Business Environment Analysis: Fish and Chip Shop Case Study

This case study examines the business environment of a local fish and chip shop, focusing on the internal and external factors impacting its operations. The analysis includes the use of the PESTLE model to evaluate political, economic, social, technological, legal, and environmental influences, such as changing regulations, economic inflation, shifting consumer preferences, and technological advancements. The study identifies challenges like increased competition, rising costs, and the impact of Brexit on the business. Furthermore, it explores potential funding options for the shop's relocation, including attracting investors, securing government grants, personal investment, and crowdfunding, providing a comprehensive overview of the strategic considerations for the fish and chip shop's future.

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 business environment in the context of Local fish and chip shop.
Business environment is analysed as combination of internal and external environmental
factors that affects a company's operating condition in market. It is also analysed as collection of
people, entities and other significant factors that may or may not be in control of organization. It
can provide influence on the performance, growth, survival and profitability (Fernando, 2011). It
is considered that every business enterprise operates in different environment because it will
exist in isolation. These type of environment will affect the business and also gets influenced by
the activities. As per the above given scenario, Fish and ship is also operating their business in
competitive business environment which had highly affected their business. There sales and
profitability has been decline due to increase in similar shops who are selling similar meals at
competitive prices. Other than this, there are some external factors like laws and legislation,
changing employment laws, supply of raw materials, increasing loan interest etc. Moreover, it is
difficult for fish shop to operate in this competition as they are not in strong financial position
and needs to apply some strategies to relocate their business. There are two business
environment such as micro and macro. Suppliers, employees, competitors and market
intermediaries are major factors that affects the 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 major impact on the business of fish and chip shop. It involves
some important factors that clearly provide understanding about the problems and issues faced
by company in external environment.
 Political: These are all about the influence of government interventions on the 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 government policies, increase in taxes, changing
employment laws, laws of business establishment near educational institutions and waste
management laws etc. Brexit is also an important factor that has changed the business
scenarios due to changes in trade legislation and created trade restrictions between
company its suppliers of raw materials.
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 Economic: These factors have a important impact on business functions and profitability
of fish shop. In the above scenario, Increase in tax rates and interest on bank loan are the
tow major factors which have provided impact on business. Increase inflation up to 3.1%
in UK, has also increased the costs of materials due to which food prices were 4.1%
higher than a year ago. The annual inflation rate has more than doubled from 1.2% to
3.1% which is results of fall down in currency values. In order to relocate the business,
manager needs to identify new sources of funding.
 Social: Also considered as socio cultural factors, areas that involve the shared belief as
well as attitudes of people (Wheelen and Hunger, 2011). From the case, it is analysed that
general perception of customers towards fast food and focus of people towards
consumption of health food products have provided major affects on business. Brexit has
also raised the problems of decrease in migrants and now the company needs to focus
upon the core population of UK which is considered as fall in customers base.To remove
this impact, manager needs to focus on production healthy products.
 Technological: Increase in technological services have provided opportunities for
business to increase its marketing and develop a good public image among customers
(Rachid and El Fadel, 2013). It will provide the new ways of producing goods and
services along with distribution and communication with target markets. Social media,
digital advertisement and communication channels will be effective for Fish and chip
shop to raise its business.
 Legal: As per case study, awareness of health and safety among customers has influenced
the business. Laws of local council borough relating to the location of fast food restaurant
near education institution has influenced the business. Brexit has triggered increased
barriers to trade but many be balanced to some extent by reducing the EU regulatory
burden. Removal of EU migrants from UK due to Brexit has raised the problem of
availability of workers at low cost. Products description laws and weight and
measurement laws had also provided some challenges to business.
 Environment: These factors have become important due to increase in scarcity of raw
materials, population targets and doing business 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.
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Thus, it can be said that these important factors have provided major influence on sales
and profitability along with the business function of fish and chip shop. Managers needs to
develop and implement some strategies to identify ways in order to remove these barriers.
c) Possible available funding options for relocation of shop.
These are some important sources from which managers fish and chip shop will be able
to raise findings such as: Investors: It is best sources of raising funds for relocation of business. In this, company
should work with investors to finance their business (Commander and Svejnar, 2011). In
order to get funds, manager needs to provide information about business to investors and
have to assure them about earning profitability. Partnership with investors in profitability
is also best to raise the funds. Angels : these are wealthy individuals or retired executives from companies who invest
directly in small business owned by firms. Therefore, managers of fish and chip shop
needs to find out these Angels to raise funds for relocation of business. Government grants and subsidies: government agencies provide finances such as grants
and subsidies for starting a business (Lewin, Massini and Peeters, 2011). Employers can
also approach to these government agencies for getting funds to relocate their business.
 Personal investment: For relocation of business, employers needs to invest their own
capital first in order to prove the investors and bankers that they have long termed
commitment to their project and that they are ready to take risk.
 Crowd funding: It states that employers can raise many small amounts of funds from
many people such as suppliers, loyal customers and internet. In 2015, it was estimated
that worldwide over US$34 billion funds was raised by companies through this way.
Thus, it can be said that employers of Fish shop will be able to relocate their business by getting
funds from these important sources.
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REFERENCES
Books and Journals
Lewin, A.Y., Massini, S. and Peeters, C., 2011. Microfoundations 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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