Understanding Management - Assignment Example

Social forces highlight the consumer behavior pattern and demand in the marketplace. Like if the restaurant is opened in a rural area where the social forces restrict people to go to a restaurant then it would not be beneficial for the business.

Technological forces

            These forces denote the effectiveness and efficiency of a business. As the external environment introduces new technology or innovation it becomes important for a business to incorporate advanced technology in order to stay at par with other players. Apple Inc. can be regarded as the most prominent example in this field as it upgrades its technical factors as and when required.

Political and regulatory forces

            Political instability seems to disrupt the entire business environment. The norms and regulations that are set forth by the political authority govern the functioning of a business (Daft and Marcic 91). On the other hand tax benefits that are authorized by leaders denote the profit margin for the business. Indianapolis is a region where a majority of manufacturing factories had closed down due to such an unstable political scenario and increasing rate of homicide

Solving a problem

            A new business venture that is set forth is basically based on the factor of solving a hidden problem of consumers. In the case of a restaurant, the major problem can be the unavailability of a specific kind of cuisine for which there is high demand in the marketplace. For instance, people had a hidden demand for such a device which would operate as a phone but even perform necessary operations of a laptop and this problem was eradicated with the launch of the tablet.

Filling market gaps

            Market gaps are generally associated with hidden demand which has not yet explored by any players in a particular industry. Filling in this gap would mean that a business venture is been able to successfully position itself in the market and can achieve a competitive advantage.