The Macro Environment And Pest Analysis Of KFC

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MACRO ENVIRONMENT PESTLE Politically - • The increase of fees in universities for 2017 has created an economic halt; COSATU and the SACP say students must turn their power to private companies. This will result in employees going on leave, which will create fewer customers for KFC franchises if they are located near by protests. • A report that Finance Minister Pravin Gordhan may be arrested have created politically turmoil and, decreases the strength of the rand due to investor uncertainty which will impact KFC’s profit. • The government has been taken to court to only allow 15% of brine in chicken produce this new cap will be implemented on the 22nd of October this effects KFC and its supplier’s as the supplier will have to raise it price in order to abide laws. • Brexit caused the rand to strengthen by 4.9%, which gives KFC more power and strength to perform inn the market. • Regulation and deregulation can be positive if the policies are similar to regulations of KFC is used to it make the integration into the market of South Africa easier. • America wanting South Africa to allow chicken produce from America into the country affects the food industry however since KFC is owned by an America company it will make negotiations easier. Economical- • The government implemented to have 20% taxes on sugar-sweetened beverages. This will affect KFC as it serves sweetened beverages meaning the selling price will have to increase, which will affect the
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