Environmental Scan - Research Paper Example

The external environment covers the public’s perception about the company, which entails the brand awareness of the company among the public and the reputation of the company. Changes in technology are a major aspect of the external environment of the company, as it influences client service models as well as the technology used in service delivery. The cultural environment is a major component of the external environment, which influences the business of the company (Thomas & Pederson, 2004).

The internal business environment of McDonalds comprises of human and capital resources in the company, and the company’s effective leadership structure. The internal environment of the company is changed and adjusted in response to changes in the external environment for the strategic purpose of maintaining the company’s market dominance (Mourdoukoutas, 2012). For example, in response to the competition, the company is increasing its market perception through offering healthy foods in order to outsmart the competitors (Smith, 2007).

In response to the changing outlook of the consumers, regarding the unhealthy nature of fast foods, the company has adjusted its resource allocation and its menu items, towards more healthy foods (Gasparro & Jargon, 2012). In response to the cultural environment, McDonalds has entered different markets as vegetarian outlets (Smith, 2007). These markets include the Middle East and India (Gasparro & Jargon, 2012). In response to advances in technology, the company uses voice transmission systems in taking orders during the delivery of customer’s orders.

In addition, the company uses technology in other areas that include food heating machines, conveyor belts, and freezers – for food storage. The external environment of FedEx consists of the economy, the government and the weather conditions at different market areas. The company has narrow external environment coverage since its business is not affected by many outside forces (FedEx, 2012). The government influences the company’s operations as it offers security regulations that guide the company’s business.

One regulation affecting operations is the adjustment of the security regulations made by the US central government. The regulation’s adjustment protects the company from external threats, which surface during the process of service delivery. The regulation affects the company negatively, as it increases the time required to deliver packages, and during the processing of the operations of the company. Weather affects the company’s operations positively and negatively, because bad weather like snow and rain causes road closures and flight delays, which delays shipping dates.

The impact causes problems with the customers of the company (FedEx, 2012). The favorability of weather can encourage faster delivery of packages, prior to the day set for the delivery, which shows that it can increase customer satisfaction. The economy affects the internal environment