United Kingdom Restaurant Industry Analysis (Essay Sample)

United Kingdom Restaurant Industry Analysis Author name Institutional affiliation Course number and name Instructor name Assignment due date Abstract The restaurant industry is a critical element of the United Kingdom’s economy. Strict regulation is one of the political elements that affect the UK’s restaurant industry. The United Kingdom government requires all restaurants to uphold high storage and transportation standards to protect consumers from purchasing substandard foods. Restaurant companies in the United Kingdom protect the environment by promoting sustainable production and waste management. Some of the threats that affect the restaurant industry in the United Kingdom include stiff competition from other restaurants, and buyers’ and suppliers’ bargaining power. Corporate social responsibility is also an important element of the UK’s restaurant industry since it shapes organizations’ public image. United Kingdom Restaurant Industry Analysis The United kingdom's restaurant industry is one of the major contributors to the economy and a vital community. Restaurants provide people with various dishes and comfortable spaces to take a break from their daily activities or meet friends and family members. UK's restaurant industry is also a critical part of the culture that facilitates the broader part of the economy, contributing to unity and peace among visitors. The United Kingdom's restaurant industry also offers visitors and tourists a chance to experience local dishes and the United Kingdom's cuisines, which attracts millions of visitors annually and contributes to the region's economy. Some of the theories associated with the international business strategic management process include firm growth, equity theory, contingency theory, and organizational learning theory. It is also imperative to assess the PESTEL and Porter's 5 analysis of the United Kingdom's restaurant industry and the importance of corporate social responsibility to organizations' strategic intent. PESTEL Analysis Political Strategic choice theory is one of the political aspects that affect the restaurant industry in the United Kingdom. The strategic choice theory relates to the UK’s restaurant industry since it determines how leaders in the industry make decisions in a dynamic political process. Corporate leaders in the industry decide where to open new restaurants in the UK depending on the taxation and other government incentives in specific areas. Regulation is also one of the political aspects that affect the United Kingdom’s restaurant industry; the United Kingdom government has a comprehensive regulatory framework that requires restaurants to maintain strict hygiene standards. Storage and transportation are also other current policies affecting the United Kingdom's restaurant industry (Shamim, 2019). Restaurants are required to have quality storage systems and strict timelines for storing certain types of food products. The government also requires restaurants to use quality transportation to ensure that the movement of a food product does not affect the quality of food in restaurants. Therefore, restaurants in the United Kingdom are required to hire reputable suppliers to avoid getting fined by the government or losing their operations licenses. Economic Balance scorecard theory is another important theory that enables organizations in the United Kingdom to ensure that performance matches the organizational goals and boosts the industry’s economic aspect. The balanced scorecard theory also enables organizations to assess non-financial aspects that affect the financial perspective in the aspect of the UK’s restaurant industry. The theory also allows organizations to get feedback on their internal and external business processes, enabling them to improve certain aspects of operations and increase effectiveness. The balanced scorecard theory enables managers to determine whether organizations are meeting their financial objectives (Shamim, 2019). Stakeholders' satisfaction also increases when organizations use the balanced scorecard theory since it enables them to evaluate their organizations' short-term, medium- and long-term financial health. Companies such as McDonald's allow stakeholders to evaluate the organization's financial health and provide quick feedback, which facilitates the adoption of new strategies that improve the health of organizations. The balanced scorecard theory boosts the UK’s economy by facilitating the assessment performance from customers’ perspectives. Balanced scorecard theory allows organizations in the United Kingdom to conduct customer behavior research to understand whether customers deem their products and services as satisfactory or low-quality. Some of the categories in which customers' concerns fall are inclined to quality of services, time, performance, and cost. United Kingdom restaurants that apply the balanced scorecard theory ensure that customers get served within the shortest periods without increasing prices or reducing the quality of services. Since the restaurant industry is a vibrant industry that needs close supervision and management, international restaurants need to assess their employees' performances to guarantee quality and fast services. Restaurants that use the balanced scorecard theory can also evaluate their internal business perspectives and make strategic changes to improve the effectiveness of operations and remain competitive in the market. Since the restaurant industry is a service industry, most employees in the industry are from the lower- and middle-income classes; this reduces unemployment rates and empowers individuals in the community. The restaurant industry also contributes to the improvement of societies in the United Kingdom by reducing the number of unemployed people and reducing crime rates in the country. The United Kingdom's restaurant industry has also changed drastically since the COVID-19 pandemic; some restaurants have scaled down their operations while others have closed due to the losses from the COVID-19 containment measures. Sociocultural Equity theory is one of the key theories associated with international business strategic management and the sociocultural aspect of the United Kingdom’s restaurant industry; the equity theory relates to the balance between the efforts of individual employees at work and the results of the efforts or the output of the placed efforts. The United Kingdom’s sociocultural aspect provides restaurants with skilled and experienced employees whose output drives the restaurant industry. An employee's output includes the recognition, salary, and responsibility that emanate from the initial hard work. The equity theory relates to international business strategic management since it enables organizations to select and employ individuals capable of propelling them to success (Filimonau et al., 2020). Balancing between the output and the input of individual employees also improves performance and aligns workers' input with organizational business strategies. Balancing the employees’ efforts with work output therefore enables organizations to instil positivity among local communities. Fairness is also a critical sociocultural element that affects the United Kingdom’s restaurant industry. Organizations that apply the equity theory contribute to the United Kingdom’s culture of respect and integrity in the community. Restaurant employees in the United Kingdom need different types of motivation to make them feel appreciated and respected contributions to their organizations. International organizations use equity theory to treat employees differently and make them feel like part of the team (Filimonau et al., 2020). Companies also treat their employees with respect, including solving disputes without demotivating certain employees or humiliating them. Organizations that apply Adams' theory have organization policies that require McDonald's and other organizational leaders to treat employees respectively to motivate them to work harder and improve their effectiveness. Motivated employees rarely get late to work, and they are always ready to assist their colleagues when called. Health consciousness is also an important sociocultural aspect that affects the United Kingdom's restaurant industry. Consumers' consciousness about the relationship between food choices and their health is increasing, forcing most restaurants in the United Kingdom to introduce healthier dishes to appeal to health-conscious customers (Shamim, 2019). Scientists and health professionals are also pushing for healthier food in the UK, which has affected how people perceive food and how restaurants operate. Technological Contingency theory is another critical theory that relates to international business strategic management and the technological aspect of the United Kingdom’s restaurant industry. The theory states that an organization must balance integration and differentiation for success. The theory relates to the UK’s restaurant industry since it requires organizations to conduct integration between organizational subunits to ensure that different units use technology to cooperate and work to achieve the organization's goals (Quang et al., 2018). The coordination facilitates quick feedback, which enables organizations to understand and meet the emerging needs of customers. Contingency theory enables organizations to develop their strategies depending on the current situations and emerging technologies. The United Kingdom's restaurants had to adapt to the COVID-19 pandemic by changing strategies such as improving their online platforms to adhere to COVID-19 containment measures. Therefore, the contingency theory is important to the restaurant industry since technology changes are regular, and managers do not have to follow organizational strategies when dynamics in the industry change. The conting...