External and Internal Environmental Analysis
Charles Johnson
STR 581
January 9, 2013
Professor Virginia Green
External and Internal Environmental Analysis Theez Doggs is a start-up restaurant in the City of Inglewood, CA. The restaurant industry is very competitive industry. A wide variety of foodservice businesses exist to generate profits from the sale of their products and services to travelers and area residents. Thousands operate in the Los Angeles area. In this paper, I will identify and analyze the most important external environmental factors in the remote, industry, and external operating environments. I will also identify and analyze the most important strengths and weaknesses of the restaurant and include an
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Political factors that affect Theez Doggs are politicians’ concern with fast food and obesity. In nearby Los Angeles, there is a ban on new fast food restaurants. The restaurant will offer healthy choices such as veggie dogs. Technological factors include the power of the internet’s influence such as online ordering, online reviews, and inventory control. The restaurant will have a website. Customers can order their food online or by text message. They can post reviews of the food, service, and other comments. Theez Doggs will have the technology to order food, supplies, and inventory control. Ecological factors: Eco-friendly packaging. Food and beverage containers are placed in reusable packaging and containers.
Industry Environment The industry environment is the general conditions for competition that influence all businesses that provide similar products. (Pearson, 2011) Customers, suppliers, potential entrants, and substitute products are competitors which are more prominent in the restaurant industry, particularly in the fast food and hot dog areas. The barriers to entry are the cost of expensive equipment, restaurant location, and availability of credit and investors. Theez Doggs have potential investors and a location. There are numerous substitutes. The company markets to a niche market for the gourmet sausages and hot dogs.
External Operating
This study will aim to critically evaluate the strategies implemented by Chopstix Chinese Restaurant Ltd, located in Nairobi, Kenya with an emphasis of discussing how various environmental factors have contributed to the success and failure of these strategies. An insight will also be included in how the company handled the difficulties that arose together with an overview of what improvements can be made.
The first disappointment she encounters is the quality of the dog foods. Hodgman expected to open packages filled with real meat, as advertisers relentlessly remind buyers of a dog’s love for real meat. The Gaines burger could neither be described as poor beef, rich beef or even beef at all. It couldn’t be fried and did not have that “real beef smell”. Ann describes it as being very malleable, “something you could make at home if you had a Play-DOH Fun Factory.” (107). The Kal Kan pedigree meals were also amiss. Ann’s words to describe these are lumpy, purple, stringy and veiny.
External and internal environmental analysis is a critical component for an organization seeking to achieve its goals. The follow information within this paper presents a complete external environmental and an internal competitive environmental scan for JetBlue Airways. The information provided identifies and analyzes the most important external environmental factor in the remote, industry, and external operating environments. When addressing external environment it speaks to a set of forces and conditions outside the organization that can influence its performance. The most common forces include political, economic, social,
Pollution has become a heated issue in recent years. The destruction of the environment along with serious health problems are the eventual effects. The extensive use and availability of automobiles, tremendous amounts of production in the booming economy and the constant increase in demand for energy, can be held responsible.
Environmental scanning can be viewed as a way of acquiring information about outside events that can aid organizations in first identifying potential trends, then interpreting them
The restaurant industry is highly competitive, and that competition could lower their revenues, margins and market share. The business is subject to macroeconomic and other factors that may negatively impact the results of operations. Restaurant development plans under development agreements may not be implemented effectively. IHOP Corp. may have difficulty expanding in new markets outside the United States.
Another important part of the problem are the businesses that contribute to the population of pets, the dog breeders, sometimes called puppy mills. The Oxford Dictionaries defines a puppy mill as “an establishment that breeds puppies for sale, typically on an intensive basis and in conditions regarded as inhumane” (“Puppy Mill,” 2015). The Friends of Animals (2013) Web site, gives some definitions of what a puppy mill is from an animal lover’s point of view. The housing for dogs is small pens and in which they may never have the chance to touch the grass in their lifetime. Veterinary care for the breeding dogs is a minimum to increase the profit from the sale of the puppies. Most of the puppy mills are located in central states, where Adams (1991) explains that the large factory chicken farms have taken over the local farmer’s cash crop of chickens resulting in the farmer breeding dogs for their cash
Technological factors – New technologies may create new products and new processes (Company Regulations.com; 2011). Technology will reduce cost, improve quality and lead to innovation. Developments such as Wi-Fi hotspot in the mini buses, MP3 players, online devices
The dogs are in horribly dirty wire cages, walking on a floor of their own feces. Feces often cakes cages so heavily it becomes the only solid on which they can stand. The puppies who do have floors on their cages are lying in uric acid, from urine build-up, burns their skins and paws, while the ammonia cause respiratory problems. These unsanitary living conditions attract bugs and rodents, leading to infectious diseases. Even their food and water are contaminated, if there is any at all. Water typically has algae, urine, and feces while the food is infested with mold and maggots. Conditions that most people would consider inhumane, or even cruel, are often
The over-arching problem that Breeder’s Own Pet Foods has is which marketing-strategy would best serve as a vehicle for entry into the dog food retail business. Additionally, it has to select the most prominent geographic location (s) for distribution of its product. Another root problem component is how to get the supermarkets to stock and distribute this dog food since it is in the frozen category and may not appeal to traditional dog food buyers because they don’t readily associate dog food with frozen goods.
|Weaknesses: • Lack of availability in all stores • Lack of appeal to consumers due to thawing time / freezer space (convenience) • Lack of appeal to supermarkets due freezer location • Lack of brand equity in retail market • Premium price | Threats: • Store Location - Consumer must be educated to find product in different area of store • Saturated market – sales top 14 million in 2011. Dog food is also heavily advertised, so the challenge is to entice the consumer to buy Breeder’s Mix. • Competition - 5 major brand name dog food companies dominate market with 75% of US dog food sales • Challenge to get supermarkets to give up valuable freezer space for dog food |Evaluation of AlternativesBreeder’s Own Pet Foods product development strategy should be evaluated. Currently only 1 out of 10 dog owners regularly buy frozen or refrigerated dog food and ¾ of those surveyed expressed no interest in purchasing frozen dog food (Kerin and Peterson, 2013). This indicates that there is a limited market for dog owners who would be interested in a product such as Breeder’s Mix. Research does suggest however that frozen dog food dollar volume is increasing annually indicating there is a strong opportunity for Breeder’s Own to be the first to tap into the frozen dog food market in the Boston area. Breeder’s Own Dog Foods needs a strong marketing campaign to convince consumers their brand is superior to
Development processes is connected with environmental degradation and use of natural resources. Rudel et al. (2011) assumes the present of two distinct waves of development power which control environment. The first wave of political economy deals with the power of capitalism as the main agent for environmental degradation, while the second wave concern with the social power (community) to control the use of natural resources.
Social Factors - The California Pizza Kitchen sells pizzas, pastas, salads, etc. and the ambience of the restaurants is quite informal and homely. Its primary key to its success has been that they were the first pizza restaurant that offered fresh and non-traditional ingredients for its pizzas. On a whole, the American consumer base is traditionally not very nutritional conscience when it comes to dining out. Regionally, the consumer preferences are suiting the business model of the company in most areas; however changes in the consumer
According to Mintzberg, the environmental school of thought is a strategy dealing with the forces outside the organization. Unlike the other schools in his book, Strategy Safari, the environment plays a central role in the strategy formation process alongside leadership and the organization where the organization becomes subordinate to the external environment. The environmental school assumptions are that during the formative period of the organization the company shapes itself in response to the environment, but after that period is increasingly unable to respond to the environment. Moreover, the organization long term survival depends on the early choices made during its formative period. Over time, Mintzberg states, leadership becomes
The paper presents an analysis of the different factors influencing the restaurant industry and how these factors increase or decrease the demand for such services. The hypothesis that will be examined is that the performance of restaurants is mostly based on the type of food chosen by customers when they decide to go out for dinner, lunch, breakfast, or simply for a snack. What type of food refers mainly the nationality or concept of the food, (traditional American, Italian, Indian, Latin, or from any other type of culture). This factor is important because when customers go out to for dinner; they decide what to eat before deciding where to eat. That is why this factor is considerably important according to the hypothesis.