General Management Assignment

Section B Question 1
Conduct a comprehensive analysis of the fast food industry, including and evaluation
of the macro-environment, the industry, their closest competitors, the internal of
micro-environment, and a SWOT analysis.
Fast food trends over the last 5 10 years

Competitive landscape

very fragmented market

Focus of taste holdings (pizzas, burgers?)

Market segmentation

Burgers
o Franshise outlets (Steers, KFC)
o Independent outlets (
Pizzas
o Franchised outlets (Scooters, Romans Pizza)
o Independent
o Convenience stores (Pick n Pay, Woolworths)
Chicken
o Franchised outlets (Zebros, Nandos)
o Independent
o Convenience stores (Woolworths, Spar)

PEST ANALYSIS OF THE FAST FOOD INDUSTRY

POLITICAL

ECONOMIC

*Labour laws within South Africa to

manage and deal with minimum wage

*Unemployment continues to

and working conditions. Bargaining

increase resulting in less available spend

council to oversee and manage these

by consumers of fast foods.

processes.

*Establishment of a Collective Agreement

in the Food, Restaurant, Catering and

*Low wages- industry has reacted

to this factor by introducing cheaper
meals.

Allied Trades.
*Sugar tax effective 01 April 2017,

*Discussions around the increase of VAT

on all Vatable goods would have meant

*Market over saturation continues

to be a factor due to new entrants diving
up the market share.

an increase for end-users.

*The Occupational Health and Safety Act
(OHSA) continues to play a dominant

*Increases in commodity prices

(flour, oil)

role within the hospitability industry.

*Franchise laws are becoming more

*Development of malls in rural and

stringent.

semi-rural areas create opportunities for

SOCIAL

fast food businesses.

TECHNOLOGICAL

*Franchises offer customers a familiar

feel, look, experience & dependable

*With new power stations builds

quality.

being delayed the possibility of load

*Poor working conditions has become

shedding remains. This will result in loss

synonymous with fast food businesses.

of production in time.

(OHSA plays an important role in

managing this perception)

*Hygiene whistle-blowers are creating a

public awareness of any health or safety
indiscretions via social media.
Reputational damage.

*Implementation of alternative
energy sources are costly.
*Risk of water supply. Also affects
suppliers in industry such as wheat
farmers.

*Growing health conscious markets and

many fast food companies are adjusting

New technology innovations; wood

menus to suit this growing base.

burner pizza ovens versus electric or gas

*Growing middle income demographics.

pizza ovens

*Religious requirements (Kosher, Halaal)