This report is for the grazing food and it will be very valuable for the owner of the grazing food as it is being considered to be open in the tower of hamlets. This report will consider the PESTLE analysis and whether or not it is a good opportunity for the grazing food to be open in the Tower of hamlets.
BACKGROUND OF THE BUSINESS
Grazing food was first launched in 2007 by Sam Hurst. It is located in 25/26 Old Jamaica Road Business Estate, London, SE16 4AW. Grazing food takes the responsibility to prepare and serve the food to employees, businesses, and another private contract catering. The company, focussed solely on the business and industry sector, it will provide contract options ranging from traditional fixed-term agreements, right the way through to a new ‘pay as you go’ model. The new model, aimed at small and large businesses, will enable clients to partner with the company without being tied into long-term contracts. Services will range from full in-house workplace restaurants, hospitality and directors dining, to regular or ad-hoc breakfast and lunch deliveries prepared off-site at the company’s new kitchens on the edge of the City. The purpose-built kitchens, costing around £400,000 to construct, will provide Grazing Catering with the ability to prepare a broad range of fresh food services for companies without their own onsite facilities. The company’s motive is ‘cooked at ours and served at yours’. It is a London based business providing service all over London for twelve years. It prepares food and serve for different individuals, occasion based or having private contractors.
BACKGROUND OF THE TOWER OF HAMLETS
London is divided into 33 boroughs and one of the boroughs is the Tower of Hamlets. The London Borough of Tower Hamlets came into being in 1965, a merger of the former metropolitan boroughs of Bethnal Green, Poplar and Stepney. It includes most of the traditional East End — places like Bow, Whitechapel and Bethnal Green. In marked contrast, the borough also contains the booming business district of Canary Wharf. Tower of hamlets is a multi-cultural borough with different ethnics living together attracting huge sum of consumers. It also contains business district which means that there is some chance that a business can be successful.
PESTEL is a tool used by business organisations for market analysis before the introduction of their new product in the market. This analysis considers political, environmental, social, technological, economical and legal aspects of the market so that the business can get to know whether a certain market is good for their product or not. In this case the grazing food is thinking to open a branch in the Tower of Hamlets and the PESTEL analysis are the following:
POLITICAL:
The government in the Tower of Hamlets is making the community a safer place for the residents living there. The council currently provides funding for additional police officers, as the residents want the reassurance of seeing police on the beat. This safer place will attract new people to come and live in tower of hamlets. Hence, this will increase the number of consumers scale for the grazing food leading to increase in the profits for the business.
Environmental:
The Tower of hamlets, environmentally is a good well-connected borough with thirty-one stations and forty-six bus routes making transport easy for two hundred thousand commuters to travel into the borough each day. Due to this connection and good roads it will be easy for the grazing food to bring in the raw materials from warehouse to their kitchen. Furthermore, these connections can also help in making fast deliveries to the customers without making them wait for their food.
Social:
The social community in the tower of hamlets is widely spread. The borough considers large numbers of graduate centres such as Queen Mary university, INTO city London and so forth increasing the size of consumers in forms of students as they make private contracts with food caterers to serve them food each day. There are three hundred eight thousand (308,000) people living in the tower of hamlets by the year 2017. Forty seven percent of the residents are aged 20-39. The tower of hamlets is home to the largest Bangladeshi population in the country who compromise 1 in 3 residents. There are also supermarkets nearby such as ASDA to get raw materials in rare cases. Due to such vast population it will also be easy for the grazing food to get employees from different ethnicities and an opportunity to learn new recipes.
Technological:
The technological environment of business has changed the way in which businesses function. As in the modern era most of the work is done on the computers and with the internet. There is availability of internet which can help the grazing food to get online orders. Moreover, with the access of the modern computers and smart kitchens, it will help the grazing food to increase their efficiency.
Economical:
Economically the tower of hamlets is a developing borough and more developing plans are set out the framework for local development making the borough a great place to do business in as more people will be attracted with the new development area increasing the consumers and demand for the site. The council have made refreshed approach for regeneration, drawing together key service strands and investment programmes to maximise the potential for regeneration within a clear and focussed set of priorities. The businesses in the tower of hamlets is boosting and is experiencing enormous economic growth over the last few decades, increasing employment levels by 60 per cent and giving Tower Hamlets the fifth highest job density in London, decreasing the recession and increasing profits for businesses.
Economic output in Tower Hamlets in 2014 was £35.7 billion. It grew 14% in 2014 and 22% in 2013 (at current prices). This implies that inflation is also stable in the tower of hamlets and is a good area to do business. The borough has experienced enormous economic growth over the last few decades, increasing employment levels by 60 per cent and giving Tower Hamlets the fifth highest job density in London.
Legal:
There are plenty of shops available in the tower of hamlets to rent and are for sale. The rent of these shop’s is different depending on the area the shop is in. For example, in Bethnal green, shop rent is for £1,500 per annum whereas, on the roman road the shop rent is £11,940 per annum. Additionally, there are some laws to open a food business in the tower of hamlets, food businesses should be registered with the local authority at least 28 days before doing so, food should meet quality standards, Restaurants and other food premises should meet strict hygiene standards making the food safe to eat and manufacturers and retailers of food will be regularly inspected. The Tower Hamlets enterprise strategy, adopted in 2012, sets out how the council and its partners can encourage and support enterprise and entrepreneurial activity to increase opportunity, prosperity and mobility in Tower Hamlets.
PESTLE analysis is a strategic planning method done by business organisations to reduce business threats. It is a model that helps businesses to analyse what impacts, both now and the future, the external elements can have on them by examining the Political, Economical, Social, Technological, Legal, and Environmental factors. Pestle analysis is particularly beneficial for the new businesses or businesses launching new products. It provides a simple model within which the impacts of the complex environment can be organised leading towards making more informed business decisions. However, PESTLE analysis has some limitations as it does not take in account the strength, weakness, opportunities and threats (S.W.O.T) of the business. S.W.O.T analysis is carried out by the organisations before making any decision about the business because, key to running a successful business is decision making and a wrong decision can lead to a failure of many business no matter if the business is old or just started. All the elements in PESTLE are external whereas, S.W.O.T also considers the internal factors of business such as strength and weakness. Analyzing the strength and weaknesses in the business is an essential part as it helps plenty in good decision making for the business leading to many benefits for the business such as increase in efficiency and decrease in waste.
Conclusion:
This report is for the owner of the grazing food and will tell the benefits to be opened in the tower of hamlets through the PESTLE analysis. There are plenty of benefits to do a PESTLE analysis for a business to open in a new area like in the tower of hamlets. From primary and the secondary research, Tower of hamlets is a developing area and many of the firms are investing in the area. It has good communication and transportation system which can help the business to bring in the raw materials from the wholesalers. From the social aspects, the tower of hamlets is growing each year leading to increase in the disposable income for the resident’s in turn it is leading to increase in the spending of the residents. As a result, businesses are gaining more profits from the consumers. Moreover, environmentally the tower of hamlets is an inter-connected borough making it easy for the grazing food to transport their raw materials and get the food to the consumers without a delay.
Recommendation:
The grazing food is a business about catering food to other people houses on holidays, parties and private contractors. I would recommend them to sometimes send their chef or cook to the customers house in some events such as setting up a live BBQ. The biggest problem is to cover most of the consumers base who are linked to different ethnicities. This is a problem because, for example the Muslim community will only eat Halal food and if the grazing food is not serving Halal food they cannot get consumers from the Muslim community. A solution to this problem is that, if grazing food serves specifically Halal food for the Muslims it will help the business to attract Muslim consumers. Hence, increasing the sales and the profit for the business. Moreover, grazing food provides food with their own menu according to the days and months such as lamb curry on Thursday and burrito on Friday. I would like to suggest that Tower of Hamlets have different ethnicities living in the area and every community would like to eat their national food. This provides the grazing food an opportunity to learn their national recipes and serve according to their wants attracting the consumers to buy their product. Furthermore, as there are less or no businesses like the type of the grazing food in the tower of hamlets, providing them with less or no competition. With this chance, I would like to advise the grazing food to get the hold of the market because, if in the future these types of businesses enter the market of the tower of hamlets it will be easy for the grazing food to fight with competitor and kick the business out of the market.
REFERENCES:
- https://www.hospitalityandcateringnews.com/2016/10/new-workplace-catering-business-launches-city/ [Accessed 18 Oct. 2016].
- https://londonist.com/london/history/where-exactly-are-the-hamlets-of-tower-hamlets [Accessed 1 Nov. 2017].
- https://www.towerhamlets.gov.uk/Documents/TH_Strategic_Plan_18_21.pdf
- https://www.towerhamlets.gov.uk/lgnl/business/trading_standards/food_safety_risk_assessment.aspx
- https://www.towerhamlets.gov.uk/Documents/Consumer-affairs/Registration,-certification-and-licensing/Food-premises/Food_Safety_Service_Plan.pdf
- http://www.wellingborough.gov.uk/download/meetings/id/3571/download_the_appendices_to_item_8_-_food_saftey_and_health_and_saftey_service_plans [Accessed Feb. 2013].
- https://www.towerhamlets.gov.uk/Documents/Borough_statistics/Population/MYE_2017_Factsheet.pdf [Accessed Aug. 2018].
- https://www.towerhamlets.gov.uk/Documents/Borough_statistics/Population/MYE_2017_Factsheet.pdf [Accessed Aug. 2018].