Global Business Environment: PAM's COVID-19 Changes and Sustainability

This report examines the impact of the COVID-19 pandemic on Pret a Manager (PAM) and the changes it adopted in its business environment. It begins with an introduction to the business environment and the drastic changes caused by the pandemic, emphasizing the need for businesses to adapt. The main body of the report details the specific changes implemented by PAM, such as doorstep delivery, promoting digital payments, online ordering, limited customer capacity, and prioritizing employee job security. It then analyzes these changes through the lens of a PESTLE analysis, considering political, economic, social, technological, legal, and environmental factors. The report also applies Porter's Five Forces model to assess PAM's competitive position, considering threats from new entrants, substitute products, existing rivals, suppliers, and consumers. Furthermore, the report explores the relationship between PAM's changes and sustainability, highlighting initiatives like reducing plastic use, promoting recyclable bottles, providing free water, adopting digitalization, minimizing food waste, using fresh ingredients, and increasing hygiene awareness. The report concludes by summarizing how PAM's adaptations align with sustainability goals and contribute to a more resilient business model.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Changes adopted by PAM in respect of Covid-19.......................................................................3
Relationship between changes adopted by PAM and sustainability............................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment and its impact over the business is very drastic so it is very essential for
every company or business to analyse it and adopt the required changes as per the demand of
environment. Covid-19 pandemic, changes the entire functioning of environment which again
make it very essential for companies and business to analyse it and adopt the necessary changes.
This report will study about the changes in contrast of Pestle analysis, which are adopted by
PAM in respect of Covid situation and how those changes leads to sustainability.
MAIN BODY
Changes adopted by Pret a Manager (PAM) in respect of Covid-19
Business environment:
The environment in which the companies operate there business or operating activities is
known as business environment. Or it would be right to said that the environment whether it
could be internal or external environment which has a severe impact over the working of the
business of the company is also known as business environment. It is very essential for every
company to adopt changes as per the requirement of changing environment to efficiently run
their business or meet the market competition.
Covid-19:
It is one of the biggest pandemic of the world which has shaken up the entire world.
Covid-19 has changed the entire world in terms of working or the operating of companies as well
as markets. Due to Covid-19, right from the mode of operating the business till the practice of
consuming of commodities by the consumer changes which means Covid-19 has developed the
habit of online purchase among the customers. It would be right to said that the Covid-19 has
converted the whole economy into digitalized economy.
There are various changes adopted by PAM in regard to Covid-19 or to meet the current situation
and needs of environment. The changes include:
PAM adopted the doorstep delivery of items instead of going inside the house of customers or
doing personal interaction as a safety measure in regard to Covid-19.

PAM has also promoted the use of sanitizers by its delivery agents as a precative measure against
Covid-19. It has also raised the habit of digital payment instead of cash on delivery mode among
the customers in order to prevent Covid-19.
It has also promoted and raise the online and digital mode of buying the foodstuff so that the
customers as well as its staffs will be protected from the Covid-19 pandemic (Malbec, 2020).
Apart from online purchasing it also provides the service of choosing no contact delivery.
PAM has also adopted the practice of allowing the limited number of customers at its stores at a
time in order to minimize the threat and providing protection to its customers and staffs against
Covid-19 pandemic.
During the time of Covid-19 pandemic and the lock-down most of the people lost their jobs but
PAM aims to secure the job of maximum number of its employees in order to remove
unemployment situation or to support its staffs by continuing their jobs (Yang, Liu and Chen,
2020). It has also reduced the number of hours of its employees.
Apart from continuing the jobs of its employees it has also closed some of its shops due to the
incurring of loss and due to not being able to meeting the impact of Covid-19 pandemic and
lock-downs.
PAM also adopted various safety measures in order to make its food safe and hygienic so that it
will not affect the health of its customers. By adopting such hygienic elements in its working it is
also meeting the Covid-19 guidelines.
Safety and hygiene are the two important element which every customer wants and the current
situation of Covid-19 wants and by understanding the importance of such changes and adopting
such measures and practices in its business it is now meeting the Covid-19 pandemic (Mircheva,
Plompen and Wynants, 2020).
Apart from the above mentioned changes it has also adopted many changes to meet the current
business environment and Covid-19 pandemic which could be explained with the help of Pestle
analysis and Porter's five forces model.
Pestle analysis of PAM:
Political factors:
Political factor or the changes made by the government in regard to making rules or
policies or regulations regarding the trade affects the PAM and it is very essential for it to
analyse and study this factors to operate and run its business operations. Due to Covid-19

government has made many changes regarding the trade practice for restaurants and PAM also
have to work accordingly by following those changes (Perera, 2017). Apart from government,
political parties or groups or communities may also affect the working of PAM and it is also
equally important for it to give due respect regarding their interest.
Economic factors:
Government spending in the market along with their support, monetary policy of the
country, customer's spending and many more elements constitutes this factor which is again very
important for PAM to analyse and understand while doing its business or framing of plans and
policies regarding the business. Changing buying and spending behaviour of customers specially
because of the Covid-19 and shortage of money in the market, it is very important for PAM to
understand such changes and act accordingly to successfully run its business.
Social factors:
Changing the pattern regarding the customers in terms of demographic changes or buying
g changes among the customers in the form of more emphasize towards online buying and many
other factors constitutes social factors. This is very important for PAM to study this factor and
adopt such changes in its practice in order to meet the needs of its customers and raise its
business.
Technological forces:
Changing technological trends in the form of digitalization or social media marketing
along with the shortening of product cycle by the adoption of the latest technology is all covered
under this force. It is very essential to adopt such changes by PAM in order to achieve its
objective or running and meeting the current demand of environment (Policy, 2018). Also,
adopting technological advancement by PAM not only helping it in achieving its objective but
also helps in reducing its cost of operation and raising of profit percentage.
Legal forces:
It is also very important for PAM and being a restaurant to follow and work under the
legal framework of the country. It is very essential for PAM to follow the rules and regulations
of the government regarding the Covid-19 pandemic and restaurant industry restrictions and
allowances while doing its business.
Environmental forces:

Changing environment trends in the form of more focus towards eco-friendly technique
or raising the use of renewable and recyclable resources are very important element which is to
be considered by PAM to increase its customer share and raising its sales proportions
(Thompson, 2019). Since, due to increasing awareness among the customer regarding the
importance of environment is become more necessary for PAM to equally give importance t this
factor.
Porter's five force model:
This model help PAM in determining its position in the competitive market. By using this model
PAM can also identify its capabilities and required changes which it has to adopt as per the
current changes.
Threat of new entrants:
Efficient workforce along with unique and differentiated products in addition to high
financial position and good brand image plays an important role in reducing the threat of new
entrant for PAM. Also, by performing the work with the required changes and Covid situation
will make it different from other and reduces this threat.
Threat of substitute products:
Providing best and quality product at a reasonable price in comparison of competitors
proves to be very important and essential for PAM in reducing the threat of substitute product.
Also, specially during the time of Covid, providing the best and hygienic food to its customers
definitely reduces the threat of substitute products for PAM.
Rivalry among existing firm:
Focussing on researching the customers and their needs and then making the product
accordingly, or by making the differentiated product, or becoming the market leader helps the
PAM to reduce the rivalry among the existing firm and winning the competition.
Bargaining power of supplier:
Bargaining power of supplier will be low for the PAM if the number of supplier will be
high and it would be easy for PAM to shift their suppliers. Similarly, if PAM has full knowledge
of the market then also it can reduce the bargaining power of its suppliers.
Bargaining power of consumers:
Providing consumer oriented product with the required adopting changes along with low
switching cost works in favour of PAM in order to reduce the bargaining power of customers.

Relationship between changes adopted by PAM and sustainability
Sustainability:
Sustainability means meeting the current needs by the company without compromising
the future needs and requirement by using the resources efficiently and effectively. It is one of
the major and recent concept which every company has to follow as a means of doing something
for the society or for future generations by using the resources efficiently or using the recyclable
resources so that there will be no shortage of resources for future generations and future needs
would also being able to meet.
Relationship between changes adopted by PAM and sustainability
PAM has adopted may changes regarding the current situation and the requirement which occurs
due to Covid-19 pandemic. It would be at certain extent right to said that the changes adopted by
PAM or the changes which are being in the process of adoption by PAM would work in the
direction of sustainability and sustainable use of current resources. As, PAM dreams of and yet
working to minimize the use of plastic carry bags for food delivery and making them 100%
recyclable and environmental friendly so that it would not affect the environment is said to be a
successful step by PAM towards sustainability (Barbier and Burgess, 2020). Using of recyclable
bottles regarding the food delivery so that it will not harm the environment or fill the land with
full of plastic is also one of the important step taken by PAM regarding sustainability.
Providing best and filtered water free of cost not just for its own customers but also for general
customers is also a successful step taken by PAM towards sustainability. Adopting digitalization
and online delivery of food is also an important step taken by PAM in respect of Covid-19
pandemic and sustainability because by doing this it is able to save the life of its customers and
its staff from Covid-19 pandemic. Adopting the practice or change for reducing the wastage of
food by PAM is also a good step against sustainability because by doing this it not only
efficiently using the current resources but also saving the resources for future generation which is
the core of sustainability concept (Dyllick and Rost, 2017).
Unlike other restaurant, using of fresh raw items for making its products and thinking about the
health of its customers is also a good change adopted by PAM leading to sustainability.
Increasing awareness among the customers regarding the hygiene and safety measures specially

after the outbreak of Covid-19 pandemic and considering and inculcating this practice in its
operations by PAM is also said to be a good step towards sustainability. Adopting the practice of
using recyclable paper cups or reusable cups by PAM while serving food is also a good change
towards sustainability which could lead to saving the natural resources as well as maintaining the
hygiene factors which has become very important now regarding the Covid situation (Moore,
2017). Using and providing the organic foods and taking care about the interest of society is also
a useful step taken by PAM against sustainability.
Unlike other restaurant, PAM has more focussed and promoted the consumption of vegetarian
food which made of natural resources in the form of vegetables or plant based food in
comparison of non vegetarian food among the people so that the lives of animals will be saved
and environmental balanced will be maintained. Thinking about the environment and saving the
life of animals is also an important change and step taken by PAM regarding sustainability
(Stahel, 2017).
Apart from the above changes regarding sustainability PAM also adopted that product life cycle
by which it is more able to contributing towards sustainability.
Product life cycle:
It refers to the cycle of product which starts right from the development stage where the cost of
investment is very high in respect of revenue earned then the stage of introduction comes. Under
introduction stage company develops the market for the product by creating awareness among
the customers. After that the growth stage comes where the product will be accepted by the
customers and its sales is growing. After the growth stage, maturity stage comes where the level
of competition is very high and the sale of the product reach at a specific level. Decline is the last
stage where the sale of the product will decline due to non meeting of market competition by the
company.
PAM also follows this type of product life cycle but with due taking care of environment or
sustainability which means the product life cycle of PAM also includes these steps but with full
consideration of its impact over the environment. PAM uses only those resources and produce
only those products which will not harm the environment as well as the future needs will also be
taken care off.

Recommendations:
However apart from the above changes and steps taken by PAM regarding sustainability it is also
recommended to PAM that during Covid-19 pandemic it has to take some more steps and adopt
some more changes regarding the people or sustainability which may includes instead of shutting
the shops PAM have to take step towards providing jobs to people so that their mental stress will
be removed or the situation of unemployment also eradicates which was occurs due to Covid. It
has also being recommended that PAM has to adopt the practice of taking and considering the
feedbacks of its customers so that the interest of customers will also be meet in addition to
meeting the interest of company.
CONCLUSION
From the above report it is concluded that it is very essential for every company and business to
adopt the required changes as per the demand of environment in order to successful run their
business or achieving their objective. Covid-19 which has changed the entire world and it is also
very important for the companies and the business to consider its impact not just for maintaining
their own business but also as a social requirement and social responsibility. It should also be
noted that adopting the changes by companies and business is not only enough which means it is
also equally important that those changes will meet the concept of sustainability so that the
future generations and their needs will also be considered.

REFERENCES
Books and journals
Barbier, E.B. and Burgess, J.C., 2020. Sustainability and development after COVID-19. World
Development.135. p.105082.
Dyllick, T. and Rost, Z., 2017. Towards true product sustainability. Journal of Cleaner
Production.162. pp.346-360.
Malbec, T., 2020. Restaurant business model changes in a post COVID-19 world.
Mircheva, N., Plompen, B. and Wynants, M., 2020. Restaurant industry's response to Covid-
19. LBMG Strategic Brand Management-Masters Paper Series.
Moore, and et.al., 2017. Developing a comprehensive definition of
sustainability. Implementation Science.12(1). p.110.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Policy, P., 2018. What is pestle analysis.
Stahel, W.R., 2017. Sustainability and services. In Sustainable solutions (pp. 151-164).
Routledge.
Thompson, I., 2019. PESTLE. In The Procurement Models Handbook (pp. 57-59). Routledge.
Yang, Y., Liu, H. and Chen, X., 2020. COVID-19 and restaurant demand: early effects of the
pandemic and stay-at-home orders. International Journal of Contemporary Hospitality
Management.
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