question archive Week 3 Assignment: Response to the Readings & Video Answer the questions below in your own words
Week 3 Assignment: Response to the Readings & Video Answer the questions below in your own words
Subject:ManagementPrice: Bought3
Week 3 Assignment: Response to the Readings & Video
Answer the questions below in your own words. Do not cut and paste. These weekly assignments are designed to help you learn the concepts. You earn full marks by completing the assignment fully and thoughtfully (with care).
Textbook Chapter 3 – Evaluating the External Environment
1. PESTEL Analysis.
a. Explain what each letter of PESTEL means. What does it include?
Here is an example of how to complete the table. I have used the cell phone industry. Remember to include the source of the information you are giving (just a link is fine).
Factor |
Example of a recent fact pertinent to the cellphone industry |
P – Political |
Fact: Canadian government has mandated a cut basic cell phone carrier charges by 25% by 2022. https://www.cbc.ca/news/politics/wireless-cellphone-fees-1.5484080 |
E – Economic |
Fact: “The COVID-19 pandemic has had a profound impact on the labour market, resulting in record job losses and sending the unemployment rate from its lowest levels in decades to a historical high in just two months.” https://www.conferenceboard.ca/focus-areas/canadian-economics/canadian-outlook-summer2020 |
S – Social |
Fact: As smartphone penetration in the US has reached near saturation levels, cellphone addiction has risen. Nomophobia (fear of going without your phone) is an increasing phenomenon. https://www.healthline.com/health/mental-health/cell-phone-addiction |
T – Technological |
Fact: Artificial intelligence, location-based systems, augmented reality, and wearable tech are all technological advancements in the cell phone industry. https://www.quicksprout.com/mobile-trends/ |
E – Environmental |
Fact: The smartphone’s chip and motherboard use a lot of energy to produce. Also, they utilize precious metals that 1) cost a lot to mine and 2) have a negative human and environmental cost. Furthermore, the constant need to upgrade to a newer model creates a large amount of waste. https://www.eng.mcmaster.ca/news/study-shows-smartphones-harm-environment |
L – Legal |
Fact: The CRTC (Canadian Radio-television and Telecommunications Commission) ruled that companies can no longer charge for unlocking cell phones. https://crtc.gc.ca/eng/phone/mobile/code.htm |
a. Complete the blank table and provide references for each point. When you submit this assignment, please do not include your instructor’s examples.
Factor |
Example of a recent fact pertinent to the brewing industry in Victoria |
P – Political |
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E – Economic |
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S – Social |
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T – Technological |
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E – Environmental |
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L – Legal |
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2. Porter’s Five-Force Model – Please prepare a five-forces or other industry, if you choose, and then for each force, give some concrete information. Show sources for your information. Hint: this could come in handy… Here is an example prepared by your instructor:
Force |
Information pertinent to the fitness center/gym/studios industry in the Victoria area (or another industry of your choice). |
Competitive Rivalry |
A google search brings up quite a number of competitors competing on factors such as target market (weight trainers, women, children...), price, amenities, and program types (weights, cross-fit, yoga, machine-based…) |
Potential Entrants (& barriers to entry) |
Barriers to entry into the industry include brand strength of some industry leaders and capital requirements of business startup. Barriers may be lower for differentiated offerings such as specialized fitness (e.g. Hot yoga, or machine-based centers like Vibes or Curves) |
Bargaining Power of Buyers |
Individual consumers have some power due to 1) their ability to choose from a variety of similar offerings, 2) their price sensitivity, and 3) the ability to forego purchasing. The number of participants in fitness at fitness centers almost tripled in the US from 2000 to 2017 (Statista: https://www-statista-com.libsecure.camosun.bc.ca:2443/statistics/236120/us-fitness-center-revenue/) It is estimated that growth is similar in Canada. Some pressure to purchase fitness club memberships may be felt by segments of buyers motivated by the need to look fit (aesthetic considerations) more than to be healthy. |
Substitutes |
Fitness enthusiasts can achieve results on their own, through organized sports, with purchased equipment, or even with an app. |
Power of Suppliers |
Where gyms or fitness centers are tied to a large supplier or through a franchise agreement, power of suppliers is high. |
Force |
Information pertinent to the Victoria microbrewery scene (or another industry of your choice). |
Competitive Rivalry |
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Potential Entrants (& barriers to entry) |
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Bargaining Power of Buyers |
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Substitutes |
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Power of Suppliers |
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