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Aramark SWOT & PESTLE Analysis

ID : 52605753| Nov 2019

COMPANY PROFILE -Aramark

Business Sector :Customer Service

Operating Geography :North America, Global

About Aramark :

Aramark is a customer service business providing food, facilities and uniforms across industries such as education, healthcare, sports, leisure, and corrections clients in North America and internationally. They also provide their services to government institutions and other businesses. In 1936 a young Davre Davidson started selling peanuts out of his dodge in Los Angeles and soon after in 1945, Davidson Brothers, a vending company was born with the help of his brother Henry. This marked the inception of Aramark. The company currently has its headquarters in Philadelphia, Pennsylvania and operates in North America along with 19 other countries all over the world with over 270,000 employees as of early 2019. Its business is classified in three sections: Food and Support Services United States, Food and Support Services International, and Uniform and Career Apparel. Some of their most notable milestones include getting the food service contract in the 1968 Olympic Games; their joint venture with Mitsui and Co. Limited which helped them enter the Japan market in 1976, the same year they entered the uniform market and their acquisition of Veris PLC, an Ireland based facilities company in 2009.
Aramark’s mission statement reads “Deliver experiences that enrich and nourish lives”

Aramark Revenue :


Total Net Sales:
$ 15,789 million – FY ended 28th September 2018
$ 14,604 million – FY ended 29th September 2017

Competitive Analysis of Aramark

SWOT
PESTLE
The SWOT analysis of Aramark is presented below:
Strengths
Weaknesses
1. Environmentally sustainable processes.
2. Well established distribution channels.
Wide portfolio of services
Consistently strong financials
1. Low investment in new technologies.
Opportunities
Threats
1. Expansion into more emerging markets due to new consumer behaviour trends
2. Reduction in transportation costs due to lower shipping prices
3. Strategic Accretive acquisitions that bolster growth
1. Increasing Competition
2. Inability to hire or retain trained workforce
3. Exposed to currency fluctuations and unfavorable economic conditions
4. Increased operating cost
5. Inclement weather hampers business
6. Attractive & Growing marketplace
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Detailed SWOT Analysis of Aramark

 

Strength

1. Environmentally sustainable processes: Aramark has a strong base of reliable suppliers of raw material which enables the company to overcome any bottlenecks in the supply chain. Along with that, Aramark makes sure that the suppliers for its businesses minimize their environmental impact. “Green thread” – their sustainability initiative approaches to weave environmental sustainability in all facets of their business. In the food service business, suppliers source produce responsibly, minimize waste, optimize transportation and efficiency. They source locally grown and responsibly sourced produce and follow the reduce – reuse - recycle mantra of waste minimization. Their operations are efficiently designed to save water and energy thus reducing their environmental impact and their transportation fleets reduce fuel usage and emissions. Their animal welfare policy instituted in 2015 requires suppliers to provide animals with an environment consistent with the “five freedoms” of animal welfare as developed by FAWC (Farm Animals Welfare Committee).

2. Well established distribution channels: Aramark has a distribution agreement with Sysco, another food service provider. Sysco is the global leader in the marketing and sale, and distribution of food products. Its client base includes hospitals, restaurants, educational facilities, hotels, to name a few. Sysco also sells restaurant equipment and supplies. The company currently operates 193 distribution facilities that serve over 425,000 customers worldwide. Under the distribution agreement, Sysco is responsible for distributing Aramark’s food and related services within the United States of America. This agreement of two service giants gives rise to powerful distribution channels. Further acquisition of companies such as FilterFresh, an office coffee service, from Green Mountain Coffee Roasters and Masterplan, a clinical technology management and medical equipment maintenance company strengthens their capability to reach potential customers. The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

This section is available only in the 'Complete Report' on purchase.

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Aramark SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2019). Aramark SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/aramark/ [Accessed 12 Dec, 2019].

In-text: (SWOT & PESTLE.com, 2019)

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Aramark SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.

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Aramark SWOT & PESTLE Analysis
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