Essay on Swot and Pest of Fast Food Industry

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Holborn College

Subject : Corporate Strategy | Course Work Title : Fast Food Industry Analysis | Module Code : WAMB 4006 | Module Leader : G.Bowen | Student Name : Parineeta Ubhiryane | Student ID : 37754 No. of words : 1987 (Word limit :2000) | Student’s signatureDate: | | | MBA 2009-2010


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(Young, 1997)

(Data monitor, 2009)
UK fast food industry earned a revenue of $2.2 billion in 2008, which is 4.4% compound annual growth rate (CAGR) in time interval of 2004-2008. And it is expected to decrease to 3.5% by 2013, which will generate revenue of about $2.6 billion. In comparison to Germany and France, markets will grow with CAGR s of 3.8% and 2.7% respectively over the same period. In the period of 2004-2008, UK fast food market grew by 1.4% in 2008. (Data monitor, 2009)
Pestle Analysis of the UK fast food industry:
Political Factors
It refers to the degree of intervention by the government in the economy. VAT and corporation tax affect the fast food market to a great extent. Corporation tax is paid by every fast food company that is active in the UK market irrespective of its origin. HMRC collects the corporation tax which is about 28% on the profit that the company makes including the profit that is made outside UK; thereby the foreign players have to pay double tax. (HM Revenue & Customs) Its effect was seen, when the announcement to shift its headquarters from London to Geneva was made by McDonalds in order to avoid the double corporation tax which it was paying earlier.
In contrast, the government reduced VAT from 17.5% to 15% on January 1st, 2009 due to which the price level went down and the companies in the UK fast food market
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