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You are a (SME) product manufacturer (or the supplier of a service). Your marketing department has identified a potential market in another country. The decision to enter this new market simply needs to be supported by environmental analysis. This analysis will report on the operating environment in your target country - specifically in the context of your product or service and its compatibility with your strategy. 

International Business and external forces

The international business study has broadly developed in recent years. As stated by……., international business is a growing segment, because each zone in the management may have its international aspect. As an outcome, the maximum effort has been made in the current time period in order to map the field summarising patterns and trends. The analysis of the different forces like political, economic, social, environmental, etc. has increased as a key subject in the international business management field (Duarte, Suarez & Diaz, 2016). In specific, there is a wide study of literature that has been devoted to analyzing the role played by all these forces between the home nation and host nation in the procedure of internationalization as a feature conditioning a broad range of internationalization decisions (Sharan, 2011). Hence, this paper is being presented in order to analyze the influence of external forces like political, economic, social, environmental, legal, and technological on the operations of the business planning to expand its operations in the host country. The paper is providing a detailed analysis of the host country’s forces and potential opportunities and threats for the Dinner by Heston Blumenthal while expanding business in the Australian market.  

Dinner by Heston Blumenthal is a London based restaurant, established in the year 201. Within a year, the restaurant received a Michelin star. In the year 2014, the restaurant was also listed on the fifth position across the world in the list of best 50 restaurants magazine. In addition, Dinner by Heston Blumenthal also gained a second star in the year 2014 (Dinner By Heston, 2019a). The head of this restaurant is Ashley Palmer-Watts. The options in the Menu are based on the British ancient dishes that are identified by the historians of food and the British Library. With the opening of the restaurant, it drew high interest in the market as well as industry and received positive reviews (Tapestry Management, 2019). Specific dishes served in the restaurant have gained high praise, comprising the chicken liver mousse designed like mandarin orange and meat fruit.

In 2010, in the month of August, the restaurant announced the opening of the dinner in order to switch the Michelin introduced restaurant Foliage in the Oriental Hyde Park. The commencement was actually organized on 1 December, but due to some reason some of the delays occurred, which resulted in the opening of the restaurant at the time of Christmas. The restaurant started accepting the reservations for 1 December on the opening day of the restaurant. The management of the restaurant planned setup of around 42 phone lines for the reservations of the table on the opening day, which received around 600 telephone bookings (Dinner By Heston, 2019b). 

Introduction to Dinner by Heston Blumenthal

The restaurant planned to change its menu every three months. Every menu includes the ancient dishes from the 14th to 19th centuries. The dishes that are included in the Menu are scallops and peas with cucumber ketchup and bergamot cured mackerel salad. Every item the menu of the restaurant is based on the ancient method, like the scallop dish from The Cook and Housewife's Manual, developed by Meg Dodds in the year 1826 (Dinner by Heston, 2019c).

Altering social trends have increased the growth of the revenue in the industry of Restaurant in the last five years. Declining leisure and busy lifestyles of the people have significantly turned the consumers towards restaurants for their daily meals. Restaurants have allowed its customers to have their dining and leisure at a single place which has eventually reduced their spending and time taken in preparing the food (Euromonitor, 2018). As an outcome, the revenue of the industry is anticipated to increase at the annual rate of around 1.8% in the coming five years. In the current year, the revenue of the industry is expected to increase by 0.2%, since increasing disposable increase and optimistic sentiments increase the spending habits of the customer in the industry (IBIS World, 2019). The demand of the customers for quality food and dining at the restaurant has driven the revenue growth of the industry in the last five years.

The industry of restaurant is one of the most famous and profitable business across the world. It is a setup where food is prepared as well as served to the customers and it operates its business round the clock. There is diverse kind of restaurants extending from the simple dining to spacious and expensive restaurant options, where people can enjoy their time with family and friends (Vault, 2019). A decent restaurant is one of the best options for the tourist or for a single person, who search for food at a reasonable price (Institute for Employment Research, 2007). Dinner by Heston Blumenthal is one of the unique concepts of a restaurant that offers some historical dishes that have been left behind by a number of societies and people in order to have western and different types of food. The concept of the restaurant is unique which will work towards attracting a maximum number of restaurants in the market. In addition to this, tourism in the Australian market is the key component from the economy of Australia (Holiday in Australia, 2019). The unique concept of Dinner by Heston Blumenthal will attract a number of tourists who like to know more about the history and taste of the nation. However, there are some factors in the Australian market that can influence the performance and existence of Dinner by Heston Blumenthal:

Political Factors/Forces

Ancient dishes at Dinner by Heston Blumenthal

The political forces have a high influence on the industry of restaurant because government bodies desires to have control over the industry and therefore it introduces numerous rules and regulations regularly considering the health of the population (Adamkasi, 2016). The restaurants are obliged to ensure cleanliness standards and follow the tax rules and labor laws. For instance, according to the Health Menu Choices Act, the food restaurants at 20 places comprising Canada, Ontario, must post the specific food and drinks containing the number of calories. Dinner by Heston Blumenthal must follow the following guidelines of the government in order to survive in the market and get no-obligation certificate from the Australian government. 

The laws have been implemented because government desires to check the food and ingredients quality that are utilized in the preparation procedure since the cholesterol can influence the health of an individual and can suffer from obesity and different issues related to stomach (Hewson, 2018). Many of the restaurants do not keep the kitchen clean, where the food is prepared. Preservation of the food is very important which could be achieved by maintaining a tidy and clean kitchen. While preparing food in the kitchen the chefs at Dinner by Heston Blumenthal need to be careful about the cleanliness and the quality of the ingredients they use in the food preparation procedure in order to avoid any kind of health issues for the customers.

The government also enforces a few of the laws related to employment for the employees’ safety. Besides this, environmental guidelines, trade restrictions, tariffs need to adhere in order to maintain the food standards of the industry (Export. Gov, 2018). Considering this, the restaurant needs to be a customer as well as employee centric restaurant that not just thinks about the taste of their customers but also the safety and interest of the employees. In order to do so, the restaurant must be equipped with all the safety equipment required at the time of an uncertain event.

Economic Factor/Forces

The fiscal policy of the government can influence the business of Dinner by Heston Blumenthal in the restaurant industry. If the Australian government raises taxes on the consumer products, then the restaurant has to increase the rates of their food items that will affect their profit margin (Skyler, 2018). In addition, the changes in the rate of inflation can influence the restaurant because the ingredients prices could be increased and eventually, the restaurants need to increase the food rates.

Revenue Growth in the Restaurant Industry

The time economic alterations take place in other nations, it also influences in other nations,  as it can have a negative influence on the restaurants that possess their outlets in other nations. Presently, the world economy is dealing with the economic downturn, which is affecting every industry and business (Santander, 2019). Dinner by Heston Blumenthal will also have to deal with this downturn but can overcome this by offering different dishes by adding healthy ingredients. Stable and slow economic growth in the nation and dangerous economic markets could be a major threat to the industry. If any nation's economy is strong then the restaurant industry can grow there quickly.

Healthier substitutes of the food are pricier in comparison to fast food meals. Besides this, the convenience of having ready to eat food in spite of their unhealthy nature can overshadow the trail of preparing the food items from scratch. This has allowed the high expansion of the restaurants offering fast food.

Social Factor/Force

People in society are today becoming more educated and aware of their health and healthier options available in the market. They ask for quality products and the increasing population is the key aspect for the increasing number of restaurants in the market (Gain Health, 2019). Dinner by Heston Blumenthal is known in the market for offering historical food options to the customers with the quality ingredients because historical recipes always make use of natural products to prepare the food.   

The market that is health conscious, restaurants provide healthy food options to the customers, but in the market where people search for fast food products, the restaurants cook food as per their choice. Similarly, in some cities, people like to go out for dinner and there are numerous restaurants available that offer the same facility to them. But the market does also have those customers who like to stay at their home and cook food.

Technological Factors/Force

Various famous restaurants in the market make use of IT technology and television for the publicity of their products and dishes. The television is very costly in regards to promoting the business; therefore, many of the restaurants launch their own websites for the promotion of their different dishes (Advanced Business Manager, 2016). In order to get high traffic on the website, businesses regularly update their sites and dishes. Dinner by Heston Blumenthal can also promote its business by using a different type of technology like television, hoardings, pamphlets, website, etc. Besides this, it can place a big screen inside the restaurant in order to display its menu as well as different and attractive dishes.  

Legal Factors/Forces

Unique Concept of Dinner by Heston Blumenthal

There is a number of agencies of government that are operating for the constant supply chain quality of food. The government has executed numerous rules and regulations in order to manage the supply of food in the market (Australian Government, 2018). Dinner by Heston Blumenthal not only have to manage and deal with the framed regulations of the Australian government but also have to consider the welfare and wages in the particular zone. It has to keep its dishes quality very high that could result in a healthy intake of the food for the customers.

Environmental Factors/Forces

In order to maintain a safe environment of Australia, Dinner by Heston Blumenthal has to check regularly the increasing corporate environment programs rates and adopt different strategies of sustainability in order to grow the business. Climate change is another issue for the industry of the restaurant (Adamkasi, 2016). The issues related to the environment are increasingly severe and it is a high issue for the atmosphere. Every business more or less adding in the problems of environment and businessmen must be conscious regarding this type of threat and try to avoid them by complying with the policies of the government in terms of environment protection.   

Opportunities for Dinner by Heston Blumenthal

Australian market possesses a range of advanced technology that is used by the business in order to ease its procedures and offer quick services to the customers. Besides this, technology is also used by businesses to promote their services (Advanced Business Manager, 2016). Dinner by Heston Blumenthal can promote its menu dishes on its website. It can also place a big screen inside the restaurant in order to display its menu as well as different and attractive dishes.

Dinner by Heston Blumenthal can also attract customers in the market by adding more health conscious historian dishes in its menu.  

Threats for Dinner by Heston Blumenthal

Economic Downturn across the world is one of the major threats for Dinner by Heston Blumenthal. The economy of Australia is also dealing with the similar type of issues, therefore, in order to operate successfully in the market by adding healthy ingredients in the food processing procedure such that it can attract a maximum number of customers (Skyler, 2018). 

Changing lifestyle enforce them to more towards ready to eat food options and fast food, which eventually affects the profit and sales of the dining restaurants in the market. In increasing trend of fast food in the Australian market can be a threat for Dinner by Heston Blumenthal.    

Influence of Political forces on Dinner by Heston Blumenthal

From the above analysis, it could be said that Dinner by Heston Blumenthal can operate its business in the Australian market by just following the guidelines and regulations framed by the Australian government for the safety of the public as well as ethics of the society. Moreover, the restaurant can attract customers by promoting the use of healthy ingredients in the preparation procedure of its dishes. In the end, it can promote its business with the help of different promotional strategies such as pamphlets, advertisement inside the restaurant by using a big screen and displaying the cooking procedure to the customers.  


The above report has provided a detailed external environment analysis of the Australian market in order to identify the present opportunities and threats for Dinner by Heston Blumenthal in the market. The paper has highlighted the details about the present operations of the restaurant in the London restaurant industry. From the analysis, it has been identified that Dinner by Heston Blumenthal can successfully operate its restaurant business with a unique concept of offering historian dishes to the customer in the Australian market and can avail available opportunities such as technology and social awareness of the customers about their health. If customers will be aware of the healthy products they will drop the junk and will move towards Dinner by Heston Blumenthal which offers more healthy options to them. Though, there are some of the threats for the business such as worldwide economic downturn and increasing tread of fast food and ready to eat food. 


Adamkasi. (2016). PESTLE Analysis of Restaurant Industry. Retrieved from

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Duarte, C.L., Suarez, M.V., & Diaz, B.G. (2016). International Business and National Culture: A Literature Review and Research Agenda. International Journal of Management Reviews, 18(4), 1-13.

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