Macro Environment Analysis on Burger Fuel: PEST Analysis Report

This report conducts a macro environment analysis of Burger Fuel, a New Zealand-based fast-food restaurant chain, utilizing the PEST framework. The analysis examines the influence of political factors, including government support for globalization, political stability, and e-commerce support. Economic factors, such as international trade agreements and economic growth in developing markets, are also assessed. Social factors, including consumer diversity and health and safety consciousness, are evaluated for their impact on Burger Fuel. Finally, the report explores technological factors, specifically innovation, and their implications for the company's operations and strategic planning. The report aims to identify potential opportunities and threats for Burger Fuel, contributing to future strategic implementations.

Running head: MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
Macro Environment Analysis on Burger Fuel
Name of the Student:
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1MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
EXECUTIVE SUMMARY
The primary objective of the particular report is to study a food organisation named Burger
Fuel. The study focuses on analysing the major macro-environmental factors of the
organisation. Further, the study examines the theoretical implication of those significant
factors and their impact on the concerned product. This helps the survey to determine the
potential opportunities and threats for the Burger Fuel that may help them in their future
strategical plan and implementations.

2MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
Table of Contents
Introduction................................................................................................................................3
Analysis of the Macro Environmental Factors...........................................................................3
Political factors.......................................................................................................................4
Economic factors....................................................................................................................6
Social Factors.........................................................................................................................7
Technological factors.............................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
Appendices...............................................................................................................................14
Appendix 1...........................................................................................................................14

3MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
Introduction
The product chosen for the study of the given report is Burger Fuel (Vandevijvere,
Aitken & Swinburn 2018). The concerned organisation is identified as the industry of hotel
management. Burger Fuel is analysed as a New Zealand based restaurant that specialises in
servicing of food products. The concerned organisation has a background of owning a
franchise in around six countries and one remote located area in 88 locations with an
approximate of 54 in New Zealand itself. The excellent fast foods served by the concerned
organisation included a menu of vegetarian and vegan delicacies, variants of hamburgers,
chicken and beef dishes as well as fries delicacies. The first commencement of the Burger
Fuel was debuted in the year of 1995 in the region of Auckland, New Zealand. Furthermore,
the industry was recognised to spread its wings all across the globe in the year of 2007
(Abdul-Razzaq, 2016).
The main outline of this report is defined to examine the significant macro-
environmental factors that impact the effectiveness and efficiency of the working structure of
the organisation. In this viewpoint, the report critically explains the theory of the four major
elements that follows with the demonstration of the application of the same to the concerned
industry.
Analysis of the Macro Environmental Factors
As implied by Charter & Tischner (2017), the macro environmental factors are those
external factors of a business environment that are uncontrollable. These factors influence the
decision making process of an effective organisation. The critical analysis of the proposed
theory of macro environmental factors helps in the determination of the possible threats and
opportunities for the business entities. In this connection, the four major macro-

4MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
environmental factors that impact the Burger Fuel can be determined with the help of the
theory of PEST analysis. The same is specified as below.
Figure 1: Showing Macro Environmental factors with the help of PEST analysis
(Source: Based on Bowie, Buttle, Brookes & Mariussen 2016)
As illustrated in the above diagram, it can be examined that the four major factors of
the macro environment creating an impact on the Burger Fuel can be briefly described as
follows.
Political factors
As opined by Nonet, Selznick & Kagan (2017), a business firm is liable to consider
the political system, laws and norms and the legal considerations of the country they are to
establish their business. The concerns of the political factors provide the industry with
Political
Support of Government in terms of globalization.
Stability of political determinants in market.
Support of government in the e-commerce business.
Economic
Expansion in the international agreement of trades and tariffs.
Better economic growth in the perspective of developing
markets.
Social
Increment in the diversity of the consumers.
Health and safety consciousness.
Technological
Change and improvement in the factors of innovation.
Research and Development activities.

5MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
economic strength to its local and international trade and business prospects. In this context,
as specified in the above-illustrated diagram the political factors affecting the Burger Fuel are
explained as follows.
Support of Government in terms of globalisation
One of the significant impacts of the political factor is the support of the government
in terms of globalisation. The effect of foreign direct investments creates a positive growth
both in the economy and the wealth condition of the country. As implied by Siggel (2016), an
increment in the trade rates and FDI, consequently resulting in increased growth rates of
economic condition. Furthermore, the support of the government in the globalisation leads to
lower growth of increase in the tax and tariff rates.
In this connection, researches show that the support from the government has proved
beneficial to Burger Fuel as they gain the opportunity to earn better revenue for themselves
with the help of better and effective trade and tariff rates (Cruz & Alley, 2017).
Stability of political determinants
A second vital aspect that is determined under the political factors is the adaption and
implementation of political considerations. The adaption of these factors in a business firm is
a sign of gaining political stability in the business environment. As stated by Rosenbloom
(2018), political factors impact the administrative practices of a business entity. The political
factors create a huge impact on the security aspect, employment, immigration of employees,
customer and employee protection and tax regulations.
Thus, the stability of political determinants turns out to be an opportunity for the
concerned Burger Fuel organisation. The impact of political factors in terms of Burger Fuel
ensures the increase in the employment scale, smooth transfer of staffs from one country to
another and the security and safety of its employees (Bratton & Gold, 2017).

6MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
Support of government in the E-commerce business
The next vital political factor analysed with the help of the report is stated to be the
government support in easing the business prospects in the context of e-commerce strategies.
The theory of the above mentioned element indicates that the government plays a crucial role
in supporting the adaption of E-commerce techniques concerning business and its working
procedures. The government advocates in the legal recognition of the electronic commerce to
be used in a business entity and also ensures that the consumers are protected from the risk of
fraudulence while opting for shopping their desired products through the means of the online
business platform (Winn, 2016).
In this connection, the application of the same concerning Burger Fuel is analysed as
an opportunity for the concerned business entity. The mentioned ideology creates an impact
in the working of Burger Fuel in the connection that guarantees the right of legal use of e-
commerce to the industry as well as the customers so that both the industry and individual
privacy to use of electronic commerce is breached (Deckers & Lacy, 2017).
Economic factors
As opined by Granovetter (2018), the theoretical implication of economic factors in
the business is termed to be a bread and butter technique for the business firm. This is
because the analysis of the economic factors in a business entity plays a crucial role in the
decision making the process for its future working and plans and especially the financial
decisions. As specified in the illustrated diagram the brief of the economic factors that impact
the working of Burger Fuel can be explained as follows (Refer Appendix 1).
Expansion in the international agreement of trades and tariffs
Analysed as one of the crucial economic factors, the approval of trades and tariffs is
the legal agreement of global trade between two or more countries (Rugman & Verbeke,

7MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
2017). The theory of this factor focuses on promoting international trade considerations in a
business organisation. This, in turn, helps in reduction and even elimination of the trade
barriers like tariff rates between the countries involved in the business process with each
other.
In this viewpoint, the impact of the above economic factor on Burger Fuel is
examined to affect the interest and exchange rates of the industry both in the local and global
sector. The implication of the international trade and tariff rates help in the determination of
the aspects that defines the operating section of the Burger Fuel with potential companies
established in other countries (Ozturk, Joiner & Cavusgil, 2015). This, in turn, impacts the
local and global trade relations of Burger Fuel positively and can term to be an opportunity
for the concerned industry if executed effectively and efficiently.
Better economic growth in the perspective of developing markets.
The theory of the above mentioned economic factor sets the ideology of economic
development with the increase in the quantity of the resources and also keeping pace with the
change in the technologies (Tietenberg & Lewis, 2016). Thus, increasing the value of
innovation strategies implemented in the business entity.
According to the viewpoint of the above mentioned economic factor, the application
of the same on Burger Fuel was analysed to make changes in its existing plan and strategies
of innovation and technological policies (Grant, 2016). It helped the concerned industry to
implement effective and efficient innovation technologies that in turn increased the
competitive advantage of Burger Fuel in the market structure.
Social Factors
As implied by Janssen, Davies, Richardson & Stevenson (2018), the social factors in a
food industry impact the physical determinants and food choice of the end consumers. These

8MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
factors influence the forces within the business and society. It tends to affect the behavioural
attitudes, opinions and absorption of the potential customers and end targeted market. The
social factors impacting the working of Burger Fuel can be briefed as below (Refer Appendix
1).
The increment in the diversity of the consumers.
One of the vital social factors of the PEST analysis is determined as the diversity rate
of the consumers (Oraman, Unakitan, Konyali, Basaran & Abdikoglu, 2018). The implied
theory of this factor states that knowing and building healthy relationships with potential
customers is necessary to gain the advantage of customer service and efficiency.
In this connection, the impact of the same to Burger Fuel is recognised as an opportunity for
the industry. This is because the implication of the mentioned factor helps Burger Fuel to
identify their potential customers and ways of communicating to them (Kandampully &
Bilgihan, 2015). This helps the industry to seek the cultural aspects of the customers relating
to their taste and preferences. Thus Burger Fuel gets liable to entice diversified customers
which in turn builds a pluralistic workforce environment for the industry and innovation of
their products as per the choice of their potential consumers.
Health and safety consciousness
The above mentioned factor is considered to be the most vital factor for every
business entity to believe in its strategic plan of working. As opined by Peltier (2016), the
health and safety concerns of the employees should be the prior policy and procedure to be
considered by every effective organisation. No employee would be comfortable working in
an organisation where the individual does not feel safe to operate.
In this connection, the mentioned factor can be analysed as both an opportunity and
threat to Burger Fuel. The positive impact of implementing the health and safety

9MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
consciousness will help the industry to retain its employees in the long-run. Whereas, the
threat is the legal and lawful considerations relied on the same which may bring trouble to the
industry for its sustainment (Hitchings, 2016).
Technological factors
As opined by Biemans (2018), the technological elements are those who influence the
behavioural attributes of the customers and potential market for the change in technologies
and innovation prospects invented in the market. The major technological factors as
mentioned in the given report creating an impact on Burger Fuel can be explained as below
(Refer Appendix 1).
Change and improvement in the factors of innovation.
Analysed as one of the factors of technical analysis of PEST model, the principal theory of
this factor is examined as changing the innovation process of products and services marketed
by every business entity. As opined by Schwab (2017), every business entity is liable to keep
pace with the change in trades and trends in the technology and innovation factors to survive
in the market.
In this connection, the impact of the mentioned factor to Burger Fuel is analysed as
both threat and opportunity. The danger being examined as the cost of production and
investment increases because of the frequent change in technological activities. The
opportunity is reviewed as the stability of the firm in the long run because of the brand and
customer loyalty the industry would earn with the advancement of changes taken into
consideration (Liu & Alexander, 2017).
Research and Development activities.
Another essential theory of the technological factors is determined as the activities of
the research and development process. As stated by Sekaran & Bougie (2016), these activities

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are the ones which are conducted in the context of studying and understanding the market
structure of the business environment that helps the industry to make necessary changes in
their business.
In this connection, the impact of the above theory to Burger Fuel is considered as an
opportunity for the industry. The implementation of the above factor helps the industry to
develop new products and services to their potential customers (Cusumano, Kahl & Suarez,
2015). It also lets the industry to understand the strategical implications of its potential
competitors and act accordingly to gain a competitive advantage in the market.
Conclusion
To bring to an end, with the help of the study of the given report it is analysed that the macro
environmental factors create a great impact on the overall working and conditioning of any
organisation. The economic condition and the end customers are all influenced by the forces
of the macro environmental theory of market. Therefore, every business entity should be
critically focused while conducting and considering their strategies towards the macro
environmental factors of the business environment. In the connection of achieving long terms
success and gain brand and customer loyalty, the company has to be critically focused on
promising effective and efficient implementation of these factors in their entrepreneurship.

11MACRO ENVIRONMENT ANALYSIS ON BURGER FUEL
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