Strategic Analysis of the Uk Fast Food Industry

2843 WordsApr 5, 201312 Pages
Business and Management Strategy BAM6012 A Strategic and Competitive Analysis of the UK’s Fast Food Industry Executive Summary The food industry in the UK is a multi-billion pound industry that is mainly dominated by a few competitors such as McDonalds, Burger King, KFC and Subway. Most of the food sold in these fast food restaurants is unhealthy, which is becoming a huge concern as there are many people dying of obesity and other health related problems. This is one of the key social factors facing the fast food market at the moment. The fast food industry is a ‘red ocean’ as it is already well defined where rivalry is intense. It is also a perfectly competitive industry as the barriers to entry are low and there are many rivals…show more content…
Fast Food Industry Profile: The United Kingdom’ 2012, Fast Food Industry Profile: United Kingdom, pg 1-35, Business Source Premier, EBSCO host, viewed [25/11/2012] PESTLE analysis “PESTLE analysis will help to capture understanding about aspects of the context by using the prompts political, economic, sociological, technological, legal and environmental. It is a technique that facilitates a wide scan of the context and actual or potential factors that would affect objectives if left unmanaged.” (Webster-Murray, R. 2010. pg.88) Political factors * There is an increasing amount of pressure from the government to encourage people to eat healthier as the number of deaths relating to obesity and an unhealthy lifestyle is on the increase year after year. * The government can allocate grants to business start-ups to try and promote fair competition within the marketplace. * There is speculation over the government introducing a new ‘fat tax’ on fast food served over a counter. This will add on another 20% to the current price in taxes. http://www.guardian.co.uk/society/2012/may/16/fat-tax-unhealthy-food-effect Economic factors * Consumers will have less disposable income with the current economic climate and therefore may be less likely to spend money on fast food as it may be seen as a luxury. * Exchange rates may affect profitability on the business if they are sourcing materials (all the ingredients used to

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