The Fast Food Industry, Where Chipotle Mexican Grill, Inc Operates, By Using Pestel Analysis And Five

1120 Words May 23rd, 2016 5 Pages

In order to develop a successful strategy for a business, it needs to analyze both the external factors of the industry and the internal factors of the business. There are many tools that can be used to analyze the external environment. This paper will analyze the fast food industry, where Chipotle Mexican Grill, Inc operates, by using PESTEL analysis and Five Forces model.

The PESTEL Framework

It is an analytical tool that describes a framework of external factors that is used for strategic planning and managing. The framework studies and analyzes six different factors, including political, economic, sociocultural, ecological and legal forces. It helps businesses in identifying and analyzing external factors that influence the industry where they operate and impact their performance whether positively or negatively. The framework helps identify new possible directions for the businesses (opportunities and threats).

Political factors: The political factors in a country influence its business environment since they affect the performance of the businesses. According to IBIS World (2015), the regulation in the fast food restaurant industry in the US is at a medium level, and it is increasing. Typically, each state enacts and enforces most of the regulations, and also federal laws apply. The first factor that influences the industry is the regulations that cover many different areas include food safety and the quality of products provided by fast-food…

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