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Pestle Analysis of Brazil & USA for the Fast Food Industry

Number of Words : 3568

Number of References : 17


 Introduction 4
 PESTEL Framework 5
 Political 5
 The USA 5
 Brazil 6
 Economical 6
 The USA 6
 Brazil 7
 Social 7
 The USA 8
 Brazil 8
 Technological 9
 The USA 9
 Brazil 9
 Environmental 10
 The USA 10
 Brazil 11
 Legal 11
 The USA 11
 Brazil 12
 Comparison of PESTLE of the USA and Brazil 12
 Recommendations to set up Fast Food Retailer 15
 Conclusion 16
 References 17


Successful business or franchisee in a nation does not necessarily guarantee success in an alien nation. There can be several reasons to it. Some of them can be political, economic and social factors. And even consumption patterns in an alien nation can be different. A western fast food retailer, if plans to enter Asian market, needs to do a thorough analysis of the conditions there apart from the consumption patterns, styles and preferences. Macro environmental analysis of PESTLE analysis of the alien market helps greatly to achieve this. PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental factors. The reason for the success of otherwise of a business in an alien nation can be economic too. An economically bustling nation will have more people with disposable income and hence consumption of goods and services such as fast food can be high. People with disposable income tend to experiment with different brands. An economically struggling nation on the other hand can have more unemployment and people may not have much disposable income to spend on such goods. Political status such as democracy or dictatorship will have impact on the continuance of the business and the protection of rights of the business owner. The US is an already established market for fast food consumption. Brazil is an upcoming economy and hailed as the one of the future economic world leader along with Russia, India and China. Both are stable democracies. This paper discusses and compares the PESTLE of both the nations with the focus on fast food retailer industry and makes recommendations as to which nation the company should expand into to open fast food retail outlets.<br />

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