PESTLE Analysis
Political Factors
“A Healthier You” Government Strategy
Reporting of organic prices.
Safety Inspections Services.
Evaluation: POSITIVE impact
Economic Factors
GDP: ? 3.9% in the 3rd qtr
Real Personal Consumption expenditures ?3.0% in 3rd qtr
Disposable Personal Income ? 6.1 % in the 3rd qtr
US Business Cycle: At “slump”/ Wages/Labour
European Markets: Weak dollar against Euro, Surging Energy Prices, Increasing Interest Rates
Evaluation: MODERATE impact
PESTLE Analysis
Socio-cultural Factors
Population Demographics: aging and longer life expectancies.
Increasingly more health conscientiousness population.
Social pressures regarding the environment and animal welfare.
Trend towards eating out rather than cooking.
Greater knowledge of links between health issues and food.
Evaluation: POSITIVE impact
Technological Factors
Emerging new internet capabilities: On line shopping service.
Improved telecommunications facilities - NB for distribution & retailing of goods.
Modern and advanced technology for processing of goods.
Evaluation: WEAK
PESTLE Analysis
Legal Factors
Employment Law
Competition Law
Health & Safety Law
Environmental Law
Organic Food Production Act 1990 & US Department of Agriculture established labeling standards in 2002.
Evaluation: MODERATE
Environmental Factors
< 1% of US farmland certified organic in 2004
Environmental concerns.
Seas over-fished using damaging fishing practices.
Recycling and Energy Consumption
Evaluation: POSITIVE
PESTLE Analysis
Conclusion to PESTLE Analysis
Overall the macro environment is positive for WFM. ...