How Internal and External Factors Drive Organizational Change

How Internal and External Factors Drive Organizational Change

Competitive

Social media platforms have made it easier for entertainment companies to market events and other entertainment products and services. Therefore, different large and small players are investing in the industry, leading to stiff competition. Fun World Entertainment (FWE) could face stiff competition from Disney in the amusement park division. The company could also face stiff competition from video game companies such as Xbox Game Studios and Sony Interactive Entertainment. Therefore, the company must constantly update its entertainment products and services to create and maintain a competitive advantage.

Economic

The demand for entertainment services is influenced by disposable income. High disposable income increases demand for non-essential products and services, thus creating an opportunity for FWE to increase sales and profits. Another economic impact that could impact the company is economic stability. Economic issues such as inflation could reduce the demand for entertainment services, leading to reduced sales and profitability. Another economic factor is exchange rates. The dollar’s performance in global markets could impact FWE’s profits because the exchange rate influences the price of commodities in countries with different currencies.

Legal/Political

Different government laws and regulations regulate the entertainment industry. Intellectual property regulations could impact FWE’s operations by dictating the content used to entertain clients. For instance, when sharing video content with customers, intellectual property rights should be observed. The company could also be impacted by trade policies. A shift in trade policies will disrupt operations within the company, leading to losses. The main legal factor that could impact the company is consumer rights protection regulation. The company must create and implement proper safety measures to protect customers. For example, the equipment in the amusement park should be regularly checked and maintained to ensure that they are safe. The company could also be impacted by environmental laws that prevent environmental pollution. Environmental laws may mainly impact the amusement park due to waste management requirements.

Sociocultural

The Covid-19 pandemic created a shift in how people perceive entertainment services. There is a high demand for online entertainment services such as video games, TV shows, and movies. The shift in perception could impact the demand for specific entertainment products across different demographics. Therefore, FWE could consider segmenting its entertainment products and services to meet customer needs. Another sociocultural factor that could impact the company is cultural awareness. People worldwide have become more culturally aware and are embracing different cultures. This has led to culturally diverse entertainment content. Diversity and inclusion have also become important in creating a good company image. Therefore, FWE could consider its customers’ cultures when producing content to attract more customers and maintain a competitive advantage.

Technological

One of the technological factors that could impact FWE is the prevalence of video games. There has been a high demand for video games since the Covid-19 pandemic because many people turned to online games for entertainment, particularly because many outdoor entertainment places were closed. Therefore, FWE could consider producing and selling unique video games that meet customer needs and preferences to remain competitive. Another technological factor that could impact the company is augmented reality. Entertainment companies are using augmented reality to improve customer experience by making the games more interesting. The demand for augmented reality games will probably increase in the future because of the high population of the new generation born during the digital age. The company could also be impacted by the growing preference for interactive video games.

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You are a student at RW University. You are applying for an internship at Fun World Entertainment. This company has many business units that center around entertainment, but you are applying specifically for a position as an intern for the amusement park division of the company.

How Internal and External Factors Drive Organizational Change

They ask you to come in to interview. The HR manager and an executive organizational leader are interviewing you and explaining to you that one of the primary concerns of any company is their external environment and how changes in the external environment could impact the business. In the interview, they hand you a form that lists all the factors in the external environment. They want you to explain how the organization can be impacted by the 5 external environments.
Complete the template below: External Business Environments Template.
Explain how the organization and organizational leadership could be impacted by changes in each of the external environments for Fun World Entertainment.

***Please select the files below to do this paper; there will be an example you may look at to help assist with your template, along with the grading rubric. There will also be no references for this paper due to it being explained in your own words.***