Microeconomic
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Environment uncertainty is the degree to which an organization lack factual or competent information concerning the internal and external operating environment for the organization. It is the unknown in the organization, and in the field of business relevant to company operation.
There are 2 ways to manage uncertainty environment:
Adapt to
1.Joint Venture:
A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. The advantages of joint venture are grow business faster, increase productivity, generate greater profits, lower risk and cost and flexible. For example, Sony and Ericsson are two world famous brands in the production and development sectors of electronics and telecommunication industries, making the work simpler for the people After they declared their joint venture a mobile-based production company and an electronic manufacturer blended together to get storage chips produced for the giant companies in the industry.
2.Strategic Alliances
A strategic alliance (also see strategic partnership) is an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. A strategic alliance will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship. The advantages of strategic alliances are get competitive advantage, speed up product introduction, and compatible and in tune with their existing businesses. For example, Spotify and Uber have partnered to provide stereo control to Uber customers. It gives the company a leg up over its competition. Spotify is offering something with the Premium package that other streaming services do not yet have. And likewise, Uber can provide the riders with an opportunity to listen to their own playlists as opposed to other ride-share services that cannot match them yet.
Influence
1.Advertising
Advertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them. There are few types of advertising such as online advertising, print advertising, broadcast advertising and so on. The advantages of advertising are it can make business grow their sales, establish brand identity among consumers in the market, create awareness about a companys products or services. For example, KFC uses print media such as newspaper, web pages and outdoors advertising like billboard or its vehicle for advertising. Besides, KFC also advertise using a slogan “finger lickin good” to help consumers