Unknown Case

The business that was selected is Liquid Chefs. They operate in the food and beverage industry but their predominant focus is in the beverage segment.

This industry is characterized by long working hours, low wages and high labor turnover due to the ‘waiter profession' being regarded as a transition point to a new job or a starting base on which to gain a foothold into the hospitality industry for the unemployed and those with little or no formal educational background.

The consumer makeup of the Liquid Chef business is middle to high income groups

Analysis of the Liquid Chef business

1) PESTLE

• Political

 The business is not influenced by political factors in that it operates on a very small scale

• Economic

 The key economic factors facing the business is in the micro economic environment in south Africa which is characterized by rising cost of foods which is putting pressure on its clientele which is mainly made up of middle income earners.

 New legislation governing alcohol advertising will have a negative effect on the business in terms of growing and promoting the brand

• Social

 The company does not involve itself in any social activities beyond its core business

• Technological

 The industry is relatively low tech in nature and apart from the systems used for the day to day running of business no new technological innovations or system is planned to be used in future

• Legal

 Due to the nature of the business and the industry it operates in there are many issues that involve the CCMA

 The workforce is not unionized and has no power when it comes to wage and other negotiations.

• Environmental

 The business operates in a highly competitive segment of the market with many close competitors