ASSIGNMENT ON EXTERNAL ENVIRONMENT AND ORGANISATIONAL RESPONSE Essay

ASSIGNMENT ON EXTERNAL ENVIRONMENT AND ORGANISATIONAL RESPONSE - Essay Example Fast Food Industry The fast food industry has demonstrated significant growth and market opportunities which are characterized by the increase in disposable income among New Zealanders as attributed to the increased income and living standards. The trends of the New Zealand economy reveal an increase of monthly wage, benefits and bonuses among consumers. In addition, the busy lifestyles of consumers within the working class and institutions of learning have resulted to an increased consumption fast food. This is due to the cost effectiveness and convenience which characterize the fast food industry. It is in line with the market trends and business opportunities within the New Zealand food industry that Quick Meal Restaurant endeavors to invest within this market. Porter’s Five Forces Analysis Supplier power is one of the most important forces within the market which defines the competitiveness of a company (Pathak, 2012). The fast food production industry within New Zealand d epends largely on the ability of effective supply of raw materials for the production of high quality food products at the right time and quantity so that the needs of the consumers are met. The concentration of suppliers of food products within the New Zealand fast food industry is relatively high (Chand, Eyles & Ni Mhurchu, 2012). This reflects that fast food industries which require investing in this market have desirable market opportunities that they would invest in for competitive advantage. However, there are substitute food products within the New Zealand food industry which are likely to threaten the supply of fast food products. Porter’s analysis of market forces also demonstrates that the power of the buyer is one of the most significant forces within the market which determines the ability of a company to meet its business objectives (Pathak, 2012). The New Zealand fast food consumer is very sensitive to price and quality. This illustrates that the consumer factor s must be incorporated to company values for quality and price of fast food products for attainment of a competitive edge within this market. The threat of product or service substitutes is another external force within a market which influences the strategic competitive strategy of a company. For example food substitutes within large retailers and restaurants are likely to be a major business threat for a company that requires investing in the fast food market within this industry. The threat of new entrants into a specific market is described by Porter as a strong market force which determines the success of a brand within the market (Roy, 2009).