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Environment Analysis - Coggle Diagram

- - - - Stable Environments: Those that are simple, static and have low uncertainty rate. A great example could be the agriculture industry or the grocery one that have been relatively stable in the last decades.
      - Intermediate Environments: Medium uncertainty rate and can be either dynamic or static sectors. For example, the education sector that tends to behave the same for long periods of time, however, a problem like the pandemic could modify it completely.
      - Turbulent Environment: Complex, dynamic, constant changing industries that have a high uncertainty rate. One example could be the stock market or the investment world that are quite unstable and each day it can behave differently.
      - Macro-environment: Global surroundings, could be the social, political and economic factors that affect most companies in a country or region.
      - Micro-environment: Factors that affect specific companies that have similar characteristics or belong to the same industry. Some factors could be: a specific market segment, suppliers or competitors.
- - - - SWOT Analysis: Allows to analyze both, the external and internal environments of a company and the resources they have. Helps companies to consolidate their strengths, mitigate their weaknesses to an acceptable level, identify possible threats to search for proper remedial strategies and identify new areas the company can use to grow.
      - PESTEL and PEST Analysis: Allows companies to learn what external factors might affect them. It analyzes the Political, Economic, Social, Technological, Environmental and Legal factors.
      - GAP Analysis: Analyses the company’s current position in the sector and helps to know where the company sees itself going. Determine the future goals taking into consideration the obstacles to reach them and helps to identify the areas of opportunity to do so.
      - Balanced Scorecard: Shows a general scorecard that allows companies to evaluate their functionality. It focuses in the following things: financial, customer, process, learning and growth perspective.
      - Blue Ocean Strategy: Seeks to build a plan that will position the brand in ab undisputed market (blue ocean). There are two main scenarios: 1. Red ocean: The one scenario we should avoid, it involves competing in an existing market and it requires implementing many resources to build a competitive advantage or choose between cost and differentiation. 2. Blue ocean: This is the one we want to obtain; it means creating new markets and perform in the least competitive situations to create a high demand by developing new value propositions.
      - Porter Analysis: Experts consider this analysis the step before performing the SWOT analysis, helps to identify the company’s threats and opportunities. Measures the different forces in the market: Rivalry in the market, threat of new competitors, bargaining power of suppliers and of buyers and threat of new products or services.
      - Work Environment Surveys: This one is specifically for internal analysis and evaluation; the idea is basically to know the opinion of the collaborators regarding their working conditions and global environment through anonymous surveys. For example, the ECOA survey of Tec de Monterrey.
  - - - External Environment Analysis Limitations: As mentioned previously, this type of environment is not controlled by the leaders of the companies, so it can change drastically at any time. Therefore, the reliability and timeliness of this can vary a lot, making a great external analysis will never guarantee a successful business.
- - - - Their method involves five steps:
        
        Keep testing, adjusting and improving.
        
        Make a realistic and executable strategy considering the factors and resources
        
        Research and analysis of the external and internal environment
        
        Set your design and business goals
        
        Define the product and brand you are focusing on creating or improving
- - - - It's expected that people will be digitally engaged after the pandemic.
      - Improve experience through personalization. People are searching more and more unique experiences and VIPS could take this fact in its favor.
      - 20% of mexican population is vegetarian and it is a segment in constant growth.
    - - VIPS is not a truly healthy restaurant and has not a nutritional approach, this is important because the market that seeks for healthy foods is growing.
      - Badly maintained and not renovated facilities. I honestly believe that my whole life VIPS has had the same decoration and facilities.
      - Bad reputation in terms of food portions and ingredients, this is actually something that I noticed every time that I asked a friend their opinion of VIPS they mentioned this.
      - Lack of digitalization and delivery services. This surprised me because we all know that e-commerce is the future.
    - - Leader in chain restaurants industry (controls 1.9% of the market).
      - Offers more than 300 different dishes.
      - Ghost kitchens to adapt to COVID (Alsea), this might be a great solution we could develop more.
      - Use good quality ingredients, fresh products and prepare the meals at the moment. This fact made me curious about the process mainly because VIPS is known for not having the best quality in the final products, so it would be interesting to analyze in which step the quality goes away.
      - Partnership with important brand like Disney, this could help to create menus or dishes that involve some characters from the brands, maybe creating a "Mickey Mouse" breakfast.
    - - 72% of the people think restaurants will not comply with sanitary measures. VIPS could invest in infrastructure to ensure customer safety or could search for new ways to deliver their services like e-commerce.
      - 83% of the people want to avoid crowded areas. Consumers are still scared of going out to eat.
      - 83% of the people prefer to cook at home than going to a restaurant.
      - 70% of the people think that eating at restaurants would help them feel normal again.