Compass Group USA SWOT and PESTLE Analysis

Strength

1. Has 15% of North American food service market:The Compass Group has a global presence in 45 countries, 3 regions and 5 sectors. However, their North American wing alone is responsible for 61% of their revenue out which USA accounts for 58%. Food services as a business represents 81% of the Compass Global’s earnings. Food management is a business categorized by dominance of regional players in any given area, owing to food being perishable and the cost optimization of being closely located to the customer base. However, the Compass Group still has approximately 15% of North America’s food service market. They have achieved this through long term client relations management and prompt adaptation to changing work culture trends.

2. Enjoys good reputation as proven by numerous awards:Compass Group USA has consistently won awards for their performance, functioning and culture. They have been called one of America’s Best Large Employers by Forbes in 2022. Forbes has also named them one of the World’s Most Admired Companies, Best Employers for Diversity and Best Employers for Women several times over the years. The Charlotte Business Journal and Springbuck call them one of the healthiest employers in the industry. It has been ranked first amongst all the food management companies in the world. Compass USA’s subsidiaries have also won awards such as Levy Restaurants being called one of the best employers for diversity and Morrison Healthcare being one among the best places to work in healthcare. The awards won by the company are not only numerous but have also stayed consistent throughout its tenure. This proves that they have enjoyed immense faith and confidence of both the industry and public.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

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Environmental

1. EPA is focusing on the environmental impact of food waste: The United States Environmental Protection Agency (EPA) stated in a report that food waste combines 24 percent of US landfills and 22 percent of combusted municipal waste. Addressing the problem of food waste is one of the foremost issues being tackled by the USA, where the EPA notes that solving this could help with food security, productivity, resource efficiency and address climate change. One of the UN Sustainable Development Goals is to halve food waste by 2030. Compass Group USA launched Waste Not 1.0 to tracking food waste. In 2021, December they reported that Waste Not 1.0 has been successful in reducing waste by 33% across their US based cafes. They have recently launched Waste Not 2.0, an improved proprietary tablet-based-waste tracking program. Their goal is to halve their food waste by 2030, in line with UN goal. As the focus on eliminating food waste increases, companies – especially those directly involved in dealing with food – will be mandated to step up and do their part to aid policymakers.

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