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Group work, just go.straight, no introduction
Company: Second Cup CoffeeEnvironmental Analysis
Use at least 4 of the 6E’s to discuss their effect on company in terms of consumer behaviour. What are important current or expected changes in these environments and how would it impact consumer behaviour and thus the company.Do some research and include your sources. Discuss how your situation is effected by the current circumstances and possible trends of those 6E’s, using proper citation. ( at least 4 E’s)
Political Environment - laws, rules and regulations
Economic Environment - income, currency exchange rate, cost of living expenses, wages
Social Cultural Environment - languages, cultural influences, lifestyles
Technology Environment - how technology allows consumers to make decisions
Geographic Environment - weather, sunset/sunrise patterns, travel conditions
Competitive Environment - competition from similar vendors, competition from unlikely sources
| Subject | Business | Pages | 3 | Style | APA |
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Answer
Environmental Analysis: Effects of the 6E’s on Second Cup Coffee’s Consumer Behavior
Environmental analysis is essential in every business. In other words, it often helps an organization identify the internal and external factors that are likely to impact its performance and business operations (Radojevic & Bashkin, 2015). In this regard, there are six elements that one must consider during the environmental analysis including the political, economic, social, technological, geographic, and competitive environment. All these factors play a significant role in influencing the success of every entity (Bennett & Chorley, 2015). Some of the key elements that are likely to impact Second Cup Coffee in terms of consumer behavior include the economic, social, technological, and competitive environment as highlighted in this paper
Economic Environment
The economic environment refers to all the external economic factors that are likely to impact the buying behavior of customers and the company in general. Common examples of economic factors that often affect many businesses include inflation, interest rates, unemployment, and demand, just to mention a few (Radojevic & Bashkin, 2015). In this regard, the employment rate of individuals in the area where the company (Second Cup Coffee) is located is currently high and hence the consumers have the income capacity to buy and enjoy the company’s products and services. On the other hand, based on the inflation and interest rates in the country the employment rate is more likely to decrease in the future which could impact the business negatively. As a result, effective measures should be implemented to ensure that the company does not suffer in the long-run.
Social Environment
The social environment refers to the immediate physical and social institutions that surround the people and business in general. It is usually composed of elements such as domestic structures, consumer lifestyle, and cultural practices, among others (Lenz & Engledow, 2016). In this regard, the cultural practices and lifestyle of individuals around Second Cup Coffee influences them to consume the company’s products and services. That is to say, most of the consumers in the region love coffee and come from cultures that value the health benefits of the product. As a result, the demand for coffee is higher compared to other regions in the country. Furthermore, it is likely to increase in the future given the rapid growth of population in the area in question.
Technological Environment
This refers to the technological trends or factors that influence consumer buying behavior and the company. For instance, the recent advances in technology have made it possible and easier for people to buy products and services online. As a result, customers can now order and enjoy services at the comfort of their home or offices just by the click of a button using their phones or laptop (Wolfinbarger & Gilly, 2014). In this regard, the advances in technology have impacted negatively on the company by increasing competition and influencing more consumers to buy online. However, Second Cup Coffee intends to open an online platform to minimize competition and cater for the needs of online customers in the future.
Competition Environment
The competition environment in the region is very stiff, given the availability of substitute products, advances in technology, and companies that offer the same products and services. As a result, consumers have changed their buying behavior since they have a wide range of products and providers to choose from (Bennett & Chorley, 2015). Similarly, it has increased their bargaining power and given them the freedom to demand value for their money (Lenz & Engledow, 2016). In this case, Second Cup Coffee has been forced to change its operational tactics and adopt strategies that are effective such as price and product differentiation (Bennett & Chorley, 2015). Moreover, the company intends to improve its promotional methods in the future to attract more customers and stay above the competition.
References
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Bennett, R. J., & Chorley, R. J. (2015). Environmental systems: philosophy, analysis and control (Vol. 1448). Princeton University Press. Lenz, R. T., & Engledow, J. L. (2016). Environmental analysis: The applicability of current theory. Strategic Management Journal, 7(4), 329-346. Radojevic, M., & Bashkin, V. (2015). Practical environmental analysis. Royal society of chemistry. Wolfinbarger, M., & Gilly, M. C. (2014). Shopping online for freedom, control, and fun. California management review, 43(2), 34-55.
Appendix
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