This is a very useful technic that is use to analyze different factors of the environment that can affect companies.
In this post, we are going to analyize the sector of Restaurants, and see what factor can affect positively or negatively the company.
- POLITICAL FACTORS: for Restaurants the most important factors are the health regulations. If the regulations of health regulation change, Restaurants have to change the way of working, sometimes wasting a lot of money to adapt to the new regulations. They are also afected by the increment of taxes and fees.
- ECONOMIC FACTORS: inflation and the cost of capital are some of the factors that affect Restaurants. If people don't have enough money to go to a Restaurant, this sector will be afected negatively because their clients will decrease, and at the same time their revenue.
- SOCIAL FACTORS: the decisions of Restaurants when offering their food is very important to the society. Most of the people want to go to a healthy place where they can eat different and unique dishes. But each country has different characteristics. There are societies where people prefer to stay at home in order to go out. For that reason, people who are thinking about opening a Restaurant, have to think and study the social factors to be successful.
- TECHNOLOGICAL FACTORS: the technology that Restaurant uses are very varied. They have to have good machines to prepare the food, and sometimes they spend a lot of money to purchase this machines or facilities. It isa sector, where the adaptation is very important. They have to adapt to the changes in technology, because if you don't do that, your business will be oldfashioned and people will start to look for substitutes, and this is something that business have to avoid. In that case, competitors are important, because if one direct competitor have good machines or facilities, you will have to think about it, and maybe it's time to change the appearance of your local, to atract more clients.
Doing this analyises, and studying the points, companies will have a better business, and they can change things to have better results, attract more clients and be well positioned in the market.
Do you think that companies have to make this kind of analysis?