Phoenix is a chain of UK Bars and restaurants. The Bars sell cocktails as well as other alcoholic and non-alcoholic beverages, while the restaurants typically sell European (particularly English and German) cuisine. The menus consist of the usual classics as well as their own innovative cocktails and dishes. The companys market share has been increasing. Although the prices are slightly higher than the competitors, the quality, customer service and the new dishes created by their starred chef have all contributed to the success experienced so far. The company currently owns 25 Bars and restaurants in the UK and is now interested in opening branches overseas. This will be the companys first experience in internationalisation and the management are determined to make it a success. The company is currently considering three different country options some within the EU and some outside the EU. However, the management are determined that they would take time to plan before selecting.

Required:

(a) Apply the business environmental audit technique, PESTEL analysis, to advise the management of Phoenix, as a part of the process of the screening and evaluating different geographical markets. (12 marks)

(b) Discuss any other factors this company should consider in setting up a branch overseas and which three countries you would recommend to the management level.