Global Business Environment

This report discusses the global business environment and its impact on the operations of Wagamama restaurant. It includes a SWOT analysis and operational impact analysis on marketing and HRM functions. The report also explores the effects of Brexit and COVID-19 on the industry.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SWOT Analysis......................................................................................................................1
Operational impact analysis...................................................................................................2
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................5

INTRODUCTION
Global business environment means environment of business in various countries which
affect the industry in both terms positive and negative. It include the resources , decision making
and many more. In this there are two types of business environment internal and external but the
main focus of global business environment is on external environment, it includes trade policies,
tax policies, political factor, economic factor, rules and regulations, technology factor and etc.
the report below is based on Wagamama Restaurant, this is British restaurant chain they offer
Asian food based on Japanese cuisine (Dora,Kumar and et. al., 2013). This is founded in 1992 in
Bloomsbury London, UK. The report below is include swot analysis of Wagamama and their
operational impact analysis on marketing and HRM functions.
MAIN BODY
SWOT Analysis
SWOT analysis refers to planning strong strategies in company to analyse the strenth,
weakness,opportunity and threat.
Strength: It is internal and positive factor that gives advantages to organisation. In
Wagamama context, this is well known restaurant chain in UK, they maintain safety measures
after Covid and in current scenario safety is must for people. They can reach out maximum
customers through following safety guidelines in food and restaurant hygiene. They have very
friendly and quick consumer services and also they serve fresh and nutritious food to customers.
Firm work on simple sleek design and they have authentic experience.
Weakness: It is negative factor that gives disadvantages to organisation in term of
growth and profitability. In Wagamama context, their food prices are high due to Covid every
one could not afford high priced food, Customer want food in budget. It impact in negative on
customers mind and they lose loyal customers also (Hamilton and Webster, 2018). Brexit war
also give disadvantages to industry because country change every policies and tax rate also, it
affect the profitability of business. In market they have less brand recognition in other
contribution or cities. UK climatic or atmosphere encourage turnover at fast table. They have
high prices comparatively other restaurants.
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Opportunity: It gives a new tools and innovative ideas that provide benefits to company.
In Wagamama context, after Covid situation people shift toward healthy food so this is
opportunity for industry to provide healthy food so customers attracts toward company and helps
in growth or profitability. Due to Covid people could not visit restaurants so company can
provide home delivery through various technology and build strong relationship with
customers. Restaurant have young caters and urban professionals. They have place for large
parties and also they arrange solo diners for people.
Threat: It observe issue and challenges in organisation and their strategies. In
Wagamama context, the Brexit and Covid both are threat for industry because due to Brexit war
countries trade policies changed and it affected the price factor and growth of company. Due to
Covid there is lock-down in every areas of UK country so people avoid packed or food from
outside because they has fear of virus, it affect badly on industry they face many challenges like
losses, employees don't has job because of no work in company. This also affect the growth and
profitability of firm. Some people are not afford their food because they have fix cost at high
level like they take 14 euros for normal lunch this makes unhappy to customers. They don't have
long term sustainability in market and their workplace.
Operational impact analysis
Marketing: It is business strategy that use in advertisement, promotion activities, selling
products, understand market trends and etc. marketing activities helps in build relationship with
customers and make loyal customers in market, it increase brand value.
 Brexit: This factor affect the marketing of Wagamama , due to Brexit war UK and
European country change their trade policies and tax policies , it affect in negative
manner to industry. They face financial issue, unemployment problems and growth also.
This war affect the brand value also because company has many loyal customers from
different areas but due to this firm could not reach out other customers and they has
limited area to provide their services and product (Kolbina, 2015).
 Economical factor: This factor affect the marketing of Wagamama, during lock down
because of Covid situation the unemployment rate is very high and resources availability
is low. Customers could not afford high priced food and also they has fear of virus, so
customers didn't ordered food from outside. During lock down customers could not visit
restaurants they has no option to reach out customers because according government
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guidelines business has to shut down , they could not provide their services and product
through home delivery option.
 Technology: This factor affect in positive manner to marketing of Wagamama, in present
scenario technology is must for increasing production and attract large numbers of
people. This restaurant using new techniques for effective promotion activities and they
use digital marketing according to the trends going in market. In present days social
media marketing is most popular there are many food bloggers who promote the place
and their food and this is cheaper than other marketing.
 Social factor: This factor relate to the customer's mental health, Wagamama create
content and the provide food and services according to the customer's needs and their
taste, because good food change the customer's thinking towards the restaurant and attract
more customers in market. They provide many facilities to customers such as customers
can rate the food and services, they has own application so customers can check the price,
menu ,rating and etc. they provide home delivery option also.
 Quality: Improving marketing strategies is must for more promotional activities and it is
helps in reaching more people or attract new customers. This restaurant is famous for
food quality, marketing department can focus on this with adding new things or varieties.
 Innovation: it is essential for innovated marketing strategies, more innovation attracts
more people. They use effective business model for success but innovation helps in avoid
local or national level competitors.
HRM: This department managing employees to achieve their goals and improve performance in
organisation. They plan strategies to develop skills of employees. HRM hire skilled peoples and
provide training according to industry work-process to perform in better way.
 Brexit: This factor affect on human resource management of Wagamama, due to Brexit
war countries change their policies and their relations are not good. People also has to
follow countries rules and regulations, due to this peoples are restricted to doing job in
other country. HRM didn't has scope to cover wide area they has limited areas
(Ravindran and Jaiswal, 2016).
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 Economical factor: This factor affect on human resources management of Wagamama,
during lock down country has high rate of unemployment and in industry employees
didn't has work to do and they plan many strategies for growth but all strategies are going
to waste. It affect the performance and growth of firm because due to virus they has to
shut down their business and HR strategies are not working after lock-down they plan
various strategies like home delivery option because till now there is no vaccine of virus,
they has to adopt various new technologies to increase their productivity and
profitability.
 Technology factor: This factor helps in improvement and development in Wagamama
restaurant. They adopt new techniques and tools in technology for increasing the
performance of business. They provide training to every employee to improve their work
and services so the technology helps in effective training programs. Technology changes
on regular basis so HR management have to provide proper guidance about the features
and their process to employees (Xiong and et. al., 2019).
 Social factor: Human resources management trained to employees to fulfil social needs
and their expectations of customers. So customers have positive thinking towards the
Restaurant. The HR management also fulfil the employees needs, they provide extra
benefits and rewards according to their performance to motivate them. There is easy to
work through technology and they also take part in social events and activities for
society.
 Quality: It is must for Wagamama restaurant to make effective strategies towards the
services and food quality, strategies is planning by the human resource management only,
improve quality of services and food is helps in holding customers for long period of time
and reduce competitors in market.
 Innovation: In restaurant innovation is must for more growth of Wagamama in market,
innovations makes brand image and their values more. Innovation possible in every
aspect such as in technology, strategies, food, services and work force.
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CONCLUSION
It is concluded that global business environment is must for every industry , it cover that
internal and external factors through this company can analyse the growth rate, performance and
profitability. Swot analysis helps in observing the strength , weakness, opportunity and threat of
company it helps in providing advantages as well as disadvantages to firm in terms of growth
and profitability. Operational impact analysis, helps in analyse the affect of Covid situation and
Brexit war on functions in organisation such as human resource management and marketing.
This helps in improve strategies and better performance. It is important to guide them about
safety measures so industry avoid health problems and maintain safety of customers also. The
technology factor and social factor in marketing and HR management helps in avoid any type of
barriers and adopt new trends and techniques to fulfil the customers needs and meet their
expectations. Digital marketing provide more opportunity to business and provide effective
training to employees by using technology. Participate in social events and activities through the
new technology tools.
References:
Books and Journals
Dora,Kumar, M. and et. al., 2013. Operational performance and critical success factors of lean
manufacturing in European food processing SMEs. Trends in food science &
technology. 31(2), pp.156-164.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Kolbina, O., 2015. SWOT analysis as a strategic planning tool for companies in the food
industry. Problems of Economic Transition.57(9), pp.74-83.
Ravindran, R. and Jaiswal, A.K., 2016. Exploitation of food industry waste for high-value
products. Trends in Biotechnology.34(1), pp.58-69.
Xiong, T.Z. and et. al., 2019. Break Time: A SWOT Analysis for an Order Management System
for Food Court in Universities and Colleges. International Journal of Psychosocial
Rehabilitation. 23(4).
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