External Environment Analysis of PBCo. for ATMC MKG701 Course

This presentation provides an external environment analysis of Protein Bread Company (PBCo.), an Australian small to medium enterprise (SME) specializing in low-carbohydrate protein breads. The analysis begins with an introduction to PBCo., its products, target market, and organizational structure. It then delves into the importance of external environment analysis, followed by a detailed PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis of PBCo. The presentation examines the political stability, economic conditions, consumer behavior, technological advancements, legal regulations, and environmental considerations impacting the company. A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis is also included, summarizing PBCo.'s internal capabilities and external factors. The presentation highlights the company's strengths, such as its focus on health-conscious consumers and product quality, while also addressing weaknesses like limited manpower and product range. Opportunities like market expansion and product diversification are explored, as well as threats such as competition and rising commodity prices. The presentation concludes with a reference list. The assignment aims to analyze the external environment of an Australian SME to assess the market situation and growth strategies.

EXTERNAL ENVIRONMENT ANALYSIS
OF PROTIEN BREAD COMPANY
- Assignment 2

PURVIEW
 Introduction
 About PBCo.
 What is external environment Analysis
 Importance of external environment
Analysis
 PESTLE of PBCo.
 SWOT analysis of Protein Bread
Company
 Reference List

INTRODUCTION
• SMEs are often referred as the micro business
which includes a self employed individual.
• The number of employee vary between 5 and 19.
• SMEs contribute significantly to the Australian
Economy (Chevalier and Watts 2015)
• Provide a large room for employment
• Facilitates entrepreneurship
• The presentation analyses the external business
environment of such business.

PBCo.
• Founder- Anna Hopkins & Luke Hopkins
• Name of the company- PBCo.
• Product- Low Carbohydrate protein breads (
https://lovepbco.com/)
• Industry- Foods and bakeries
• Organizational structure- Flatarchy where the hierarchy
is being flattened and the employees are given
optimum autonomy.(PBCo. (2020). PBCo.
https://lovepbco.com)
• CEO – Aron Wallace(https://lovepbco.com/)

ABOUT PBCo.
• Market range- the company was founded in 2012 that
initially sold baked and packaged original protein breads
that are low in carbohydrate. (https://lovepbco.com/)
• The business started its growth in a full swing since 2014
and reached to a global acquaintance.(PBCo. (2020). PBCo.
https://lovepbco.com)
• At present the company sells sixteen types of make at home
mixes all over Australia, New Zeeland and US (Ralings,2019)
• Target Markets- Health conscious, middle upper class
adults.

WHAT IS EXTERNAL
ENVIRONMENT ANALYSIS
 A study to identify the macro forces of the
environment that affects the business.
 it takes into account the analysis of the market as
well as the industry to identify the growth strategy
 the analysis also entails the level of opportunities or
threat that the farm can face. (Tukundane Minaert
et al. 2015)
 the external environment consists of the social,
political, economical, technological, environmental
and legal frameworks

IMPORTANCE OF EXTERNAL ENVIRONMENT
ANALYSIS
 Helps in aligning the business strategies
with the external environment
 the external environment analysis keeps
the employees updated and thus boost up
the employee relations.(Hulten 2012)
 helps to know about the competitions in
the market.
 the company remains well aware with
their own strength and weaknesses.
 the company can plan a long term
business strategy.

PESTLE ANALYSIS OF PBCo.
 Political Factors:
1.The stability in the Australian political environment
makes it a good platform for business of any stature.
2. The government policies regarding trade and industry is
flexible and has good trade tie ups with other countries.
Thus it creates great scope for market (Gupta 2013)
3. The labor law in Australia is also flexible and covering
the major issues like discrimination, maternity leave,
business sales etc. that helps the company getting
dedicated and motivated employees.(Hulten 2012)
4. The double taxation policies of the foreign entities helps
the indigenous companies to face lower levels of
competition.

PESTLE ANALYSIS OF PBCo.
Economic factors:
1. Economic condition is stable in Australia that helps in good cash flow
in business and customer flow.
2. inflation rate is also less in the region which ensures a stable market.
3. However, the global financial crisis has made the consumer a little
conscious about their expenditure.(Halog 2016)
4. However, the cost of setting up a startup is comparatively high in
Australia
Social Factors:
5. The consumers are tending to be more health conscious.
6. various scientific researches that linked the diet and diseases created
awareness regarding carbohydrate intake.(https://lovepbco.com/)
7. The aging population of Australia and self funded retiree has been
beneficial for the market. (Palmer Colman, O’Leary et al 2013. )
8. as there has been a fall in the level of disposable income, consumers
are opting more for the functional goods.

 Technological Factors:
1. Automation of bakery process increases the production and thus
it can compete with large bakery plants
2. the advanced packaging system keeps the nutrition value intact.
 Legal Factors:
1. The regulations relating to the consumers is a challenging area
for the industry.
2. laws regarding the wages of employees are challenging for small
business. (Palmer and colmar et al 2013)
 Environmental Factors:
1. Consumers are focusing on the sustainable products.
2. the bakery industry is undertaking practices that reduce the rate
of greenhouse emission.
PESTEL of PBCo.

 Strength:
1. The company is aiming to cater one of the most essential
consumer demand- health consciousness
2. The company has its own set of experts in different field that
ensures the product quality.
3. the company ensures a good packaging and high quality food
that can be kept in refrigerator.
4. low set up and running cost.
Weakness:
5. Low man power (Tukundane and Zeleen,2013)
6. comparatively low financial backups compared to the large
bakery plants
7. take superiority is comparatively low
8. Product range is restricted.
SWOT ANALYSIS OF PROTIEN
BREAD COMPANY

Opportunities and Threats of PBCo.
 Opportunities:
1. With the use of internet the company can expand its
market.
2. the improved technology can help in making
preserved foods like frozen foods, pizzas etc.
3. diversity in product variation (Pagotto and Halog
2016.)
4. Threats:
5. Lack of skilled labor can diminish the quality
6. the rising commodity price (Palmer Colman O’Leary
Taylor and Simmons 2013. )
7. the threat of substitutes like protein bars, oats etc.