Management Impacts of Environmental Dynamics on Businesses Discussion

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Opportunities come from many dynamics. Listed below are some of the sources that cause industries to change and at the same time provide opportunities for the nimble firm to gain competitive advantages in servicing society within the industry:

  • Technology
  • Societal views
  • Government or regulation
  • Taste and preferences
  • Demographics – age, income, health, population growth
  • Sensitivity to price – normal good or an inferior good
  • Customers informed or uniformed about features like quality, safety
  • Demand — is it stable or cyclical

Last week strategic information is repeated here: Week 5 Discussion Company Information.docx

Last week we used the strategy and qualitative information provided to identify the current competitive positioning of four companies in the restaurant industry, Chipotle, McDonalds, Starbucks, and Yum Brands. Each of these restaurants has a unique strategy in place right now. This week’s discussion addresses how environmental dynamics influence the firms and create the need for new projects for a particular company.

Specifically, you need to think about how changes in one or more of the variables listed above interacts with the companies existing strategy to create the demand for a new project for a particular company. Even though you are not turning in your response in preparation for this week discussion, please describe what you believe to be a viable project for one of the companies using a couple of paragraphs. The first paragraph should describe how the environmental dynamic (from the list above) could change the industry. The second paragraph should describe how the company’s strength (derived from prior readings or research on the company) can be used to meet this dynamic in a positive way that benefits both society and the company. In the third paragraph, please discuss a couple of the initial up-front costs you believe are necessary to get the project up and running and what you believe to be the benefits received when the project is operational.

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