim and et. al., 2015).
Private organizations:
These type of firms are owned and run by private persons. The purpose of these
organizations is to make maximum profit from consumers. In private sector the taken company is
Gourmet burgers. It specialized in food mostly in burgers and headquartered in London. The
company has presence in United Kingdom as well as internationally in Greece, Ireland and
Middle East. It provides a variety of fast food products both online and offline. Company is
providing income to 2,000 employees. It is started in 2001 by 3 partners. Company was the first
to introduce gourmet burgers to the consumers. It was sold to Clapham house group in 2005,
who opened 53 more restaurants in UK. Later it was sold to Capricorn Ventures in 2010. The
company has a variety of products for fulfilling the demands of customers. The company has a
huge scope of development in future due to its heavy investment in R&D and quality foods with
varieties.
The company is on mission to provide quality foods and products to its consumers. its
mission of providing quality accessible to others. The mission is known for providing
information to the customers about the thinking and concern of management for achieving this
mission. The company wants to provide quality, trust and innovative solution to customer need.
The company aims to fulfill the objective for which the company is built. Company is providing
quality products and services which are desired by the customers.

Gourmet burger follows a flat organizational structure; this type of structure consists of a limited
number of management between the higher and the lower level authorities. This structure is
followed by organizations to improve their decision-making process. The company
communicates with its various stakeholders like customers, community, government and etc.
This communication is very much requires attention because these external factors can affect the
company in long term or if left unviewed (S.W and et. al., 2014).
Voluntary organizations:
These are not controlled by any particular people. Regardless, they are owned by both
government and charities. In the voluntary organizations here, Save The Children is considered
for analysis. It is an international non-government organization which is operating in emerging
countries. It provides support and help to the children facing various issues and the company is
working for protecting children’s rights. It was started in United Kingdom in1919. The main
objective of the company is to improve the livelihood of the children by providing proper
education, health care and economic opportunities. It also provides help to the children which are
affected in natural disasters, wars and other conflicts. The members of this NGO are 29; in spite
of this the company is operating in 120 countries along with the acquaintances and alliances.
This organization promotes more rights to the children by introducing new policies. This
organization is totally influenced by the UN Declaration of Rights of the Child. There are many
campaigns run by this NGO. Some of the major movements of this NGO are Rewrite the future,
every one Campaign, Every beat matters and If London were Syria.
Legal Structure of Organisation
Private Sector: There are two types of companies who are in private sector which can be
partnership or sole traders:
 Partnership: This kind of sector can be stated as legal entity in which two or more then
two people comes under mutual agreement for conducting some work.
 Sole Traders: In this, companies are generally owned by single person who is whole and
sole responsible for bearing profit and loss.

Public Sector: There are number of organisation who are being structured for the public
sector which are mentioned below:
 State Government: Their working structures is different from the central one due to the
rules and policies which are being formed within the marketplace.
 Local Government: These are the local state which mainly looks after the people's
welfare along with communities by rendering the provided by the Govt.
 Central Government: In this type of state management, after the local part central one
comes in and is the main power.
TASK 2
P2: Relationship between organizational function and organizational objectives
Functions of Organization
The organizational structure is consisting of small segments such as finance, marketing,
management, R&D etc. These functions help in achieving good efficiency due to the proper
allocation of work is done according to the individuals area of interest which will helps to
achieve organizational goal. Various functions are required to run an organization efficiently.
These functions help the organization in achieving their goal. These functions are interconnected
to each other which is a good thing for the company (H.R. and Gon Kim, 2012). Some of the
common functions of an organization are stated below:
Financial Function:
This function is related to financial activities of the company. This function is useful in
maintain Financial records of organization which can be used for tax purpose and legal
requirement. Gourmet burger is using this function effectively and through this function, the
management is keeping eye on company’s financials. For example- Production department
requires latest and updated machinery which can be provided by financial department for
purchasing these expensive machinery. If finance department will allocate funds properly then
other departments can also work effectively.

Human Resources Functions:
This function includes the planning, recruiting and managing the staff requirements and
providing recruitment and selection of candidates. The HR department ensures the smooth
functioning of employees and company. For example- HR department needs help of marketing
department for publishing the job online. These promotions from marketing department will help
in bringing skilled and potential customers.
Operations Functions:
This function brings raw material and allows production process to produce the products
and services required by the customers. It also provides ideas for improving productivity and
reducing cost and expenses. This department needs help from marketing and finance department
in order to chose suitable suppliers and costs of raw materials. In Gourmet burger, this function
is linked with research & development which operates in other functions such as marketing,
management, finance etc.
Marketing Functions:
Marketing is the essential part before delivering the product and services to the market.
Without providing knowledge to customers regarding to product, it is hard to sell product with its
full efficiency. Proper marketing strategies are required based on customer’s geographical needs
and the area where the product is going to deliver. This department needs help from finance
department in order to use suitable and premium marketing tools and techniques for attracting
the customers (Onetti, A and et. al., 2012).
TASK 3
P3: PESTLE analysis for identifying the impact on business
PESTLE analysis is a tool used by organizations to identify the effects of macro
environment factors on the organization. From this analysis, leaders of Gourmet Burgers can
identify the factors that can influence the organization. These factors are explained below:
Political Factors

Gourmet Burgers has restaurants in many countries which can be a cause of worry due to
the various political conditions of these countries. Such factors are controlled by the government.
Positive impact- Government policies, strategies and political stability in UK had a
positive impact on the company.
Negative impact- There is a need for Gourmet burgers to identify such factors before
launching a new product in a new market.
Economic Factors
These factors are related with the economic condition in which the company is present.
Such factors depend upon the economic stability of a country. Customer with quality standard of
life would like to prefer expensive food, whereas economically backward people tend to prefer
cheap food.
Positive impact- Gourmet burger has a menu full of varieties from cheap to expensive
which will attract new customers.
Negative impact- The demand of gourmet burgers is comparatively less in eastern
countries as compared to other countries (Hilton, R.W. and Platt, D.E., 2013).
Social Factors
Such factors included shared or mutual feelings of individuals, Demographic conditions,
culture etc. which will influence the performance of the organization very critically. Such factors
affect the mentality of peoples and they expect high service and quality from the gourmet burger.
Positive impact- Changes in lifestyle of UK people for healthy eating habits can affect
the company in a positive way.
Negative impact- These changes are frequent according to the latest trends which can
also be a negative impact due to the change in taste and healthy food.
Technological Factors

Technological advancements play an essential role in development of a company.
Advancement makes the business essential, consistently brings new development and old ones
breeze up obsolete.
Positive impact- Gourmet burger has understood the importance of development and
research and concerned with the quick changes happening in the world
Negative impact- Company is still trying to upgrade their machinery from production
line to end product as some stores don't have updated tools and machines.
Environment Factors
Hygienic products are the demand of today’s customers. They want that the product they
are choosing is not harming the environment and that they are from sustainable resources.
Government’s policies and regulations towards the environment is forcing companies to change
their old ways and adopt eco-friendly habits. Gourmet burgers must ensure that its products are
not harming the environment. It is the corporate social responsibility of the (Ebert, R.J, 2011).
Positive impact- Company is ensuring that its products are pollution free environment
and hygienic.
Negative impact- Laws and regulations for environment protection and controlling
carbon emission will negatively effect the company.
Legal Factors
Due to its presence in many countries, Gourmet burgers can face various legal issues of
those countries. There are certain rules and regulations regarding different business processes.
Positive impact- Gourmet burger is staying updated with changes in rules and regulations
of the governments.
Negative impact- Different rules of different countries must be hard for company to
follow.

TASK 4
P4: SWOT analysis of Gourmet Burgers
SWOT analysis is an important tool for finding the internal and external factors that can
influence the company’s performance. Leaders of Gourmet Burgers can use this analysis for
accessing the situation of the company. It is a helpful to determine the Strengths, Weakness,
Opportunities and Threats. Gourmet Burgers is one of the major companies in the food sector of
United Kingdom. SWOT analysis of Gourmet burger is described below.
Strength strategies
Gourmet Burger has various qualities that are helping the company to stay in competition.
These qualities not only protect its market share but these are also helpful in penetrating new
markets (Wetherly, P, 2014).
 Gourmet Burgers is moderately fruitful at execution of new ventures and created great
profits for capital consumption by building new income streams.
 Gourmet Burgers is putting huge efforts in training of their employees for enhancing their
skills, which leads to improved efficiency of these employees.
 Good reputation in mergers and acquisition of smaller firms. The company has
effectively integrated their other smaller ventures for bringing technology and innovation
to the consumers and in improvement of their supply chain and store networks.
Weakness strategies
Weakness is the place where an organization can improve itself and then turn it into
opportunities using SWOT analysis.
 Marketing strategies of the Gourmet burgers needs to stay updated for getting an upper
edge over the competitors (Hair Jr, and et. al., 2015). Implementation of new and
attractive marketing strategies can bring new customers.

 Upgrade in Research and Development are a major problem for the company. Regardless
of the huge amount of money spent by Gourmet burger in Research and technology, It
still doesn’t have the capability to compete with existing major players like Mc Donald
and Burger King etc.
 Less varieties of some major products sold by company is a place where improvements
are needed. Due to this competitors market share in those products is increasing.
Opportunities strategies
 Company is thinking to expand in Asian countries where the emerging markets have
huge possibilities.
 New examples in the customer direct can open up new market for the Gourmet Burgers.
It gives an exceptional opportunity to the relationship to collect new wage streams and
improve into new thing characterizations also.
 Over the past couple of years the organization has heavily invested on digital platform.
This has opened new opportunities to company. Gourmet burgers can use these
opportunities to know and understand their customers better and can provide quality
products to fulfill the demands of these customers (Bryman, A. and Bell E, 2015).
Threats strategies
 The company can face problems in United Kingdom market due to the Brexit issue which
can affect the company in a serious way.
 Intense competition from rivals like McDonald, Burger king is a concerning threat.
 The company has developed many products and strategies over the years but these
products are in response of competitors.
P6: Interrelation of strengths and weakness to macro environmental factors.
Political

The political factors of Gourmet burger include the economic issues. The strength for the
Gourmet burger is the political stability of government in UK. While the weakness is the Health and
Safety issue which the company already suffered in previous years due to beef constituents in Burgers
(Crane, A. and Matten, 2016).
Economical
These factors include the economic factors of the country where the company is doing its
business. Since UK has a stable economy, Gourmet burger has its strength in it. Recession in
UK’s economy is a major weakness for the company where it had already suffered in last few
years.
Sociological
Since Gourmet burger operates its business in UK from a long time, therefore it has good
understanding about the behavior and needs of people. These factors won’t take much time to
change therefore it can be the weakness to rely on such market (Sekaran, U. and Bougie, 2016).
Technological
Technology plays an important role in the business expansion. Gourmet burger has a
huge effect of these technological changes because of the major players upgrades in technology.
Whereas these technological trends can become strength in upcoming years due to its heavy
invest in R&D.
Legal
Policies and laws of different countries can change anytime. Since Gourmet burger
always follows the rules and regulations set by the UK administration but in other countries it
can be tough to follows these rules and regulations due to government’s interference.
Environmental
These factors have environment safety as their priority. Gourmet burger is following
these environmental rules in order to avoid conflicts with the customers and government. Still
the company can face such conflicts due to increasing climate change (Halbert, T. and Ingulli,
2011).

CONCLUSION
In this report, it can be concluded that it is critical for each organization to
comprehend its business environment. Here three types of companies are taken into
consideration public, private and voluntary. The company taken for this assignment report is
Gourmet burgers and all the necessary information of the company are discussed. Pestle analysis
of Gourmet burgers along with both negative and positive impacts. From this report, it has been
concluded that the company has potential to grow which can be achieved by implementing
required strategies and policies which are influenced by the identified factors in SWOT and
PESTLE analysis (Schneider, and Spieth, 2013). In the end, interrelation of the strength and
weakness of Pestle and SWOT analysis is provided. By studying various types and sizes of
organization, management of Gourmet Burger can prepare effective growth strategies required to
increase the market share.
REFERENCE
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