Vote 0 Votes
Assessing your general environment can be one of the most important things to do for a business owner who plans on opening a new venue. For example, imagine you have decided to open up your own branch of the Jamba Juice franchise. You live in an older, quieter neighborhood where most of the residents' children have already grown up and moved out on their own. However, the next city over is young and booming with new families and a packed middle school and high school system located right in the center of it. Though it is a forty-five minute commute with traffic, it is an excellent opportunity that you cannot pass up. By assessing the demographics in your immediate area, you realize that older people would not utilize a new smoothie shop nearly as much as a crowd full of teenagers and young adults. The economic environment is another important consideration. Will people be willing to shell out four dollars for a smoothie, something they could easily prepare for themselves at home? Or are they well off enough that they can afford to spend a few extra dollars for someone else to make it and pour it into a Styrofoam cup with a well-known label on it? You also note that there is a big name health and fitness center also within blocks of your planned location. It is highly likely that people coming from a workout will want something cool and refreshing to refuel them for whatever else they have that day. Kids going to and coming from a long school day will look for the same thing in a quick and easy breakfast or a mid-afternoon snack. These sociocultural aspects are sure to bring in more customers and business throughout the day. Don't let the old-fashioned "mom and pop" smoothie bar slip your mind. What types of legal ramifications might come about when you decide to open your business? Will they declare a monopoly by stealing away all of their customers and revenues just because you have the bigger named corporation? Will the people of the town be open to a new state-of-the art establishment that will be changing where they want to eat or hang out? Since the goal is to be a successful business and generate revenue, what will you do with all of the money that you make? Will you choose to put it towards keeping the shop pristine or will you decide to give back to your community and help out neighboring businesses and the education system in the area? All of these factors and parts of the general external environment need to be taken into consideration before an organization can focus on their task environment and then the success of the organization as a whole.