Environmental Factors Affecting Pizza Hut

Environmental Factors (External)

Pizza Hut is one of the international organisations and it is well known for its Italian-American cuisine menu including pizza, pasta and other side dishes and desserts. For Wendy’s, it has become one of the largest hamburger fast food restaurant chains in the world and its success is based on the organisations ability to deal with the concern they faced. But still, the owners of the organisation and the management team are currently facing some of the challenges from the internal and external environment. External environment challenges can be defined as those factors and forces outside the organization that affect its performance and we sometimes call it external factors. For instance, due to the pizza lovers

For Pizza Hut, the social factors that will affect the business are the population of the people and their expectation on the fast food chain. There will be more chances of sales and profits if the population of the people is higher. Not only that, the states where people are more prone to fast food will gain more profits for the states and also increasing the number of franchise (Haseeb, 2017). Social factors are one of the most important factors that will directly affect the business of both organisations as customers are one of the reasons of them gaining sales and profits. According to Young(2017), improvement in product quality is an external factor that creates opportunities for Wendy’s to attract customers all around the world. In addition, the demand for fast food increased rapidly due to the busy lifestyle of people in the city areas. However, people with higher health consciousness might affect the business of the organization. Thus, improving the product quality can reduce their

In the 1990s Pizza Hut has the largest profits in the industry. Nowadays, Pizza Hut has gained several competitors around the world after many new fast food restaurant like Pizza Hut started to rise up in the 2000s. In order to survive in this competition, Pizza Hut will have to start developing new and innovative ideas relating to the pizza. The technological factors for Pizza Hut include the technologies development to be more advance. For example, instead of buying food from Pizza Hut restaurants, people can just sit at home and purchase anything from Pizza Hut through online. This trend has directly affected the business of the organisations like Pizza Hut and it can also save the time for people who will need to go to the Pizza Hut nearby to purchase pizza. Same goes to Wendy’s, the organisation can improve its online presence through the mobile devices in order to reach more customers(Young J, 2017). Not only that, the organization can advertise their products on the internet to let the customers know what they are selling. Through the PEST analysis, the technological external factors present more opportunities and benefits for both organisations to improve business