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MJ Cahill |
External Environmental Analysis
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Executive Summary
In this paper we have been asked to accomplish an external environment analysis of the California Pizza Kitchen. In the introduction section, the purpose, the outcomes, and the methodology adopted have been mentioned. . As part of the research for this paper, a PEST analysis was accomplished as well as looking at the Porter’s Five Forces Analysis. (QuickMBA, 2007; Value Based Management, 2009)
As part of the PEST analysis, the California Pizza Kitchen has to abide by numerous government regulations (federal and state), but it has not reflected negatively on the profits. The California Pizza Kitchen company will more than likely face some economic
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The California Pizza Kitchen has 88 restaurants in California alone, which makes it vulnerable to negative economic conditions in California. The California Pizza Kitchen needs to satisfy a number of conditions like credit worthiness, if it continues with its current credit facility along with the likelihood of additional financing. The company does not have direct control over its franchising and licensing partners who contribute to the profits and royalties, and therefore, it affects their profits. Existing economic conditions makes it difficult for the company to pursue its growth plans of expansion. (California pizza kitchen 2009 annual report) 2010).
Social Factors - The California Pizza Kitchen sells pizzas, pastas, salads, etc. and the ambience of the restaurants is quite informal and homely. Its primary key to its success has been that they were the first pizza restaurant that offered fresh and non-traditional ingredients for its pizzas. On a whole, the American consumer base is traditionally not very nutritional conscience when it comes to dining out. Regionally, the consumer preferences are suiting the business model of the company in most areas; however changes in the consumer
PEST is creation for Political, Economic, Social and Technological. This investigation is utilized how these four external factors influence to business circumstance. Essentially, a PEST investigation helps you decide how execution and exercises are
PEST analysis will be able to be utilized to help detect trends in the external environment that will eventually discover their method into the competitive environment. It gives a relation between the general and competitive environments in that weak signals in the general
External and internal environmental analysis is a critical component for an organization seeking to achieve its goals. The follow information within this paper presents a complete external environmental and an internal competitive environmental scan for JetBlue Airways. The information provided identifies and analyzes the most important external environmental factor in the remote, industry, and external operating environments. When addressing external environment it speaks to a set of forces and conditions outside the organization that can influence its performance. The most common forces include political, economic, social,
The main purpose of this paper is through the company 's external and internal environment analysis to evaluate the company in the industry and future developments. Assess the external environment mainly through PESTLE Analysis and Porter 's 5 Forces. Strategic Recourses & Capability Analysis for internal environmental assessment is conducted. Finally, the company somehow SWOT analysis, concluded ••••
In our analysis, we compared the profits earned by 60 Crusty Dough Pizza Company restaurants to factors associated to their menu, amenities, services, and statistics regarding the restaurant communities. The factors that we analyzed are listed in Table 1.
PEST ANALYSIS ON TARGET CANADA BY GRACE NWACHUKWU. October, 2014 Business News Daily, 2013 explained PEST Analysis (Political, Economic, Social and Technological Analysis) as how those external factors can affect a business’s activities and performance… The article further explained that aside the fact that some organizations already have factors affecting their performance, there are some factors outside the organization that can determine the positive result of business. For those organizations to determine how those factors outside the organization can be of positive impact, they decide to conduct a PEST Analysis.
LVMH has a wide range of consumers from different backgrounds. It is imperative that they are aware of religion, race, culture, and buying habits in every country. For instance, worldwide people are more dependent on the Internet, signifying that the methods of how people purchase goods are changing.
Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants have a moderate effect on the restaurant industry (Chipotle, 2010). One example of customer preferences being a driver in the industry is the “Whole Food-ism Movement” which has put a large focus on organic, antibiotic-free, and non-processed foods (Mansolillo, 2007). Consumers now look for healthier options when eating and an overall healthier lifestyle. Chipotle has been able to benefit from this movement by carrying on their “Food with Integrity” mission (Chipotle, 2010).
In July of 2007, California Pizza Kitchen (CPK), a casual dining pizzeria started in California by co-owners Rick Rosenfield and Larry Flax, was faced with the decision to invest in a stock repurchase program. Led by Chief Financial Officer Susan Collyns, the financial team of CPK was reviewing the preliminary results for the second quarter to determine if the stock repurchase program would provide a significant financial leverage for the company. The goal was to determine if the company can maintain the necessary financial stability to meet the expected growth trajectory for 2008 while utilizing debt
California Pizza Kitchen has been operating since 1985 predominantly in California. As of June 2007, they had 213 retail locations in the US and abroad. Analysts have put estimates on the potential of 500 full service locations. CPK's strategy includes the opening of 16 to 18 new locations this year including the closing of one location. In the second quarter of 2007, revenue increased 16% while comparable restaurant sales grew by 5%. Performing comparatively well against its competitors, CPK's stock has been depressed recently falling to $22.10 in June making their P/E equal to 31.9 time current earnings. In comparison with BJ's Restaurants with a P/E of 48.9, CPK appears undervalued. CPK's direct
“Mulling over the extensive data from the TruEarth and BASES studies, Eckstein wondered whether to launch the pizza product and what the volume would be”. The following forecast analysis shows whether or not the TruEarth pizza should be launched
Buyers: While the original strategy was to offer only high-quality pizza, customer preferences began to shift gradually which required expanded menu options for items to complement pizza such as desserts and other creative menu items. Declining sales in the quick-service and sit-down restaurant dining increased the propensity for people to cook more meals at home as well.
Doughlicious is a restaurant that focuses on serving late night food for pick-up or delivery. It is located at 1600 W. Call Street, Suite 104 Tallahassee, FL 32304. Doughlicious opened in May 2014. The history of the business is that the owner of the restaurant had pizza places back in his hometown of Kentucky. He decided he should open up shop in a college town so he moved to Tallahassee (Ismail). The owners’ mission of the company is “to reach a franchise and open up two franchise’s in Florida one in Tampa and one in Orlando” (Ismail). The products they offer are calzones, crepes, oven baked subs, salads and sides, wings, and desserts. The services they offer are take-out and delivery options. Doughlicious serves a consumer market. The businesses’ competitive advantage is they are open late till 3am on the weekdays and 4am on weekends. They are the only restaurant in Tallahassee that delivers calzones. They are also in a great location, which makes it easy for their target market to access them. “Restaurant companies are essentially retailers of prepared foods, and their operating performance is influenced by many of the same factors that affect traditional retail stores. Competition between restaurants is intense, since dining options abound. Virtually every restaurant location must compete not only against other publicly traded chains, but also a wide array of small, local establishments. Restaurant meals are discretionary purchases, and the industry tends to be highly
In PEST analysis, we will look into what will be affect by the business environment. It includes political environment, economical environment, social environment and technological environment.
The community image, as perceived from the I-70 corridor, has been a community concern for some time. The Downtown Improvement Committee, as part of this planning process, studied this visual quality issue. After doing so, the Committee presented a three-pronged approach to resolving the various issues.