Key External Environment Analysis

2263 WordsMar 21, 200910 Pages
CONTENTS 1. EXECUTIVE SUMMARY-------------------------------------------------------------3 2. INTRODUCTION------------------------------------------------------------------------4 3. PESTLE ANALYSIS-------------------------------------------------------------------5 4. PORTER’S FIVE FORCES-----------------------------------------------------------7 5. WAITROSE STRATEGY--------------------------------------------------------------9 6. IMPLICATIONS OF CHANGES FOR WAITROSE PLANNING-----------10 7. CONCLUSION---------------------------------------------------------------------------11 8. REFERENCES---------------------------------------------------------------------------11 SUMMARY…show more content…
For instance, Waitrose is among the first companies to launch organic food in the UK and has introduced low fat, sugar and salt foods while working in collaboration with FSA. (Corporate social responsibility report, 2008) The other factor, education has not been an issue for Waitrose in UK but it has been an issue in South Africa. The local farmers are very poor and usually not educated, unless they are commercial farmers. Demographic factors such as age, sex, mobility and location affect Waitrose’s policies and operations. Income distribution is also an important factor because the products have to be within the reach of the targeted customers. (Environmental fit analysis, 2003) 3.4 Technological New technologies in the food industry and large supermarkets such as Waitrose have created new products and new processes. Online shopping, bar coding and computer aided designs have resulted in improvements in business at Waitrose. (Waitrose Internet strategy, 2004) 3.5 Economic Waitrose is viewed as a relatively Recession proof industry because its main target are the elite, who focus on quality and can afford to pay for the extra cost. However, recently Waitrose has reduced the prices, because of the economic recession. High interest rates may also deter investment because it costs more to borrow expansion or diversification funds. Inflation may provoke
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