Technological Factors in Burger King’s Business
Burger King’s business partly relies on technologies. In this dimension of the PESTEL/PESTLE analysis, technologies and related trends are considered in terms of their influence on the remote or macro-environment of the firm. The following are the major technological factors affecting Burger King:
Higher availability of automation technologies (opportunity)
Higher popularity of mobile technologies (opportunity)
Low R&D activity in the quick service restaurant industry (opportunity)
More automation technologies are now available for businesses. Burger King can apply these technologies to improve operational efficiency. Also, the company can tap mobile users to gain a bigger market share. Relative to the low R&D activity in the fast food restaurant industry, Burger King has the opportunity to boost its R&D investments to improve performance. In this part of the PESTEL/PESTLE analysis, Burger King has major opportunities for performance improvements based on technological external factors.
Ecological/Environmental Factors
The environment can impose limits to Burger King’s business. This dimension of the PESTEL/PESTLE analysis covers the impact of ecological conditions on firms’ remote or macro-environment. In the case of Burger King, the following are the most notable ecological external factors:
Climate change (threat)
Emphasis on business sustainability (opportunity)
Increasing popularity of low-carbon lifestyles (opportunity)
Climate change threatens to reduce the stability of Burger King’s supply chain. However, the company has the opportunity to improve its sustainability status. Also, Burger King has the opportunity to improve efficiency to attract consumers who advocate low-carbon lifestyles. The ecological external factors in this dimension of the PESTEL/PESTLE analysis indicate that Burger King can realistically work on sustainability and efficiency.
Legal Factors
Burger King must comply with legal requirements. The effects of legal systems on firms and their remote or macro-environment are considered in this part of the PESTEL/PESTLE analysis. The major legal external factors influencing Burger King are as follows:
Import and export regulation (opportunity)
Environmental protection laws (opportunity)
GMO regulation (threat)
Burger King has the opportunity to grow based on import and export regulations that support new international trade agreements. Also, the company can enhance its sustainability performance to exceed expectations and requirements based on environmental protection laws. However, GMO regulations, especially in Europe, limit the performance of Burger King, considering the widespread availability of GMO ingredients used in the industry. This dimension of the PESTEL/PESTLE analysis emphasizes growth and sustainability based on legal external factors.