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Fast Food Industry In New Zealand

3050 words - 13 pages

[Type text] [Type text] [Type text] Arshad Mohammed 1264734

Student ID

Arshad Mohammed

Student Name

1264734

Programme Code

AK3693

Programme Description

Bachelor of Business

Class Code

305001

Class Description

Business in Context

Assignment

Report

Due Date

13 May, 2013, 12noon

Lecturer

Peter McGhee

Workshop

20

DeclarationIn submitting this assessment I declare that;This assessment has been written by me and represents my own work.This work has not previously been submitted by myself or anyone else.All sourced information has been appropriately acknowledged and referenced.I have maintained and will continue to maintain the confidentiality of any ...view middle of the document...

1 Relevant aspects of the business environmentA business environment is all factors both internal and external that can potentially influence a business's operations, which can affect the performance of a business immensely (Samson, Catley, Cathro, & Daft, 2011). The two major factors in the fast food industry are the political and the socio-cultural. Firstly, the latter plays a larger factor in this industry. This is because it displays the behaviour of consumers (Samson et al., 2011). Carl's Jr has opened up stores in the poorest regions in Auckland (Gibson, 2012). People with low income are restricted in spending their money, they earn less therefore they spend less. When a restaurant like Carl's Jr provides fast meals at low price, this will attract people with low incomes. Western ethnic groups are rather conscious about what they eat and eat balanced meals. Whereas most groups that live in these poor regions consume a lot of food. Targeting these groups make Carl's Jr's business model profitable. However the downside to this business plan is shocking. Fast food causes serious health issues. Obesity rates at these regions of Auckland spiked up to thirty-eight per cent from thirty-three in 2005 (Johnston, 2013).The second aspect that can potentially have an impact on the business environment is the political factor. Businesses have to be aware of this as it legally intervenes with business operations (Samson et al., 2011). Factors like food labelling laws and fat tax can cause subsequent problems for Carl's Jr. Food labelling laws currently do not require labelling if the food is made and packaged in front of the customer (Ministry for Primary Industries). Therefore the nutritional information given on the company's website is adequate. However, future regulations like menu labelling could pose a threat. Even though having nutritional information printed would not solve obesity problems, it will gain customer confidence. The more confident the customers are, the more he will prefer that product to its competitors. Having such labelling laws, customers will be able to choose what they eat by clearly seeing the contents of the product. Fat tax, for Carl's Jr this would pose a serious threat, as most of the menu is made up of high calorie products. So if tax increases the price of burgers, then this would cause them to lose customers because the lower socio-economic groups are price sensitive and they would seek out other cheaper alternatives (Mason, 2012).2.2 Stakeholder interestsA stakeholder is any party that has an interest in the business. This can either have positive or negative impact and be affected by the decisions made by the business (Freeman, 1984).Carl's Jr is owned by Restaurant Brands, which own other fast food chains like Pizza Hut in New Zealand. The owners are internal stakeholders and the primary stakeholders. As owners, Restaurant Brands have high power and legitimacy over their decisions, which affect other stakeholders...

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