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Political Environment in the USA - Assignment Example

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In the paper “Political Environment in the USA” the author looks at the political aspects of the environment, which are favoring the consumers are there are many laws that are safeguarding the eating rights of consumers. There are health and safety guidelines that the companies need to follow…
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Political Environment in the USA
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Download file to see previous pages The government of the United Kingdom today is stable with no possible threats of destabilization in the future. The overall impact of the political environment compels the firm to follow the standards set by the government in order to operate in the industry that may be termed as added costs. Taxation is not much too; hence the fast food industry is currently thriving and growing rapidly.

The economic condition of the country is favorable. Although the whole world has been hit with a recession, including the United Kingdom, it has brought great news for the fast-food industry. According to reports, there has been a growth of 8% in the fast-food industry; the major brands which were successful were Domino’s Eat and Pret A Manger. According to the same report, Burger King benefitted the least. Kerstin says that experts are seeing a change in the tastes of people regarding food; they are spending more on spending on small fast-food chains etc rather than posh lunch outlets (Kerstin, 2009). Apart from this, there are low setup costs associated with starting an outlet. According to Nazir (2007), a decent sandwich shop can be set up by as little as $25 000. There is support from suppliers present and the increasing growth in the industry makes the economic condition favorable for starting an outlet in the fast-food sector. Unemployment is on the rise, however, this means a smaller disposable income with families to spend. This might produce a negative impact. However, there have been no such reports; on the contrary, the fast-food business is thriving. According to Kirsten, due to unemployment, the disposable incomes of families are decreasing, which may further provide growth to small fast food chains whose food is not so expensive; similar to the trend mentioned above that people are spending more on fast food rather than posh restaurants. ...Download file to see next pages Read More
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