The Pest Analysis of Uk Food Producing Industry Essay

1232 Words Mar 24th, 2013 5 Pages
The PEST Analysis of UK’s Food Producing Industry



1. Introduction

This report focuses on PEST analysis of UK’s food producing industry and giving some particularly essential ratios of some food producing companies. With the diversification of economic and geography environment, food producing companies, especially multinationals need to consider more about what situation they will be in and what barriers they will meet. The main work of this report is to identify what will influence the businesses, profits, and strategies of food producing industry throughout deeply analyzing these important board macro-environmental factors.

2. PEST Model
PEST is a model that being used to analyze the board macro-environmental of a company or
…show more content…
Food producers must think of the political risk deeply because the controls of government make food safe, but at the same time, they raised the doorsill of entering this industry.
2. Labeling transparency control
Mislabeling has always made customers be confused, nevertheless, to make the labeling transparent means higher cost at the same time. The government always tried to do so to make foodstuff worth trusting, for instance, FSA made a guidance note on the composition and labeling of foodstuffs suitable for people intolerant to Gluten(FSA, 2011). Even the transparent labeling and processing may bring more profit to them, these regulations request food producers invest more capital on their food compositions. The scandal of Daybreak’s mislabeling children’s breakfast cereals, Ready-to-go, lost large number of consumers(Iwonna, D. & Margaret, O., 2011). The labeling transparency policy is a two-side blade: companies must invest more money on their products, otherwise, they will lose their profits.

2. Economic
1. Impact of financial crisis
During the year of economic depression 2011, almost every industry involved with the trouble of lack of investment capital, no except for food producing. Without enough capital, companies must give up expanding and lots of their…