INTRODUCTION
Business Environment includes Micro and Macro Environment. The External factors includes the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces (Businessdictionary.com, 2017).
Micro environment of business includes competitors, customers, suppliers, Public, marketing intermediaries, workers and their union. The micro environment of the organisation consists of those elements which are controllable by the management (Yourarticlelibrary.com, 2016).
P4: Identify the positive and negative impacts the macro environment has upon business operations, supported by specific examples.
Macro environs includes those external and uncontrollable constituent …show more content…
Expanding international trade agreements (opportunity)
2. Economic stability of the U.S. (opportunity)
3. High economic growth in developing markets (opportunity)
As countries implement more and expanded international trade agreements, Burger King can grow through global supply chain enhancements. Also, U.S. economic solidity enables the company to gradually grow in the country. In relation, Burger King has the opportunity to rapidly expand in developing economies. These conditions show that, in the political aspect of the PESTEL/PESTLE analysis model, Burger King must focus on external factors that present opportunities for growth and expansion, especially in developing economies.
Social/Sociocultural Factors Influencing Burger King’s Business Environment
Burger King must always account for sociocultural influences in its remote/macro-environment. The social trends and changes and their impacts on consumers and employees are considered in this part of the PESTEL/PESTLE analysis. The main sociocultural external factors affecting Burger King are as follows:
1. Increasing consumer diversity …show more content…
This dimension of the PESTEL/PESTLE analysis covers the impact of ecological conditions on firms’ remote or macro-environment. In the case of Burger King, the following are the most notable ecological external factors:
1. Climate change (threat)
2. Emphasis on business sustainability (opportunity)
3. Increasing popularity of low-carbon lifestyles (opportunity)
Climate change threatens to reduce the stability of Burger King’s supply chain. However, the company has the opportunity to upgrade its sustainability status. Also, Burger King has the opportunity to improve efficiency to attract consumers who advocate low-carbon lifestyles. The ecological external factors in the extent of the PESTEL/PESTLE analysis indicate that Burger King can realistically work on sustainability and efficiency.
Legal Factors
Burger King must comply with legal requirements. The impact of legal systems on firms and their remote or macro-environment are considered in this part of the PESTEL/PESTLE analysis. The major legal external factors influencing Burger King are as follows:
1. Import and export regulation (opportunity)
2. Environmental protection laws
Business Environment includes Micro and Macro Environment. The External factors includes the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces (Businessdictionary.com, 2017).
Micro environment of business includes competitors, customers, suppliers, Public, marketing intermediaries, workers and their union. The micro environment of the organisation consists of those elements which are controllable by the management (Yourarticlelibrary.com, 2016).
P4: Identify the positive and negative impacts the macro environment has upon business operations, supported by specific examples.
Macro environs includes those external and uncontrollable constituent …show more content…
Expanding international trade agreements (opportunity)
2. Economic stability of the U.S. (opportunity)
3. High economic growth in developing markets (opportunity)
As countries implement more and expanded international trade agreements, Burger King can grow through global supply chain enhancements. Also, U.S. economic solidity enables the company to gradually grow in the country. In relation, Burger King has the opportunity to rapidly expand in developing economies. These conditions show that, in the political aspect of the PESTEL/PESTLE analysis model, Burger King must focus on external factors that present opportunities for growth and expansion, especially in developing economies.
Social/Sociocultural Factors Influencing Burger King’s Business Environment
Burger King must always account for sociocultural influences in its remote/macro-environment. The social trends and changes and their impacts on consumers and employees are considered in this part of the PESTEL/PESTLE analysis. The main sociocultural external factors affecting Burger King are as follows:
1. Increasing consumer diversity …show more content…
This dimension of the PESTEL/PESTLE analysis covers the impact of ecological conditions on firms’ remote or macro-environment. In the case of Burger King, the following are the most notable ecological external factors:
1. Climate change (threat)
2. Emphasis on business sustainability (opportunity)
3. Increasing popularity of low-carbon lifestyles (opportunity)
Climate change threatens to reduce the stability of Burger King’s supply chain. However, the company has the opportunity to upgrade its sustainability status. Also, Burger King has the opportunity to improve efficiency to attract consumers who advocate low-carbon lifestyles. The ecological external factors in the extent of the PESTEL/PESTLE analysis indicate that Burger King can realistically work on sustainability and efficiency.
Legal Factors
Burger King must comply with legal requirements. The impact of legal systems on firms and their remote or macro-environment are considered in this part of the PESTEL/PESTLE analysis. The major legal external factors influencing Burger King are as follows:
1. Import and export regulation (opportunity)
2. Environmental protection laws