Pestle Analysis of Services Industry

PESTLE Analysis of all Service Industry and Restaurants

The purpose of this paper is to perform a pestle analysis on the service industry and restaurants. This will allow the author to analyze the macro and micro environmental factors which impact this industry and to closely observe the business environment, thus identifying the strengths and weaknesses of the particular industry. The research done will also be beneficial for the Human Resource managers as they shall be able to assess employee turnover engagement problem and look for its solutions. This is highly imperative as turnover rate greatly influences any organization’s productivity.

The factors analyzed in the PESTLE analysis are given below:

* Political Factors:

The government prescribes rules and regulations to follow. Service businesses get licence from government authorities to conduct business (Reportlinker.com, 2014). The government take charge of the businesses operating in the industry and so it is extremely important that all services and restaurant businesses follow the rules and guidelines set by the government (Businesscasestudies.co.uk, 2014).

* Economic Factors:

Economic factors influence the business to a great deal. International trade will depict organizational position of the country (Dowler, 2001).Inflation will put negative effect on the purchasing power of the people. People will not go to restaurants and companies have to suffer loss as they set high price on food items. So the economic factors are especially important for food chains, restaurants or service industries operating globally.

* Socio-Cultural Factors:

The purchase pattern varies country to country and city to city. You will find different taste and preferences of people in same region. Food industry should cater the target market by focusing on the likes of customers (MarketingProfs, 2014). Wherever food industry is operating, it must always keep in mind what customer likes and dislikes...