Environmental Influences on the Food Industry Assignment
9 Pages2886 Words81 Views
Added on 2021-03-18
Environmental Influences on the Food Industry Assignment
Added on 2021-03-18
ShareRelated Documents
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 a gathering place where people could buy and sell produce,and this form of market still exists today. A market is much more challenging in contemporary cultures, but maintains the basic values of putting together buyers and sellers with shared interests. This modern 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. Consumers must make purchase decisions dependent on their own wealth or purchasing power.As marketing is an outward-looking corporate philosophy, marketers in the hospitality industry need to adapt to the changes of the environment. The marketing of a hospitality organization is driven by both micro- and macro-environmental variables. In the economy itself 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 the business. It is connected to the geographic area where the company runs and will have impact on the business processes directly. It has the potential to impact the company’s regular proceedings and general results. The presence of a smart and cautious goals defines competitive advantage. As a way to reach economies of scale, corporate enterprises need to have clear plans that exploit their core strengths. The organization’s corporate plan should be focused on organizational efficiencies. Moreover, efficient companies aim to create an ecosystem where through complex business structures and operations, they are able to meet their vital goal. Companies need to have the capacity 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 plays in 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 how its output is affected by the macroeconomic circumstances under which a business or sector exists. In comparison to individual sectors and economies, microeconomics deals with gross production, spending, and thelevel of prices in an economy. The macro-environment includes political, economic, socio-cultural, technological, environmental, and legal forces, and are also known as the PESTEL environment. Hospitality businesses have little control over PESTEL factors, if any; but major shifts in any one aspect may have a significant effect on the business. Factors are continually evolving, impacting customers, driving market demand, and shaping the business landscape through these changes. Inthe external environment, such as PESTEL McDonald’s corporation strategies addresses the issue. In over a hundred nations, McDonald’s must respond to political laws and pressures. They must stick to health and hygiene regulations, like any other restaurant. Owing to the excessive levels of sodium and sugar, which induces many chronic health conditions such as type 2 diabetes, asthma, and heart diseases, fast food shops are pressured by the government.In addition, McDonald’s is also impacted by the government tensions between nations. It is an American company even though they have restaurants all over the world, current trade agreements could be shifted by complications between government parties, creating a hostile environment for McDonald’s to function overseas. Economic factorsplay a major role in the success of any business. McDonald’s is an incentive for the slow but steady economic development of developing countries to expand and improve the stability of its chain sector. The U.S. sector appears to be the primary contributor to the sales of the group, but the company still profits from the stable turnover and expansion of European economies. On the other hand, the stagnation of the Chinese economy is deemed as a threat. This external factor is a competitive concern since a big contributor to McDonald’s sales is the Chinese sector. Nevertheless by expansion in a high-growing emerging market, such as in Asia, 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
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Growth And Development of Hospitality Organizationlg...
|7
|1569
|14
Strategic Management Plan for Hilton Hotellg...
|13
|3446
|364
External Environment and its Impact on the Food Retail Industrylg...
|8
|2243
|64
Services Marketing: Impact of Macro and Micro Environmental Factors on Hyatt Hotel Corporationlg...
|11
|2349
|59
[PDF] The Marketing Environmentlg...
|8
|1817
|151
Essay on Business and Commercial Awarenesslg...
|9
|2644
|363