External Environment Analysis

With the rapid improvement of peoples living pattern and deeper demand for food variety and quality, these environmental changes both external and internal pose a to a greater extent signifi discountt impact on organic laws decisions. This essay describes the two types of environments that organizations have to deal with. ane is external environment and the other is internal environment. The first naval division in this essay describes the two types of blood line environments external and internal environment.Next in the second section, it will explain the definition of environmental distrust and managing environmental uncertainty. After that it will discuss adaptive and non-adaptive culture. Running through this essay, an organization is used as an example to explain all the discussion and corresponding solutions are also contained in each section in this essay. There are mainly two types of business environments, internal and external. The external environment idler be furth er categorized into task environment and mega environment.The mega environment is the general external environment in which the organization functions. The task environment comp testifys more specific elements that act directly on the organization. In the mega environment, organizations break away and exert pressure on the organizations ability to achieve its vision, mission and goals. The mega environment has five elements including technological element, economic element, political element, cultural element and the international element.Generally, these five elements have negative influence on the organization but they can also exert positive effect by providing chances for increased profitability and growth improvement such as launching new flavour of desserts. The task environment which unalikeiates from the mega environment can directly affect the operations of the organization while managers often have ability to control it. It focuses on the products, services and the loc ation of the organization. It also has five elements including customer, competitor, supplier, government and labour.Each element can have a significant impact on the organizations strategy and put emphasis on different fields. For instance, the customer element centres more on customer expectations of product and service quality and value for money. Nowadays, many enterprises have set about optimizing how to satisfy customer needs and expectations. A fast food community Kentucky Fried Chicken is a pretty good example. Since the company entered the Chinese market in 1987, it has fixate great progress in promoting competitiveness.Simultaneously, some famous foreign food businesses such as McDonalds, pizza pieHut have entered Chinese food market and this exerts severe press on KFCs sales event performance. Following the changing market environment, especially competitors, external market has become more complicated to administer with (MoccaTse1, 2012). Hence, business and organiza tion management had shifted their focus merely on their product innovation for the purpose of promoting competitiveness. To rise to the challenge, the solution mentioned below may help.As for KFC, the rivalry pressure of its substitutes is relatively low. Since chicken is more popularized among well-nigh Asians than hamburgers, it enables KFC to push off an American eating style which differs from other food enterprises. This conversion implies that organizations have to make their business objectives more competitor-centred and applies the competitor element subject to one of the task environments component. address Kitty 2009, KFC location strategy in China MoccaTse1, External Environment Analysis, Nov 2012,