Pestel and Swot analysis for a Sandwich shop

Political – The Government encourage us to be Healthier, Especially children. To try and reduce obesity in the country, due to bad eating habits. Tax ratings that you have to be aware of when serving food must be aware of these so you know your ideas will work or not.- 20% Eat In food, 20% Hot take away, Cold 0%

Economic – Lots of competition in the market, saturated market. (Gain customers by stealing them off rival companies. Since the market can’t get any bigger.) Recession – less disposable income available (make their own produce to save money.) price sensitive, 2.67M unemployed in the UK means that there are less job opportunities around and people have less money to spend.

Social – More Food programmes on TV, stressful lives less time on our hands, change in eating culture, we eat more foreign foods – We eat more fast food/convenience food, Fast Food not only for young people but for every one of all ages. We like franchises/brands because we recognize them, more freedom, unhealthy society due to unhealthy eating habits, 24 hour society, cook less food.

Technological – Online ordering no need to go out to order you can do in the comfort of your home, cashless tills, self service tills, sandwich makers means you can do it yourself instead of having someone else do it for you. Advertising using apps for phones etc. keep food live (2-3 days old). By keeping it cold/freezing.

Legal – Cleanliness in organisations to attract customers that it’s a nice place to eat at. Cleanliness rating issued by food inspectors. However they have been dispatched, so there is going to be an increase of things like Ecoli, Salmonella in places.

Environment – Government produces more recycling campaigns to encourage us to recycle more. More Eco-friendly packaging on food products these days. Has made it easier tor recycle like more recycle bins around. Recycling is more popular these days. Also if you see a certain brand having their junk littered everywhere it gives them a bad image will turn customers away from them and go to other places. This can lead to loss of income.

SWOT

Strengths – If they have a good reputation such as being a clean place they will attract more customers. If they make their own produce it will save them money and make them more profitable. If they have staffs that are happy working there they are more likely to represent the company in a more positive way. This will make it more likely for the business to grow.

Weaknesses – If they have a bad reputation such as there litter being seen all over the streets they will turn off potential customers’ visiting there. If the staff there are not happy working there they will represent the business in a more negative way. If they have to buy in produce from elsewhere this will make the business less profitable.

Opportunities – If technology improves they are more likely to be able to bring out new and different products which should increase sales. Also if their market grows they are more likely to become more popular. Also if the competition weakens then you have a chance of stealing some of their customer base and increasing profits.

Threats – If the economy was to go into a recession this could put the business at risk and lose money and may have to downsize. This could lead to laying off valuable staff members and loss of financial funding. New technology could threaten your business as it may make what your business deals in useless and you may not be able to adapt to it, which could lead to falling sales. Another threat is that increasing competition may come along and if successful they will steal some of your share of customers. New government legislation may also be a threat as they could increase or add a tax which applies to you which could lead to less profit.

SMART

Specific – White’s super sandwiches will be aiming to become more popular and increase sales profits. They will also be trying to expand as much as possible by opening up new shops in different places. They would also want to work longer hours and day such as opening at 7 and closing at 6 at 6 days a week.

Measurable – They can measure how well there doing by looking at the business sales records and finance records to see if they are profitable or not. One thing Whites want to do is to make more money so you could compare how long White’s open and the revenue made. If it has gone up by 10% that would mean they have made profit.

Achievable. They must make sure they advertise their product so that people our aware and buy their products. Also they should spend money on market research and listen to the feedback they get so they can improve. Whites should also recruit some more staff in the long term but in the short term they will work the extra hours in with overtime from them and the staff.

Realistic – For Whites this would be realistic as they can afford the extra costs needed for the extra hours for people to recognize Whites and for them to shop there.

Time – They should aim to achieve these targets within 2 months and review the results.