In this assignment, I went through all the PESTLE factor and how this affect my international business which is Pizza hut in the United states of America.
Pestle analysis: Pestle analysis focuses on the political, economic, social,
technological, legal and environmental side of a business or a country.
Political/Legal Factor: Political/Legal factor involves in the government
decisions on laws and regulations which needs to be imposed on different sectors
of the countries factors; education, jobs, welfare, trading, housing, monetary,
and banking.
For this assignment I’ll be writing about Pizza Hut and how does the operation in
the United States of America affect their operation. By doing this, I’ll be going
through all the PESTLE factors step by step and using facts and figures.
Political factor 1: Tax policy and tariff controls of USA.
Effect of this political factor on my chosen business:
Majority of Pizza Hut branches are located in the USA. More than 5,000 branches
are location in the USA alone. This political factor has a great effect on the Pizza
Hut operation due to different taxes operation charges; corporation taxes and car
insurance taxes. The corporation taxes for Pizza Hut in the USA are 15% and this
has a great effect on Pizza Hut due to the government taking away 15% of Pizza
Hut annual profits. This decreases the chance of Pizza Hut investing in future
projects such as the Improvement in technology, investments into different
branches and equipment’s. The tariff control varies in the USA, depending on the
importation or exportation of the amount of products. Pizza Hut is an
international business, therefore they will need to import products from different
countries. The government of USA are in favour of protectionism to protect small
businesses and t impose tariff to big businesses such as Pizza Hut does have a
great effect. This does affect Pizza Hut as its stripping away money from their
budgets for future uses.
Political factor 2: Employment legislation
Effect of this political factor on my chosen business:
The population of the USA IS 318 million and the country is ethnically diverse.
There are many employment legislation which are regulated and enforced upon
businesses. Health and safety, wage regulation and contract of employment. All
of these factors have a good effect on Pizza Hut as they can comply with the
regulation by ensuring that the employees’ health and safety and rights are
protected. Furthermore a good employment law will make the employees of pizza
hut to feel comfortable and this will enable the work force to be motivated and to
achieve maximum sales and operation of Pizza Hut.
Political factor 3: Rule of law, corruption, democracy and freedom
Effect of this political factor on my chosen business:
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