Environmental Influences on the Food Industry Assignment

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Environmental Influences on the Food IndustryEC4005- The Fundamentals of EconomicsUniversity of Central Lancashire, CyprusSchool of Business and ManagementMBA Course 2020-2104/12/2020Words: 2153I confirm that this assignment which I have submitted is all my own work and thesource of any information or material I have used (including the internet) has been fully identified and properly acknowledged as required in the school guidelinesI have received.
A market was originally agatheringplace where people could buy and sell produce,and thisformof market still exists today.Amarketis much more challenging in contemporary cultures, but maintains the basic values of putting togetherbuyersandsellerswith shared interests. Thismodern market model is focused on clusters of individuals with common needs and preferences,as well as firms who seek to meet the needs of customers and want to do better than their rivals.Consumersmustmakepurchase decisions dependent on their own wealth or purchasing power.As marketing is an outward-looking corporate philosophy, marketers in the hospitality industryneed to adapt to the changes of the environment.The marketing of a hospitality organization isdriven by both micro- and macro-environmental variables.In theeconomyitself the climate is the macro-environment. It has an effect on how all corporate units concurrently work, execute, make decisions, and influence strategies. It is very complex, which means that an organization needs to monitor the improvements continuously. It consists of external forces that do not influence, but are undoubtedly influenced by the organization itself.Whereas, the micro-environment is ultimately the environment that has a direct effect on thebusiness. It is connected to the geographic area where the company runs and will have impact onthe business processes directly. It has the potential to impact the company’s regular proceedingsand general results.The presence of a smart and cautious goals defines competitive advantage. As a way toreach economies of scale, corporate enterprises need to have clear plans that exploit their corestrengths. The organization’s corporate plan should be focused on organizational efficiencies.Moreover, efficient companies aim to create an ecosystem where through complex businessstructures and operations, they are able to meet their vital goal. Companies need to have thecapacity to execute plans that will take advantage of emerging opportunities efficiently.Furthermore, they must be able to react in an efficient and productive way to complex situations.This essay describes the role that influences change in the macro- environment which playsin MacDonald’s competitive strategy, and the role of micro-environment that plays in Cadbury.Concluding the essay by determining which factor is more influential.2
The macro-environment refers to howits output is affected bythe macroeconomiccircumstances under which a business or sector exists.In comparison to individual sectors andeconomies,microeconomicsdeals withgrossproduction, spending, and thelevelof pricesin aneconomy.The macro-environment includes political, economic, socio-cultural, technological,environmental, and legalforces, andare alsoknown as the PESTELenvironment.Hospitalitybusinesses have little control over PESTEL factors, if any; but major shifts in any one aspectmay have a significant effect on the business. Factors are continually evolving, impactingcustomers, driving market demand, and shaping the business landscape through these changes. Inthe external environment, such as PESTEL McDonald’s corporation strategies addresses theissue.In over a hundred nations,McDonald’s must respond to political laws andpressures. Theymust stick to health and hygiene regulations, like any other restaurant.Owing to the excessivelevels of sodium and sugar, which induces many chronic health conditions such as type 2diabetes, asthma, and heart diseases, fast food shops are pressured by the government.Inaddition,McDonald’s is alsoimpactedby the government tensions betweennations.Itis an American companyeven though they have restaurants all over the world, current trade agreementscould be shifted by complications between government parties, creating a hostile environmentfor McDonald’s to function overseas.Economic factorsplay a major role in the success of any business. McDonald’s is anincentive for the slow but steady economic development of developing countries to expand andimprove the stability of its chain sector. The U.S. sector appears to be the primary contributor tothe sales of the group, but the company still profits from the stable turnover and expansion ofEuropean economies. On the other hand, the stagnation of the Chinese economy is deemed as athreat. This external factor is a competitive concern since a big contributor to McDonald’s salesis the Chinese sector. Nevertheless by expansion in a high-growing emerging market, such as inAsia, the business has the chance to expand. In this aspect od McDonald’s PESTEL research,global economic conditions specifically offer market development opportunities.To evaluate the success of every company, social variables are important to remember. Thereare too many social influences that have a significant influence on the success of a brand, such as3
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