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

TABLE OF CONTENTS

Macro-Environment …show more content…

(EuroMonitor, 2008). Thus, the impact of political decisions is very crucial in many vital areas of the business.
Economical Factors
Inflation index, interest rate, level of unemployment etc are responsible for the economic conditions prevailing in the market. Data monitor states that the UK fast food industry in labour intensive. Recent reports show an increase of 2.9% in the level of unemployment i.e. from 5% to 7.9% in August, 2009. (Office of National Statistics) Which implies that the savings will be reduced thereby decreasing the disposable income of the people. As the disposable income decreases, there is change in the pattern of people eating out at fast food restaurants. They tend to spend less thereby decreasing the sales.
In September, 2009 consumer price index i.e. inflation decreased to 1.1% which had a dual effect. (Office of National Statistics) First the food prices went down whereas the fuel price increased thereby compressing the profit margin on home delivery. Thus, a firm’s behaviour is largely influenced by the economic conditions surrounding it.
Social Factors:
The demand for fast food is highly influenced by the social trends existing in the market. For the last couple of years obesity has been of much concern in UK. (Keynotes, 2009) Health and nutrition is gaining importance, due to which