Comprehensive PESTEL Analysis of Pret A Manger's Business Environment

This report presents a PESTEL analysis of Pret A Manger, a UK-based retail company. The analysis examines the external environmental factors affecting the company, including political, economic, socio-cultural, technological, environmental, and legal factors. Political factors include government regulations and export rules, while economic factors consider inflation and exchange rates. Socio-cultural elements involve consumer preferences and cultural changes. Technological factors focus on advancements impacting production and efficiency. Environmental factors encompass global warming and pollution, and legal factors cover taxation and tariffs. The report uses these factors to assess their impact on Pret A Manger's operations, sales, and profitability, providing a comprehensive overview of the external forces shaping the company's business environment. The analysis includes the application of each factor with relevant examples and their potential impact on the firm. References are provided to support the analysis.

PRET A MANGER

PESTEL ANALYSIS
PESTLE is a model which helps in analyzing the external environmental factors with
their impact on the organization. PESTEL stands for mainly six elements such as political,
economic, socio culture, technological, environment and legal factors. With the help of
respective factors of external environment the manager of Pret A Manager able to determine that
these affects in which manner. When the factors are highly impact on the business environment
then able to take corrective actions against it. In order to evaluate the model and its impact on the
firm there is a “Pret A Manger” company is selected which is operating in retail industry.
Further, it is UK based and provides products like as sandwiches, soups, snacks, salads, coffees
etc. Pestel analysis for the Pret A Manger is given as below: Political factors: The business environment and factors which are regulated by the
authority body such as government is known as political factors. In this type of criteria
there are various factors are includes like as export rules and regulations, various policies
etc. For example: when government make changes in exporting rules that the firm cannot
sell products exceeding specific number of items (Bohari, Cheng and Fuad, 2013). Then
it cannot export more number of food products in another country by which turnover
highly affects adversely. Economic factors: The respective criteria include elements which are related to the
economy of UK. Here inflation, recession, exchange rate etc. are considered highly
affects the smooth functioning of Pret A Manger. For example, when inflation rate
increases then prices are also enhance by which the customers are less attracted to
purchase its food items. Further, sales and profit of the company reduces and affected on
financial position in negative way. Socio-cultural elements: Taste, preferences and cultures of local community and
customers are changes within some period of time. The company has responsibility to
fulfil requirements of potential customers and for that Pret A Manger has to make
changes in production process according to that. Further, when overall operation process
gets changes then reduces efficiency of firm and increase cost of products (Heinz, 2013). Technological factors: In the present era, technology has come up with new and high up
gradation which has always affected the business in a positive way. When the Pret A

Manger Company adopts new technologies then it will be able to make or produce high
quality of dishes and food items which will reduce the overall cost of product. Further, it
leads to attract higher number of consumers towards the firm in order purchase its food
items. Environmental elements: According to environmental factors global warming, wind,
rains, pollution, climate etc. affect the company. Being operating in food industry these
are highly affects to it and then hamper overall smooth functioning. (Trematerra, 2013).
For instance, if level of pollution increases in the environment then company npot able to
produce services and products in that criteria. Furthermore, number of customers reduces
which lead to directly impact on financial performance.
 Legal factors: Last, external environmental factor is legal which consist with various
kinds of laws and legislations related to the business. Various legal elements are like as
taxation policies, tariffs etc. which highly affects to Pret A Manger. For example: if tax
rate increases then company has to pay high amount to the government of UK which lead
to increase indirect expenses. When such kind of indirect expenditures enhances then net
profit of Pret A Manger directly affects.

REFERENCES
Bohari, A. M., Cheng, W. H. and Fuad, N., 2013. An analysis on the competitiveness of halal
food industry in Malaysia: an approach of SWOT and ICT strategy. Geografia: Malaysian
Journal of Society and Space. 9(1). pp. 1-11.
Heinz, H. J., 2013. Principles and practices for the safe processing of foods. Elsevier.
Trematerra, P., 2013. Aspects related to decision support tools and integrated pest management
in food chains. Food Control. 34(2). pp. 733-742.