The fast food industry
Assignment 2:
THE FAST FOOD INDUSTRY
General Environment:
▪ PEST analysis
PEST stands for Political – Economic – Social – Technological and describes a framework of macro environmental factors that can influence an industry or a sector. Let’s apply this analysis to the fast food industry.
| |Positive influence |Negative influence |
|Political factors |* Political ties with the US and free trade policies |* Public mobilisation against obesity and unhealthy food. |
| |((agreements like the NAFTA or the MERCOSUR that eliminate| |
| |tariffs on goods shipped between Member States). | |
|Economic factors |* Rising per capita incomes worldwide (( more money |* Rising per capita incomes worldwide (( preference for full |
| |dedicated to eating outside home). |service restaurants). |
| | |* High costs and poor availability of real estate. |
|Social factors |* Higher divorce rates and weddings happening later |* Increased demand for healthy products. |
| |(rising number of single households more likely to eat in |* Slower growth rate of the population ( teenage workforce |
| |fast-foods. |shortage. |
|Technological factors |* Computer as number one tool to improve