This is detailed PESTEL analysis of Burger King which is a fast food chain that operates globally. The company is constantly facing intense competition from other big fast food chains as well as some new entrants in different markets. To maintain their competitive position, Burger King has to consider the external factors that can affect its market and operations. Conducting PESTEL Analysis for Burger King, we can conclude:
Political Factors
Most of the governments are constantly supporting the concept of globalization and this will help Burger King with its expansion and sales. Also, main markets for burger king business are the first world countries with comparatively stable markets and political stability as well, this means that Burger King will have stable business in such political environment. Moreover, major governments also support internet selling and e-commerce which is also an aspect that helps with Burger King’s online selling.
Economic Factors
Burger King operates worldwide and is effected by inflation rates of different economies as if people in a certain market are dealing with inflation, they might not have power to spend on Burger King and it will affect the sales in that particular market. Moreover, factors like wage rate, lifestyle, spending power are factors that affect sales of Burger King. Other factors including monetary policy, exchange rate, employment trends, and price fluctuations can affect the process of product manufacturing and product pricing.
Sociocultural Factors
People becoming more acceptable and diverse in their choices have helped Burger King in their business and remains a factor in most of the markets that it operates in. Other than that, people are also becoming health conscious, which is kind of a threat for Burger King’s current operations and effects the sales in markets where people are becoming conscious of their diets. Moreover, if the people of a certain country have some reservations about foreign brand, it will decrease sales for Burger King.
Technological Factors
Almost all the industries are becoming technologically advanced, including the food industry. Use of technology in an efficient way can help Burger King to manufacture their products effectively; this adds value to their products and increase their sales. Moreover, this use of technology helps them in maintaining their inventory systems in a better way.
Environmental Factors
Climate change has concerned people all around the world and is a very serious issue these days, so it kind of poses a threat to the operations of Burger King. Burger King’s sales were affected due to the perception that it uses non-biodegradable products that is effecting the environment. Such claims affect the company’s image as well as sales in many regions.
Legal Factors
Burger King has to follow the import and export regulations of the country that it operates in and these sanctions and rules in certain countries cause Burger King to alter their operation process in order to imply to the legal laws. All these factors are taken into consideration by Burger King before entering into any country to avoid any law suits in the future that can have an effect on their sales and reputation.
Reference
BURGER KING® About Us – Great Food Comes First. Retrieved September 27, 2017, from https://www.bk.com/about-bk
Scherer, J. (2015, February 22). Climate Change Is Igniting a Fast-Food Chicken War. Retrieved September 27, 2017, from http://www.takepart.com/article/2015/02/20/how-climate-change-ignited-fast-food-chicken-war
Team, T. (2014, July 1). Key Trends Impacting Burger King’s Business. Retrieved September 28, 2017, from https://www.forbes.com/sites/greatspeculations/2014/07/01/key-trends-impacting-burger-kings-business/