The PESTEL analysis model supports strategic management by identifying the external factors that present opportunities or threats, based on the remote or macro-environment of the fast-food business, pertaining to the political, economic, sociocultural, technological, legal, and ecological factors (the PESTLE factors). Trends affect the food industry. The environmental challenges and the increasing unemployment rate are serious threats to the country. Even though quick service would be offered for lunchtime the quality of the food and service would not be compromised. 74-89. Australia is one of the most technologically advanced countries in the world. Additionally, they show footage of new promotional drinks and foods, as a method of marketing. Healthier alternatives to foods are pricier compared to fast food or easy-to-make meals. http//www.accorhotels.com/business (2012) Food, Food & Beverage Operations if it is situated . The average life expectancy of males and females is roundabout 80 and 84 years old accordingly. This has increased operational costs among meat producers in the country due to the increase in freight costs. All Rights Reserved, external factors which influence a business, McDonalds Q2 sales in 2016 were far lower than their Q1 sales, interest rates, taxation, and consumer spending, Twitter PESTLE Analysis: 6 Notable Factors Affecting the Social Network, How to Pursue a Career in Cybersecurity: 7 Professional Tips to Follow, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor. PESTEL-PESTLE analysis of Organic Food Industry by adamkasi | Jun 15, 2016 | Industries This is the detailed PEST or PESTLE analysis of organic food industry which discusses the political, economical, technological, environmental and legal factors of the industry. Food companies have to follow very strict food safety and other health protocols. Food A PESTLE analysis is a tool used to gain a macro picture of an industry environment. Drink, THE FOOD AND BEVERAGE PROCESSING INDUSTRY The pre-cooked food delivering system is called meal delivery services. On the other hand, iron ore, gold, coal, natural gas, beef, wheat, financial services, educational services, and copper are some of Australias top exports. Similarly, the UN criticised Australia for its failures in areas such as the protection of human rights, Indigenous rights, and the treatment of refugees. Thus, the competitiveness and profitability of various producers in the Australian meat industry have significantly reduced as a result of the increased presence of substitute products. Australian government has passed the law of removing encryption from the personal and private message. Without a doubt food is one of the better things in life. Unemployment is further estimated to decrease in 2021 by 32.33% and reach 2.267% of total labor force in Japan. Assessment V. Chapters 1 - 8 Social responsibility, Pest Analysis Fast Food Retail Sector Introduction Political Factors McDonalds food safety is of a very high-quality and is recognised as one of the best in the fast food retail sector. Peterson Institute. The threat of competitive rivalry in the Australian meat industry high. The analysis can be limited to the first 4 factors, remaining as a PEST analysis, since environmental or legal issues are not always applicable. If you're in the Commodities industry in Australia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty The Commodities in Australia report includes: Analysis of the country's political and macroeconomic stability Australians are generally lively, hardworking, and outward looking. Social. As a result, the overall revenue of the food industry is growing, as individuals cook less and eat out more often. T - Technological. The increment in salaries is good for the employees. McDonalds targets low to medium income families. The industry also faces competition from commercial meat processing from the UK, Mexico and U.S (Spencer & Kneebone, 2012). 1.1Characteristics of food production3 Our Members. The PESTLE analysis is a tool used to evaluate the external factors that may affect a business' HR strategies. The neighbouring countries are Papua New Guinea, Indonesia, East Timor, the Solomon Islands, Vanuatu, and New Zealand. As we apply PESTLE analysis to the Fisheries of the food industry sectors it has shown that over the past few years consumer behavior have changed to a more health conscious in their food consumption which seafood especially fish product have moved to the front line of healthy eating recommendations. The food industry is seeing a large shift due to consumer consciousness. There are many techniques that can be used to help identify what information to collect. However, small businesses pay a reduced tax rate of 25% (PwC, 2023). The result of this is that more and more individuals are switching to plant-based diets, and governments are slowly taking interest. The usage of automation technology and robots would make food preparation efficient and reduce labor costs. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Australian Agricultural Company Limited. Happier and mentally satisfied people would perform better, and then the overall productivity of the country would rise. Currency Wendys Co. is throwing out discounts and promotions left and right over the past year. The market share of snacks and confectionary items in the food industry in 2021 would be1,399,815million dollars. This analysis will assess the impact of the political, economic, social, technological, and legal factors on the industry. Economy According to a report byStatista, the global annual revenue of the food business in 2021 would be roundabout8,049,240million dollars with a growth rate of3.14%. Professor Darrin Stern The high bargaining power of consumers is forcing the Northern and Southern meet producers in Australia to revaluate their pricing and quality production strategies to remain competitive in the industry. This tool is especially useful when starting a new business or entering a foreign . A food business should follow these trends and launch its online platform in order to attract more people. Australians prefer higher-tech education, and the selection of educational institution depends on status and wealth. prospects at the moment. It stands for Political, Economic, Social, Technological, Legal and Environmental. All Rights Reserved, Check out our SWOT analysis of the food industry, PESTLE analysis of the food industry: Final Thoughts, how food should be transported, stored, and prepared, A PESTLE analysis example in food industry, Twitter PESTLE Analysis: 6 Notable Factors Affecting the Social Network, How to Pursue a Career in Cybersecurity: 7 Professional Tips to Follow, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor. Labor unions and government legislators are considering increasing the minimum wage rate. Either way, it wont impact the food businesses, but they should be aware of the impact that their business would have on the environment. According to Kirby D. Payne CHA there are many reasons why hotel Food and Beverage profits are not what we would like them to be. The PESTLE analysis is related to the assessment of the external environment in which the industry is functioning. PESTLE analysis is a framework which is imperative for companies such as Nestle, as it helps to understand market dynamics & improve its business continuously. Rimando L. (2012). Food and beverage businesses and companies should be aware of the diet preferences of the market where theyre going to launch their product. Management This high profile industry has lot of potential for growth as per capita consumption in India is 9 bottles a year as compared to 20 bottles in Sri Lanka 14 in Pakistan while 12 bottles a person in Nepal. As such, this report conducts a pest analysis that includes political, economic, social, environmental and technical analysis of the Australian meat industry. Australian society is divided and comprised of three parts; upper class, middle class, and working class. Also, the diversity in environmental conditions occasionally forces producers to move their respective stocks closer to the market and to greener pastures. A PESTLE analysis is used to conduct a broad assessment of the key features of the external environment facing a business. Ahsan Ali Shaw (2011). This has led to consumers expecting greater understanding on behalf of those who work in the food industry. To appeal to new (and younger) demographics McDonalds utilize their website and have completely repackaged their brand and restaurant look. Snacks and confectionery items contribute a major part in the food industry and its market share would be 1,399,815 million dollars in 2021. Understand different food and beverage production and service systems.3 In response, McDonalds is pressured to keep their prices low. We hope you like the article on PESTEL analysis of Australia. On the one hand, consumers have more to spend on food and robots can reduce expenses. Andre L. Conyers View Show . For instance, its deportation laws were criticised by Justice Minister of New Zealand. * Compare and contrast the types of todays beverage service establishments. Australian food industry with a roadmap outlining where food value chains may potentially be transformed to higher value add, i.e. In this case, were examining how the food industry is affected by political, economical, social and technological factors. PEST analysis helps to plan with these factors. It maintains a very close association with the United States. In particular, there are scores of rules in every country on how food should be transported, stored, and prepared including directions on what temperatures various food types can reach, how they should be cleaned, and so on.