PESTEL Analysis For Zumme Pizza In The Canadian Market

Organizational Overview

The ability for a Manager to appropriately analyze the business environment, both internal and external, is critical to being able to the Planning function and anticipate situations that will impact the organization. This is outlined in your textbook Fundamentals of Management on pages 18 through 26.

The goal of the Assignment is to produce a Report that could be used by a Manager of an existing organization, or an Entrepreneur wanting to start their own business, to best understand the market in which they operate / investigating to operate. The Assignment achieves two outcomes:
Strengthens your skills related to analysis, synthesis, and looking for causes / impacts in the market in which businesses operate, and
Introduces the concept of exploratory secondary research by seeking additional (i.e. non-textbook) sources to support the analysis.

The student(s) have a choice to complete this Assignment independently or in a pair of their choosing. If conducted in a pair, the students shall notify the Instructor by Email no later than September 19th, 2018 by 11:59 PM of their intent of submitting as a pair and their commitment to working together as a pair. If the Instructor is not notified by that time, students will be responsible for submitting an independent Assignment.

The General Environment can be defined as the environmental factors that may impact a business by influencing the market in which the business operates. These factors include Political, Economic, Socio-Demographic,
Environmental, Technological and Legal factors (see more information in Chapter 2 pages 21 through 23).

Choose an industry / business with which you are familiar or with which you would like to become more familiar. Summarize the reason why you have chosen the industry / business. Provide any relevant details related to the Organization that may be crucial to any considerations of a PESTEL Analysis including, but not limited to, the Organization’s purpose, values and / or competitive position in the market.

PESTEL Analysis
You will then conduct an PESTEL Analysis outlining all General Environmental Factors that influence our current market, which you can assume as Cranbrook or British Columbia or Canada (or other) as preferred (see External Analysis in Chapter 3 pages 53 and 55).

The PESTEL Analysis should document conditions that are relevant to the industry / business in a manner that is non-biased. The conditions should be supported by professional, timely and authoritative Research (see below). Exhibit 3-8 on Page 55 of the textbook will provide some thought-provoking questions that will get you things about the possible conditions that may impact the industry / business, however note this is not exhaustive.

For the purposes of this Assignment, the supporting Research should be conducting primarily, if not completely, utilizing secondary research. Secondary research is the analysis of primary research already completely by a third party. In other words, it is not the intent of this Assignment that students collect their own data to analyze regarding the industry / business but to use research (secondary research) that has already been conducted by an authoritative third party to further analyze in context of the industry / business being studied.

The Assignment requests a minimum of four (4) sources of secondary research. For this purpose, a source is defined as a specific third party who is cited as the authoritative third party. For example, if the student was to utilize the World Economic Forum as an authoritative third party for three economic conditions, two political conditions and one technological condition in the PESTEL Analysis, this would be still considered one (1) source. This encourages the student to seek multiple sources of information to ensure the information is consistent and validated as part of their Analysis.

Opportunities & Threats (External Analysis)
Finally, you will outline two Opportunities or Threats for the industry/ business that you believe present themselves from the PESTEL Analysis. Provide the justification for the existence of these Opportunities or Threats based in the research done within the PESTEL Analysis.

This section requires your specific insight on what conditions may exist that would present the industry / business a meaningful Opportunity to pursue or a Threat to prepare themselves to defend against. This should be detailed sufficiently to understand so that the owner / reader should be able to prepare a Plan to address. It should be well defended with the supporting information from the PESTEL Analysis and the Research.

Pestle analysis is a widely used business tools for the management of the organizations in order to evaluate the target business market opportunities and threats (Zalengera et al. 2014). It helps the organizations to assess the social, economic and technological factors of the target market as the analysis will be much needed in making a concrete plan of business opening or in strengthening the existing business operations (Ho, 2014).

The organization will also conduct an external analysis in order to remodel their operations along with the positive findings of the pestle analysis. The chosen organization for the case will be Zumme Pizza. The purpose of the paper is to evaluate the different aspects of the pestle analysis for the chosen organization in Canada and along with that the opportunities and threats for the organization will be evaluated from the assessment of the pestle analysis

Organizational Overview:

Zumme Pizza is an organization which is known to be an automated pizza delivery restaurant. The organization was founded by Alex Garden and Julia Collins in the year 2016 (zumepizza.com, 2018). The organization operates in the Food delivery and the food tech industry and is currently having it’s headquarter in California, United States. The organization was serving pizza as their main product but apart from that they had salad and cookies in their product chain as well.

Pestle Analysis

Political and Legal:

Canada being a state of parliamentary democracy along with a federal structure of the parliamentary government which significantly follow strong democratic traditions, is ignorant in imposing any sort of strong rule which will be barring the smooth conduction of the business operations of concerned organization (Smith, 2013). But the government has created some of the rules with the precise advice of the food quality regulatory advisers and they have formed an agency named Canadian Food Inspection Agency.

The agency has restricted the previous rules and implemented some new rules like the dairy products regulations, consumer packaging and labelling regulations, Egg and Processed Egg Regulations, Process Products Regulations, Meat Inspection Regulations 1990, safe food for Canadians regulations (inspection.gc.ca, 2018). Zumme pizza needs to make sure that they do not violate any of these legislations as the Canadian government is significantly focused in making sure that the quality and standards of the food is of the optimum level.

Economic:

Some of the statistics will be significant to prove that the concerned organization will have a significant business in the target market which are mentioned as below:

The concerned industry has generated 936.5 million US dollars in Restaurant to customer delivery and 220.9 million US dollar in the platform to consumer delivery in the nation in the financial year 2017 (statista.com, 2018). With a significant rise in the revenue in the first two quarters of the current financial year the concerned industry is hopeful of creating a revenue of 1196.7 million US dollar in Restaurant to customer delivery and 281.4 million US dollar in the platform to consumer delivery (statista.com, 2018). Hence the plan of entering the Canada market is significantly viable for the organization.

Social:

The organization is significantly focused in preparing their food products with limited amount of time and in order to do so the organization has appointed 8 robots till date for the slicing purpose. This enables the organization to serve the customers within 4 minutes from the timing of their order. As the target country is a significantly tech-savvy and busy, this reduction in the time for the food processing significantly helps the customers. Hence the organization is able to form a customer loyalty with their unique service.

 Technological:

The organization has the capability to catch the tech savvy people of Canada with the availability of the website and mobile application. Apart from this the organization uses the robots for slicing operation. The organization uses predictive algorithm to have an idea of the customer choices and preferences. Along with this, the organization uses a van equipped with 56 GPS equipped automated ovens. The uses of the technology is dedicated in following the customer trends and this also enables the organization to deliver the food products as soon as possible to their customers. The country is able observe a sharp rise in the mobile phone, laptops and desktops volume per capita in units in the last three financial years which provides a significant rust to the organization that the technological aspect of the organization will be well appreciated by the customers in the target market.

Environment:

The organization’s business proceedings has no scope of violating the Canadian Environmental Assessment Act and Canadian Environmental Protection Act, 1999 (inspection.gc.ca, 2018). Though the organization implements the expertise of the robots for their business conduction but the ratio of human to robots in the employee base is significantly in favour of the humans which takes the organization away from violating the rules of Canadian Human Rights Act (Jensen, 2014).

External Analysis:

Opportunities:

• The organization will be able to use the immense interest of the Canadian people towards the online food consumption.
• The organization will be able capture a market which is assumed to acquire a revenue of 2445.1 million US dollar in the Restaurant to customer delivery and 647.4 million US dollars in the platform to consumer delivery according to the CAGR report (com, 2018).
• The organization will be able to recruit sufficient number of efficient employees from the nation and that will enable them to increase the employment in the nation.
• The market competitors like Domino’s pizza Canada and the Pizza hut Canada has larger share of the market.
• The cost of the raw material in the nation will be bit high in the target market and that may increase the price of the food products.
• Though the organization sells the other food products like salad, cookies but in the new market, the organization will be subjected to the need of increasing the product chain in order to survive in the tough competition of the market.

Conclusion:

On a concluding note it can be said that the organization has a viable plan of entering the new market and the entrance has the possibility of creating significant amount of revenue from the target market.

References:

Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis. European academic research, 2(5), 6478-6492.

inspection.gc.ca (2018). Welcome to the Canadian Food Inspection Agency - Canadian Food Inspection Agency. (2018). Retrieved from https://www.inspection.gc.ca/eng/1297964599443/1297965645317

Jensen, C. (2014). The right and the welfare state. OUP Oxford.

Smith, D. E. (2013). The invisible crown: The first principle of Canadian government. University of Toronto Press.

statista.com (2018). Online Food Delivery - Canada | Statista Market Forecast. (2018). Retrieved from https://www.statista.com/outlook/374/108/online-food-delivery/canada

Zalengera, C., Blanchard, R. E., Eames, P. C., Juma, A. M., Chitawo, M. L., & Gondwe, K. T. (2014). Overview of the Malawi energy situation and A PESTLE analysis for sustainable development of renewable energy. Renewable and Sustainable Energy Reviews, 38, 335-347.

zumepizza.com (2018). Order Delicious Pizza and Have it Delivered Zume Fast. (2018). Retrieved from https://zumepizza.com/