Strengths
Strengths are features of the business or project that give more advantages than other companies. Organic food has become very popular, because Organic agricultural products contain fewer pesticides, Organic food also is often fresher because it does not contain preservatives for longer and Organic agriculture is more beneficial to the environment. Organic farming practices reduce pollution, save water, reduce soil erosion, increase soil fertility, and use less energy.
Weaknesses
Weaknesses are features of the business place that have more disadvantages and need to correct. Many health food stores and natural stores have a premium on organic food. If you want to eat the recommended fruits and vegetables every day, it will destroy the budget if it is completely organic. Convenience keeping an organic kitchen is very challenging. Although some people invest in organic products while others grow them themselves, there are always some foods that are harder to buy.
Opportunities
Opportunities are what market trends could lead to increased sales More and more people need to go out to eat, it’s very convenience way and can save their time, thus many people prefer to eat out instead of cooking at home. But many people know that eating out is unhealthy and unclean. In order to save money, some restaurants will choose some stale raw materials to cook. Most customers do not know. For example fast foods. Thus the green diet is very important for people in the daily life.
Threats
Threats means what are the advantages competitors have over our organization. Healthy diet is very popular in Australia, New Zealand and Singapore. In the short run, malnutrition can cause stress and fatigue, over time it increases the risk of certain diseases and other health problems, such as overweight or obesity.
PESTEL
Political factors always including governmental policy may impact on an organization or a specific industry. Economic factors are affecting the economy and its performance. Social factors always focus on the social environment and identify emerging trends. Technological factors consider the technological innovation and development. Environmental factors are influence of the surrounding environment and ecological aspects. Legal factors are focus on legal and must understand what is legal and allowed within territories they operate in.
Political
Trends affect the food industry. Fast food restaurants are adding “healthier options” on their menus as public health policies are pushing for foods with lower sodium and sugar intakes. Current policies push for the public to be more conscious when buying foods. For example, as part of the Health Menu Choices Act, food services with over 20 locations in Ontario, Canada, must now post the number of calories for food and drinks openly. A change like this could affect purchases of foods for their country.
Economic factors
The state of the country and unemployment rates can affect the food industry. Healthier alternatives to foods are pricier compared to fast food or easy-to-make meals. Not only that, but the convenience of readily made food, despite the unhealthiness, can outweigh the trial and error of cooking food from scratch. Food interest rates, taxation, and consumer spending affect the options and opportunities presented in the food industry. Although there is a slowdown in sales, fast food is a convenience and a necessity to many still.
Social factors
Fast food trends shift based on what consumers want. As mentioned throughout this analysis, healthiness is the focus in many countries. This is not only pushed by governmental authorities, but by consumers, as well. What we’re seeing is a rise in organic and whole foods as diets and lifestyle changes come into play. Vegetarian eating is becoming less of a fad and more of a lifestyle choice particularly with the younger generation. How these foods appeal to people is based on their branding look. As a result, fast food chains are implementing their own branding makeovers and they’re adding healthier options to their menu still.
Technological factors
Technology can give a competitive edge. Technology is necessary to create packaging, food labels, and the production of food. Newer corporations may be lacking in technology power compared to veteran food-based companies. With technology advancing, it helps food corporations reach consumers in new and easier methods. We even have online groceries, which deliver fresh produce to customers quickly.
Environmental factors
When organic food is prepared, it is purified and extracted from various practices like chemical fertilizers and pesticides, public also focus on food safety, pollution and human.
Legal factors
The brands have to comply with legal requirements to do their business. They have to pay more attention about company law and investment regulations to abide by them, as it is necessary for them to comply with them strictly.