Wednesday, October 16, 2019

How the external environment shapes the organization ( BOSTON PIZZA) Essay

How the external environment shapes the organization ( BOSTON PIZZA) - Essay Example Boston Pizza has a strong brand positioning and is the first chain of restaurants to offer fat-free menu items (Henry 234). The restaurants have huge televisions and spacious parking areas thus appealing to the middle income consumers. The external business environment shapes the operations of Boston Pizza and the strategic choices of the management. The external environment is beyond the control of the management and strategic choices must be made to adapt to the fast changing external environment in order for the restaurant chain to attain competitive edge in the market (Henry 172). The external business environment consists of the political environment, economic environment, social-cultural environment, technological environment, legal environment and ecological environment. PESTLE (political, economic, social-cultural, technological, legal and ecological) environment analysis tool will be useful in analysing and understanding how the external business environment shapes Boston Pizza. The political environment entails the political stability, the trade restrictions and attitudes of governments towards businesses, pressure groups, conflicts, and wars. The current political environment in Canada, United States and Mexico is stable, but there are different pressure groups such as anti-obesity campaigners that have been advocating for health eating habits (Henry 78). The Canadian government has implemented several measures that aim at protecting consumer interests and welfare in order to safeguard the health of the population. In this case, Boston Pizza must implement health-conscious menus in order to attract higher number of customers and adapt to the changing political environment (Kachru 84). The restaurant chain is capable of expanding to cities that have political stability and minimal pressure group influences. However, the government may

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