Business Consultancy report: Chick-fil-A’s expansion into South Africa

Chick-fil-A
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Executive summary
The determination of a market for a given product or service require an intense understanding of the market trends and margin. These aspects can be well outlined prior undertaking research that describes the market target which can be achieved by conducting an extensive PESTEL analysis. The paper is based on the PESTEL Analysis which in particular defines the political, economic, social, technology and legal description of the targeted region of South Africa. The South African restaurant industry is doing well such that its establishment is within its standards and above it, all the industry records a standard annual growth rate of approximately 7%.
PESTEL Analysis is of great benefit to marketing personnel because it provides direction on how to enter the given market. The analysis provides an easy understanding of the targeted market. Above it all, the business is in a good position of learning the underlying unseen business trends. As a result, an organization develops a competitive advantage by being better informed. However, this analysis is limited to the extent that it requires intense research for the information to be acquired.
The political aspect provides a preview of the political stability which determines the environmental sustainability of the business by guaranteeing peace and safety. Inflation has hit the world and the economic attribute outline the sustenance of the supply.

Economic analysis enlightens on the concept of pricing as well. The focus is on the hospitality sector which is highly influenced by social, cultural aspects. The analysis gives a better understanding of the targeted market needs and desires. Technology attribute reflects on the way a business can go easy on providing better services and products. Above that, better marketing strategies can be derived as well. The legal aspect outlines the freedom available for conducting the business.
South Africa also has strong independent institutions such as judiciary which enables the smooth running of business without political hindrance. Besides, Chick-fil-A Company is expected to diversify its market in a stable political environment as there is respect for the rule of law in South Africa. The increased number of policies which in particular do not enhance or rather put emphasis on the aspect of creating jobs within South Africa can be said to have been promoted the high rate of unemployment in the country. However, the country has liberalized its economy into an export one hence promoting the so-called open economy.
Business operating hours is vital to the Chick-fil-A’s social factors that the organization has to put much consideration in before making the final sounding decision of entering the South African market. As people normally operate their businesses from during weekdays between 8 am and 5 pm, fast food chains seem to have an additional day as they operate from Monday to Saturday. However, on Saturday, these chains operate between 10 am to 10 pm. It is therefore to the advantage of Chick-fil-A as it will be able to operate for six days in a week hence increase its business hours. Similarly, the restaurant industry is majorly labor intensive in many countries including South Africa. This means that the industry can efficiently operate with semi-skilled employees and still maximize the labor output. Chick-fil-A is one of the organizations in the restaurant industry is expected to use this group of workers hence pay low wages while saving the reasonable amount that could have been used to pay the skilled employees.
The restaurant has been steadily growing at an average of 7% hence an encouragement for the Chick-fil-A to enter into the South African market. Cities of Cape Town, Johannesburg, Port Elizabeth, Pretoria and Durban constitute a population of more than 10 million people since two thirds of the population in South Africa are urban-oriented. This means that Chick-fil-A should consider setting up its location in the cities so as to maximise on the potential market.