Case Study: Business Challenges for Fish and Chip Shop

This case study examines the business environment of a local fish and chip shop, analyzing its challenges and opportunities. It begins by defining the business environment in the context of the shop, followed by an application of the PESTLE analysis model to assess the macro-environmental factors impacting its operations. The analysis considers political, economic, social, technological, legal, and environmental factors, highlighting issues such as government policies, economic inflation, changing consumer preferences, technological advancements, and legal regulations. The case study then explores potential funding options for relocating the shop, including investors, angel investors, government grants, personal investment, and crowdfunding. The analysis aims to provide insights into strategic planning, financial management, and business development for small businesses operating in a competitive market.

BUSINESS

TABLE OF CONTENTS
CASE STUDY.................................................................................................................................1
TASK 1............................................................................................................................................1
a) Terminology business environment in the context of Local fish and chip shop................1
b) Business Analytical model and circumstances of fish and chip shop................................1
c) Possible available funding options for relocation of shop.................................................3
REFERENCES................................................................................................................................4

CASE STUDY
TASK 1
a) Terminology of business environment in the context of Local Fish and Chips Shop
Business environment is analysed as the combination of internal and external
environmental factors that affects a company's operating conditions in the market. It is also
analysed as a collection of people, entities and other significant factors that may or may not be in
the control of an organization. It can influence the performance, growth, survival and
profitability (Fernando, 2011). It is considered that every business enterprise operate in different
environment due to the existence in isolation. Such type of environment will affect the business
and itsactivities prominently.
As per the above given scenario, Fish and Chip also operates their business in a
competitive environment which highly affects their operations. Their sales and profitability have
been declining, due to an increase in similar shops selling similar meals at competitive prices.
Apart from this, there are some external factors such as laws and legislation, changing
employment laws, supply of raw materials, increasing loan interest etc. Moreover, it is difficult
for a fish shop to operate in this competition as they are not financially strong and needs some
strategies to relocate their business. There are two business environments such as micro and
macro. Suppliers, employees, competitors and market intermediaries are other major factors that
affect operations of fish and chip shop.
b) Business Analytical Model and Circumstances of Fish and Chip Shop
As per the above given scenario, PESTLE Analysis Model is used to analyse the macro
environmental factors that have a major impact on fish and chip shop. It involves some important
factors that clearly provide an understanding about problems and issues faced by any company in
an external environment.
 Political: These factors focus upon the influence of government interventions on
business. It involves government policies, political stability or instability, tax policy,
labour laws, environmental laws and trade restrictions (Teece, 2010). According to case
study, business of fish shop is also affected by the government policies, increase in taxes,
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changing employment legislation, laws of business establishment near educational
institutions and waste management Act
Brexit is also an important factor that changed the business scenarios due to changes in
trade legislations and restrictions.
 Economic: These factors have an important impact on business functions and
profitability of fish shop. In the above scenario, increase in tax rates and interest on bank
loans are two major factors which provided an impact on the overall business. Increase in
inflation up to 3.1% in UK has increased the cost of materials due to which overall food
prices are 4.1% higher than a year ago. The annual inflation rate has been also doubled up
from 1.2% to 3.1% which is due to falling currency values. In order to relocate any
business, the manager must identify new sources of funding.
 Social: It is also considered as socio cultural factors that are involved on shared beliefs as
well as attitude of people (Wheelen and Hunger, 2011). From the case, it is analysed that
general perception of all customers towards fast food and towards consumption of
healthy food products provided a major impact on the overall business. Brexit raised a
decrease amongst migrants and now the company wants to focus on the core population
of UK. It also led to a fall in the customer’s base. In order to remove this impact, the
manager needs to focus on the production of healthy products.
 Technological: Increase in technological services has provided opportunities for business
to enhance its marketing and development of a good public image among customers have
been created (Rachid and El Fadel, 2013). It provides an altogether new ways of
producing goods and services along with the distribution and communication to the
targeted markets. Social media, digital advertising and communication channels also have
a positive impact on Fish and Chip Shop in order to raise its business.
 Legal: As per case study, awareness of health and safety among customers has influenced
the business. A law of local council related to locations of fast food restaurants near any
educational institutions has influenced the business adversely. Brexit increased barriers in
trade but some of them are balanced to some extent by reducing the EU regulatory
burdens. Removal of EU migrants from UK due to Brexit, has raised the problem of
availability of workers at low cost. Product Description Law as well as the Weight and
Measurement Laws also provided few challenges in business.
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 Environment: This factor has become important due to increased scarcity of raw
materials to perform business activities as an ethical and sustainable business. In this
context, scarcity of raw materials and waste management policies are two main
challenges which are faced by Fish and Chip Shop.
Thus, it can be said that these are the important factors that have a major influence on the
overall sales and profitability of Fish and Chip Shop. A manager needs to develop and
implement some strategies to identify ways to remove these barriers.
c) Possible funding options for relocation of shop
Some important sources from which the manager of Fish and Chip Shop will be able to
raise findings are mentioned below: Investors: It is the best source for raising funds regarding relocation of the business. In
this, a company must work with investors to finance their business (Commander and
Svejnar, 2011). In order to get funds, the manager needs information about business to
investors and should assure them about profitability. Partnership with investors in
profitability is also considered as the best method to raise funds. Angel Investors: These are wealthy individuals or retired executives from companies
who invest directly in small business owned by the firms. Therefore, managers of Fish
and Chip Shop needs to find out Angels to raise funds for relocation of business. Government Grants and Subsidies: Government agencies provide finance such as
grants and subsidies for starting a business (Lewin, Massini and Peeters, 2011).
Employers can also approach these government agencies for getting funds with an aim to
relocate their business.
 Personal Investment: For relocation of any business, employers needs to invest their
own capital first to prove all investors and bankers that they have a long term
commitment towards their project and are ready to take risks.
 Crowd funding: It states that employers can raise small amount of funds from many
people such as suppliers, loyal customers and internet. In 2015, it was estimated that over
US$34 billion funds were raised by companies worldwide by using this method.
Thus, it can be stated that employers of Fish Shop will be able to relocate their business
by getting funds from above-mentioned sources.
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REFERENCES
Books and Journals
Lewin, A.Y., Massini, S. and Peeters, C., 2011. Micro foundations of internal and external
absorptive capacity routines. Organization Science. 22(1). pp.81-98.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Fernando, A.C., 2011. Business environment. Pearson Education India.
Rachid, G. and El Fadel, M., 2013. Comparative SWOT analysis of strategic environmental
assessment systems in the Middle East and North Africa region. Journal of environmental
management. 125. pp.85-93.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
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