International Business Strategy 2023 – 2028
International Strategy
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Executive Summary
Peter Boizot created PizzaExpress in 1965, a company that mixes pizza and music to provide consumers of both with amazing experiences. The national strategy plan of the corporation sought to develop strategies for the company to draw potential customers by increasing the brand’s reach as well as improving profitability situation of the company which will further facilitate enhancing the performance of a business in the worldwide market. Due to the nation’s peace and stability, the strong economic development of the region, the increasing presence of Americans among Australians, and the nation’s quickly evolving food technology, PizzaExpress was picked for worldwide expansion in that country. PizzaExpress seems to have a significant market brand and reputation value, hat it offers personalization to its consumers. The business also sells high-quality products and makes sure that its sustainability promise is kept. However, the brand’s low profit is what’s to blame for the company’s enormous debts. The company might look into ways to increase the size of the fast food sector by upgrading the menu as well as making the most of home delivery services. PizzaExpress can therefore successfully satisfy the expanding customer demands by enhancing the menu and adding more nutritious options. The key components of PizzaExpress’ internationalization approach include selecting franchising as the entry mechanism in Australian marketplace and adapting its standard menu to suit the tastes of the local market’s customers.
Table of Contents
National Strategic Plan Review 4
International Strategic Plan 6
International Strategy Introduction 6
External Environment Analysis 7
International Strategy 2023-2028 14
Appendix 1: PESTLE Analysis of USA 25
Appendix 2: PESTLE Analysis of France 30
Appendix 3: PESTLE Analysis of Australia 33
Appendix 4: 3 Country Comparison Table 1
Introduction
The report’s objective is to give an examination of PizzaExpress, a British fast food chain, both internally and externally. The paper covers PizzaExpress’s SWOT analysis, Tows matrix, global strategy plan, national company’s strategic review, as well as competitor’s analysis. The paper also covers PizzaExpress’s objectives, mission, as well as worldwide positioning plan. Pizza Express seems to have a long history of enjoying Italian cuisine and is dedicated to it. To revitalize the city’s Italian food, Peter Boizot opened Pizza Express in 1965 the to enhance dining scene. As a consequence of Naples’ importation of real Italian items into the UK, the Pizza Express brand was developed. The very first Pizza Express establishment debuted on Wardour Street in London’s Soho. Boizot transformed the UK restaurant industry in this way, introducing informal eating to the main street (Pizza Express, 2022). Pizza Express prides itself on offering top-notch cuisine, unparalleled musical selections, as well as distinctive design alternatives to give diners a wonderful eating experience. A powerful brand has been created as a consequence of this vision, which has led to the operation of more than 600 restaurants globally.
National Strategic Plan Review
Pizza Express has managed to hold onto a dominant strategic position in the market with the help of its capabilities. Pizza Express is consistently reducing the cost of its products as well as offering a wide selection of items at reasonable costs. Several models can be utilized to analyze corporate strategies. The organization’s strengths and weaknesses, which include an efficient workforce, a friendly office atmosphere, and cutting-edge technology, are well-matched to Pizza Express’ present business plan. Pizza Express can reduce costs while still maintaining quality thanks to these advantages. Pizza Express might utilize a cost leadership approach since the risk is minimal and the approach is acceptable to all parties involved, including government, vendors, and staff (Berisha Qehaja, Kutllovci & Shiroka Pula, 2017). Employees at Pizza Express are focusing on research and development to identify methods to reduce costs. As a result, the cost leadership strategy is appropriate. Pizza Express’ current approach is quite practical because the company has both tangible and intangible resources/assets. For instance, Pizza Express has very efficient human resources that help the company take advantage of its leadership approach.
In order fortress to focus on its cost leadership plan, competitiveness, cutting-edge technology, equipment, as well as suppliers are also essential. Differentiation is thought to be an effective strategy for Pizza Express. According to Jain and Haley (2009), differentiating the products or services from the competitors entails differentiation. This tactic might succeed, though, if Pizza Express concentrates on excellent research, innovation, & development procedures. If Pizza Express focuses on high-quality food products by employing the abilities and strengths of its workers and by stressing innovation, then its differentiation approach may be appropriate (Carnegie et al., 2018). Pizza Express will indeed be able to adopt a different strategy because it will raise organizational efficiency, earnings, as well as shareholder value. It is important to remember that various costs could be involved with the implementation of a differentiation strategy and might affect its profitability. Nevertheless, Pizza Express is a successful company with efficient labor and resources, enabling it to successfully differentiate itself from its rivals. The future approach for Pizza Express ought to be one of differentiation. Pizza Express can distinguish its products based on their pricing, quality, taste, and quantity. Pizza Express is urged to differentiate itself from competitors by providing customers with nutritious and environmentally sustainable dishes. Kotler and Armstrong (2010) claim that consumers are paying more attention to their diets and valuing natural and organic foods over manufactured or processed ones. Pizza Express may differentiate itself from the competition and get an advantage over its competitors by promoting itself as a healthy and environmentally friendly restaurant. A differentiation strategy will indeed be highly beneficial for Pizza Express.
International Strategic Plan
International Strategy Introduction
According to Kotler & Keller (2009), differentiation increases customer loyalty, boosts profitability, as well as gives a company a competitive edge over rivals by resulting in standout products. Murphy (2010) claims that because there are no equivalent substitutes on the market, product differentiation might lessen the power of the client. This means that Pizza Express may attract customers to its unique items as well as increase its revenue. Oliver (2014) claims that differentiation adds value adding individuality to the product and allows firms to charge greater rates for their goods because there is no market rivalry. Pizza Express might differentiate itself from the competition by producing organic food products. According to Kotler & Keller (2009), a differentiation strategy may harm company concerns since supervisors are burdened with numerous administrative duties and are therefore unable to concentrate on customer relationship management. The administrators’ ability to respond quickly to clients will indeed be slowed right down if they are overworked with differentiation plan implementation. According to Raska et al. (2015), buyers are more focused on making purchase decisions when they obtain a distinctive product or service along with a favorable experience. Pizza Express might very well find it relatively simple to focus exclusively on its differentiation strategy for products because of its highly creative employees, innovation capability, high employee responsibility to achieving organizational objectives, importance placed on R&D, as well as highly creative merchandise development group members, including cooks and chefs. Pizza Express management should be aware of the possibility that rivals may duplicate their strategy for product differentiation which might result in a reduction of competitive advantage. As per Shepherd et al. (2005), businesses that emphasize distinction should be able to communicate their approach to customers as well as the wider public. This may also be done with a competent and efficient sales and marketing team. In order to Pizza Express should place a strong emphasis on integrated communication methods and then use powerful marketing of products that are distinctive from one another. Pizza Express chose the USA, France, as well as Australia as the countries in which to grow its international operations. By competitive study, Australia is the country where Pizza Express may grow the fastest. The political, economic, as well as social features of Australia stimulate the opening of a pizza business because of its enticing political stability.
Strategic Analyses
External Environment Analysis
PESTLE Analysis
Political: The country is connected to several organizations, including the OECD, World Trade Organization, G20, as well as Commonwealth of Nations. Australia is constantly condemned by its new neighbor particularly New Zealand and the UN while maintaining a close relationship with the US (Berisha Qehaja, Kutllovci & Shiroka Pula, 2017). While the latter sees Australia as underperforming because of the way it treats refugees as well as because it does not defend human rights, particularly those of indigenous people, the former opposes Australia’s deportation policies. Due to its favorable business environment, the country is an excellent candidate for investments. Due to the comparatively stable political climate, investors can feel confident making investments. The nation’s government addresses both changes in policy and economic issues. Due to recent adjustments made to its economic policies, Australia is currently one of the top-rated countries in the area. It is also obvious that countries with stable governments without political upheaval have a higher likelihood of seeing major expansion in the food sector.
Economic: Additionally, “pure investments” are growing in acceptance. The best offers on off-land property investment in the country can be found in this method. Another prospective market exists here where investors can purchase land with a “money down” investment to a profit later (Piñero & Dudenhoeffer, 2018). Because the currency exchange rate benefits foreign countries, especially America, investing in Australian businesses and real estate is an easy decision. Businesses also have their global headquarters in Australia. Operations are primarily from Asia. Australia is still a low-cost area for business relocations.
Social: The upper class has expensive homes, cars, as well as apparel. But middle-class people can easily afford these things. However, it could all be mere mimicry. While the working class may incur debt to seem wealthy, the middle class is hardly affected by this. Additionally, class distinctions are made through etiquette, entertainment, including athletic activity. The food sector really should create educational systems that give individuals the knowledge and abilities required for handling food goods. This is important since the food sector needs a potential workforce (Iyamu, Anda & Ho, 2020).
Technological: Australia is known for its technological ingenuity. It embraces new technology more regularly than other countries with comparable standing. Both technological development and developments have issues. While national research facilities conduct the majority of technology development, university researchers may contend for funding that is restricted. Corporations in the food industry that wish to succeed in their endeavors might consider using a high degree of technology automation. Not to mention keeping up with new technology & technological breakthroughs.
Legal: Any company involved in the manufacture of food items must adhere to several regulations specifying the right behavior for various activities due to legal constraints. According to consumer legislation, firms must put the requirements of the customer first. There can be no discrimination against employees based on their status, color gender. Consideration for every employee in the organization is necessary to guarantee that they all operate in a secure atmosphere (Song, Sun & Jin, 2017). To guarantee the effective running of enterprises and businesses, the Australian government has developed a distinctive collection of legislation. These rules deal with consumer, competition, and trade law. Employee contracts are addressed by the Fair Work Act of 2009. It also drafted privacy laws that specify how companies may use consumers’ personal information.
Environmental: Australia is under the title of the driest continent on earth. Changes in the environment are generating concerns for the country’s national security, according to research focusing on the Senate probe. Natural resources like food and land will be in short supply, as well as there will also be a rise in infectious diseases as well as water shortages. If the corporation’s infrastructure, which includes the equipment, electricity, etc roads, is good, it will have a high yield (Barik & Kumar, 2018). On the contrary hand, a lackluster infrastructure would result in repeated delays for the company, poor output, and low yields.
Competition: Supply chain problems may continue to be one of the top issues the food and beverage industry will have to deal with in 2023. According to the Australian Trade and Investment Commission, the price of food has risen by 31% globally and is currently at its highest level since 2011.
Internal Analysis
Resources and Core Competences
One of Pizza Express’s main valuable assets and fundamental capabilities is its commitment and culture, which also affects the organization’s structure. The founder of Pizza Express, Boizot, decided to employ this approach because he believed customers needed to acquire genuine Italian cuisine and merchandise. Customers now demand premium food and goods in addition to moving music as well as distinctive interior decor, that has brand value. Pizza Express has remained true to its founding values and operating procedures. As a consequence, the business still takes pride in offering exceptional customer service (Cheng et al., 2017). Pizza Express has retained its identity in terms of menu options as well as restaurant interior design. They provide clients with a distinctive experience in the context, retaining their interest as well as brand loyalty. The resources and fundamental strengths of PizzaExpress include its organizational, financial, as well as human capital. The firm depends on a corporate culture of ethics and responsible leadership to deliver the best services and enhance the customer experience. The company also employs a wider range of kitchen equipment to serve people good pizza.
Organizational Performance
Before pandemic limitations began to exert an effect on the company, PizzaExpress stated that it lost £350 million due to it being challenging to pay loan interest payments. Ever since the corporation has restructured its debt by converting bondholders’ debt into stock. In its 2019 financial reports, the casual dining chain also stated that it was “extremely difficult” to foresee how business constraints will indeed affect the industry as well as the coronavirus outbreak caused “a massive effect on the group’s liquidity.” Revenues rose 1% to $548 million for the fiscal year that ended in December 2019, however, due to narrow margins, profits before interest, taxation, and depreciation, including amortization declined 11% to £71 million. Owing to balance-sheet impairments as well as interest charges of £92 million, the company experienced a pre-tax loss of £348 million (Financial Times, 2021). One of the most recognized restaurants in the UK, PizzaExpress saw its global revenue rise from 534 million British pounds in 2017 to 543 million British pounds in 2018 (Statista, 2021).
Product and service evaluation
PizzaExpress is an Italian-themed eatery that offers a wide selection of pasta dishes, and confectionery, including pizzas with various crusts, such as crispy Romana as well as ionic dough balls. The company offers dine-in and delivery options in addition to its exclusive service of gifting pizzas via gift cards and gift e-cards. The establishment provides a varied menu to its patrons, which includes the main cuisine, appetizer menu, piccolo, as well as a vegan menu. Customers may also order a selection of bread, pizzas, or even seasonings from the business’ online store & enjoy them.
SWOT Analysis
| Strengths | Pizza Express has effectively reached out to a range of target populations by offering the well-liked Kids menu, Unidays. A well-known brand in the business. Its own unique ready-rolled pizza dough for salsa. PizzaExpress intends to have a sustainable competitive advantage. |
| Weaknesses | Brand’s debt of £1.12 billion costs the company £93 million a year and wipes out all of its profits. Pizza costs go into a slightly higher price range when considering customer purchasing power. The cost of the pizza is comparable to that at other open businesses. Ineffective cost strategies as well as recruitment strategies. |
| Opportunities | Considerable perks for workers that will improve retention. The firms’ modernized marketing plans, combined with their emphasis on creativity as well as digitalization. Updating the menu at regular intervals. |
| Threats | Because of the simplicity with which pizza may be created and the availability of places that serve it for less money, the business is in danger. The rivalry from some of the other high-street brands is too intense. Customers are becoming more aware of health complications. |
TOWS Analysis
| TOWS Matrix | Internal strengths Positive brand image and brand equity. The competitive sustainable advantage e in the industry. | Internal weaknesses Fierce competition. Huge losses and debt of company. |
| External opportunities Growing demand for food and beverage industry all over the world. Providing ample employee benefits. | SO The corporation must put all of its efforts into fulfilling its CSR and environmental responsibility goals if it wants to further enhance its market image, boost brand value, as well as gain an advantage over its competitors. After all, skilled personnel can help the brand create delectable products that stand out and bring in money for the company. | WO PizzaExpress sees the expanding size of the fast-food market as a huge opportunity, and therefore by seizing it, the company can ensure that its market profitability will increase and its debts will be paid off. Adding additional features to supermarkets will boost retention and loyalty of customers. |
| External threats Awareness of people regarding health consciousnesses. Various high-street brands and fierce competition in marketplace. | ST By offering a wide range of nutritious food alternatives as well as assuring the food’s quality, PizzaExpress can acquire the confidence of its customer. Customers can indeed be reassured by the business that the food they consume is nutritious. The established reputation of Pizza Express could mitigate the threat represented by the arrival of new rivals into the market. | WT Pizza Express’s menu’s option of healthy pizzas could help the business draw in more customers’ commitment. If PizzaExpress wants to gain a competitive edge in the market, it must boost the variety of healthy food options on its menu. |
Mission
Restaurant vision and mission statements often only contain one or two words that briefly describe the goal of the business. They might appear trivial in comparison to the everyday work of bringing in clients, serving delicious meals, as well as expanding the business. The goal is to establish business as a well-known spot where individuals can satisfy their demands for pizza. The objective is to provide authentic deep-dish pizza available to everyone. PizzaExpress’s major objective is to increase customer satisfaction by providing wonderful cuisine, enjoyable music, as well an enjoyable atmosphere. This ensures that customers at PizzaExpress enjoy their meals. The restaurant can ensure that its customers are going to have a great time by combining superb food with top-notch music. In the great ambiance of PizzaExpress, customers may commemorate their most memorable life moments and make remarkable memories.
Objectives
The objectives for PizzaExpress are developed using SMART objectives as well as taking into account the advised course of action. The corporation will be able to monitor and oversee the development because the targets are SMART. These objectives are.
- One of major objectives of company is to try and pay off debt as well as to try and reduce debt by 5% over the course of five years.
- Extending more offers and discounts to customers to increase the consumer base of the organization in Australia by 30% during the next five years.
- The business can concentrate more attention on its operational variables as well as resources and lower worker turnover by offering greater employee perks.
International Business Strategy 2023-2028
Strategy Overview
A corporation must perform a strategic analysis, which refers to the process of learning about the company as well as its operating environment, to formulate a strategy. Strategic management is the development and implementation of important objectives and objectives by a company’s administration on behalf of its stakeholders (or owners). All potential choices must be thoroughly investigated and compared in an organized manner for to the most perfect and noticeable option to be employed for effectively attaining the organization’s goals. Strategy development is the process that results in this (Song, Sun & Jin, 2017). The assessment of the resources available, the internal operations, as well as a market informal market informationpany’s current environment’s competitiveness all come first in the formulation process. Based on this thorough assessment, a plan is subsequently created to achieve the intended goals. The defined strategy will be put into practice in an effort the organizations on as main objectives. Due to factors including rising rivalry, economic sanctions, globalization, including altering customer views, firms must now adopt a range of strategic methods to succeed in today’s competitive climate. Utilizing hybrid methods that combine cost advantages with differentiation, businesses can efficiently and competitively respond to customer expectations in a competitive climate. Furthermore, empirical research has demonstrated that hybrid tactics perform better than single strategies. In order to reduce the dangers to PizzaExpress as well as seize the chances to compete successfully on the global stage, a strategic plan is developed for the company that will guarantee success in the Australian market.
PizzaExpress implements an internationalization strategy depending on its weaknesses and strengths in order to unlock the full potential of the business. In order to adapt to the varied cultures of global marketplaces, the organization also integrates cultural and geographical features of the country into operational processes. Pizza Express must adhere to a few rules to be successful in this foreign market. The marketing manager must begin by doing a thorough investigation to comprehend the preferences and interests of the locals. They ought to create a menu that features some of the staple foods eaten in Australia. Planning a market entry technique should indeed be based on an examination of the clientele and their requirements (Eierle et al., 2022). Furthermore, management needs to ensure that they hire local workers who are familiar with the Australian market. In addition, Pizza Express is well known in the Middle Eastern, Indian, and Hong Kong markets. It has been considering how to approach some of the developing markets. Australia is considered one of the most alluring markets because of its excellent potential in the food and beverage sector and its constantly expanding economy (Oliveira et al., 2018). The Australian economy is one of the world’s emerging economies. Even if there is more competition in this country, a business can still function there if it chooses to approach the market directly. The whole cost of production, which comprises labour expenses, leasing charges, as well as the price of the raw materials, is much greater than it is in Europe.
When accessing the international markets, a company has a wide range of market entry choices at its disposal. Direct entry into the market, joint ventures, the establishment of subsidiaries, franchises, or acquisitions and mergers are some of the most popular market entry techniques. Each of these strategies has unique benefits and drawbacks. For entry into the Australian market, the direct entry method has been chosen (Düerkop & Huth, 2017). This corporation should consider mobilizing its capabilities to penetrate this market directly, according to a variety of indicators. Australia has a sizable population, and the country’s economy is expanding swiftly, making the market there quite alluring. There aren’t many well-established companies in this still-developing country, so Pizza Express will face stiff competition.
The key benefit of entering the market directly is that Pizza Express will have entire control over its domestic companies, unlike in cases of partnerships. The administration will indeed be allowed to independently make strategic decisions based on its study of the market and the firm’s strategies. All proceeds will remain in the company and will not be given to outside parties. There are certain issues with this entry style, though, and they could be very troublesome (Sadaria et al., 2017). Due to direct entry, the corporation will have to spend more money erecting the required infrastructure, hiring suitable personnel, and carrying out extensive market research. Additionally, the business will cover any losses that might occur while conducting business. Nevertheless, the regional management unit’s methods can completely control these deficiencies.
Strategic Implementation
Organising and Resourcing
By reusing the well-known Pizza Express brand image for its new, fast-casual dining establishments, the new Pizza Express approach will use brand extension. By offering unique items in inventive formats, merging well-known products, utilizing the brand in a brand-new product category, as well as creating supplementary products, brands might grow. Brand extension is a productive marketing strategy because it may be utilized to launch a new product using brand awareness as well as reputation. The corporation will indeed be hierarchically structured, with the management team listed below initially handling all managerial and operational responsibilities. There will be a greater demand for workers to create the pizzas as well as serve clients. Once the business’s operations have expanded, an area manager will be employed to oversee the responsibilities. The solutions adopted for PizzaExpress’ internationalization in Australia will be put into practice effectively between 2023 and 2028. The company will conduct its activities in the overseas market in accordance with the plans that will ensure its success. The Gantt chart below illustrates how the plan is divided into a five-year timetable.
| Strategic Activities | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Deciding investment plan for direct entry into Australian market. | |||||
| Offering the training to the newly recruited employees and to existing employees who will be operating in a new country. | |||||
| Making resources and machinery available in new operating sites. | |||||
| Analysis of market competition and consumer behavior in Australia | |||||
| To ensure customer loyalty, the menu should be expanded to include new alternatives that reflect Australians’ preferences for food. | |||||
| Getting feedback from customers on food delivery can help develop methods for customer feedback. |
The Gantt chart shown above details the plan implementation and the period it will be carried out to guarantee tomato’s attainment of predetermined goals for PizzaExpress’ internationalization in Australian market for the subsequent five years.
Monitoring
To establish the exponential development in the customer base and indeed the amount of sales over that time, the last five years’ worth of sales are examined. Estimating PizzaExpress’s profitability in the Australian market but also comparing it to the whole income of the fast-food business in that country after its initial five years of operations. After 2028, the company’s five-year average revenue will indeed be calculated, allowing analysts to assess PizzaExpress’ success in Australian market. It will be simpler to evaluate PizzaExpress’s market share expansion and long-term effectiveness as a result. Trying to assess the cash flow of bus crashes as well as the customer feedback for a particular will help to determine whether PizzaExpress is adhering to the company’s defined performance standards and norms. This will help to manage and supervise the operations of brand in Australian market.
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Appendix 1: PESTLE Analysis of USA
Source: PESTLE Analysis of USA, PESTEL Model for gluten-free food industry in USA. | Download Scientific Diagram (researchgate.net) (Alava et al., 2018)
| PESTLE Factors | Analysis |
| Political | The production, distribution, and consumption of food are all impacted by governmental policies. It affects the cost and availability of food. For international brands, knowing that any person can own an American corporation is essential information. US investment assets that are subject to US law may be purchased by foreign investors. Foreigners can invest in US stocks by opening international trading with a foreign or domestic broker. Moreover, there are no particular certification standards for food delivery in the USA. A food facility just needs to register with the FDA, then the FDA must approve the addition. |
| Economic | The American economy is the biggest, most reliable, and most powerful in the entire globe. Based on a financial analysis by DataLab, the USA’s annual GDP reached 20.807 trillion US dollars by the end of 2020. The 63051 US dollars per person national average was. The FDA is actively supporting food preservation. They have created instructional videos to help people waste less food and eventually spend less money. The sector is impacted by tax rates, currency exchange, inflation, as well as labour wages. However, the US population is becoming wealthy. The food sector is expanding now that more people across all income levels have much more funds to spend on food. Furthermore, wages for workers have increased. The government anticipates lower pay because the firm owner will make less money, even though workers in the sector currently demand better pay. The hired laborers at the farm face numerous difficulties every day. Their livelihoods are below average compared to the rest of the US population. |
| Social | Individuals from around the world reside in the US, making it the most ethnically diverse nation in the world. Individuals from all over the world make up the country, which acts as a melting pot for different cultures and civilizations. The most advanced and expensive medical system is found in the USA. Recent years have seen a rise in health awareness. It’s because the preceding fast food trend has contributed to an increase in diabetes and obesity. They are currently working to change to a healthy diet, way of living, and workout routine. The American people are free-thinking and tolerant (LEYVA et al., 2018). They are accustomed to observing different cultural standards and trends, which is the cause behind this. |
| Technological | The market for the corporation grows as the variety of valuable products and services becomes more widely accessible thanks to technology. In the US, products are already being grown from genetically modified seeds. International companies who are interested in breaking into the US food market must realize that investing in technology would pay off for them and the industry as a whole since it will attract a larger client base and stimulate economic growth. |
| Legal | Due to the independence of the US states, each one has legislation that is wholly distinct from those of the other states. Patents and other forms of intellectual property are governed by incredibly tight rules in the USA (Sadaria et al., 2017). These reasons were the main driving forces behind the founding of big tech corporations. It creates a safe place for intellectuals to develop software and programs so that the developer can be credited for their effort. |
| Environmental | The weather seems to affect the food sector since it affects the quantity, quality, as well as yield of crop production. Over the past few decades, crop production has been increasing. Customers are increasingly opting to eat increasingly environmentally friendly meals as a response to the Covito19 global outbreak. The need for consumers to buy green food is mostly motivated by their awareness of their health and the environment, as well as how they see these things, how their families are set up, and how they shop. The industry must therefore go green. In addition, the output of red meat has increased significantly. Forests are destroyed as a result (Leyva Vázquez et al., 2018). Vegetable consumption is on the rise as a result of rising environmental awareness among Americans. This movement must be acknowledged by the industry to avoid any potential problems in the future, but it cannot be seen negatively. International business owners should consider this if they intend to compete in the US food market. |
| Competition | The value addition output of US foods and drinks is anticipated to increase by roughly 1% in 2022 after increasing by 31% in 2021 as well as 18% in 2020. The retail food industry has seen a rise in sales over the past few months, but margins are still thin as well as the competitiveness is still fierce. |
Appendix 2: PESTLE Analysis of France
| PESTLE Factors | Analysis |
| Political | France has considerable political stability. Nevertheless, several law and order challenges have recently arisen all around country. There have been several weekly demonstrations in recent years against a range of concerns. These have caused business disruptions and adverse repercussions on the confidence of both domestic and foreign investors (Nandonde, 2019). The fact that many people have questioned several of France’s foreign policies is significant. |
| Economic | The predicted GDP for France in 2020 was $2400 billion, down from that of 2019. (Trading Economics, 2021). Nonetheless, the 2020 economic shutdown is the main culprit. The OECD predicts that the GDP will expand by 6% and 3%, correspondingly, in 2021 & 2022. |
| Social | France is well known for its cuisine, apparel, fragrances, cars, culture, as well as language. Why France is among the most popular tourist destination is not a surprise. |
| Technological | France is among the nations around the globe with the most advanced technologies. It has a tremendous history in the realms of research, IT, as well as space technology. |
| Legal | The legal workweek in all business kinds is 35 hours long. No employee may put in more than 4.05 hours of consistent work (Expatica, 2020). By French employment legislation, employees are entitled to overtime pay, yearly vacation, sick leave, maternity benefits, paternal leave, vacation days, as well as other benefits. |
| Environmental | Some environmental problems have drawn the attention of French residents and visitors. In particular, France faces major environmental problems from both pollution of air and water. Other environmental problems include the loss of biodiversity, residential garbage generation, noise pollution, as well as natural disasters. |
| Competition | France’s annual household consumption of food and drink amounts to about 180 billion euros, which represents a sizable share of the nation’s total consumer spending. Due to various France’s broad ethnic population, virtually any product might find a market notwithstanding the nation’s strict quality standards (Pan, Chen & Zhan, 2019). |
Appendix 3: PESTLE Analysis of Australia
Source: PESTLE Analysis of Australia,
https://www.sciencedirect.com/science/article/abs/pii/S0261219417302533, (Wright et al., 2018)
| PESTLE Factors | Analysis |
| Political | Due to its welcoming corporate environment, the country draws investments. Investors generally feel confident establishing operations given the rather stable political environment. The democratically elected government handles economic concerns and implements appropriate policy adjustments. Due to recent adjustments made to its economic policies, Australia is currently among the top-rated countries in the area. |
| Economic | Moreover, businesses set up their headquarters base in Australia. Enterprises with a strong focus on Asia. Establishing a corporation in Australia still seems to be affordable today. Due to the currency exchange rate, which particularly benefits foreign countries including America, it is simple to decide to invest in Australian enterprises and real estate. |
| Social | Women normally live to reach 84 years old, compared to men who generally live to be approximately 80. Australia is a diverse and multicultural nation. High-quality healthcare, educational, as well as business environments, are available in Australia. There, immigration is a delicate topic due to the nation’s history of problems over multiculturalism. |
| Technological | In Australia, technological innovations are highly known. Compared to other nations of comparable stature, it embraces new technologies more frequently. A new law enabling access to the police department was just passed in Australia. It serves as a security measure. It claims that the police would capture the hackers as well as fraudsters if they had the information they needed. It brings up significant concerns regarding user privacy. |
| Legal | Australia incorporates Fairtrade legislation, competition rules, as well as consumer protection legislation to level the playing field for both consumers and businesses. The main piece of legislation governing work in Australia is the Fair Work Act of 2009. Similarly to this, privacy regulations shield customers’ personal information from unauthorized disclosure. |
| Environmental | Australia is considered one of the most stunning places on earth, with gorgeous beaches, landscapes, as well as forests. It is also widely known for having exceptional biodiversity. Water shortages, the development of contagious illnesses, and conflicts in the middle east over food, fresh water, and especially land are some of the possible repercussions of climate change. |
| Competition | The rivalry is increasing each year as an outcome of new applications as well as an extended product line, by the study “Food and Beverages Industry, Development, Market, Outlook and Growth Opportunities 2020-2026.” In addition, people’s growing desire for organic, healthy, as well as fresh foods as a consequence of increased health awareness is another important driver projected to enhance demand for the food and beverage market. |
Appendix 4: 3 Country Comparison Table
According to the PESTLE Analysis, each nation’s factors are given a score between 1 and 5, with the numbers signifying the following:
1: Very Unfavorable
2: Not in favor
3: Modest
4: Positive
5: Extremely Favorable
| Factor Score | |||
| Factor | USA | France | Australia |
| Political | 2 | 2 | 4 |
| Economic | 3 | 2 | 3 |
| Social | 3 | 1 | 3 |
| Technological | 4 | 3 | 4 |
| Legal | 1 | 3 | 3 |
| Environment | 1 | 3 | 3 |
| Competition | 5 | 1 | 3 |
| Total Score | 19 | 15 | 23 |
The research table makes it abundantly evident that PizzaExpress can expand its operations in this international market due to the incredibly favorable circumstances in Australia. Consequently, the country gets picked for internationalization.