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List And Describe The Main Forces In The Macro Environment Facing The Fast Food Industry

1269 words - 6 pages

List and describe the main forces in the macro-environment facing the fast-food industry.
The government has more control over service industry than manufacturing industry. Fast food industry lie under the service industry so they have to ensure that food they produce meet the standard or quality. Under the Food Safety Act, all food business must ensure that the food do not contain anything that could damage the health of the consumers. Moreover, the food must be advertised in a way that is not misleading to the consumers. As a result, fast food providers have to make higher quality standards with its supplier.
Recession have impact on food industries because most ...view middle of the document...

On the other hand, researches are showing that too much fast food is not good for our body and vegetable is the best for our health. Due to the result of the researches, the population of vegetarian goes up quickly in the USA. The population of vegetarian is growing and more people tend to eat more vegetable and fresher food rather than eating traditional fast food which contain too much meat and fried food. To maintain these old customers, the fast food companies are now having a special menu for these kinds of customers. With the increase demand of vegetarian menus, it’s a good opportunity for new entrants who are focus on these people as the social culture and life style is changing (Richardson & Aguiai, 2004).
Online ordering system is one of the most popular foods ordering service, through the internet where customers can easily place their orders from their home or workplace and get their orders delivered right at their doorstep. This is a double-edged advantage for both customers and the fast food industries since it provides convenience both parties.
Environmental Problems
Government is establishing laws with the aim of keeping check on the fast food industries. The law is highlighting more on the consumption of bio-degradable and environment-friendly products and processes. The cost associated with the environmental friendly product is the key issue face by the fast food industries since the environmental friendly product cost higher than the normal products that they uses for wrapping or packaging for their products.

What are the main factors that contributed to Crust's success and to RBW's poor performance?
Crust has a simple, straightforward and well-developed strategy with specific and obtainable goals. Their strategy was successfully implemented using 7Ps and shows clear evidence of planning. RBW, in contrast, did not have a well-developed strategy or realistic goals, and failed to corporate their plan with the 7Ps.
Crust’s internal environment was a key factor to its success. Founder Costa Anastasiadis was familiar with the industry and was not over-ambitious about his plan. Costa saw things in a small, family-business way, and what he emphasized –relationships, quality food, atmosphere, customer trust – was clear in the opening and growth of Crust. RBW did not have strong management or a clear view of their position in the industry.
Crust evaluated their target market and found a niche within the industry that allowed them to flourish. With this market research, they aligned their location choice with both their customers’ wants and their strategy. Although RBW appears to have chosen a selective target market, they didn’t research enough in depth about the consumers within that market. Their location choice and physical appearance was a significant mistake for...

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