The BreadTalk Company is a globalized company and is based in more than 16 countries such as Hong Kong, China, South Korea and Singapore. The company is well known because of its restaurant, bakery, and food atrium. BreadTalk Company was founded in 2000 and have achieved various awards because of providing high-quality food items. The globalized company has a network all over the world with at least 400 bakery outlets. The 6000 employees based company has restaurants in Thailand as well as Singapore. More than 30 food atriums are based in Hong Kong, Malaysia, and Singapore. The BreadTalk is well known as one of the most famous and the most expensive food chains. The bakery business earns a substantial revenue and owns the financial asset of worth $91100. The company growth is increasing day by day and stays as one of the competitive industry.
The general environment of the company keeps on changing, and the analysis factors always influence the industry. The elements of the company which helps in the growth of company must need to stay competitive and. BreadTalk group gathers the necessary information and handles the changes by implementing a strategy like environmental changes, demographics in China and various other cultural values.
The famous company is expanding its business locally and in international markets. The three product lines continue to grow worldwide, and the scope of the analysis depends on the recent information. The PESTEL analysis helps to draw the influence and implications of various factors. The analysis focuses on the BreadTalk Company based in China and will only discuss the topics which will affect the audience present in China.
The political factors involves all the legal factors such as labour, training, taxation and legislation. All organization does involve competitve market value. Make sure to be more innovative about services and products introduced. As China has one party system, so it has to maintain its domestic stability as well as leadership.Its leader only governs the government of China. However, the stability of Chinese Government still affected the BreadTalk Chinese market. When FTA was signed back in 2014, China was able to develop or extend its relationship with Singapore due to which BreadTalk faced significant benefits. The company got a way to reach its food atrium. We can say that the stable and healthy political system paved the way for the enterprise. The bilateral trade agreement between China and Singapore proved to be successful, and it was considered one of the most favorable moves regarding the political perspective.
Any industry will definitely get limitless benefit if the economy is in strength. Economic factors does include inflation, gross domestic product and unemployment rates along with exchange rates and business savings rates. In 2014, the Chinese Premier declared that China has to reach its GDP rate.This will help to maintain the inflation rate, and the economic growth will expand in the upcoming 2015 year. China was trying to make a move to mature their economy and worked best to ensure the better quality. However, it resulted great and 10 million jobs were offered in the urban areas. The real interest rate, stable exchange rate, and the currency exchange undoubtedly prove to be a good chance fora businessperson to establish their business. BreadTalk has captured the opportunity,and they saw a positive future because of the secure future with the minimum loss. Breadtalk does enjoy demand for various bakery products. The fall and rise of commodity and various raw material as well as fuel prices do increase the purchasing price for BreadTalk.
Social factors does involve all cultural changes along with social cultural within country. This will influence the consumer spending pattern. Social cultural factors does involve tastes, beliefs, values, attitudes, traditions, lifestyles and diversity.China is the largest populated countries. It has a population of 1.35 billion. The ppopulation of China is increasing more in urbanareas, and the demand for goods is also increasing. The consumer consumption rate is also increasing with the productsdemand. According to the bakeries report in China, the eating habits has also been changed from the last 10 years. The tight and busy working schedule especially among the urban people has increased the demand in goo to eat bakery items. The bakery items can be salty or sweet but preferably the traditional Chinese food. The demandfor baked food hasincreased from 3.7 billion to 7.8 billion. The change in the consumer behavior has provided BreadTalkan excellent opportunity to enter Chinese Market.
The technological factors takes place after major changes which impacts competitive environment which is technological. The factors does include innovation, new communication technologies and applications of knowledge. The technological factors largely depend on the social sites and the Global Village. The advancement of technology has improved the way of marketing as well advertising. Millions of people use the internetworldwide, and China has one of the world’s largest network because of themaximum population. Wi-Fi access is standard and now available in public places as well. The BreadTalkCompany utilized the market condition and incorporated in the marketing campaign. The communication strategy was improved and was able to reach out maximum audience.
The infrastructures and the transportations in China is expanded. The huge strides and the train manufacturing sector was able to develop the speed rail network. China has the largest and fastest speed rail systems which arethe greatest advantage for BreadTalk. They will be able to supply the products or will be able to operate chain from warehouses to different stores. BreadTalk uses many new machinery and various processes which helps to improve communications used by BreadTalk. This ensures the production and the labor cost allowing to process faster because of globalization and impact of technological factors.
The environmental factors does involve various elements such as weather, climate changes and natural disasters. Environmental regulations allow the company to meet personal grooming needs and health issues which targets the consumers to be efficacious and safe. The responsible company needs to ensure that products produced must be safe to use even in daily life. The idea of environmentally friendly and to promote green environment is popular in China. The expo in China which was held in 2010, has developed the environmental friendly exhibition. Many foreign companies participated in it. The less emission and low carbon technology are essential. The industrial growth is putting adverse impacts on the environment and increasing every type of pollution. However, as a result, theuse of thick plastic bags was prohibited in China and BreadTalk has also to stop the use of plastic bags. The paper bags were promoted for the use of bread and various items. The paper bags can easily be recycled. It showed that banning plastic bags in Country puts the impact on BreadTalk operational branch.
The BreadTalkCompany entered the Chinese market and crossed the border to franchise their product. The company is legal and follows all the regulations. The company operates more than 100 bakeries worldwide but more than 2 in China. However,BreadTalk has to provide evidence every year which shows that rules are regularly obeyed which helps to maintain the right brand image and helps in the expansion. The company does face the replication issues out of the scope of China, but PESTEL analysis protected the company. Legal factors will be related to industry and helps to establish relation between cities. Legal factors are applied even outside the country or in between cities because of trading possibilities.
The successful company can follow the strategy to market and expand its business. Theprocedures must be carefully adopted because they will inevitably increase the sales profits and revenues.