pestle analysis of singapore food industry

Posted on November 7, 2022 by

SWOT Analysis of Singapore: Conclusion The structure of the report also includes Country Background, Company Background and conclusion. The 'Legal Factor' in Singapore is that corporate and personal taxes are low . How Can Startups Build Strong Vendor Relationships? Its a mix of positives, negatives, and uncertainties. more to spend on food and robots can reduce expenses. PEST analysis identifies external factors which influence a business. The continuous development of the country has made it a major competitor in the business world of the international market. The younger generation is now following western values. THOUGHTS. Many people from the millennial and generation Z prefer online shopping. 11 2017. Loss of business in Spain. It has led to the destruction of the forests. Perhaps the best example is the use of self-checkout screens at fast food venues such as McDonalds, but its not the only one! They use smartwatches and other tech gadgets to maintain their health and diet. Singapore was among those countries with the highest amount of emission of carbon dioxide. For internal factors; check out theswot analysis of the food and beverage industry. This has caused the demand for oil to drop in Asian market as people are switching to energy efficient products. 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%. 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. 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. As we find more ways to use technology including robots in the food industry, there will be less need for laborers. 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). These regulations and many other standards for the food and beverage industry make it one of the worlds most regulated businesses. Product or company names, logos, and trademarks referred to on this site belong to their respective owners. This has a positive effect on all corners of the space, including restaurateurs, food distributors, and the individual workers who play a role in these businesses. Articles written by our team members, contributed by guest authors and other occasional submissions are published under this account. . Ahsan Ali Shaw Its curry puff is one of Singaporean's favourite. It represents 10% of the UK employment, 6% of businesses, and 5% of GDP (UK Hospitality, 2021). 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. There is hence huge potential in the fast food industry despite the rise in challenges that will affect the companies in the industry. In the past 140 years Towngas with Hong Kong to grow from the initial supply of gas for the lighted street lights the development of today in the energy industry in the greater China's leading peer. PESTLE is a tool that is implemented to analyze the macro-environmental factors of Singapore's leading sectors like petroleum and pharmaceutical industry. PESTLE Analysis stands for ( Political + Education + Social + Technological + Legal + Environment ). Therefore, food and beverage businesses should know the beliefs and values of the target market. Its because the meat farmers are expanding their farms in order to feed their animals. Strong emphasis on community integration. The production of meat especially red meats uses huge amounts of water and creates a significant carbon footprint. This doesnt necessarily have a positive or negative effect on the food industry, but it means that businesses will have to adapt to stay relevant. PESTLE Analysis of Singapore Over the last decade, Singapore has shown extraordinary economic growth. The growth is driven by several factors. Government will launch a new Industry Transformation Programme in 2017 to take the country into the next phas e of development. Political constraints imposed on imports and exports in one way or another affect the food industry (Joslyn 2012). 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. 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). 3. This has led to consumers expecting greater understanding on behalf of those who work in the food industry. 3. If youre running a business in the Muslim consumer market, then make sure your meat should Halal. Accompanied by the sale of Singapore and Malaysia franchise rights from the McDonald's Corp to Saudi Arabia's Lionhorn ("McDonald's Singapore franchise sold: A history of the Golden Arches here", 2016), the existing and possible threats and opportunities will require much analysis, which will be covered in this report. For instance, new regulations after Brexit have affected the costs and increased delays to bring goods to the UK from the EU. The role of the government is to guide and protect the wellbeing of its citizens. Introduction. As a result of this pollution, water is consumed after desalination and recycling. Its economic view is free market. (2017, 11). According to ASEAN, the country has the highest per capita income. McDonalds is one of the biggest fast food provider in Singapore, beginning with its first outlet in 1979, has more than 120 outlets within Singapore and serve about 1.2 million customers per week ("McDonalds", 2017). How Can Startups Build Strong Vendor Relationships? Here are the Legal factors impacting the food industry: As touched upon in the Political section of this PESTLE analysis, the food industry has high standards for safety matters. 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. 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? Copyright 2013 - 2022 Some Rights Reserved. space is carefully regulated and labor prices are increasing. Overall, this is a good thing for the industry, as it will allow businesses to improve profitability and reduce the likelihood of human error. Some of them are private consumption expenditure, local and external demand, and investments. Now let us see the PESTLE analysis of Singapore. Cheap labor from the neighboring countries helps the economy of Singapore to save a lot of costs. The pandemic ofcovid-19has pushed the global economy into economic recession with increasing unemployment and lower purchasing power of people. Stability in the political environment has led to augmented business solutions in Singapore. Pestle analysis of McDonald's. McDonald's Corporation is an American fast-food chain multinational company. efficient service they expect while working to preserve protect and improve our environment. While this is indeed largely a Political issue, it becomes a Legal matter if any of these regulations are ever breached. Whats more, eaters diets are becoming increasingly more specific. We will go through all the different aspects and factors . PESTLE analysis of "MICE" Industry in Singapore Singapore was known for its pro business environment and safety social environment that caused Singapore became one of the most popular country for investment and hold a business conference or corporate event. - Understand the economic situation in Singapore . Restaurant Industry PESTEL analysis can identify how political, economic, socio-cultural, technological, ecological, and legal issues can impact the conditions of the restaurant industry. Ltd. Priyanki Bhaurah is a Planning Tank team member. POLITICAL FACTORS. On the one hand, consumers have more to spend on food and robots can reduce expenses. The chefs and cooks add value to the food by cooking with various combinations and spices and then serve it to the customers. Both of them have the same objective and that is to feed the customers and satisfy their appetite. Deepkamal Exports Pvt Ltd is a 100% export oriented company. * Notably, Singapore's government's cooling measures which have been passed recently such as the imposition of Seller . It is estimated that approximately 80% of food imports to the UK come from the EU (Walker and Mugudubi, 2021). On the one hand, consumers have. 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. Its GDP is forecast to trend around $425.00 Billion in 2022 and $449.00 Billion in 2023 (Trading Economics, 2022). This threat is also an opportunity it's clear technology is advancing and more jobs are needed to protect this technology. 4.1 Political Burger Hut operations are highly influenced by the political situation in Singapore. 3M SWOT Analysis: Operations Too Much Diversified? Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. The urge to do socially well has resulted in an increase in productivity. Background of Restaurant Industry On the whole, the cost of hiring workers is increasing across all industries. 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). Once again, this isnt necessarily a bad thing, but it means that the food industry will have to make changes to keep clients happy. They established McDonald's at San Bernardino, California, on May 15, 1940. PESTLE Analysis Of MICE Industry In Singapore. High Labor Cost In this case, we're examining how the food industry is affected by political, economical, social and technological factors. The goal is to ensure the safety and nutrition of ordinary people who just want to eat and fill their appetite. Analysis of any country we need to focus on all these 6 aspects. PESTLE is a tool that is implemented to analyze the macro-environmental factors of Singapores leading sectors like petroleum and pharmaceutical industry. Thats why many people are turning into vegan food. Pestle analysis of food and beverage industry. Singapore should address these issues. This PESTLE analysis of the food industry is certainly an interesting one. On top of that, this will give us a glimpse of the market situation and how the factors may affect Sainsbury's performance. Thats why people have become very cautious about their spending. Asides from legally enforceable policies, the campaigns initiated and inspired by the government and its agencies are also affecting the operations of the McDonalds. Regional Planning - Need, Importance & Implementation, Urban Planning - Largely Unknown Profession, How to become an Urban Planner (Town Planner) in India | Urban Planning as a Career, B. PESTLE analysis is an acronym for political, economic, social, technological, legal and environmental factors. Such trends have made people avoid unhealthy and fast food. Its growth volume would increase by 0.7% by end of 2022. The slaughtering of the animal should be according to the faith of Islam. 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. Theres no denying that the food industry is one of the strongest in the world after all, everyone needs to eat! But there are some constraints also that may behold the economic performance of the country. Shopee is a Singaporean eCommerce site founded in 2015 by Forrester Li which employs a typical marketplace revenue-based business model. 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. 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. In fact, between 2017 to 2018, the need for cybersecurity jobs leaped by 110%. The business is seeing a rise in sales due to the high purchasing power of the customers. Food production, its distribution, and consumption are influenced by government policies. The usage of automation technology and robots would make food preparation efficient and reduce labor costs. Theres a clear relationship between the food we eat and our personal health, and consumers are conscious of this. Such government intervention into the growth of the fast food industry will impede on the growth potential of the company in the local market. 11 2017 . Today it is considered one of the highest economy cities. Political:The risk of political factors in Singapore is very low. In World Bank's ease of doing business ranking Singapore was ranked 2 out of 190 countries in 2020. Singapore's ease of doing business ranking remained unchanged from 2 nd position in 2019. PEST analysis helps to plan with these factors. Nowadays, many people have become cautious about their diet and they avoid salty, spicy, oily, and sugary based food. Just recently, social media platforms went crazy as viral footage of a hotels robot cooking up omelettes began to spread. Singapore is located in a small island in the south East Asia. 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. EssaysForStudent.com. Due to technology time and costs of conducting business have reduced. When the public increasingly focused on protecting the . "The Singapore Fast Food Industry Pestel Analysis" EssaysForStudent.com. According to wikipedia, PETA, People for the ethical treatment of animals is animal rights based, The Fast Food Industry: Convenience or Cholesterol? For example, fast food businesses will likely have to move away from traditional, high-calorie fried foods towards healthier alternatives like salads. A food business should follow these trends and launch its online platform in order to attract more people. 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. Singapore Petroleum Co Ltd (SPC) is a Singapore-based company. Also, Singapore has very strict laws and they love to enforce them. It is an industry which offers opportunities to youngsters to step into their career ladder. They now avoid spending more money on luxury food and beverage because of the limited income. According to a report byStatista, the global annual revenue of the food business in 2021 would be roundabout8,049,240million dollars with a growth rate of3.14%. 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. The government's inability to keep up with the energy demand can be seen as one of those challenges. Being an international company, it has to continually restructure to fit in the demand and regulations of every country, which sometimes is costly (Nestle 2017, n.p). It employed 3.2 million people and generated 39 billion in . Indeed, there are some interesting dynamics at play in this space, like rising labor costs, which make it unclear just how profitable food businesses will continue to be. 2. fThis PESTLE analysis of the food industry is certainly an interesting one. This is caused by not only a growing demand for employees, but also higher and higher government expectations for minimum wages. Today it is considered a high-income economy. For any details/ query kindly contact us with your question/ query/ feedback. Read also: A PESTLE analysis example in food industry, We conduct a Walgreens SWOT Analysis to look at the internal and external factors that, Our Aldi SWOT Analysis analyzes the internal and external factors that impact the operations of, You can improve your relationships with customers in many ways, and it's important to be, We conducted a 3M SWOT Analysis, one of the very few brands that offer such. 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. PESTLE Analysis of Towngas. If any of the four are ignored, a solid foundation is lacking in your strategic planning. High inflation also has changed the lifestyle of the people. Singapore's technological readiness is strong, the physical infrastructure has grown with technology, and the government has a strong logistics backbone to support businesses and others. Many international brands have faced Halal meat in Muslim countries. The market share of snacks and confectionary items in the food industry in 2021 would be 1,399,815 million dollars. It has a dense population of 5.183.700 in 2011. PEST analysis can be an effective framework to use in Corporate Strategy Planning, useful in identifying the pros and cons of a Business Strategy. Our Dyson SWOT analysis enables us to see what internal and external factors impact the, Copyright 2020 Weberience LLC. One of the leading food delivery platforms of the UK. This suggestion was modelled after existing policies in countries such as USA, Denmark, France and Canada. Country Background PESTLE Analysis Food Industry USA Political Factors. The government is also encouraging this electronic era. Political Wide Regulation Economic Growing Disposable Incomes Increasing Labor Costs Technology:Advancement of technology, easy communication, and increasing connectivity is another factor for the economy enhancement of the country. (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. The food and beverage industry is the worlds most powerful business because every person has to eat food in order to live. The people of Singapore hate construction jobs. It includes factors like labor regulations, minimum wage, food transportation system, food storage regulations, expiration date, and cleanliness of the kitchen. The information acquired from PESTLE analysis, the company of Jco . Synopsis - Understand the political system in Singapore through analysis of key figures in the country and governance indicators. Now let us see the PESTLE analysis of Singapore. Here we are focusing on Singapore As a result, the overall revenue of the food industry is growing, as individuals cook less and eat out more often. As a result, many individuals are looking for healthier ways to fuel their bodies. Thats why food and beverage businesses should research their customers preferences. "The Singapore Fast Food Industry Pestel Analysis." This number is significant as it can be estimated that approximately 20% of the Singaporean population makes purchase from McDonalds once every week. The Fast Food Industry: Convenience or Cholesterol? 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). Planning Tank | Planning Times | A Young Blog | Assignment Aux | Plng.me, Why Plan | Shitty Planning | OOS India | Terra the Turtle | Plan-ed. Society Rising fuel and energy price has brought great impact to the society such as soaring prices in food and public utility. To gain consistency in operations Nestle defines core competencies to map against threats. Two of the most renowned fast food chains, Mcdonald's and Subway alone, have around 80,000 restaurants worldwide . EssaysForStudent.com, 11 2017. PESTLE analysis is an acronym for political, economic, social, technological, legal and environmental factors. The SWOT analysis for Deliveroo is presented below in a matrix followed by the detailed analysis report: 1. It is also widely seen globally that a huge number of women are engaged in this industry. The market share of snacks and confectionary items in the food industry in 2021 would be1,399,815million dollars. It follows traditional values. 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pestle analysis of singapore food industry