Kravingz Expansion Strategy: PESTLE Analysis, Solutions & Growth

This presentation analyzes Kravingz's business expansion strategy, focusing on the challenges the company faces, including employee turnover, quality control, and online visibility. A PESTLE analysis identifies key political, economic, social, technological, legal, and environmental factors impacting Kravingz's growth. The presentation proposes solutions such as conducting market research, improving HR strategies, enhancing customer retention, and adopting new technologies. Recommendations include increasing the budget and securing reliable suppliers. The analysis concludes that addressing these issues and implementing the proposed solutions will enable Kravingz to achieve sustainable growth and successfully expand into new markets. Desklib provides access to similar solved assignments and past papers for students.

Group presentation
Kravingz

TABLE OF CONTENT
INTRODUCTION
MAIN BODY
 Background of the company:
 Issue identified:
 Solution:
 Recommendation:
CONCLUSION
REFERENCES

INTRODUCTION
 Every business organization want to expand their business across the
country, company look for certain opportunity which allow them to
enter new market.
 Process of expansion is major issue for small scale business because
they have no experience in expansion process and condition about new
market.
 Quality of product does matter when it comes to satisfying new
customer, company face certain challenges while expanding in new
region.
 This study is based on Kravingz, this food corner provide wide range of
food products.
 This report will discusses background of company and key issue they
are facing
 Later this report will propose solution and at last this report will
provide recommendation.

Background of the company:
 Kravingz is one of the most famous food corner near Glentworth
Gardens, Wolverhampton.
 This small scale business have great customer retention because of
multi cuisine menu and taste liked by almost every consumer. This
company is well-known for its famous pizza at affordable price,
Kravingz is growing and focusing on expansion process.
 Kravingz was surviving these issue because they previously do not
have brand image but with rapid growth, this company need to improve
their quality of product and solve other issue identified.

Issue identified:
 This company is facing certain issue in their business process including
employee turnover, quality of dishes they server and lack of online
visibility.
 PESTLE analysis is one of the best tool to identify external factor that
become issue for the company, this tool help company to examine
market and consider those possible solution to survive and grow, there
are certain elements of this tool, these are:

PESTLE Analysis:
 Political factor: Political factor means government and its policy that
impact smooth flow of the company, after COVID-19 impact, the UK
government took certain major steps and crafted new policy for every
food and service provider.
 For example; under The National Food Strategy, every supermarket and
corner shop need to provide consumption report to ensure they follow
sustainability measure.
 Kravingz will going to face issue if they do not compile with
government policy, to ensure food safety, this company need to follow
guideline provided by The Food Safety Act.
 Process of expansion will become major issue if any government policy
do not favour Kravingz and their strategies.

ECONIMICAL FACTOR
 Economical factor: Economic stability play vital role for every even
small scale business organization, this factor impact company.
 Kravingz will going to face certain issue because of unstable economy
due to COVID-19 impact, there is high inflation rate in the market
which means labour market was badly impacted.
 As Kravingz faced issue of high employee turnover because they do not
crafted HRM strategies considering labour market condition.
 This company will going to face certain issue due to unstable economy
even in expansion process.
 Due to unstable economy price of raw materials are increased that
means Kravingz will be facing issue of high cost.

SOCAIL FACTOR
 Social factor: Social factor are factor related to consumer, after
COVID-19 impact, spending capacity of consumer have decreased.
 Consumer are not ready to spend their income on food corner or fast
food, there are minor impact on small scale business because they lost
regular customer.
 Food safety and hygiene is major issue for Kravingz, there are many
cases where company lack behind in providing quality product to
consumer.
 This company will fail if they do not focus on issue related to consumer
retention process.
 Social factor keep changing, consumer's buying behaviour has changed
due to COVID-19 impact they main demand more favour or dishes in
menu of Kravingz.

TECHNOLOGICAL FACTOR
 Technological factor: Technological factor is one of the most important
factor company need to undertake when dealing in the market, there is
rapid advancement in technological area mainly in food processing
system.
 Kravingz quickly need to adopt these technologies to become
competitive, but issue like cost of technology or lack of knowledge will
impact company.
 As this company want to run social media market which is only
possible if they have latest and fastest technology both software and
hardware.
 Using social media to reach audience is quite challenging for the
company because Kravingz will need sufficient budget to run a
campaign.

LEGAL FACTOR
 Legal factor: Legal factor is one of the most important factor company
need to consider, this allows them to fairly deal in the market avoiding
any kind of illegal activity that impact company.
 Kravingz is food corner that might be impacted if they do not have
proper licence for food serving process.
 Kravingz should get every legal process done as they are providing
food and major concern is safety that will become an issue.

ECONOMICAL FACTOR
 Environmental factor: Environmental factor impact company and its
position in the market, the UK government is implementing
sustainability measure to every business organization to overcome
impact on nature.
 It is very clear that Kravingz need to take certain measure to avoid issue
for example lack of sustainability measure including food waste will
become major issue for the company.

Solution:
 Market research: Market research is one of the most important
element for every business organization as this allow them to
understand condition of market.
 Kravingz need to conduct market research to examine key factor for
example in political factor, government is planning to craft new policy
regarding food strategies and consumption.
 Kravingz can become stable if they consider every important element of
The National Food Strategy, for example under this strategy
government will implement food waste management.
 It good opportunity for Kravingz to make food waste management
system to compile their growth considering government and its policy.

HR strategies
 HR strategies play vital role when it comes to high employee turnover, it
is very clear that company need to develop professional HR practice that
allow them to fill their workplace with talent and right people at rigt job.
 Kravingz company is facing high employee turnover issue which means
they need effective HR strategies for example if they hire right people at
right job position then they can improve HR process.
 It is very clear that Kravingz will fail if high employee turnover
continued in the future, considering labour market condition of the UK,
this company need find the best solution including change HR practice to
hire talent.

Improve consumer retention:
 employee retention play vital role, every business organization want to
improve customer retention while considering social factor.
 Kravingz is facing issue related to quality of product, this company lack
behind in fulfilling the demand of the customer regarding quality.
 To overcome this, Kravingz need to consider high quality raw material
to ensure quality product apart from this company need to provide
discount to customer to gain retention.
 Understanding spending capacity of customer and setting menu
accordingly is one of the most important thing Kravingz have to focus
on.

New technology:
 New technology is blessing for the business organization, adopting the latest
technology allow company not only to make process smooth but to get
competitive advantage as well.
 Kravingz need to adopt latest and fastest technology to become stable in the
market for example there are new software that make it easy to company to
go online.
 Kravingz have to run social media campaign that allow them to reach as
many audiences as possible and share their multi cuisine menu online.
 As this company is planning to partnership with Delivero, Uber eats and other
home delivery service, it is the best time to get power online presence and
capture the company with technological advancement.

Recommendation
 More budget: Budget play vital role when it comes to managing
business and solving certain issue, it is very clear that sufficient budget
solve half of the problem faced by company.
 Kravingz have to bring more budget in their business process to get
sustainable growth, this will allow them to expand in new market and
help them to run social media campaign and reach as many audiences
as possible.
 It is recommended for Kravingz to ensure they have sufficient budget
before solving any issue as this budget will become an issue in the
process.

CONITNUE…
 Right supplier: every business organization face issue of quality
product when their raw material is poor in quality for example if
supplier is ready to provide raw material in low price that means quality
of raw material will be poor.
 It is recommended of Kravingz to get right supplier that have raw
material in low rate, this company is at small scale that means adopting
supplier will still be costly for the company.
 Kravingz should avoid contract of supplier and arrange raw material by
themselves to reduce cost and save time in the process.

CONCLUSION
 This report has discussed business organization and its element in the
business process.
 Later this report has discussed PESTLE analysis where key issue is
been identified including high employee turnover, expansion issue,
issue with quality of product and service, issue with consumer spending
and other issue.
 Later this report has discussed solution regarding issue identified in
PESTLE analysis including market research and other issue.
 At last this report has discussed recommendation.

REFERENCES
 Fjeldstad, Ø.D. and Snow, C.C., 2018. Business models and
organization design. Long range planning, 51(1), pp.32-39.
 Perera, R., 2017. The PESTLE analysis. Nerdynaut.
 Phan, S., 2021. The effect of pestle factors on development of e-
commerce. International Journal of Data and Network Science, 5(1),
pp.37-42.
 Davies, P.W., 2016. Current issues in business ethics. Routledge.
 Sen, S., 2020. Digital HR strategy: Achieving sustainable
transformation in the digital age. Kogan Page Publishers.