PESTLE Analysis of Steers
South Africa, the country which Steers is located in, is currently experiencing major political turmoil due to the current local elections. The municipal elections have sparked riots and protests across the country. This affects Steers because stores which are in the areas affected by the violence will now be discouraged to visit stores due to their safety being compromised as well as difficulty to get to the store. This will lead to a decrease in sales at stores in affected areas.
There is current political unrest in South Africa due to current corruption charges against the president. This political unrest in South Africa has caused international investors to lose faith in South Africa - this will lead to a downgrade of the South African economy to "junk status". This "junk status" will affect Steers for the country will enter a period of decreased economic activity (recession). The recession will lead to increased interest rates as well as inflation rates. This will cause Steers' buyers to have lower amount of disposable income - thus affecting the sales of Steers
As described before, inflation and interest rates are increasing in South Africa. This increase in interest rates increases the amount of money people have to pay back on their loans - this decreases their amount of disposable income. This will affect Steers because people now have less money to spend on their products (decreased sales).
The increased inflation rate means that people's money now doesn't go as far. This affects Steers because their prices have to rise as well, to keep up with the rising prices around them - this increased price will cause customers to not be able to afford some Steers products, decreasing sales.
The HIV/AIDS epidemic in South Africa affects Steers. Workers of Steers are susceptible to contract the virus. The people that have the virus are now less productive and this will affect the productivity of the workforce in general, Making Steers less efficient.
The rising health concerns in South Africa also affect Steers. Steers' menu is not catered for the healthy individual and this coupled with the rising health concerns will see customers being deterred from the business. This will then lead to fewer sales and decreased profits.
The rising concern for animal rights in South Africa poses a threat to Steers' sales. Steers' menu is not fully catered to the vegetarian and vegan individual. The people who are concerned about animal rights and living standards will be reluctant to go to a restaurant which doesn't cater for them. This will lead to decreased sales.
There is a huge movement to online food orders as well as app orders in South Africa. This new medium of ordering food poses an opportunity and a threat to Steers. Currently, this is an opportunity to Steers as they are one of the early adopters of this technology. There is, however, room for improvement for the addition of an application for smartphones would make the, significantly more competitive.
New laws affecting the way that animals are farmed in terms of health standards and animal rights affect Steers. Steers is threatened with fines imposed by the government if they do not ensure that their suppliers comply with all these laws. Failing to do so will lead to bad publicity for the company as well as fines and lawsuits.
The current drought in South Africa poses a threat to Steers. The drought has caused the price of ingredients to increase. This then poses the threat to Steers of a loss of profit due to profit margins decreasing. The drought is affecting local farms' water supplies - the shortage of water means that the supply and demand ratio is thrown off, therefore making the good of the farmer more expensive due to their costs rising.