The paper "Chipotle Restaurant and the Myers Corporation" is a good example of a business case study. Strategic management is one of the fundamental prerequisites of any organization seeking success. Owing to this fact, each and every organization should be able to analyses its competitive effectiveness, the risks involved, it's the business environment and the necessary sources of competitive advantage (Knemeyer et al. , 2015, 302). Using two case studies of Chipotle restaurant and the Myers Corporation, this paper will explain and analyses the external business environment, the five forces of competition and the sources of completive advantage Terminologies External business environment basically refers to the macro-environmental factors that affect the business operations (Liu et al. , 2015, 108).
By way of example, the external environment of a business comprises of the political factors, economic, legal, social, environmental and technological factors Five competitive forces refer fundamentally to the porter’ s stipulated assessment that enables an organization to realize its present position as far as competition is concerned. The five forces include the power of buyers, the power of suppliers, the threat of substitutes, the threat of new entrants and the threat of substitutes (Huang, 2013, 554). Sources of sustainable advantage are the cost leadership strategies, differentiation and segmentation strategies that are employed by a company in order to realize competitive advantage (Knemeyer et al. , 2015, 302.
In order for a firm to compete effectively with other organizations, it should address its cost strategy, differentiation and technological strategy so as to produce acceptable and high-quality products. Case Study Firms analysis External Business environment The Macro-analysis or rather external business environment assessment is sometimes referred to as PESTEL analysis. In this case, the external environment of any business organization comprises of social factors, political factors, economic factors, legal factors and technological factors (Liu et al. , 2015, 108). Political factors The organization’ s business operations are basically influenced by state and government policies.
By so saying, it means that Chipotle restaurant and the Myers Corporation entire operation are also governed or rather under the control of state regulations and rules (Liu et al. , 2015, 108). One of the fundamental reasons why the governed regulates and controls Chipotle restaurant is because of issues like operation license, health issues, employee laws as well as tax issues (Huang, 2013, 554). .
Both Myers Corporation and Chipotle restaurant follows to the latter the policies and laws stipulated by the local government and foreign investment rules and policies most especially on its renowned franchise business strategy. By so doing, any form of political instability will act as a major blow on Chipotle restaurant business operation as well as the Myers retail store corporation Economic factors It is universally recognized that economic factors often arise as one of the primary issues of any organization’ s business operations.
For instance, most of the organizations were heavily hit by the 2008 economic slowdown. By so saying it means that any form of economic crisis, will in one way or the other influence the way an organization conducts its business dealings. In this case, Chipotle restaurant is faced by a number of economic challenges which basically revolves around the difference in the tax and revenue measurement scale in different countries of operation (Liu et al. , 2015, 108). Moreover, the monetary and currency fluctuations also affect the distribution channel of Myers Corporation.
Furthermore, the local economy also plays a crucial part in the day to day operation of both Chipotle restaurant and the Myers business corporation. In other words, if the state of the local economy is wanting or rather critical, individuals remain conservative and they in most cases refuse to spend more money on food franchises and luxury items. As a result, the daily operations of the Chipotle restaurant and the Myers corporation store are affected tremendously (Liu et al. , 2015, 108).