An External and Internal Analysis

An External and Internal Analysis for a Business-Yummy Food

In order to understand the peculiarities of a Business-Yummy Food, it is necessary to conduct an external and internal analysis. One can also name them macro and micro environmental factors which influence business and marketing decision of a Business-Yummy Food that are beneficial or harmful to this company. Macro-environment consists of external factors and micro environment consists of internal factors.

External Analysis of a Business-Yummy Food

External Forces and Trends Considerations:

Political, economic, sociocultural, technological, legal and environmental factors influence the general environment of a Business atYummy Food. Legal and regulatory factors of a Business-Yummy Food are connected with high taxes that a Business-Yummy Food is obliged to pay. Besides, legal and regulatory factors include the problem of childhood obesity; that is why politicians and governments are for passing laws that will forbid fast food restaurants in order to save the future generation from obesity. They propose different programs for implementation of a healthy lifestyle and decrease in the level of obesity.

The main strength of legal and regulatory factors for a Business-Yummy Food is that business pays taxes and, as a result, this creates a positive image of the company. The weakness of the political factors is that a Business-Yummy Food can suffer from laws that forbid fast food in restaurants and cafes. However, this gives a wonderful opportunity for a Business-Yummy Food to develop a healthy food without chemicals. The threat of the company is a high competition, – for example, Pres de Manger that already proposes healthy food to their clients.

The main strength of global factors is the possibility to integrate into the global market. However, it is not an easy task as a Business-Yummy Food may have such weakness as high demands at the international market. Global factors give the opportunities of development of new restaurants in the different countries. The main threats that can appear are connected with high competition and bankruptcy. A Business-Yummy Food should develop their menu and adapt it to the international peculiarities as every country has its cuisine, which a Business-Yummy Food should take this into consideration.

Economic factors of a Business-Yummy Food are connected with unemployment and economic crisis that lead to a reduction of customers. However, there is a positive effect of economic crisis as an increase of prices in luxury restaurants will provoke people to go to cheaper places such as Business-Yummy Food restaurants. The main strength of economic factors is connected with employment and high profits. The opportunity is finding the ways of increasing revenues and operating at the economically developed countries like the UK and the USA. A Business-Yummy Food should adapt to economic changes and be ready to crisis.

Technological factors are connected with innovations in menu and development of a strong supply chain in management system; that is why it works excellently and efficiently. Moreover, Business-Yummy Food develops their information technologies in order to attract more and more customers. The strength of technological factors is that business fosters a possibility to implement innovative technologies. The weakness concerns spending additional costs. The opportunity of technological factors is that it makes the company innovative and up-to-date. However, Business-Yummy Food can face the threat of impossibility of being constantly innovative. A Business-Yummy Food should develop their human resources and make them knowledgeable in innovative technologies.

Innovation is a must for a Business-Yummy Food and the strength of it is that it gives the possibility to implement new dishes in the menu. The weakness of innovation is that it demands of additional costs and human resources that could implement innovative changes. Innovation gives the opportunity to make the company differ from other fast food companies. However, innovation can provoke the threat of the negative attitude of customers to the company. A Business-Yummy Food should develop their menu making it healthy and diverse.

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Social factors of Business-Yummy Food include the health issue. People become more health-conscious and choose a healthy lifestyle; that is why they begin to refuse from fast food. Business-Yummy Food is an unhealthy choice for them; that is why they refuse from eating there. An optimal variant for Business-Yummy Food is to change the menu and propose vegetarian food and food without additives, chemicals and GMO. Propaganda of a healthy lifestyle is the strength of social factors that will attract new customers. Changing of company’s policy from fast eating to healthy eating is the opportunity developed from the social factors of Business-Yummy Food. However, immediate changing of company’s policy can provoke misunderstanding of customers. A Business-Yummy Food should follow propaganda of a healthy lifestyle.

Environmental factors are connected with creating an ecologically friendly image of this company that is currently not ecologically friendly at all.

Internal Analysis of a Business-Yummy Food

The main strategy of a Business-Yummy Food is to expand from local to the international market and provide such services that will satisfy customers’ needs. A Business-Yummy Food is completely dependent on high demand and technology. Varying needs of consumers make a Business-Yummy Food innovate and develop. A threat of substitutes also makes a Business-Yummy Food be on the alert. Competition between the companies is a constant issue; however, on the other hand, it is also a driving force that stimulates to further development. McDonald’s is the main competitor of a Business-Yummy Food; that is why strong competition makes both companies develop.

Rapid changes at the global market have a serious effect on a Business-Yummy Food.

It is suggested that development of strategic management, international marketing and successful leadership should enable Business-Yummy Food to move forward. The main processes of the company are to understand customers’ tastes and then to reflect them in their menu. At the present time, there are many restaurants and cafes that specialize in fast food or food that is not very expensive, which is why a Business-Yummy Food has many competitors. Burger, King, Dixy Chicken, Chicken Cottage, Domino’s Pizza, McDonald’s, KFC, Southern Fried Chicken, Papa John’s Pizza, Wimpy, Taco Bell are the main competitors of a Business-Yummy Food. All these chains of cafes and restaurants are among the most recognizable companies that offer a somewhat similar menu.

Finally, a Business-Yummy Food offers food at moderate prices, making them affordable in multiple quantities. For instance, lunches range from 5 to 10 $ per person. At present, marketing is driven by the trends in globalization, which is the process of overcoming versatile obstacles and barriers in the trade between countries. It means that a Business-Yummy Food should focus on orienting on the global market and widening its possibilities to become an international outlet. Moreover, a Business-Yummy Food should keep pace with the international competitors in order to move forward.

Internal Forces and Trends Considerations:

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