An Industry Analysis of LOTSAPIZZA

In Partial Fulfillment

Of the Requirement for the Degree of

Bachelor of Science in Accounting Technology

Gemma Lou Vargas

Lavinia Ann Junio

Mary Joy Lingad

March 4, 2014

Social Environmental Key Variables (PEST)

Politico-LegalEconomicSocio-culturalTechnological

Environmental protection laws

Tax laws

Government Regulation about Salaries and Wages

Government Regulation about food standards, food handling, etc. GDP trends Unemployment rate

Inflation rate

Interest rate Health consciousness

Food Beliefs due to religion (no pork for muslims) Kitchen Equipment Trend Internet

Political Factor - This factor looks at how government regulations and legal issues affect a businesss chance to be profitable and successful. Issues that must be considered include tax guidelines, political stability, trade regulations, employment laws and safety regulations. Since Lotsapizza belongs to the food industry the factors will be environmental tax laws regarding waste disposal etc. Another will be tax laws, government regulations regarding taxes, salaries and food standards, food handling and hygiene. Economic Factor - This factor examines the outside economic issues that can play a role in a company's success. The factors will be economic growth GDP, inflation and interest rates and unemployment rates. Interest rate would impact the cost of capital, the rate of interest being directly proportionate to the cost of capital. Rate of inflation directly affects the price of the products. Economic growth will serve as an indicator of the sustainability and profitability of the business.Social Factor - This issue analyzes the demographic and cultural aspects that can help determine whether a business can compete in the current market. These factors help businesses examine consumer needs and what pushes them to make purchases. The factors of the said company would be health consciousness. People nowadays are shifting into healthier lifestyle and they avoid rich in carbohydrates and fattening food. Also Muslims are not allowed to eat pork. The business should have products that will cater to that market.Technological Factor - This factor takes into consideration the technology issues that impact how an organization brings its product or service to the marketplace. Depending on the technology available, it can make it easier or harder to enter the industry and increase production level. The factors to be considered will be the kitchen equipment and internet. Using the best equipment to make the product will be efficient for the business. Nowadays, internet also has been part of technology since it is used to taking in orders and marketing purposes.