Political/Legal/Institutional Environments
The legislation of the United States of America is developed in favor of society and entrepreneurs, which means that the conditions for mastering the market can be interpreted as optimal. In other words, the development of small business is in the interests of the state, since this increases both the general satisfaction and the degree of development of society, and tax revenues (Farber & Dodds, 2018). Therefore, from a political point of view, there will be no difficulties for the formation of Coronation Bakery in America. In addition, the criteria and necessary documents for starting a business in the United States are clearly regulated in the text of the law, it will be easy for management to prepare in advance (Urquiola, 2020). Thus, the political and legal environment has the most beneficial effect on the development of the American market by business.
Regulatory Environment
It is important to emphasize that there are two most significant elements to consider in the field of business regulation. First of all, the United States has a flexible taxation system, which is calculated from the income of the organization. Accordingly, the most optimal action would be to assume an expected income from which it will be possible to calculate tax payments. This can be done with the help of analyzing competitors and how exactly their business is carried out and what income they have (Farber & Dodds, 2018). The second point is that the most optimal way to hire workers will be to attract American citizens, not Europeans (Urquiola, 2020). The fact is that in the case of foreigners, it is necessary to issue and renew the appropriate visas, which is an additional expense for Coronation Bakery. In addition, cardinal changes and deterioration in the sphere of legalization of the sphere are not expected.
Economic Environment
The economic environment of the American market is one of the most important advantages. The fact is that the average purchasing power in America will allow Coronation bakery to increase its overall profit. In addition, the prices for renting business premises and supplying materials, including raw materials, will quickly pay off due to the fact that pricing for such products is generally more favorable than in Europe or Asia (Urquiola, 2020). The combination of these factors opens up potential benefits for the organization, given that the niche is in demand for the local population. In other words, bakeries and baked goods are hot and in high demand. At the same time, the niche is not crowded, and accordingly there is not enough supply, which can be a key opportunity for the implementation of the Coronation Bakery business. The main trend can be identified as an increase in the purchasing power of customers upscale. The country’s economy is constantly developing. Thus, there are no negative opportunities in the foreseeable future, the market is one of the most stable and reliable.
Socio-Cultural Environment
Separately, it must be emphasized that in the development of the American market, Coronation bakery will not face significant cultural or social differences. This means that, for example, in Asia, one has to adjust to the local metaphor and taste preferences, since they are very different from the European one (Urquiola, 2020). In the case of America, however, such a factor is not significant, since society is multicultural in nature (Urquiola, 2020). This means that despite the fact that a certain group of the population prefers not to consume baked goods or prefers alternatives, the spectrum of buyers remains wide. It is worth noting the trend of decreasing demand for bakeries among athletes and those who have health problems. This is explained by the fact that bakery products have a negative impact on their subjects of interest. At the same time, there is quite a lot of competition, which means that there is no great loyalty of society to a particular company (Farber & Dodds, 2018). This leads to the fact that there is no need to fight with the authority of a competitor in order to grow a customer base. In addition, it is necessary to highlight a very positive trend for the niche, as society moves towards globalization and merger (Urquiola, 2020). This implies that the interest in European bakery products will be not only economic or practical, but also cultural. In other words, Coronation Bakery products can be interpreted as a different kind of American cuisine that people will want to partake in.
Demographic Environment
Through the analysis of the demographic environment, it is possible to identify potential customers, which will help to orient the approximate plan for both products and prices. According to data, 54% of the most loyal to niche clients are teenagers and families with children who regard pastries as a snack or part of lunch (Farber & Dodds, 2018, p. 74). In other words, Coronation Bakery products will be in demand by those who are either a child or have children in the family, and accordingly it makes sense to focus on sweet and unusual tastes. In addition, American adults are switching to a healthier type of food, replacing large amounts of baked goods (Farber & Dodds, 2018). Based on this, it is necessary to introduce not only products made with flour and dough of the traditional format, but also dietary ones.
Technological Environment
In the US, a firm and strict attitude towards the environment, which is enshrined in the current legislation. On this basis, it is necessary to prevent the possibility of dirty production, which means more expensive equipment (Farber & Dodds, 2018). In addition, the vast majority of competitors are technologically modern, and it is necessary to remain technologically competitive (Farber & Dodds, 2018). This means that it makes sense to enjoy the tendency of the most environmentally friendly and efficient production paths. At the same time, it will create a positive trend in the form of the company’s credibility, which shares the values ​​of caring for nature.
References
Farber, J. M. & Dodds, K. (Eds.). (2018). Principles of modified-atmosphere and sous vide product packaging. CRC Press.
Urquiola, M. (2020). Markets, minds, and money. Why America leads the world in university research. Harvard University Press.