Three micro environmental factors that affect foods industry

The research also indicates that aboutfast food businesses operate in the United States. Economic Downturns Fast food restaurants tend to fare better during an economic downturn than pricier restaurants do. However, the magazine notes that a long-term recession makes even fast food restaurants vulnerable to profit losses if consumers eat at home more often to save money. In such cases, big restaurant chains may respond by cutting their prices further and increasing advertising to lure consumers back to their restaurants.

Three micro environmental factors that affect foods industry

Three micro environmental factors that affect foods industry

Food System As with the environmental and health indicators discussed in earlier chapters, most social and economic outcomes reflect complex causal processes, and they can vary widely based on time period, spatial organization, market conditions, regulatory forces, and adaptive mechanisms of actors in the system.

In this section, we outline major classes of social and economic effects that can be linked to characteristics of the U. We focus on three broad classes of social and economic effects: Levels of income, wealth, and distributional equity; Broader indicators of quality of life, such as working conditions, job satisfaction, and freedom of choice to pursue taste and lifestyle preferences; and Associated impacts on worker health and well-being.

Affected individuals fall into three groups: Food production, processing, and availability also can affect community-level measures, such as economic growth and social infrastructure.

Although social and economic dimensions of effects are distinct, they are more closely interrelated than other dimensions.

For this reason, we are presenting them in one chapter. This chapter begins with an overview of the social and economic impacts of the food system on key sectors of the food system. To discuss these impacts, select data sources and metrics are described. Tables B-1 through B-4 in Appendix B provide more details on these data sources.

Three micro environmental factors that affect foods industry

The committee has focused in this chapter on market-based economic effects, including measurable changes in the financial well-being of key actors in the food system and broader indicators of market performance by sector e.

However, a discussion of non-market valuation methods for environmental effects is included in Chapter 4.

Economic Downturns

In addition, while the chapter identifies the importance of capturing differential impacts on distinct social groups e. Consideration of whether particular types of social and economic effects are better than others should be guided by the best available information about those effects and by the cultural, political, and ethical views of stakeholders and decision makers.

Occupations in this sector involve planting, caring for, and harvesting raw food items, livestock, and seafood FCWA, About 40 percent of the U.

Taken as a whole, the U. More impressive is the fact that this growth in output has occurred with relatively little increase in the total combined use of factor inputs capital, labor, purchased inputs Wang and Ball, The increase in output can be attributed mostly to an increase in the quality of labor, capital, and technology inputs.

Declines in the rate of productivity increase have been linked to reductions in agricultural research investments particularly by the public sector and possible biological yield plateaus of major agricultural crops Alston et al.

ERS, a; Wang and Ball, Interestingly, the mix of inputs used to produce growth in food output has changed dramatically since the midth century see Figure Specifically, the use of labor has declined by nearly 80 percent, the use of capital inputs has remained roughly the same a decrease of 12 percentand the use of purchased variable inputs has more than doubled.

The mix of capital inputs has also shifted, with land inputs slowly declining throughout the past 60 years but the importance of capital equipment growing rapidly through the s, then declining in importance in the latter 20th century.

Whole Foods Market External Factors & Consequences - Panmore Institute

Finally, the use of fertilizer accounts for a significant portion of the increased use of purchased inputs—growing nearly three-fold by the mids and then remaining at that level with significant annual fluctuations through It appears that the reduced impact in productivity growth from a decline in the use of labor and land inputs has been offset by the positive impact of increased use of other inputs e.

Economic returns and competitiveness in U.The following economic factors may affect food product development: • Changes in interest rates: Companies frequently need to borrow money to enable them to buy new equipment and technology or to upgrade existing operations in other ways.

This is true for our PEST analysis example for the food industry. Political Factors. Trends affect the food industry. Fast food restaurants are adding “healthier options” on their menus as public health policies are pushing for foods .

In this study we found that the four factors P, E, S, and T are the key factors that can determine the performance of the fast food industry.

Whole Foods Market Porter’s Five Forces Analysis (Industry Environment)

Our result showed that the P is somewhat insignificant but other all three factors are the key factors which show the significant results. The business environment is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful customer three levels of the environment are: Micro (internal) environment – small forces within the company that affect its ability to serve its customers.

to remain a competitive industry. The key factors that have driven change in the industry include socio-cultural, economic, environmental and technological forces. Factors Affecting Global Tourism 8 climatic and environmental type factors.

Some factors are more fluctuating than others. Corresponding author Email: [email protected] 20 International Journal of Management, Economics and Social Sciences Profitable food, beverage management, and industry and with a better understanding of these planning, defined the fast food in term of fast factors managers can increase the profits and food restaurant.

Whole Foods Market External Factors & Consequences - Panmore Institute