BA30591E: Startup Business Internal & External Factors Analysis

This report provides an analysis of internal and external factors crucial for a startup business, focusing on 'Tasty Food Twist,' a restaurant venture. It explores financial information, product details, and market trends as internal elements, while employing PESTEL analysis (Political, Economic, Social, Technological, Legal, Environmental) and Porter's Five Forces to assess the external environment. The report offers recommendations for sustainable practices and healthy product offerings. It concludes that understanding these factors is essential for business development and competitive positioning. Desklib offers a wide range of solved assignments and study resources for students.

Introduction to
business

EXECUTIVE SUMMARY
This report will be discussing about the internal and external factors which must be
considered by start-up companies through which they can generate higher probability and
maintain competitive position of organization within the industry. The project will be discussing
about the ownership structure which will be followed by the company through which an
organization can operate within the industry.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION ..........................................................................................................................4
Determining internal and external information by business.......................................................4
TASK...............................................................................................................................................5
PESTEL analysis:........................................................................................................................5
Recommendation:.......................................................................................................................7
Porter's five forces ......................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business is related to those teem which is used to denote any organisation conduct commercial
activities in the market. Business is one of the most important and valuable aspect of the
economy because it is regarded as the booster of the economy. There are different types of
business structure are present in the market such as sole proprietorship, partnership and limited
company. It depends upon the management of the organisation that which structure they have
used for their company and they decide it on the basis of nature of the business. The ongoing
start up business has used sole proprietorship in their organisation. Sole proprietorship refers to
those business under which the business has only single member in their business which has
operated their business in the organisation and the profit and risk of the business are lies in the
hands of single owner of the business. The name of the proposed business startup is Tasty Food
Twist which is a restaurant business and opened with different innovative framework in the
market. This business model is based on the concept of healthy food at budgeted prices to all the
customers of the market. The company will be identifying internal and external information
which can be used by companies that can ensure smooth functioning in the company. The project
will be reflecting a new start-up venture and study of different business environment factors.
Determining internal and external information by business
 Financial information- Finance is one of the most important and valuable concept of the
business. The need of the finance are very high in the business because all the activities
of the business are conducted by the use of funds. It is very important for any business
organisation that they have used effective sources of funds ion their business so that all
the needs of the business can be satisfied (Nussholz, 2018) . The level of the finance are
based on the nature of the business and it becomes very important for the management.
The management of Tasty Food Twist has conduct the new business of restaurant under
which the company try to develop the chain of their restaurants in all over the country.
The need of funds are very high in the company as there are different sources of the funds
are present with the owner such as bank loans and many more. It depends upon the nature
of the business that which source of fund are used by the company and bank loan are one
of the most important part of this.

 Details of products- Product is the most important aspect of the organisation which
plays major role in the success and failure of the organisation. It is the duty of the
managers of the organisation that they develop effective and attractive product range in
the market so that the number of customers are attracted towards the organisation (Peters,
Smith and Thomas, 2018). The management of the Tasty Food Twist has planned to
provide healthy and vegan food from their organisation along with the free Wi-Fi
services in the organisation.
 Latest market trends- All the trends of the market has showed negative impacts of the
pandemic on the business of the market because of the restriction from the government. It
is very important for the managers of the organisation that they evaluate all the market so
that the condition of the market can be utilise for the benefits of the company. The taste
and preference of the customers are shifted towards the healthy product and it becomes
beneficial for the management of Tasty Food Twist.
TASK
PESTEL analysis:
It is one of external analysis which allow business to identify different factors that are present
outside business. It create impact over operation of business and also over survival of business.
Explanation of these factors in context of business of Tasty Food Twist is mentioned below:
Political Factors: Political factors can be described as those factors which are related to politics
of government. Tasty Food Twist is one of restaurant business which is to be providing their
products and service to their customers. They needs to consider various regulation imposed by
government on food industry. As due to covid-19, government of UK has made various
restriction for restaurant business which results in huge loss for business. Brexit has also create
for business of Tasty Food Twist as due to it, government has various changes in rules and
regulation.
Economic Factors: Economic factors are another factors that are related to factors like cost of
living, inflation rate, labour rate as well as interest rate. Due to Covid-19, economy of UK is

facing recession that results in reduction in purchasing power of people. It will create impact
over business of Tasty Food Twist as people are not able to buy their products and service.
Wages rate in UK is high as there are skilled labour available that provide opportunity for
business of Tasty Food Twist.
Social Factors: It includes those factors that are related to culture, values and bel8ief of people.
These factors create influence over business of Tasty Food Twist. This business needs to
consider factors related to demographic changes, pollution, ageing and others. People of young
generation prefer to eat outside in restaurant (Colpan and Hikino, 2018) . This will create
opportunity for business of Tasty Food Twist. With adopting effective advertisement and
promotional strategy, managers of company can attract various customers towards their
organisation.
Technological Factors: It is another factors which is related to advancement and up-gradation
of technology. In this digital age, people are increasingly using smartphone for different purpose.
Business of Tasty Food Twist is increasingly using technology and internet in their business that
provide them various opportunities. This organisation is offering free Wi-Fi to their customers
and also providing their service at online platform. With this, customer can book a table from
their phones and can order food from their phone and take delivery at their home. Using internet
in business provide them opportunity but at same time, it also create threat for business. There
are various cyber attackers who can access to important information of business.
Legal Factors: Legal factors are those factors which are related to laws and regulation that
create impact over business. There are different types of legislation to be consider in restaurant
industry that is important in order to protect business from interference of legal authorities.
These laws are related to food safety laws, minimum wages act, equality, employee safety and
security. Adoption of these law ensure allow Tasty Food Twist to run their business successfully.
Environmental Factors: It is also a factors that consist component like climate condition,
pollution, corporate social responsibility. It is important for managers of Tasty Food Twist to
fulfil their corporate social responsibility. It will create positive impact over image of company
and allow them to attract more customers. Tasty Food Twist also making efforts towards
protecting environment by keeping their place clean and also ensure cleanlinesses of area around
their restaurant.

Recommendation:
 It is recommanded to business managers of Tasty Food Twist to ensure use of sustainable
practices in business. These practices allow them to environmental friendly and also force
them to avoid practices that create negative impact over business (Peralta, Carrillo‐
Hermosilla and Crecente, 2019) . There is increasing environmental awareness among
people of UK and adoption of this practices provide them opportunity of business.
 It is advised to managers of Tasty Food Twist to use food products which are good for
health of consumer. They should also advised to make balance of protein in diet of
customers.
 It is also suggested to managers of Tasty Food Twist to avoid use of plastic and
polythene bags in packaging of food as it crate negative impact over environment. It is
important for business for various reason.
Porter's five forces
It refers to those analyse which helps the company to evaluate the competition in the market. It is
one of the most valuable framework which enables the organisation to develop effective and
efficient strategies in their organisation to deal with the competition in the market. There are five
factors are present in this analyses and the brief discussion related to the same are given below:
Competition in existing market:
The rivalry among the existing competitors are one of the most important threat for the company.
There are different type of competitors are present in the market of United Kingdom created
competition for the management of Tasty Food Twist. The existing competitors of the market
has creates price war in the make which negatively impacts the business of the organisation. It is
very important for the managers of the organisation that they have developed effective strategies
in the business.
Threat of new entrant:
The threat of new entrant are always the great threat for the management of Tasty Food Twist
because the new entrant takes new and innovative product in the market so the chance of switch

are more in this condition. The threat of new entrant are high in this market of United Kingdom.
Bargaining power of supplier:
If the number of suppliers are more with the organisation then the bargaining power of the
suppliers are more in the market and if the suppliers are few in the market then the power of the
suppliers are high. The management of Tasty Food Twist has large number of suppliers then
their powers are low
Bargaining power of buyers:
There are large of restaurants are present in the market of the United Kingdom which has hold
big market share. The customers of the market has many options so that the power of their
bargaining are very high for the business. (Schlecht, Schneider and Buchwald, 2021)
Threats of substitute products or services:
Substitute product refers to those product which are similar to for the company product and
provided to the customers at lower prices. The management of the organisation has provided
effective and innovative product in the market so the threat of substitute are low.
CONCLUSION
It is concluded from the is report that the development of business is not the simple task it
requires different type of formality and legal proceedings form the owner of the company. There
are different types of internal and external factors are present in the market which influence the
business of the company.

REFERENCES
Books and Journals
Nussholz, J.L., 2018. A circular business model mapping tool for creating value from prolonged
product lifetime and closed material loops. Journal of Cleaner Production, 197, pp.185-
194.
Peters, K., Smith, R.R. and Thomas, H., 2018. Rethinking the business models of business
schools: A critical review and change agenda for the future.
Colpan, A.M. and Hikino, T. eds., 2018. Business groups in the West: Origins, evolution, and
resilience. Oxford University Press.
Peralta, A., Carrillo‐Hermosilla, J. and Crecente, F., 2019. Sustainable business model
innovation and acceptance of its practices among Spanish entrepreneurs. Corporate
Social Responsibility and Environmental Management, 26(5), pp.1119-1134.
Schlecht, L., Schneider, S. and Buchwald, A., 2021. The prospective value creation potential of
Blockchain in business models: a delphi study. Technological Forecasting and Social
Change, 166, p.120601.
Simbolon, A., 2019. Prevention of monopolistic practices and unfair Business Competition
through business Competition Supervision. Journal of Legal, Ethical and Regulatory
Issues, 22(1), pp.1-7.
Salas-Velasco, M., 2018. Production efficiency measurement and its determinants across OECD
countries: The role of business sophistication and innovation. Economic Analysis and
Policy, 57, pp.60-73.