MGT 498 Week 3 - Individual Paper - Environmental Scanning Paper
MGT 498 Week 3 - Individual Paper - Environmental Scanning Paper
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Date Created: 11/16/15
RUNNING HEAD: MGT 498 Week 3 – Environmental Scanning Paper MGT 498 Week 3 – Environmental Scanning Paper University of Phoenix (Axia) Name Teacher Date 1 RUNNING HEAD: MGT 498 Week 3 – Environmental Scanning Paper The success of a business depends on the firm’s internal and external situations. The concept of “survival of the fittest” applies in the business world also. A business can only be successful in the business atmosphere when the company has analyzed its internal and external environments and takes specific measures to strengthen both environments. The internal and external environments are far from inert; each environment is fluctuating due to many perceptions, issues, resources, competition, chance, etc. The goal of environmental scanning is to create a model of the variance in each environment and form contingency plans for each possible variance effect. All modern businesses apply complex environmental scanning systems to manage the internal and external environments and have them on their favor. Two of those companies are Apple, Inc. and WalMart, Inc. Apple, Inc. is one of the most successful technological companies out there; Apple’s success is mainly dependent on its excellent internal innovation team and Apple’s external mass marketing. Friends Steve Jobs and Steve Wosniak founded Apple in the late 1900s. They released the first Macintosh computer in the 1970s and now release the most sophisticated cellphone, tablet, computer, and laptop products known to mankind. Apple, Inc. specializes in selling top notch computer and laptop products in many countries such as the United States, Canada, England, India, China, etc. and deals with millions of customers from all over the world everyday. Apple, Inc. is known today as a technology revolutionist corporation because it released products that no one had ever imagined could be available to the common man. 2 RUNNING HEAD: MGT 498 Week 3 – Environmental Scanning Paper Apple, Inc. products revolutionize the concept of handheld computers and released one of the first music and “touchscreen” devices and introduced the largest online music, videos/podcasts, TV shows, books, and radio stores known as iTunes. Nowadays one can find an Apple Store near them in a radius of at least 20 miles. The internal environment of Apple represents a highly competent team of young and talented individuals who have the aptitude to design and create revolutionary products. Trepidations for the internal environment revolve around the outsourcing of Apple products production and product innovation after Steve Jobs’ death. The external environment of Apple, Inc. shows great vigor, as Apple, Inc. is a feared company and is a competitive superpower. However, many companies such as Motorola, Inc. are entering Apple’s market as they have started to create iPad and iPhonetype products to compete with Apple, Inc. Many wellknown online rating sites say that the Apple, Inc. iPad 2 is the best of the 6 other companies’ iPad 2 counterparts. However, the Galaxy Tab is giving Apple, Inc. some tough competition with market skimming pricing strategies compared to Apple’s premium pricing strategies. Apple, Inc. retains its image in the market by the release of revolutionary products on a timely basis that are high quality. Apple’s guidelines consist of product quality by using ISO and Six Sigma control to make sure all products are under the tightest quality control. However, the programming of the iPads and iPhones are faulty and have many bugs. In all, the product quality of the Apple devices is very good, and Apple, Inc. has an excellent customer service repair team. 3 RUNNING HEAD: MGT 498 Week 3 – Environmental Scanning Paper WalMart, Inc. is like Apple, Inc. – a fairly decent company a decade before that was not as good compared to other computer companies such as HP (Hewlett Packard) and Dell – which in this case also means that WalMart blossomed similarly to Apple, Inc in a short amount of time. WalMart is a popular retail store chain that has thousands of stores open all over the United States in the reach of any customers and in foreign countries such as Canada, England, China, Mexico etc. WalMart retail stores have almost every necessity to live and WalMart Superstores offer an even wider selection of items. WalMart’s reputation of having the lowest prices is a definite one, and that is one of the key success points of WalMart. The internal environment of WalMart reveals a welldesigned logistics and supplychain system and an excellent strategic plan including extreme marketing and competitive actions. WalMart is constantly upgrading its stock of products and allows the purchase of new items such as ethnic foods (i.e. Mexican, Indian, Thai, Italian, etc.). The internal environment of WalMart has improved in the last couple of years and has saved the company. The external environment of WalMart shows intense expansion in America, as one can find a WalMart store almost anywhere in the United States. However, WalMart still has a lot of opportunities to globalize and expand. WalMart is global icon and is a feared retailor; if WalMart enters into a new retail market, it is certain that existing retailors of that market will lose about 20 – 30% profit. However, some countries are protesting against the entry of a WalMart in their country such as India because the system of purchasing goods in India is based of a cottage industry style and a WalMart would eliminate the jobs of thousands. 4 RUNNING HEAD: MGT 498 Week 3 – Environmental Scanning Paper WalMart retains its competitive image and retailfear in the market through a mass marketing campaign ranging from the Internet to television. Along with this, Wal Mart has one of the best logistics system and optimized supply chain system that any retailor has, thus it remains the king of retailors. WalMart uses measurements guidelines by comparing itself to other retailors and measures if the growth is comparably better from last quarter. These guidelines are very effective as WalMart realized it was falling behind back then and got back onto its feet with its new strategic plan. Every company needs to have environmental scans done constantly. It is similar to scanning for viruses; one must scan his/her computer for viruses to make sure the computer is safe and running, and if a virus is found, then the computer will automatically remove it. Each company must do repetitive environmental scans to constantly update its strategic management plan to the fullest efficiency and effectiveness. Companies who have failed to scan their environments have faced many troubles (such as Blockbuster) and failure in scans results in failure in updating the strategic plan which eventually fates the downfall of the corporation. 5 RUNNING HEAD: MGT 498 Week 3 – Environmental Scanning Paper References 6
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