The Global Fast Food Industry External Remote Environment Analysis

StakeholdersA stake holder of a community is any free radical or an individual who can pick out an effect or is stirred by the success of the go withs goals. For the corporation to easily gain its corporate business objectives (goals) , it moldiness shed a keen federation with its external parties. This means that if the communitys blood with its stakeholders is not strong, the company is bound to fail in achieving its corporate business objectives. This is because their affaire to the can influences the corporations achievements.The companys strong relationship with stakeholders is measured based on confidence, trust and cooperation. This means that the stakeholders interest to the company provide be high if there is high trust, respect and good team work. This is majorly primary strategic management. For a company to remark its matched advantage and remain relevant, it should clearly mark its stakeholders and other external parties and streng past its association with them. Stakeholders testament include sh atomic number 18holders, employees, customers and suppliers.Its difficult to clearly identify the other external parties because there is no clear formula to limn it. But because of advertisements, different people argon becoming stakeholders depending on different factors. This involves global impacts of an industry such as climate change or cultural due to commercialiseing and advertising.CUSTOMERThis is an individual or group which receives or consumes the final product or services of the company. For the company to increase and maintain its train of clients, it must produce high and good quality products or services. This will get wind that customers demand will be loyal and high. alike because of competition in the market, the corporation should be dynamic in its activities and the charge for the product should be fair as different people have different perceptions to price and so should set fair prices to accommodate each (prenominal) customers. The company communicates by means of advertisements, trade exhibitions & promotions, giving free samples, cash discounts, religious offering credit facilities among others. This increases customer awareness of the product or service.SuppliersThese are abruptly term financiers of the company. Their confidence in the company depends on how prompt the corporation honors their credit facilities and how regular they carry on their businesses. The company communicates to this group through cheques, when they make payments, purchase orders.SHAREHOLDERSThey are the owners of the company. Their shares form the equity capital of the company. For them to keep open their interest they must receive good dividends from the profits of the company and their investments must keep on appreciating in that company. This will increase the encourage of the shares and the companys reputation. The company communicates to is shareholders through the Annual General Meeting, AGM w hich is convened yearly. These people are important to the company because if they have no confidence in the company, the value of shares will reduce in stock market, investors will withdraw their investments from the company and no new investors will invest, creditors will stop offering their services, employees will not receive their salaries, sales will go down and the hence the corporation will collapse.EmployeesThese are the managers of the company. The receive salary from the company and they are motivated if their working conditions in the company is good. the company communicates to the employees through property meetings, letters of appointments, letters of dismissal and journals.The importance of the employees in the company is to ensure that the reextractions of the company are taken care of to achieve high results. This will increase sales and improve the reputation of the company. Also investors will be high and hence the value of the shares will increase.ENVIRONMENTAL ANALYSISEconomic environmentalWorld financial market is be affect by pump East crisis the and US sub gush crisis and there is a global impact on consumer spending mankindwide. At first sight this would seem a disproportionate reaction still banks all over the world are exposed to US debt. Sub-prime lending was lending at higher(prenominal) interest rates as a means of dish uping the Statesn consumers of lower incomes and poorer credit records obtain mortgages. These loans were then sold on, in complex ways, to other institutions including hedge (higher risk higher return) funds. The treatment of sub prime loans by the banks is likely to have farthest reaching effects including, possibly, a slowdown in the US thrift and a confidence linked decline in US consumer spending. The Middle East crisis has affected the world economy because Middle East is the source of oil. Although there are alternative sources of energy still oil carcass the most important source of energy. Crisi s in the energy sector the world is affected.Fact is that US retail sales rose only 0.3% in alarming 2007 suggesting change magnitude caution of the crisis ahead. US retail sales are a major driver of economic growth and may be viewed as an early response to a housing slump and financial market turmoil. Over the past 12 calendar months, retail sales rose by 3.9% excluding autos. However, the level of spending did not indicate recession tendencies though analysts deliver growth to decline in the near future. There were modest increases in sales for furniture (0.5%), electronics (0.4%), sporting goods (0.3%), and health care (0.3%) compared with the same month a year ago. Thus, this national economic problem might have a small effect on the food sector because some(prenominal) foods are usually priced higher than regular food (Xinhua new(a)s Agency, 14 September 2007).Technological TrendsNearly half of all Americans have wideband Internet lodges in their homes, according to the annual survey by the Pew Internet & American Life Project in July 2007. The number of home wideband users nationally now equals the total number of Americans with any emblem of Internet connection in 2000, the first year the survey was conducted. Four out of 10 African-American adults have broadband access at home, compared to 15% 2 years ago. Nearly one-third of rural Americans have home broadband connections, compared to about half of Americans living in urban areas and the suburbs. According to Pew, income and die hard are becoming less important differentiators in US broadband adoption.Also, according to a May 2007, 67% of US consumers favor reservation purchases at a traditional store. Some 69% utter they use the Internet to comparison shop, and 58% said they go online to locate items onwards going to the store to make a purchase. Only 13% said the Internet had not improved their patronizing experience. The conclusion is that, instead of substitution brick and mortar s tores, the Internet is an extension of consumers patronize experience, providing a resource to look product and price. When asked what the most powerful influencer was concerning purchasing decisions, 60% said interchange of mouth, followed by advertising (47%) and online reading (43%). In view of the technological drive of consumers being reliant on the Internet for information, KFC should consider setting up a website to have an edge against their competitors.This will assist in the increasing of profitability of fast food industry through advertising in the internet, website development which will list the products of the firm. The future of the firm is predicted with little tier of certainty.Socio-Political TrendsAccording to a survey by Light speeds Research, 70% of US adults indorse government actions like restricting TV ads for food. Women are more verificatory than men of such measures, with 73% reporting support of government actions versus 63% of men.According to a nationwide telephone survey conducted by Research America and The Endocrine Society in December 2006, some 27% of respondents prioritized fleshiness as the top health issue for children, followed by lack of health care/insurance (16%) and nutrition/un powerful diet (9%). According to health Day News, the research, which was released on Dec. 13, also found that 52% of respondents regard corpulency as a public health issue that society should help solve with 46% regarding it as a private issue. According to the home(a) Center for wellness Statistics at the U.S. Centers for Disease Control and Prevention, about 66% of American adults aged 20-74 and 17% of children aged 2-19 are overweight or obese.In some countries, health regulation requires nearly restaurants to post calorie information on their menus. This means all these developments in the national and local level are beneficial for food vendors because the growing concern about healthy eating would surely boost their sales. I n some countries and religions beliefs and values determines the type of food being sold in the market. Take for example in the Muslim world some meaty foods will not be sold because of the beliefs. This applies to the east and the west. Foods taken in Japan can inappropriate in Africa Europe and other places and the converse is true.REFERENCESAnonymous.(2007) A Not So Great 2008 Emerging Trends Report.National Real Estate Investor (Online Exclusive).Armstrong G. & Kotler P. (2007). Consumer Markets Influences on consumer behavior, Principles of merchandise.Business Insights. (2003) The Health Food And Drinks Outlook To 2006 Consumer Insight, Market Dynamics & NPD. London Business Insights Ltd.ICMR grimace Studies and Management Resources. (2007). Consumer Behavior. Retrieved January 20, 2008 from http//www.icmrindia.org/courseware/Consumer%20Behavior/CBC03.htlmDonatelle, Rebecca J.(2005) Nutrition Eating for Optimum Health, Health The Basics,New Jersey Prentice-Hall.Freeman R. E .,(1984) strategic management, pitman books, Boston, Mass.Hillman A.J. Keim G.D.(2001) Shareholders Value, Stakeholders management, and social issues what is the bottom line? Strategic management journalKotler, P. (2005) Principles of Marketing. New York.Melbourne PressRivera, Ray.(2007) Fight to put calories on menus may widen.(Metropolitan Desk). The New York Times.Schaik J.L., (2002) The Task of Marketing Management J.L. van Schaik (Pity) ltdSchiffman, Leon G., and Leslie L. Kanuk. Consumer Behavior. New Jersey Pearson Prentice Hall, 2007.Television & Health. Retrieved January 21, 2008 from http//www.csun.edu/vceed002/health/docs/tv&health.htmlWilson M.,(2003) Corporate Sustainability what is it and where does it come from? , Ivey Management Services.Winer, R.S. (2007). Marketing Management, Prentice Hall, Upper saddle roof River, NJ.