Question

Briefly explain how environmental uncertainty affect to food processing company and aerospace company

Answer 1

The uncertainties in the environment affect many businesses of which food processing industry is affected the most. With uncertain environmental phenomenon, the ingredients needed for food processing products show a fluctuating supply trend hence the demand for food processing products is not accurately mapped. This uneven demand and supply of raw materials required for the products in food processing industry will pose consumers with skeptical attitudes and force them to shift towards other available options. This will certainly result in the reduction of consumer base of any food processing company. Also, the uneven demand and supply of raw materials will result in cost implications. these cost implications will result in the increase in prices of food processing products which will mean consumers will have to pay more for the products. If company bears the increased cost then the profitability of the company will be jeopardized. This shows a lose-lose situation overall. Hence, companies have to be prepared for such environmental effects and its adversarial effects.

In the case of Aerospace companies, specifically aviation companies the changing environmental situations pose a threat given the constraint of time with the aviation companies since aviation companies drive their competitive advantage by competing with the fly time, reduced turn around time. with environmental uncertainties, the flight time will increase hence resulting in reduced customer satisfaction. The preparations needed to be done for a sunny day and a rainy day differ significantly for an aviation company hence the effect caused by uncertain environmental factors is also considerable and cannot be ignored. Aviation companies rely greatly on weather forecasts to plan out their operations so as to mitigate the losses if any.

These are the effects of environmental uncertainties on the aviation/aerospace and food processing companies.