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External Ananlysis

In: Business and Management

Submitted By delle
Words 1079
Pages 5
About Mr. Empanada
“Mr. Empanada Inc. is a family owned, rapidly growing, small business that currently has one company owned location and six franchised locations. Their company owned manufacturing facility produces all the empanadas and other pre-prepared food items to be sold to the franchisees, thus assuring quality and consistency throughout the system. Additionally, they own Mr. Empanada Franchise Corp., which is responsible for selling, training and coordinating new and potential franchise locations.” The two industries that Mr. Empanada operates in are the fast casual industry and the franchise industry.
“Fast casual restaurants feature limited service or self-service, average checks between $8 and $15, made-to-order food, and upscale décor.” A franchise happens when there is an agreement between the franchisor and the franchisee, which allows the franchisee to do certain activities. For instance the franchisee can sell/market the franchisor’s product.
Legal/Political Environment
There are many external factors that impacts a business. The one that I’m going to focus on is the legal/political environment. This comprises of laws, regulations, and policies that are put into place to control business activities. The legal/political (government/legal barriers) environment is one of the factors that helps determine the strength of one of Porter’s five forces, threats of new entrants, so it will be discussed below.
Threats of New Entrants
Porter’s five forces is basically a model that is used to help those responsible for governance determine a company’s corporate strategy. It helps them do this by identifying the industry’s structure and how the structure affects the company. One of the forces in this model is threats of new entrants. Three factors that determine the strength of this force are: * Capital requirements * Product differentiation

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