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External Environment Analysis

PEST analysis and Five Forces Analysis of California Pizza Kitchen

Step One: Using the sources you identified in the SLP, collect some data to support an industry analysis of each of the 5 Forces in Porter's Model.
Step Two: Using the sources you identified in the SLP, collect some data to support an analysis of each of the 4 elements in the PEST analysis. When considering economic data, use the most current data you can find.
Step three: In a 4-5 page paper, write up the results of your external analysis, and be sure to label each of the 5 Forces as either high, low or moderate. Taken together, the 5 Forces analysis and the PEST analysis should lead to conclusions about the opportunities and threats facing CPK as revealed by your research. The data you report from the 5 Forces and PEST analysis must be properly cited through intext citations and a reference list, or footnotes.

Write in one page an Executive summary: a synopsis of the main points, conclusions and recommendations made in the longer report.
��Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.
â?¢Main Body: The "meat" of the paper. Emphasize analysis, not just description. Delineate separate topics or sections with headings. and properly cite the sources for all information that you do not come up with as a result of your own individual reasoning.
â?¢Conclusion: Summarize paper in the light of your thesis statement.

Attached is the SLP where the information is provide to conduct this analysis.

The response addresses the queries posted in 1500 words with references.

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Solution Preview

The response addresses the queries posted in 1500 words with references.
//As per the directions, in this paper we have conducted a PEST analysis and Five Forces Analysis of California Pizza Kitchen. PEST analysis has been conducted to analyze the complexities in the external environment of the firm. Porter's Five Forces analysis has been conducted to reveal the various challenges faced by the firm in the pizza restaurant industry. Further, opportunities and threats were identified by this analyses.//

Executive Summary

This paper deals with the external environment analysis and industry analysis of California Pizza Kitchen. In the introduction section, the purpose, the outcomes, and the methodology adopted have been mentioned. Further, a PEST analysis has been conducted followed by a Five Forces Analysis.

In PEST analysis, it has been found that the company has to abide by numerous government regulations, but it has not reflected negatively on the profits. The company is likely to face some economic constraints in terms of costs of the supplies, expansion plans, credit supply, and insurance costs. The company may have to deal with negative impact on its future profits and EPS because of its lack of control on franchising and licensing partners. The company's profitability may get affected in case the consumer preferences about the offerings will change especially in terms of nutrition and health related issues. The company is abreast with technological advancements in the industry.

In Five Forces Analysis, it has been found that the bargaining power of suppliers is quite low as the nature of supplies is generic and easily available. The threat of new entrants is very high, which can be attributed to very low entry barriers in the restaurant industry. The bargaining power of buyers is moderate as consumers are generally loyal as far as they get value for money. Threat of substitutes is again moderate as the company is already producing frozen pizza, which can be the main substitute, but as the economy is reeling under recession, and people don't have much disposable income, so they can opt for home cooked food instead. The competition is very fierce in the industry with innumerable restaurants present across the country and the key players are quite well-established.

Going forward, the company should look forward to consolidate its current position by keep on differentiating its offerings rather than look for expansion in such liquidity crunching times.

Introduction

The primary purpose of this paper is to analyze the external environment of California Pizza ...

Solution Summary

The response addresses the queries posted in 1500 words with references.

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