p.p1 summarise the entire report. 2. Company

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1. Introduction:
This report will provide details on the company, Saizeriya, and the country, Thailand. The purpose of this report is to show an environmental analysis of Saizeriya. It will start with a summary of the company’s (Saizeriya) background and the country (Thailand) background. Adding on, PESTEL analysis and Porter’s 5 Forces analysis on the industry will be conducted. This report will also offer strategic recommendations to improve the sustainability of the company (Saizeriya) operations, and end with a conclusion to summarise the entire report.

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2. Company Background:
Saizeriya
Saizeriya all started as a dream in 1967, in a small space above a grocery store at a shop house at that point of time. It was founded by Yasuhiko Shaogaki, who worked at a western restaurant where his skills was recognised, hereby inheriting the restaurant. At one point of time, Italian cuisine was popular and he converted the restaurant to Italian food. They change their name to Saizeriya in 1992 and it’s now expanding as a restaurant chain. They venture out of Japan and open a store in Guangzhou, China in late 2007, and opened another store in North Point, Hong Kong in 2010. They currently have 6 stores in Beijing, China.

3. Country’s Background:
Thailand
Thailand is a member of Association of Southeast Asian Nations, with near neighbouring countries like Laos and Vietnam. it is approximately 513,000 square kilometers. King Bhumibol Adulyadej, was highly respected by the people, with him ruling the country for 70.5 years before passing on. Thailand is also one of the least corrupted nation whereby they also have a high Gross Domestic Product (GDP) at US$404.824 billion, ranking at position 28th in the world.

4. PESTEL Analysis:
PESTEL analysis is not a test, its a tool being used by companies to trace the environment they are currently operating in, or planning to start a new project. This term was believe to be discovered by Harvard Professor Francis J Aguilar, 1967, as stated by his book “scanning the business environment”, it is a concept in marketing principles.

It is important to conduct the PESTEL analysis because it helps to point out all the external  factors of each PESTEL that might affect a business. It pinpoints opportunities for the business and present cautioning of the dangers. It helps business organisation to change the state of assumption before penetrating into a new area or market. It help to provide an errorless judgement of the new nation.

A PESTEL analysis will be conducted on Thailand and it will be visible in the diagram below.

Diagram 1; PESTEL Analysis On Thailand: 
In political, from the diagram above,      it shows a moderate corrupted level standing at 101 out of 175 countries. With a moderate rate of corruption within the country, Saizeriya can focus on their business in terms of operations and enjoy the benefits. For example, every company would want to do business with a democratic government. The company will not have to worry about feeding bribery as bribery will feeds into the company profit. Furthermore if the infrastructure of the country is well developed, it is easier for Saizeriya to do business in Thailand.

In economic, from the diagram above, it shows that Thailand is growing due to help from the Foreign Direct Investment (FDI). The FDI is an investment made by the company itself or individually in a country. It can also be known as the form of acquiring business asset in the country. For example, the location. Thailand is located at a strategic location, making it ideal for investors to start investing in the market itself, thus boosting the economy.

In socio-cultural, from the diagram above, it shows that Thailand is rich in different races, consisting mainly of Thai, Chinese, Laos and Indian. Many different races and culture were formed here as time passes. It shows how multi racial Thailand is. For example, they might need to have employees who is bilingual, so they can communicate well with customers who can only speak a certain language. This will help Saizeriya in growing and enjoy smooth business.

In technology, from the diagram above, it shows that the average Thai urbanities spends at least an average of 2.9 hours per day interacting on social media. This seems very valuable for the industry which Saizeriya is in. For example, Saizeriya can go through all these people to help them manage and set up their company profile on the internet. It could also means that people could easily find information about Saizeriya online and starts to patronise the restaurant after knowing of it existence.

In eco-environment, from the diagram above, it shows that Thailand have many readily available natural resources. It means that they would not need to waste time sourcing for resources that is hard to find and Saizeriya can progress readily at a quick pace. Thailand also have at least half of the land that is for agriculture uses which means farmers can grow their crops and sell to the company easily.

In legal, from the diagram above, it shows that Thailand legal systems is made up of Thai and Western laws. The Constitutional Court is the highest of all for appeal. Members are chosen by the senators and appointed by the king. For example, the king will appoint the most trustable and highly strategic members and believe they will led the country fairly, allowing no corruption to take place, thus the company can focus on their business.5. Porter’s 5 Forces:
Porter’s 5 Forces model is an analysis tool that is being used by companies to identify and analyses the competitive forces that help build an industry, by Michael E. Porter, in 1979. It determines whether an industry is weak or strong by showcasing the weaknesses and strengths. As such, we can also identify how the industry structure work so as such we can apply the company strategy.

It is important to conduct a Porter’s 5 Forces analysis because we can identify the industry weaknesses and strength. It identify the structure to determine the company or firm’s strategy. The Porter’s 5 Forces can be applied to any parts of the economy to keep a lookout for profits and attractiveness. 

A Porter’s 5 Forces analysis will be conducted on the industry environment and it will be visible in the diagram below.Diagram 2; Porter’s 5 Forces Analysis:         Threats Of New Entrants:
Threats of new entrants is high because it is easy for new competitors to enter the industry. Reasons being, to set up a restaurant in the food and beverage industry, all we need is a few thousand dollars to open a store. Furthermore, this part of the industry is not heavily regulated by the government. There are also many presence of strong competitors in the market.

Bargaining Power Of Customers
Bargaining power of customers is low because customers are less powerful than the companies within the industry. Thailand has a population of 68,414,135 people, and mainly  5,104,476 people living in city area. There isn’t many well known established restaurant in the city areas, thus making it unique and outstanding. Thus, bargaining power of buyers are low.

Bargaining Power Of Suppliers
Bargaining power of suppliers is low because the suppliers are less powerful than the companies within the industry. There are very less suppliers in Thailand supplying basic groceries at a wholesale price, and there are several well known restaurant in the f&b restaurant that needs a lot of supplies for their business. Thus if the supplier do not sell their supplies to you, they have no other way to clear their stocks,

Threats Of Substitute Products
Threats of substitute products is high because it is simply easy for anyone to enter the food and beverage industry. There are many other food and beverage restaurant operating in Thailand, consumers will not always keep going to the same restaurant to enjoy the same food.