Question: Environmental Scanning EFAS Table (p. 125) Natural Environment: (p. 95) includes physical resources, wildlife, and climate inherent to existence on Earth forming an ecological system

Environmental Scanning

EFAS Table (p. 125)

Natural Environment: (p. 95) includes physical resources, wildlife, and climate inherent to existence on Earth forming an ecological system of interrelated life (see Figure 1-3 below)

Societal Environment

(STEEP):

(p. 95) general forces not directly touching short-run activities of the organization, but influence long-turn decisions

Sociocultural: (p. 95 & 105) Sociocultural forces that regulate the values, mores, and customs of society.

Trends include (p.99)

  • Increasing environmental awareness
  • Growing health consciousness
  • Expanding seniors market
  • Impact of Millennials
  • Declining Mass Market
  • Changing pace and location of life
  • Changing household composition
  • Increasing diversity of workforce and markets

Technological: (p. 95 & 105) Technological forces that generate problem-solving inventions.

  • Portable information devices and e-networking
  • Alternative energy sources
  • Precision farming
  • Virtual personal assistants
  • Genetically altered organisms
  • Smart, mobile robots

Economic: (p. 95 & 105) Economic forces that regulate the exchange of materials, money, energy, and information.

Economic Risks (pp. 101)

  • Increasing interest rates
  • Global, National, and Regional Recessions
  • Globally interdependent markets
  • Rise of power in BRIC countries (Brazil, Russia, India, China)
  • Emerging economies

Ecological: (p. 95 & 105) Ecological forces that create the need for regulation to protect the environment; impact from climate change/pollution/etc.; triple bottom line accounting/recycling/conservation/green efforts

Ecological Risks (pp. 102):

  • Regulatory Risk
  • Supply Chain Risk
  • Product and Technology Risk
  • Litigation Risk
  • Reputational Risk
  • Physical Risk

Political-Legal: (p. 95 & 105) Politicallegal forces that allocate power and provide constraining and protecting laws and regulations.

Political-Legal risk (pp. 103):

  • Changes in ruling party administrations = strict or relaxed regulations
  • Changes in tax policies
  • Changes in labor laws
  • High levels of government bureaucracy (red-tape)
  • WTO/GATT trade agreements
  • International societal considerations
  • Multinational Corporations (MNC)

Task Environment (e.g., industry life-cycle, strategic groups, strategic types, etc.):

  • Profit potential of the industry (Porters Five Forces; p. 108-112; Figure 4-2)
  • Industry evolution and life-cycle (pp. 112);
  • Strategic Groups (pp 114);
  • Strategic Types (pp. 115) (Defenders, Prospectors, Analyzers, Reactors)

List and explain two factors in each of the categories listed on page 1 of Environmental Scanning EFAS Table Guide.

Natural Environment factors that affect Limited-Service Restaurant Industry : 1. 2.

Sociocultural Factors that affect Limited-Service Restaurant Industry : 1. 2.

Technological Factors that affect Limited-Service Restaurant Industry : 1. 2.

Economic Factors that affect Limited-Service Restaurant Industry : 1. 2.

Ecological Factors that affect Limited-Service Restaurant Industry : 1. 2.

Political-legal Factors that affect Limited-Service Restaurant Industry : 1. 2.

Task environment that affect Limited-Service Restaurant Industry : 1. 2.

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