Names: Ziphozekhethelo Gamede-
EDUV4835552
Caroline Chanza-EDUV4811029
Kamogelo Makhene-EDUV4827064
COMGA0 Group Assignment
Eduvos Bedfordview
Campus
Table of Contents Page
Introduction 3
Question 1 3-6
Question 2 6
Question 3 7
Bibliography 10
Question 1
The Marketing and Business Environment
Introduction
The marketing environment refers to the external factors
and forces that affect a company's ability to establish and
maintain relationships with its customers. These external
factors are part of the macro environment and will be
discussed below.
For our macro-environment analysis, we decided to
choose Nandos as the organization we will analyze. We
will look into the six macro-environment forces and apply
them to the organization;
Political forces: These forces refer to the influence of
government laws and regulations on businesses.
Since politics is the government, it plays an important
role in the business and how it conducts itself.
Businesses need to keep up to date with changes in
legislation (Marketing an Introduction, 2019).
According to Nandos they need to consider the
political factors of each country it operates in, such as
tax policies, trade restrictions, and labor laws. For
instance, Brexit is a political factor that has an impact
on Nandos because the food price may be higher,
and the supply of foods from EU countries may
reduce (Food Manufacture, 2020).
Technological Force; These forces refer to the impact
of technological advancements on businesses. This
results in the business coming up with new
developments technologically that benefit the
business. Nandos needs to consider factors such as
internet penetration rates, mobile phone usage and e-
commerce trends. A detailed analysis of the
technological environment can help Nandos capture
the technological trends to achieve advantages. The
use of social media has become more common in the
business environment, Nandos uses this platform to
market their services. For example, Nandos identified
the increasing demand for home deliveries and has
now ventured into increasing its online services (LAD
BIBLE, 2020)
Socio-cultural forces; These forces refer to the
influence of social and cultural factors on businesses.
Since Nandos is an international brand/franchise it
must cater to each of the countries cultural and social
beliefs. Each Nandos is unique and has its own
design in terms of the theme, art and interior which
caters to consumers of that specific economy.
Nandos aims to generates its own language and we
have recently seen that with its latest adverts that
features a group of young people enjoying their meals
and behind that we are given a message of how
Nandos does not only feed our cravings but brings
people together over unforgettable experiences.
Demographic forces; These refer to the study of
human population, gender, age, education,
occupation, income size, density, cultural
characteristics and lifestyle of consumers. Information
like this helps the business by determining what
product to produce. This also helps to select the
channel of distribution advertising media, choice of
marketing method, choice of manufacturing site and
other business decisions. (Vendatu, 2023). Nandos
operates in different countries, and it tailors its
products and services to the local market by
considering the demographic factors of each country.
For example, Nandos has a different menu in the UK
than in South Africa, which reflects the different tastes
and preferences of the local population.
Economic forces; these are factors that can affect the
business caused by the economy, these include
inflation rates, interest rates, taxes, exchange rates
and recession. For Nandos this happened when the
COVID-19 pandemic hit the economy which led to a
decline in sales and revenue. To reduce the spread of
COVID-19 Nandos had to close some restaurants and
offer home delivery services.
Ecological forces; Businesses depend on natural
resources such as water, oil, coal and other minerals.
These resources need to be used sufficiently and
cautiously as they can lead to a shortage. Nandos
became aware of acting in the right way and can take
steps to reduce the negative impact on the
environment. The company implemented various
measures such as using energy-efficient equipment,
reducing waste, and recycling. In addition, Nandos
has a farming initiative that supports farmers in South
Africa who grow the Peri-Peri chilies used in its
dishes.
