Question

For example, Dicks Burger is a popular fast food with multiple locations in the United States. In order to achieve fast-growing, Dicks Burger would like to open stores in other countries. (Please response in 700-800 words)

a) Identify the environmental factors (economic, social/cultural, environmental, etc.) of a new location that you think would be important to the future success of Dicks Burger. Provide detailed analysis for each environmental factor you have chosen.

b) Which countries would you recommend to Dicks Burger (pick 4-5 countries)? Explain why.

c) Should Dicks Burger expand stores in the US first? or internationally first? or do both at a time?

Answer 1

The various factors that are external in nature and can have an impact on our decision to open a Dicks . The environmental analysis consists of the PESTLE Analysis.

The environmental factor for opening a Burger restaurant at a new location are as follows:

• Political ( P ) = Factors like regulations in the form of Tax Rules and Regulations, Health rules and regulations can have an impact on the new outlet. The company should carefully assess the politically favorable situation to establish their new outlet. Usually, the political factors donot drastically affect the business, but in the case where they have an impact, it can be quite significant.
• Economic (E) = The economic factors range from the minimum wage guidelines , the spending potential of the general public in the area and its vicinity . The minimum age in the given location will determine the number of workers the company can afford to hire in order to stay in profit .The factors will assess economic feasibility.
• Social (S) = The social and cultural factors like the social norms and cultural trends will also have an impact on assessing the new location for the restaurant . The social norms can sometimes be against fast food in case the demographic consists of people who might belong to a certain age group or the social or cultural trends can favor social trends in case the majority age group consists of the younger generation.
• Technological ( T ) = The technological facilities and factors can have a major factor as it is continually evolving and newer tools and technically advanced techniques can play a significant role in choosing a new location. Whether we can assess the technology at the given location etc will have an impact.
• Legal ( L ) = Legislation can also have an impact on the restaurant business as the licensing rules and regulations can differ from area to area and hence should be carefully analyzed in order to establish a restaurant.
• Environmental ( E ) = Environmental factors like presence freeways around or new competitive fast foods businesses in the vicinity can also have an impact on the location for the new restaurant.

On careful analysis for the above given PESTLE analysis the location for the new fast food outlet of Dicks Restaurant should be established.