ASSIGNMENT # 03

Name:
TAIMOOR ASLAM
Roll No:
19-ARID-345
CLASS:
BSCS-3-A
Subject:
Introduction to Marketing
Submitted to:
Aqsa Riaz
Question No 1:

How might you be affected by six environmental factors for restaurant

business (legal, economic, technological, competitive, social, and global)?

Answer:

I might be affected by six environmental factors in several ways such as:

Legal:

Basically there are various legal laws which affect on restaurants business such as labor law,
import export law and consumer law. These legal laws are directly linked with government and
government decide how much profit restaurant will receive. If government implement huge taxes
than restaurant business will affect. New health and safety regulations affect restaurants.

Economic:

Economic factor can also affect on restaurant business through various ways such employment
rates and changing in loan interest rates and banking is also economic factor which affect on
restaurant business.

Technological:

As we know this is internet era and in this social media play vital role for food brand or
restaurant to gain popularity so if we produce quality food products than restaurant can get high
fame and if restaurant produce inferior quality food product than restaurant will be in danger for
profit. Restaurant should keep in view technology transformation as we know in past Robot
concept was not present but in these days’ robots serve food in various restaurants.

Competitive:

Competitive factors can also affect on restaurant business such as if our competitors produce
high quality food product, keep price low and service is good as compare to our restaurant so our
restaurant will not gain popularity and our business will not grow and we will remain is loss
instead of profit so we should keep in view our competitors.

Social:

Social factor is also very important which play an important role in restaurant business. Social
environmental factors include societal movements, changes in public values and attitudes
people in the marketplace have toward working for your business. If you operate a small casual
 dining restaurant, you must recognize societal trends toward healthy lifestyles and food
consumption habits.

Global:

Global factor can also affect on restaurant business such as in various places of world different
peoples like different food if we don’t consider people’s choice than our restaurant can’t grow
properly. Restaurant should provide hygienic environment and produce trending food items to
gain popularity and profit.

Question No 2:

What factors might have the biggest impact on your business?

Answer: The biggest factor might affect on our restaurant business is global factor because in
this factor we see global situation of the other organization of the other restaurant works.

We see the fact the in the other various places of the world different people like different food if
we don’t consider people’s choice than our restaurant can’t grow properly. Restaurant should
provide hygienic environment and produce trending food items to gain popularity and profit.

The following factors best describes the biggest impact of the global factor on our restaurant
business.

Economy and Market Fluctuations.

The global economy is one of the biggest external factors that will, at some time, affect your
business.

1. Impacts from Severe Weather.

2. Changes in Local Infrastructure.

3. Changes to Laws.

4. Changing Trends and Technology.

5. Changing Customer Base.

Impacts from Severe Weather

If man could control the weather, vacation resorts would know exactly when to charge the
highest room rates. Storms, tornadoes, hurricanes and wildfires are outside your purview of
controllable business factors. In addition to the direct impact a storm may have on your ability to
open your doors at any given time, widespread weather events often carry a substantial trickle-
down effect to a wide range of businesses.

Changes in Local Infrastructure

Zoning laws, highway construction and housing development are particularly important to retail
establishments, restaurants, manufacturers and other businesses that rely on a location for
success. Changes in the local infrastructure may prove either disastrous or fortuitous to your
company.

Changes to Laws

State, local or federal changes in the laws can have a direct impact on your business if the service
or product becomes highly regulated or outlawed. Cigarette manufacturers learned this lesson
when public smoking was outlawed in many areas and smoking indoors has become practically
nonexistent. Government regulations such as those that affect the environment or communication
are beyond your control and could have a direct impact on your business.

Changing Trends and Technology

While you may spend a good part of your profits on marketing in the hopes of favorably
influencing trends, some are beyond your control. An increase in technology use by your
customers may be built into your strategic planning, but you may not have planned for the
widespread use of social media that could affect your business. Celebrities who become
advocates for a cause or decide to boycott a certain business practice can start a trend that could
seriously affect your business if you're on the wrong side of the trend.

Changing Customer Base

Your target customer base may change suddenly or slowly over a period of time. The changing
makeup of your neighborhood that attracts more singles or young renters can affect your
business for example if you cater to a more upwardly mobile, family-oriented customer base.
Cultural implications of a changing neighborhood may affect your business negatively or
positively depending on your ability to meet the needs of changing demographics.