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PEST Analysis on Financial Crisis As effecting the internationalization of the Fast Food Industry - Essay Example

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PEST Analysis and Discussion on Financial Crisis As effecting the internationalization of the Fast Food Industry PART 1: PEST analysis with respect to the Fast Food Industry 2.0 PEST Analysis Japan: 2.1 Political Conditions While Japan has been historically a constitutional Monarchy, the Emperor doesn’t have any power beyond the purely ceremonial as the country has a strong democratic influence and has a parliamentary government which has the power to create laws and legislations…
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PEST Analysis on Financial Crisis As effecting the internationalization of the Fast Food Industry
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Download file to see previous pages It got 9.5 out of 10- one of the highest ranks. The government is supportive of business ventures initiated by foreign investors and has created incentives like a strong pool of educated workforce, impeccable infrastructure and consistent policies to attract investments. The peaceful conditions also provide security of business for startups or franchises which expand into the nation. There is low tolerance of hard corruption within the Japanese culture and that is reflected in their government so there will not be unnecessary hassles or hurdles for investors looking to develop the market. The Nikkei Keizai Newspaper reported in 2010 that government of Japan was going to introducing preferential tax rates from foreign companies investing in Japan as one of the incentives, they have also established FAZ (Foreign Access zones) as a measure towards creating convenience and value for these investors. A Fast food industry would benefit from these policies like any other industry or firm operated by foreigners; supply of equipment, raw material (for the actual food) and transport of necessary technology or resources will be easier as well. Some effect on the emerging industry practices will also be from the “Antimonopoly Act (AMA)” set by the government which includes the Act on prohibition of private Monopolization and Maintenance of Fair Trade and several other stator laws. The intended purpose of the law is to discourage any single firm to have a hold on the pricing and supply of an industry- hence the fast food industry would be better served if instead of a single franchise, different franchises entered the market together. Furthermore, the “system of labour law operating in Japan” which includes the ‘employment agreement’, ‘independent contractor agreement’ or ‘mandate agreement’ might make operations difficult for the franchises which run on the US based system of hiring workers without long term agreements. 2.2 Economic Conditions Japan is the third largest economy in the world and its economy depends on the international trade. According to 2011-2012 salary survey, the average annual income is about 3,611,556 JPY (48,000 USD).A lack of natural resources such as forests, agricultural plains, mineral deposits etc have forced Japan to build its economy on trade, to earn money to purchase the raw materials for the economy. Japan is the 5th largest importer and exporter in the world. It depends on importing certain commodities such as fuels, foodstuffs, chemicals, textiles and raw material from several countries for its industrial sectors. But Japan has also cultivated a mature industrial economy by reserving industrial leaders and technicians and a well-educated and industrious workforce, promoting a culture of high savings and investment rate and intensive promotion of industrial development and foreign trade, making it one of the major importers of technology and electronic devices in the world. Japan experienced the greatest rate of economic growth From 1960s to 1980s, known as the ‘post war economic miracle’ ...Download file to see next pagesRead More
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