Consultancy project - Essay Example

Pestle Analysis for Spanish Catering Business Spain as a nation is well known for its efficient catering business, which contributes highly to the country’s economy. However, just like any other business in the market, the Spanish catering business depends on the aspect of PESTLE analysis as part of the businesses strategic management systems. The PESTLE analysis in this case remains a significant framework of the macro-environmental scanning. In most cases, the framework comprises of some of the most influential factors, which could be used in environmental scanning.

The frameworks are part of the businesses strategic management (Doole 2012, 37). PESTEL generally refers to Political, Economic, Social and Technological analysis. In this case, the political aspect entails the degree in which the state intervene the economy of the industry(Doole 2012, 46).In most cases, the political factors entail the labor laws, political stability, tax policy, tariffs, trade restrictions and environmental laws. In the Spanish catering business, these factors play a key role in influencing and controlling the business.

Being a food industry or business, the political aspect in this case will be based on the business health regulations that relate to the preparation of food. There would be a close-scrutiny by the state on the aspect of how clean the food is (Doole 2012, 48).The Spanish government plays a key role in influencing the health aspect in the catering industry. Alternatively, other factors such as labor laws and tax rates also affect the Spanish catering business. Economic factors in the Spanish catering business include the exchange rates, interest rates and the economic growth.

These factors are of great benefit in this industry. This is because the catering industry depends on people’s disposable income in order to spend in the industry (Doole 2012, 54).Alternatively, the economic growth, inflation rate and the interests’ rates determines how the catering industry makes its decisions and operates. Some of the economic factors, which affect other businesses including capital costs and market inflation, will also influence the Spanish catering business (Doole 2012, 60).

Social factors of the Spanish catering business will play a key role on the business. In most cases, the social factors include the health consciousness and the cultural aspects, emphasis on safety, age distribution and the population growth. In this case, the trends in the social factors would to affect the business demands for the catering services. It will also affect how the catering businesses in Spain operate (Doole 2012, 83).The Spanish catering business is a very health-conscious business, which offers food for the society therefore, the social factors in the industry remains important.

Generally, the Spanish catering business is a low-technological industry. The industry is not associated with any kinds of technological ventures instead it focuses more on the social aspect. In case there are strong demands in the markets technologically, then the Spanish catering business would find it difficult to venture into the market. The Spanish catering business has specialized equipment, which makes it to have a technological factor. The technological aspect in this includes the coffee making machines, the pizzerias among others.

Additionally, the Spanish catering business sometimes uses technological incentives aspects and the automation aspects in its operations. The technological shifts in the industry have affected the quality and the costs hence leading to innovation.BibliographyDoole, I., & Lowe, R. 2012. International marketing strategy. Andover, Cengage Learning.