Evaluate the Nandos’ marketing environment by PESTEL in UK and give some recommendations.
Nando’s UK specializes in chicken dishes from Portugal. The PESTEL analysis involves the analysis of the political, economic, socio-cultural, technological, environmental and legal factor analysis of Nando’s in UK.
Political Factors
UK has a stable political environment that is favorable for the growth of business in the country. UK has passed an anti-bribery law that ensures and makes it illegal for individuals to accept, offer, promise, request or receive bribes in UK . The act provides a healthy and transparent environment for effective corporate governance practices and businesses can operate freely in such an environment without having the need to bribe government officials for grants and permissions.
Economic Factors
UK is the most attractive location for investors in Europe and ranks fifth in the world for 2014 attractiveness survey . The country has a robust infrastructural development and a high amount of foreign direct investment for the year 2014. Globally UK ranks at 45 in the list of 189 economies . The UK economy is set to grow at a rate of 3 percent for the year 2014 . The future prospects of the UK economy promise growth for Nando’s as the purchasing power of the people shall rise with the growth in the economy.
Socio-cultural Factors
The level of living standards has fallen sharply in the UK since the year 2008. The rental for houses has increased significantly in the UK making it almost impossible for the common man to buy a house in the UK . The unemployment rates in the UK are higher with a fall in the daily wage rates and the rising inflation that makes the purchasing power of people lower. The socio-cultural factors include the cultural beliefs and social preferences of people in the UK.
Technological Factors
The technological factors involve the innovative techniques in the field of food manufacturing and storage technology. UK has a highly developed food technology for food manufacturing, processing and storage. The food, cooking technology allows Nando’s preparing food dishes in a healthy and hygienic environment that allows the company to manufacture healthy and nutritious food for its customers.
Environmental Factors
The environmental laws in the UL involve strict rules and regulations for businesses based on their impact on the external environment. There are specific laws for land use, waste management, land development, climate impact and use of chemicals that exist for businesses operating in the UK . It is important for Nando’s to ensure environmentally friendly business practices so as to cause minimum harm to the environment. The use of chemical substances used in the production of food should involve those materials that cause minimum harm to the environment. The disposal of waste items should be done in biodegradable containers so as to avoid environmental pollution. Organizations also need to adopt alternative energy sources so as to reduce their carbon footprint and global warming. According to the environmental law 2014, UK companies need to include an account of carbon emissions in their annual reports . The UK listed companies are also eligible for government grants for their green initiatives.
Legal Factors
The legal factors involve the laws such as taxation and business laws and procedures that need to be conformed by the businesses operating in the UK. It is much easier to do business in the UK in comparison to other locations due to the easy and relaxed laws for businesses. UK is one of the best locations to start a business in the world . It is much easier to pay the corporate taxes, sales taxes and other taxes in the UK.
Recommendations
Product Pricing Strategies: In view of the higher inflation in the UK and the slower growth of the UK economy, Nando’s should focus on price penetration strategies with lower prices for its products so as to attract the price sensitive customers that are reluctant to spend on food expenses in view of the weak economic scenario. Nando’s can also adopt a competitive pricing strategy so as to maintain prices for its products that are almost comparable to the competitors.
Product Customization Strategies: Nando’s needs to offer its customers with a personalized and customized menu of products so as to attract the local customers. Nando’s can offer traditional UK dishes so as to attract the local residents of the UK towards the restaurant chain.
Green Initiatives: In view of the strict environmental laws in the UK and as a part of the corporate social responsibility of the Nando’s towards the natural environment, the company should focus on adopting green initiatives that cause minimum harm to the environment and reduce the carbon footprint of the company and also release lesser greenhouse gases in the environment to reduce global warming. Nando’s can adopt innovative and effective cooking practices through latest cooking equipments.
References
- Colvin, S. (2013). Environmental law in 2014: what businesses should know. Retrieved from The Guardian: http://www.theguardian.com/sustainable-business/blog/environment-law-2014-business-should-know
- Dimireva, I. (2012, March 5). Doing business in the UK: Environmental rules. Retrieved from Eubusiness.com: http://www.eubusiness.com/europe/uk/environmental-rules
- Ey.com. (2014). 2014 UK attractiveness survey. Retrieved from EY.com: http://www.ey.com/UK/en/Issues/Business-environment/2014-UK-attractiveness-survey
- Justice.gov.uk. (2010). The Bribery Act 2010. Ministry of Justice.
- PWC. (2014, July). Living standards – is the 'big squeeze' nearly over? Retrieved from Pwc.com: http://www.pwc.co.uk/the-economy/publications/uk-economic-outlook/living-standards-is-the-big-squeeze-nearly-over-ukeo-march14.jhtml
- PWC. (2014, July). UK Economic Outlook July 2014: Prospects. Retrieved from Pwc.com: http://www.pwc.co.uk/the-economy/publications/uk-economic-outlook/ukeo-july2014-prospects.jhtml
- WorldBank. (2014). Doing Business 2015. Washington DC: World Bank Group.
