Environmental Factors Affecting The Environment

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PESTLE acronym describes the six environmental areas that might affect an organization, Political, Economic, Social, Technological, Legal and Environmental. Political factors concerns governmental influences on the environment. It revolves around the particular government in your particular country. It manifest itself through policies, directors and regulations. Economic factors could be interest rates and inflation. Its looks at employment levels. It looks at if the economy is booming or if it is going through a depression. Social aspects of technology are often overlooked by developers at early stages, (Kolois, Read) Social factors include behavior, preference and attitude of the target market. This would include customer expectations,…show more content…
There is plenty of competition so you would have to distinguish yourself through low prices, high quality or service. With the threat of new entrants, how many companies are looking to break into the fats food industry? Not many wish to compete this way because the cost is just too great to compete with fast food giants that already exist. The third category is the treat of substitute product, this mean other places that your customer might go to get what you offer but at a better price or better service. When talking about fast food some of the substitutes would be places like Panera bread, pizza or taco bell offer substitute product for hamburgers. The fourth force is bargaining power of buyers, we have a choice of what we eat and their plenty of other fast food places that we can go to, and so our bargaining power is very high. For example is the line is too long in our first choice then we will leave and go to our second choice and if there is no long line there then we will eat there. The fifth force is Bargaining power of suppliers, that is the company supporting the product and services lead to us getting a hamburger. Someone sells beef, soda, and bread or coffee to make McDonald’s organization run. If the company that sells McDonalds’ the beef is short then the supplier power is high because they have what McDonald’s need and cannot operate without it. On the other have id the bread company choose to raise the price of their
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