It would result in the form of more profitability and less human error. Its curry puff is one of Singaporean's favourite. Scope of Singapore - PESTLE Analysis and Macroeconomic Trends Report. It has been established that Sheng Siong has 18% of the market . The meat industry is leaving a very deep carbon footprint on the environment. We are a government recognized Star export house and deal in Spices, Oil seeds and Dehydrated vegetables. The PESTEL analysis model supports strategic management by identifying the external factors that present opportunities or threats, based on the remote or macro-environment of the fast-food business, pertaining to the political, economic, sociocultural, technological, legal, and ecological factors (the PESTLE factors). As a result, the overall revenue of the food industry is growing, as individuals cook less and eat out more often. PESTLE analysis is an acronym for political, economic, social, technological, legal and environmental factors. The Singapore Fast Food Industry Pestel Analysis. The market share of snacks and confectionary items in the food industry in 2021 would be1,399,815million dollars. If any of the four are ignored, a solid foundation is lacking in your strategic planning. For example, the Local Enterprise Electronic Commerce Programme allows local enterprises that are embarking on e-commerce initiatives to enjoy a grant of up to 50% of the total project cost, subject to a maximum of S$20,000. Its growth volume would increase by 0.7% by end of 2022. According to a report by Statista, the global annual revenue of the food business in 2021 would be roundabout 8,049,240 million dollars with a growth rate of 3.14%. Without a doubt, this makes the food industry one of the most tightly-regulated industries of all. Food policies generally affect wholesalers, retailers, consumers, and as well as farmers. PEST analysis can be an effective framework to use in Corporate Strategy Planning, useful in identifying the pros and cons of a Business Strategy. The information acquired from PESTLE analysis, the company of Jco . Corporate tax is charged at a flat rate of 17%. Thats why food businesses have to conduct their operation according to health and safety regulations. Disposable incomes are growing for a reason: laborers are earning more money these days. For instance, new regulations after Brexit have affected the costs and increased delays to bring goods to the UK from the EU. Now many food businesses are changing their cooking style and shifting towards an organic-based diet in order to keep up with the health trends. Because it causes diabetes, higher blood pressure, and other health issues. Ltd. Priyanki Bhaurah is a Planning Tank team member. For instance, they have to clarify the amount of oil and salt theyre using, the right temperature, rightly grilled, food storage system, expiration date, cleaning, and food transportation. space is carefully regulated and labor prices are increasing. It employed 3.2 million people and generated 39 billion in . Industry Analysis of the Fast Food Industry 1. "The Singapore Fast Food Industry Pestel Analysis." Synopsis - Understand the political system in Singapore through analysis of key figures in the country and governance indicators. PESTLE Analysis of Singapore Mar 17, 2015 by PESTLEanalysis Contributor Over the last decade, Singapore has shown extraordinary economic growth. Singapore's ease of doing business ranking remained unchanged from 2 nd position in 2019. Of course, the food industry is here to stay, but it seems those who prevail will have to understand what consumers really want to be eating in the 21st century. As a result, many individuals are looking for healthier ways to fuel their bodies. Many international brands have faced Halal meat in Muslim countries. It has led to the destruction of the forests. - Understand the economic situation in Singapore . The structure of the report also includes Country Background, Company Background and conclusion. In fact, some countries have already increased the minimum wage. A strong business relationship with vendors comes with lots of benefits, including getting new customers. Nippon Paint Holdings Co. Ltd. SWOT & PESTLE Analysis View All Customized Solutions SWOT & PESTLE.com offers comprehensive and custom solutions on SWOT and PESTLE across industries and organizations as per your needs. Now let us see the PESTLE analysis of Singapore. Political Wide Regulation Economic Growing Disposable Incomes Increasing Labor Costs At the moment, over 3000 cybersecurity exports are in demand to fill wanted roles by 2020. The healthy diet and exercising trends are becoming popular among people. Accessed 11, 2017. https://www.essaysforstudent.com/Business/The-Singapore-Fast-Food-Industry-Pestel-Analysis/107788.html. Overall, this is a good thing for the industry, as it will allow businesses to improve profitability and reduce the likelihood of human error. How Can Startups Build Strong Vendor Relationships? As your pulling up to McDonalds or Burger King on your lunch break do you ever stop to, Government implementing policies against fast food due to the needs of the society, limiting the growth and development of the fast food industry, Government and the relevant organisations influencing the consumers and the food and beverage industry, indirectly affecting the profitability of the fast food sector, Local community leads a fast-paced life-style, demanding on speed and efficiency, Multicultural consumer background requires greater cultural sensitivity, Social media and its influences could bring positive and negative impacts to the company, New technologies increase the productivity and efficiency of the company, and enables the company to offer more varied products, Negative impacts on the environment from the supply, manufacturing and food packaging has sparked critiques, and consumers are more and more aware, Updates to the employment law of Singapore, Industry Analysis of the Fast Food Industry, How Eco Activists Take Action Towards the Fast Food Industries. Planning Course in India Exam, Subjects, Jobs, Future Prospects. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }), Political factors impactingFood Industry, Economical factors affecting Food Industry, Technological factors affecting food Industry, Environmental factors impacting Food Industry, Conclusion: Food Industry Pestle Analysis, swot analysis of the food and beverage industry. The purpose of the report is to talk about the Porter's 5 Forces Analysis, strategic recommendation and the PESTEL Analysis of Singapore which can be found at Table 1. On the plus side, this ensures that consumers arent exposed to poor quality nutrition, but the complexities of regulation certainly take away from the margins of the food business. Food and beverage companies should keep these and other macro-environmental factors in mind before launching any product. Dyson SWOT Analysis: Strong R&D, Weak International Presence. PEST analysis identifies external factors which influence a business. The 'Legal Factor' in Singapore is that corporate and personal taxes are low . Here are the Technological factors impacting the food industry: Were seeing various types of automation more and more in the food industry. Legal:Singapore has employed some initiatives for e-commerce businesses. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Some food businesses like McDonalds have adopted the tech automation tools like cooking robots, self-ordering, payment systems, and online orders and delivery systems. Copyright 2013 - 2022 Some Rights Reserved. The pandemic ofcovid-19has pushed the global economy into economic recession with increasing unemployment and lower purchasing power of people. PESTLE Analysis stands for ( Political + Education + Social + Technological + Legal + Environment ). Both of them have the same objective and that is to feed the customers and satisfy their appetite. Its a mix of positives, negatives, and uncertainties. EssaysForStudent.com. Planning Tank - An associate of Out of Scale India Pvt. The government is also encouraging this electronic era. This was due to tight global refining capacity and continued strong demand for energy to fuel economic growth especially from China, India, the Middle East and Russia. On the whole, the cost of hiring workers is increasing across all industries. Asides from legally enforceable policies, the campaigns initiated and inspired by the government and its agencies are also affecting the operations of the McDonalds. While this is indeed largely a Political issue, it becomes a Legal matter if any of these regulations are ever breached. 1. EssaysForStudent.com. According to ASEAN, the country has the highest per capita income. Sheng Siong Group has climbed its way to being the top three supermarket operators in Singapore (Singapore Business Review, 2012). Today it is considered one of the highest economy cities. PESTLE Analysis One of the factors that affect the operations of Nestle is political dynamics. PESTEL analysis analyses the external factors coming from all the aspects of the external factors which will affect the growth and development of the company, forming threats and provides possible opportunities in which the company could leverage on to boost the survivability in the long run. Singapore has seen remarkable growth in recent years. People of the US are now more conscious about health due to which a . Singapore Pestle Analysis. The result of this is that more and more individuals are switching to plant-based diets, and governments are slowly taking interest. There is hence huge potential in the fast food industry despite the rise in challenges that will affect the companies in the industry. In particular, there are scores of rules in every country on how food should be transported, stored, and prepared including directions on what temperatures various food types can reach, how they should be cleaned, and so on. Analysis of any country we need to focus on all these 6 aspects. Thats why food and beverage businesses should research their customers preferences. Thats why many people are turning into vegan food. Here are the Political factors impacting the food industry: Governments across the world have expansive regulatory frameworks for every aspect of the food industry. Political challenges may impact on the grocery and supermarket industry in many different ways. They now avoid spending more money on luxury food and beverage because of the limited income. An Important Business Analysis Tool, Walgreens SWOT Analysis: Startling Brand Found in Soaring Competition, Aldi SWOT Analysis: Hidden Threats for the Discount Retailer, 5 Ways You Can Improve Relationships With Customers. 2.1 Political Factors Food industry is all about consistency in quality assurance. After an in-depth study of the swot analysis of food and beverage industry, weve concluded that environmental issues, halal meat, safety regulations, and usage of technology are some of the main challenges. As such, those in the food business need to be extremely careful to ensure that they stay within the bounds of these rules to prevent costly lawsuits. The usage of automation technology and robots would make food preparation efficient and reduce labor costs. This is caused by not only a growing demand for employees, but also higher and higher government expectations for minimum wages. (Naturalproductsinsider.com, 2017) 4.0 PESTEL PESTEL analysis is a macro-environment framework for marketers to investigate and determines the various external factors that present opportunities or threat to the organization. Articles written by our team members, contributed by guest authors and other occasional submissions are published under this account. As a result of this pollution, water is consumed after desalination and recycling. Political:The risk of political factors in Singapore is very low. 11 2017 . Singapore PESTLE Analysis demonstrates how various factors influence the country. Economic:Singapore consists of a vibrant free economic market. Pharmaceutical, tourism and many others have flourished due to this. Singapore was among those countries with the highest amount of emission of carbon dioxide. An example was the call for the implementation of taxation in 2011, on food products which have been reported to be containing excessive amounts of sugar and/or saturated fat ("Tax on food high in saturated fat | Ministry of Health", 2011). They use smartwatches and other tech gadgets to maintain their health and diet. Pestle analysis of McDonald's. McDonald's Corporation is an American fast-food chain multinational company. The stable political climate of South Africa allows for its food industry to grow at a steady rate allowing it also to evolve to face different political challenges. Sitemap, external factors which influence a business, McDonalds Q2 sales in 2016 were far lower than their Q1 sales, interest rates, taxation, and consumer spending, What is PESTLE Analysis? It's a. mix of positives, negatives, and uncertainties. Firstly, the nature of fast food being unhealthy with high in fat, cholesterol, sodium and other ingredients have been labelled culprit to many diseases in the society, such as heart related diseases, cancer, cognitive functions and obesity (Stoddard, 2017). One particularly problematic food group from an environmental point of view is meat. The urge to do socially well has resulted in an increase in productivity. POLITICAL FACTORS. On the other hand, the space is carefully regulated and labor prices are increasing. The report has chosen to analyse on the political, economic, social, technological, environmental, and legal (PESTEL) aspects of a company in the fast food industry in Singapore, and the organisation that will be analysed is the McDonalds. . Currently, the fast food industry is worth $862.05 billion, and it is predicted to continue to grow at a rate of 6.05% in the next six years. Nowadays, many people have become cautious about their diet and they avoid salty, spicy, oily, and sugary based food. This includes the cleanliness of commercial kitchens, the standards for storing and transporting produce, and even the requirements for laborers in the food business. But there are some constraints also that may behold the economic performance of the country. Environment:In the urban areas of Singapore, air pollution due to transportation is the main problem. After analyzing all the above factors, we have concluded that Singapore has come up high in a remarkable way. We plan to expand our business into Brazil, Ukraine, Poland and Taiwan. Introduction. The government of Singapore has offered great business opportunities for both international and domestic platforms. A food business should follow these trends and launch its online platform in order to attract more people. After an in-depth study of Singapore's pestle analysis, we've concluded that Singapore is indeed the world's most developed country technologically and economically. Thats why people have become very cautious about their spending. 30% of the mangrove area of the country is damaged. Richard, Ray Kroc, and Maurice McDonald were the founders of the company. PESTLE Analysis of Towngas. Loss of business in Spain. The farmers are the food producers and they supply it to the food processing factories, vegetable markets, andhotels, and restaurants. 3M SWOT Analysis: Operations Too Much Diversified? We might earn affiliate commission if you make a purchase through links on our website. Cheap labor from the neighboring countries helps the economy of Singapore to save a lot of costs. Tough the economy slowed in 2020 due to global lockdowns, it grew 7.2% in 2021 (Al Jazeera, 2022). The Fast Food Industry: Convenience or Cholesterol? Due to the high literacy rate in the country, trade and foreign investment are also much thrived in Singapore. They established McDonald's at San Bernardino, California, on May 15, 1940. Stability in the political environment has led to augmented business solutions in Singapore. 3. All Rights Reserved, PESTLE analysis of the food industry: Final Thoughts, how food should be transported, stored, and prepared, A PESTLE analysis example in food industry, Walgreens SWOT Analysis: Startling Brand Found in Soaring Competition, Aldi SWOT Analysis: Hidden Threats for the Discount Retailer, 5 Ways You Can Improve Relationships With Customers. There are four major races in Singapore; they are Chinese, Malaysians, Indians, and Singaporeans. Here's the swot analysis of the food and beverage industry are as follows; Strengths of Food & Beverage Industry High Growth Food and beverage is the world's top growing industry. It affects the cost and availability of food. For any details/ query kindly contact us with your question/ query/ feedback. 11 2017. There are countless fast food chains present across the globe in the fast food industry. Product or company names, logos, and trademarks referred to on this site belong to their respective owners. Its market scope is as big as the total population on earth. Despite being better performing than the conventional restaurants, achieving a 2.6% increase in the sales volume from the previous year as compared to the 0.9% of the restaurants (Baker, 2016), in September 2016, the fast food industrys growth has slowed down to a mere 1% growth in 2016 as compared to a 10% growth in 2011(Baker, 2016). This report provides information about key macroeconomic indicators for Singapore. In fact, between 2017 to 2018, the need for cybersecurity jobs leaped by 110%. Singapore has shown remarkable economic growth in the past 10 years. "The Singapore Fast Food Industry Pestel Analysis." For example, in 2014, it was implemented that the marketing campaigns of food products that is deemed unhealthy will be limited by the placement of the advertisement and the content of advertisements, restricting the influence of media on the unhealthy eating habits of children (Manjur, 2014). According to a report by the Political and Economic Risk Consultancy (PERC), Singapore has the lowest political risk in the country. There is also pollution due to the production of oil byproducts. It includes factors like labor regulations, minimum wage, food transportation system, food storage regulations, expiration date, and cleanliness of the kitchen. 2.0 PESTEL Analysis PESTEL analysis analyses the external factors coming from all the aspects of the external factors which will affect the growth and development of the company, forming threats and provides possible opportunities in which the company could leverage on to boost the survivability in the long run. Food and beverage businesses and companies should be aware of the diet preferences of the market where theyre going to launch their product. In this PESTLE analysis, well look at the Political, Economic, Sociocultural, Technological, Legal, and Environmental factors affecting the food industry; in particular, well look at how both restaurateurs and food distributors might be affected by current trends. Top companies in the food and beverage industry are;Coca-Cola,Pepsi,KFC,Hersheys,Amul,Heineken,Nestle,Starbucks,Unilever,Chipotle,Hilton Hotel,Marriott,Burger King,Jollibee,McDonalds, and many others in the hotel and restaurant industry. PEST Analysis is a strategic framework used to evaluate the external environment for a business by breaking down opportunities and threats into P olitical, E conomic, S ocial, and T echnological factors. On top of that, this will give us a glimpse of the market situation and how the factors may affect Sainsbury's performance. 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