Report: PESTEL Analysis of Healthy Qila's Business Strategy, 2024

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Added on  2023/01/18

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The report presents a PESTEL analysis for Healthy Qila, a new business focused on providing oil-free, healthy food options. The analysis examines the impact of political stability and tax rates, economic factors such as interest rates and raw material costs, social trends and consumer awareness, technological advancements and their impact on cost and consumer attraction, environmental considerations including food safety and waste management, and legal regulations like employment legislation and consumer laws. The analysis highlights how these factors influence the company's strategy and decision-making processes, emphasizing the importance of considering these external factors to mitigate risks and optimize business performance. The report concludes that a thorough evaluation of all factors is crucial for formulating effective business strategies.
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Table of Contents
INTRODUCTION...........................................................................................................................1
PESTEL Analysis:.......................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3
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INTRODUCTION
PESTEL Analysis is the framework which help the organizations to identify the external
factors which impact the production as well as profitability (Mkude and Wimmer, 2015). These
factors include Political, Economic, Social, Technological, Environmental and Legal which
affect the overall strategy of business. This report based on Healthy Qila which is a new business
which introduce oil free food for consumers who are willing to have healthy foods.
PESTEL Analysis:
Political factor: This factor include the various government policies which affect the
organizations. It include political stability in the country such as UK government is stable so
policies not frequently change then it does not affect the production or profitability of Healthy
Qila. Another factor is change in the tax rate which impact the overall revenue of the business.
Before making any strategy they have to evaluate all the political factors.
Economic factor: This factor impact the overall economic performance in term of
profitability. It include interest rate, employment etc. These factors include the interest rate,
employment or unemployment rate, raw material cost etc. In context of Healthy Qila,
government regulations such as food safety will affect the business. Another factor is change in
raw material price which affect the business operations. Both factors influence the decision
making process of the managers.
Social factor: It focus on the market trend which change according to the time so
Healthy Qila have to identify customer needs and preference regarding food with the help of
market research. Another factor is consumer's awareness which make them more smarter at the
time of buying goods. Consumer wanted to know the ingredient which used to make it food.
Technological factor: It include the change in technology or innovation which help the
Healthy Qila to innovate new product that having low cost because of adopting new technology.
Use Robot rather than human force because it helps in attracting more consumers (Pan, Chen and
Zhan, 2018). These factors affect the decision making process of the managers which provide
further benefits in terms of high profit margin.
Environmental factor: This factor include the climate change, recycling, carbon
footprint, regulations regarding food, wastage etc. In context of Healthy Qila, they have to
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follow safety & food standards in their business which affect the quality of foods. Another factor
is about safety of kitchen staff members which is also very important.
Legal factor: Every organization have to follow some rules and regulations such as
employment legislation, consumer law, health & safety, trade regulations etc. Healthy Qila have
to make sure that they follow all the regulations. Because they have to offer quality food to the
consumers otherwise it impact the demand of food. Another factor is employment legislation
where managers have to pay wage according to the wage standards.
CONCLUSION
From the above discussion, with the help of PESTEL analysis, Healthy Qila able to
identify the factor which can negatively impact the business. At the time of formulating business
strategy manager have to evaluate all the factor and perform accordingly.
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REFERENCES
Books & Journals
Mkude, C. G. and Wimmer, M. A., 2015. Studying interdependencies of e-government
challenges in Tanzania along a PESTEL analysis.
Pan, W., Chen, L. and Zhan, W., 2018. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
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