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competitive environment is the dynamic external system in which a business competes and


functions
The operations strategy of Foodpanda largely depends on its external competitive environment.
While developing an operations strategy the company had consider different external
environmental factors. To illustrate the influence of the external competitive environment of
Foodpanda, twelve points environmental factor analysis is demonstrated. It is shortly known as
EFA-12. Here you can see all the 12 components of EFA. Each of the factors take consideration
of different aspects such as
1 Political factors – Government policy and legislation;
2 Economic factors – financial markets, interest rates, inflation, recession, exchange rates, the
Euro, etc.;
3 Sociological factors – demography and lifestyles;
4 Technological factors – obvious advances in product and process technology, etc.;
5 Environmental or ‘green’ factors – the pressure for environmentally safe goods, reductions in
pollution and resource depletion;
6 Ethical factors – concerning products, working practices, resources, impact upon local
population and investment issues;
7 Market factors – demand for niche products, short product life cycles, increasingly global
competition, resource availability;
8 Competitor factors – competitor’s objectives, resources, performance, products and services
and strategies;
9 Customer factors – immediate customer base, wider customer base, market segmentation,
customer values, customer service and quality
10 Complexity factors – the degree to which the environmental factors are likely to witness
changeability (the environment affected by internationalization, technological, social and
political issues) and novelty (the degree to which the environment presents the organization with
new situations);
11 Predictability factors – the degree to which such changes can be predicted (the visibility and
predictability of such changes);
12 Dynamic factors – the speed or rate that any of the above factors are likely to change and the
possible appropriate responses that the organization may be able to muster prior to, or after, such
change.

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