Contemporary Developments in Business and Management_Greggs (GC01028)
Executive Summary
The business external environmental issues and the cultural factors give a hard time to the business organizations including Greggs plc in the achievement of organizational goals. This report has analyzed and evaluated these two factors. The first section of this report has focused on different external environmental issues. First, it has analyzed and evaluated political, social, economic, technological, legal, and environmental issues applying the PESTLE analysis tool. Secondly, it has analyzed Greggs competitors and Porter’s Five Forces model to evaluate Greggs’s competitive positions.
The second part of this report has focused on cultural differences and changes in the Greggs business perspectives. First, this section analyzes the relevance of cultural differences in Greggs’s business and its influences on Greggs business policies and decision makings. In this case, Hofstede’s cultural model has been applied. Second, this section critically evaluates Greggs responses to cultural differences and changes. Third, this section recommends the potential improvement for Greggs in the areas of cultural issues.
Table of Contents
Executive Summary.
Task 1: Overview of the external influences of Greggs plc.
Task 2: Cultural differences and/or cultural changes.
References.
Task 1: Overview of the external influences of Greggs plc
1.0 Introduction
The key challenges in business organizations come from their external environments. Thus, it is significant for businesses to analyze their external environment and the forces that come from the external environment (Kotler et al., 2015). This report conducts a business environment analysis for a chosen company named, Gregg plc. First, this report gives an overview of Greggs. Then, it analyses its external business environmental factors including political, social, environmental, technological, economic, and legal issues, customer and industry analysis, and competition analysis.
1.1 Company (Greggs plc) overview
Greggs is one of the popular brands in the UK food industry. It is operating across the UK, and some international markets including German, France, and China. It is home to fresh-baked savories and sweets. It gives a guaranty of fresh foods. Greggs has more than 2500 shops, where it severs millions of customers every week. It has more than 25,000 dedicated and devoted staff who have come from diverse educational and cultural backgrounds. Greggs has been growing up slowly and steadily with improved sales revenue and profit. Greggs sales increased by 29%, profit increased by 41%, and share prices increased by 30% in 2015 (Greggs plc, 2015).
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1.2 Analysis of Greggs external environment
1.2.1 Macro environment analysis
A business macro-environment can be analyzed with several models, where the PESTLE analysis model is widely recognized as an effective model. PESTLE refers to six particular external environmental factors which are Political, Economic, Social, Technological, Legal, and Environmental factors (Kotler et al., 2015). The table below analyzes these six factors in the business Greggs‘s business perspective.
| Factors | Analysis of Greggs plc | Evaluation |
| Political
| Political factors are those which come from governments and the issues related to governments where the businesses operate (Kotler et al., 2015). In terms of Greggs plc, it is operating in the UK and in other some countries including German, France, and China. Thus, it has to obey the rules, policies, laws on trade, and business by several governments. The new rules by the UK government on VAT for hot foods impact the sales and profit of Greggs plc. | A mix of threat and opportunities |
| Economic | The economic factors and issues related to the global economy come under the consideration of this section. The income level and expenditure level of customers are also considered in this case (Plamer, 2014). In the case of Greggs plc, the volatility in the global economy and fluctuation of currency impact the business of Greggs. Of course, the economic up-turn after the global recession covered has increased the customer income and expenditure level. |
Combine of threats and opportunities |
| Social
| Different social and demographic issues are considered under this use (Kotler et al., 2015). The social structures and demographic factors are rapidly changing, which impacts Greggs business performance. In addition, the food habit of people is changing along with their cultural and traditional factors. Thus, Greggs needs to change product ranges and ingredients on a regular basis. However, the increased trend of populations in communities is giving an opportunity to Greggs to improve its sales and profit. |
Both threats and opportunities |
| Technological
| Technological uses including computer databases and IT functions includes in this section (Kotler et al., 2015). In Greggs plc, the rapid development of technology in the business sector is impacting significantly. Greggs has to invest a huge amount of budget in the technology used in business operations. However, the technology used in a business is helping to gain improved productivity in Greggs’s business. | Opportunity
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