TGI Friday’s Environmental Analysis
TGI Friday’s is a household name both nationally and globally. However, like any other booming business, TGI Friday’s faces challenges every day. Certain factors in your general and specific environment pose threats to your business. There are many ethical issues surrounding business that contribute to social responsibility. However, TGI Friday’s does not allow these factors to prevent them from continuing to grow and prosper in an ever-changing economy.
Like any other business, TGI Friday’s is affected by its general and specific environment. The general environment of a company is the economic, technological, socio-cultural and political trends that indirectly affect all organizations. TGI Friday’s economic trends are extreme. His business works seasonally, as seen in any other restaurant. Business struggles and revenues are low during the fall months as customers tend to eat in restaurants less frequently during these months. Technology is an extremely important factor in the operation of TGI Friday’s. From the smallest use of technology when rewards customers sign up online, to the largest use of technology when servers use computers to mark orders, to the largest use of technology when the accountant uses computers to go business accounting, technology absolutely runs the organization. When it comes to the sociocultural component, TGI Friday’s doesn’t target one demographic. There is a wide variety of customers, employees, and managers that can be found within the organization’s walls. Political trends affecting TGI Friday’s are constantly changing. Many different laws regulate how the business is run, such as advertising laws, safe alcohol awareness laws, food safety regulations, and even employee policies.
A company’s specific environment is made up of factors such as customers, competitors, suppliers, industry regulations, and advocacy groups. Some would say that the customers run the business. The fact is that without customers, a business would not survive because it would not make money. Competitors threaten TGI Friday’s every day when they develop new menu items that are similar to their menu items and sometimes even at a lower price. Suppliers can also run a business, because if a business doesn’t have supplies, it can’t open its doors. There is industry regulation to ensure that all TGI Friday’s have the same atmosphere and that the customer gets the same experience no matter where they go. Advocacy groups threaten business because they constantly try to influence the way business is run and change business practices. These are just some of the threats that TGI Friday’s faces on a daily basis; however, it is not uncommon for any company to face these threats and many more.
TGI Friday’s has a social responsibility to increase its profits in an ethical manner. However, behind closed doors there are certain unethical practices that could prevent the business from prospering. As seen in the movie Waiting, many restaurant employees take shortcuts to make their jobs easier. One might call these types of hard-working employees “half-cheek.” However, TGI Friday’s has a social responsibility to ensure that its customers receive the most superior experience every time they enter the restaurant. Not only is it morally corrupt to allow these shortcuts to take place, it is also illegal and repugnant. TGI Friday’s strives to achieve a sanitary and healthy environment for every customer, at all times.
TGI Friday’s is a staple in not only the American diet, but international diets as well. Although its main focus is to prevail in the United States of America, global forces affect how the company is managed and where new restaurants are developed. Sixteen countries include a TGI Friday’s restaurant and business continues to grow. Needless to say, TGI Friday’s is coping extremely well in the growing globalization of the economy.
The TGI Friday’s brand has grown bigger than the founders ever imagined back in 1965 when the first restaurant opened. The business has outperformed the competition, not allowing factors such as the general and specific environment, ethical issues or globalization to become a downfall for the company. Through a combination of franchise and corporate locations, TGI Friday’s has become one of the largest restaurant chains in the world. Not only is his food served inside restaurants, but recently his food has been produced and packaged for sale in grocery store freezers. Customers and employees alike agree that TGI Friday’s is a fun and welcoming environment.