External Environmental Analysis

1722 Words7 Pages
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MJ Cahill |
External Environmental Analysis


Executive Summary

In this paper we have been asked to accomplish an external environment analysis of the California Pizza Kitchen. In the introduction section, the purpose, the outcomes, and the methodology adopted have been mentioned. . As part of the research for this paper, a PEST analysis was accomplished as well as looking at the Porter’s Five Forces Analysis. (QuickMBA, 2007; Value Based Management, 2009)

As part of the PEST analysis, the California Pizza Kitchen has to abide by numerous government regulations (federal and state), but it has not reflected negatively on the profits. The California Pizza Kitchen company will more than likely face some economic
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The California Pizza Kitchen has 88 restaurants in California alone, which makes it vulnerable to negative economic conditions in California. The California Pizza Kitchen needs to satisfy a number of conditions like credit worthiness, if it continues with its current credit facility along with the likelihood of additional financing. The company does not have direct control over its franchising and licensing partners who contribute to the profits and royalties, and therefore, it affects their profits. Existing economic conditions makes it difficult for the company to pursue its growth plans of expansion. (California pizza kitchen 2009 annual report) 2010).

Social Factors - The California Pizza Kitchen sells pizzas, pastas, salads, etc. and the ambience of the restaurants is quite informal and homely. Its primary key to its success has been that they were the first pizza restaurant that offered fresh and non-traditional ingredients for its pizzas. On a whole, the American consumer base is traditionally not very nutritional conscience when it comes to dining out. Regionally, the consumer preferences are suiting the business model of the company in most areas; however changes in the consumer
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