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Environmental Factors of Business: Maxi-M Restaurant Network Research Paper

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Updated: May 13th, 2022

Introduction

The company, which will be analyzed is engaged in the sphere of restaurants and is the network of entertainment enterprises. Maxi-M network is the Swedish company, which acts on the European market of entertainments and high-class restaurants. The main feature, which attracts clients are the menu, which includes the cuisine of most European countries (including restored recipes), vividly expressed elements of exclusive interior and the special atmosphere within the team, which is communicated to the clients and visitors. In the light of this fact, it is necessary to emphasize that the popularity of this restaurant network is not doubted, nevertheless, there is strong necessity to research and describe the environmental factors of its business activity.

Global Economic Interdependence, Trade Practices and Agreements

It has been already emphasized, that the company is international, and its activity is spread all over Europe. Consequently, the business activity depends on the character of business relations among the counties of European Union. As for the matters of interdependence, it should be stated that the level of this interdependence is rather high, as the products and ingredients for some meals are supplied only from other countries. Thus, Maxi-M Corporation essentially depends on the milk farms of Italy, vegetable plantations of France, Brazilian coffee plantations and supplies of tropical fruit from Africa and Latin America. Searching for the high-quality products, Maxi-M aims to reduce the price of the goods by requiring wholesale discounts. Thus, it is the largest customer for some small companies, which make accent on restricted, but high-quality agricultural goods. These trade relations have also formed the particular trade practice and the set of trading agreements, which form the basis of trading and business performance of the company.

Demographics and Physical Infrastructure

The structure of Maxi-M Corporation is the unique junction of professional management and innovative approach towards the communication process within a team. Originally, the company’s main aim is the steady and constant development, thus, it puts an essential emphasis on youth and on students, thus, the preference for the location of the new restaurants is given to the cities with large universities. Demographic environment of the company is not stipulated by the economic environment of the country; however, it is selected by the management of the corporation. The energy, the creativity and the new perspective vision, which youth can offer is used for the development of the company, and constant improvement of rules and principles of business activity.

As for the physical infrastructure, it is not essentially developed, nevertheless, the agreements and partnership network enables Maxi-M management not to care of company’s own supply infrastructure.

Cultural Differences

In spite of the fact that all the European states have different cultures, the tendency for globalization steadily wipes out all the borders among cultures, causing the intermixing and interdependence of the cultural traditions. From this point of view, it should be stated that these differences do not cause serious problems for business activity and marketing performance. On the other hand, the difference and authenticity of cultures is emphasized as the particularity of this network. These differences are generally regarded as a trump for Maxi-M corporation, as menu of the network represent the cuisines of different cultures.

Importance of Social Responsibility and Ethics vs. Legal Obligations

The issues of social responsibility are not within the highest priorities of the company, consequently, it will be hard to examine it real importance. Nevertheless, it should be stated that the company has rather low rate of legal conflicts, linked with the dissatisfaction of the employees. Originally, the main aim of HR management principles is to create the atmosphere of allover feedback and resonance within the team. People are encouraged to work maximum, share their ideas and maintain the friendly atmosphere within the team and with the visitors of the restaurant. There is an effective fine – bonus strategy, consequently, workers do not feel the necessity to claim for social responsibility.

As for the obligations, the atmosphere and the principles of HR management makes an essential emphasis on the ethical issues, as trust and respect from the side of the workers, who are young, ambitious, energetic and full of ideas is greatly appreciated.

Political Systems and International Relations

The fact is that, the political system is the least important and the least mentioned factor in the activity of Maxi-M Corporation. Due to the fact, that the company supports the extensive abroad contacts, and constantly expands its international activity, there political system of each country has absolutely no importance for the business activity of the company. Nevertheless, the character of the international relations, and diplomatic relations of Sweden and Europe in general with other countries defines either simplicity or complexity of worldwide suppliers. Originally, the international relations is the key global factor, which influences the business activity of the international corporation.

Influence of the Local, National and International Legislation

Another essential factor, which influences the business performance, is the legislation on three levels: Local, National and International. Originally, local and national legislation are regarded to be integrated in Sweden, and there are no differences for regulating the international business performance. As for the international legislation, business activity is subjected to thorough control of Anti-monopolization committee, and various organizations, engaged in the entrepreneurship regulation and activity.

An essential factor of legislative regulation, which should be analyzed is the Foreign Corrupt Practices Act. Originally, the instances of bribery are regarded to be the confidential information, thus, it is hard to regard them in the present report. Nevertheless, the fact, that the company was not mentioned in any bribery scandals, permits to make a presumption that Maxi-M has no troubles or disparities with the legislative norms of this act.

Impact of Technology

Taking into consideration the fact, that food technologies are steadily developing, it is necessary to emphasize that these technologies do not directly influence the business performance of Maxi-M Corporation. On the other hand, the technologies of food storage and keeping simplifies this task for any restaurant sphere business participant. In the light of this fact, it should be stated that genetic modification of food production is not encouraged by management of the network, while using of preservatives is restricted, and resorted to only in the cases of strong necessity.

Conclusion

Originally, suitable environment is the key factor for successful business performance, as entrepreneurs are using the features of this environment for creating the powerful and working structure of their organization. As for the Maxi-M corporation, it should be stated that it uses the principle of balancing between different contradicting principles of its business environment, and this balancing helped the corporation to reach success.

References

Blair, A., & Hitchcock, D. (2001). Environment and Business. London: Routledge.

Hoffman, W. M., Frederick, R., & Petry, E. S. (Eds.). (1990). Business, Ethics, and the Environment: The Public Policy Debate. New York: Quorum Books.

Kean, R., Gaskill, L., Leistritz, L., Jasper, C., Bastow-Shoop, H., Jolly, L., et al. (1998). Effects of Community Characteristics, Business Environment and Competitive Strategies on Rural Retail Business Performance. Journal of Small Business Management, 36(2), 45

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