...1/2012 24 - 34 Strategic Environmental Scanning and Organization Performance in a Competitive Business Environment Bayode O. Babatunde*, Adebola O. Adebisi** * Department of Business Administration, College of Management and Social Sciences, Osun State University, P.M.B 2008, Okuku Campus , Osun State, Nigeria e-mail: bayoogoga@yahoo.com ** Department of Business Administration, Federal Polytechnic Ado -Ekiti, Ekiti State, Nigeria e-mail: adebisiadebola@yahoo.com Abstract This work justified “the impacts of Strategic Environmental Scanning on Organization performance in a competitive business environment” by studying Nestle Nigeria Plc and Cadbury Nigeria Plc. The opinions of the selected respondents were sought by the use of structured questionnaire; the collected data were analyzed and interpreted with regression and coefficient of correlation method of analysis. Hypothesis one revealed that there is significant relationship between strategic environmental scanning and organization performance, the coefficient of determination (R2) is 0.297. It shows that 30% of the variation or change in effective organization performance is caused by variation in strategic environmental scanning. Hypothesis two also shows that the coefficient of determination (R2) is 0.301. It means that 30% of the variation or change in organization productivity is caused by variation in external environmental factors, which connotes that the external environmental forces have positive impact on...
Words: 5309 - Pages: 22
...numerous important reasons to carry an environmental scanning activity. Because of fast changes in today's market and recent and emerging business practices, it is easy for an organization to fall behind by not keeping up in areas such as technology, regulations, and various rising trends. Environmental scanning reduces the possibility of being blindsided and results in superior anticipatory management. Environmental scanning helps organizations gain knowledge of possible influences from outside environments and how it can react strategically. Understanding two elements: external influences and the organization's internal practices. An organization can take action in a more suitable and efficient manner. The aim of environmental scanning is premeditated assessment and preparation. Its importance comes from the recognition and understanding of complex issues that an organization can face. Environmental scanning helps an organization in acting strategically manner on external factors over which it has small, if any, control. Through regular monitoring of outside influences, organizations can form their own internal procedures and policy to reflect required and efficient responses. The course of understanding the correlation between external influences and internal procedures assists in adjusting organizational structure and strategic procedure that are intended to be more efficient and flexible to changing market. Environmental scanning should not be a stagnant process. It should...
Words: 271 - Pages: 2
...Running head: ENVIRONMENTAL SCANNING Environmental Scanning MGT/498 May 1, 2012 University of Phoenix Environmental Scanning Pepsi and Coca-Cola serve as prime examples of major competitors in the beverage industry and strive to be different although each company produces a similar product. With the popularity of these corporations at the zenith of existence, each one needs to develop and maintain a competitive advantage that will yield results to their favor. For the purpose of gaining a competitive advantage measurement guidelines will need to be implemented to cultivate effective strategic planning and measure the effectiveness of each plan. The intention of this study will be to examine each cola giant in order to describe the internal and external environments of each one and develop an understanding of how each company uses environmental scanning. Furthermore, a discovery of competitive advantages will be uncovered by examining strategies, such as creation of value and sustain, measurement guidelines, and the effectiveness of the measurement guidelines used by each company. Environmental Scan The environmental scan of Pepsi and Coca-Cola will involve monitoring, evaluating, and disseminating of information from the external and internal environments to the key people within the corporations (Wheelen, 2010). An addition, each company will need to evaluate current performance results, review corporate governance, scan and assess the external and internal environment...
Words: 1272 - Pages: 6
...Environmental Scanning MGT 498 April 7, 2014 Environmental Scanning * To become and stay seccussful a company must be aware of their environment. It is essential for successful stretegic planning that the company perform environmental scanning to monitor, evaluate, and disseminate information from their internal and external environments to the right people who make the decisions (Wheelen & Hunger, 2010). Environmental Scanning is the process of gathering information (internal and external) to evaluate the company’s position. The evaluation is performed using the SWOT (strengths, weaknesses, opportunities, and threats) analysis. The SWOT analysis is divided into two parts, the first looks at the company’s internal environmental strengths and weaknesses and the second the company’s external environmental opportunities and threats (Wheelen & Hunger, 2010). Wal-Mart and Target are two very large successful corporations, who happen to compete against each other to provide quality products and services to people in their communities. Both companies use environmental scanning to help them gain the edge against the other. Top management, to make decisions about the company’s future, uses information gained from the scans. * Internal Environment * The internal environment is made up of the company’s own structure, culture, and resources (Wheelen & Hunger, 2010). When it comes to the internal...
Words: 1086 - Pages: 5
...Environmental Scanning To assure the success of a business over a long period of time the business must be able to conduct regular analysis of their success. They must be able to determine where they are today and have a goal of where they would like to see themselves 5-10 years down the road. In order to conduct a true analysis of the company, one must complete an environmental scan of their organization. Thus scanning for events, trends, issues and expectations that they may be faced with in the future. Furthermore, examining all internal and external environment challenges. Internal environmental challenges may be with employees, shareholders or board of directors or the overall culture of the organization. External environmental challenges may include economic, socio-culture, political, and technological environments, as well as customers, suppliers, competitors, financial institution, government and media. Ford Motor Company One organization that decided to take a step back and really analyze their organization by conducting an environmental scan was Ford Motor Company. The company completed a complete SWOT analysis in 2013 to understand where their business was today and decide how they would best get to where they want to be. Starting as the first American automotive company to manufacture and sell automobiles and automotive parts, ford is currently the second largest US automaker and the fifth largest vehicle seller in Europe and the world ("Strategic Management Insight...
Words: 1121 - Pages: 5
...Environmental Scanning and Higher Education By Pat Artz Prepared for Professor Sue Sampson CIS 620 Management Information Systems Fall Term 2002 October 10, 2002 Table of Contents Introduction 3 Definitions 4 Strategic Planning 4 Environmental Scanning 4 Environmental Scanning in the Business World 5 Four Scanning Strategies 5 Perceived Uncertainty 5 Competitive Intelligence 6 Environmental Scanning in the Academic World 7 Why Scan? 7 Learning Organizations 7 Scanning as a Four-Step Process 8 Trends to Scan 9 Environmental Scanning at the University of Missouri System 9 Environmental Scanning at Ole Miss 10 Environmental Scanning at the Center for Information Technology, Bellevue University 11 General Attitudes Toward Scanning 11 Sources Being Scanned 11 Interview with Director Creagan 12 Conclusions and Recommendations 14 Conclusions 14 Recommendations 15 Bibliography 16 Introduction Environmental scanning is a tool used by strategic planners in the business and academic worlds. However, these terms often meet with a blank stare when presented to people outside of senior management. What is strategic planning? What is environmental scanning? How do businesses and universities use these tools? Is environmental scanning a tool that can be used more effectively at universities? These questions will be investigated, with specific attention on the role of environmental scanning at the...
Words: 3484 - Pages: 14
...Environmental Scanning. Before an organization can begin strategy formulation, it must scan the external environment to identify possible opportunities and threats and its internal environment for strengths and weaknesses. How can we define Environmental Scanning? Environmental scanning can be defined as the monitoring, evaluating, and dissemination of information from the external and the internal environment’s to key people within the corporation. From my analysis we see how Howard Schultz CEO of Starbucks had a vision, he believed that Starbucks did not just sell a cup of coffee, rather than he had a desire to create customer intimacy, he wanted people coffee drinkers and non-coffee drinkers to fall in love with the place, he visioned an ambience that would attract coffee drinkers of all ages, to come and socialize, listen to soft music, admire their merchandize, and to create a great social meeting place. He used his quest for knowledge to push his product all over the world. He used demographics, he is seen clearly quoted in in one of the interviews in the Costco connection magazine dated April 2011, Volume 26 number 4, that “Our appetite for growth, for innovation and for transforming the company in many different ways probably has never been stronger”. He also scanned the environments of other countries likes Middle East, Asia, India. He knew that Japan was the third largest coffee beans importer; he used this to his advantage by tapping in to the Japanese market...
Words: 1419 - Pages: 6
...Douglas Brownlie Department of Stirling, UK Organizing for Environmental Scanning: Reformations Enmrontnental scanning is one of the cornerstones of strategic marketing. A plethora of normative literature argues that it plays u key role in bringing information about the external environment to the attention of decision-makers in order that they can make better informed decisions. This literature also provides a rich source of ideas about how to go about environmental scanning, particularly dealing with the collection of data and the various techniques that can be used to analyse that data. Yet, empirical findings point strongly to the view that the low deeds of environmental scanning practice, diverge in some important respects from the high-minded prescriptions of the normative literature. Various explanations can be put forward for this. This paper considers those explanations. Specifically ii explores the assumptions and premises about the constructs of organization and environment which inform the strategic marketing literature. It argues the case for alternative images of organization and environment. And on the basis of this, proposes the concept of Marketing, University of O r t h o c l o x i e S a n d writerly environment scanning, embedding environmental scanning in broader political and cultural processes both within and Tvithaut the organization. Introduction Although environmental scanning has its origins as a methodology in thefieldof strategic management...
Words: 10794 - Pages: 44
...Environmental Scanning Desmond Meade University of Phoenix MGT/498 Crystal Tart August 1, 2011 This paper will provide information on The Coffee Bean and Starbucks environmental scanning. Starbucks and The Coffee Bean are two of the most successful companies in there industry. They both provide some best coffee and tea to coffee drinkers. Both companies provide a very relaxing and classy environment for their clients to enjoy the smooth taste of their product. The Starbucks rich bold flavor was establish in Seattle WA. In 1971, while The Coffee Bean was establish in California in 1963. Environmental scanning is the process of which an organization uses to analyze and evaluate external and internal factors that affects their organization. When conducted effectively environmental scanning can help an organization understand whether or not the company is on right path to long term success. Environmental scanning also helps organization indentify the right skills and resources for each department within their company. The environmental scanning process requires a strategic strategy by management that includes the implementation of the SWOT the analysis. A detailed environmental analysis includes several factors: an evaluation of external and internal activities, understanding the latest and future business trends and identifying employees’ skills and knowledge to help the company to achieve its goals. The external factors for Starbucks and The Coffee Bean are very...
Words: 905 - Pages: 4
...Environmental scan What is it? The environmental scan provides a systematic overview of the external factors that are important to the organisation (or sector) and indicates whether the organisation can influence them or not. In general the factors are classified in factors influencing the demand/need for services (and products), the supply of inputs to the project/organisation concerned, the competition and collaboration and general policy factors. The factors are also classified with respect to the positive (+) or negative (-) influence on the organisation and whether or not the factor can be influenced or just be appreciated (known and understood). What can you do with it? Making an environmental scan results in identifying the impact of relevant factors in the environment of an organisation or sector. Whereas people often complain as powerless victims about negative factors in their environment, the environmental scan helps you to take action or adapt yourself to your environment. Scanning promotes an active response to positive (opportunities) and compliant factors, and leads to insights how to live with the ‘hard facts’. While the scan is a simple tool, it nevertheless helps to get a comprehensive view of the chief factors, helping to go beyond reacting to scattered observations. Basic (sub-) questions • Which (negative) factors are most opportune to try to influence? • Which factors are most crucial to adapt your behaviour to? • What are opportunities...
Words: 331 - Pages: 2
...Environmental Scanning is probably one of the most important aspects of Marketing. This process as explained by our textbook helps companies both identify trends and changes in the business and economic environment and to figure out how to plan their business model and marketing plans to achieve the highest return possible. Although there are five Environmental Forces that our text book and our class lectures covered, this paper will serve only three of those forces. All five forces can affect the supplier, the organization itself in various departments, and the end of line customer (Kerin, Hartley, & Rudelius, 2013). The first force is Social. This affects not only how consumers look at companies and what items they want to purchase, but also how companies look at the buying trends and social responsibility of consumers and plan for their products. What consumers buy not only reflects their needs and wants, but also to some degree what society says is the best to buy. One big issue that our society is dealing with is the increase in population, and the decrease in food that is available to feed the population. Scientists have come up with a way to increase food production by genetically modifying plants to not only withstand drought conditions, pests, and other crop destroying factors, but also to cut down on the time it takes to grow them, thereby increasing production to feed an ever growing world. However, these genetically modified plants do not come without a price...
Words: 1022 - Pages: 5
...Environmental Scanning/ Marketing Project 1 Ashley Jackson Marketing 314 2/18/10 Environmental Scan- IPAD Laptops are one of the most common sources of information. In today’s fast paced economy, where would we be without a laptop or computer? It would almost be like you were living in the dark ages. While laptops and computers are convenient to have, Apple has come out with a new and revolutionary product that changes everything. It’s called the iPad. Apple Inc. is a multinational corporation that creates consumer electronics, computer software, and commercial servers. Founders Steve Jobs and Steve Wozniak effectively created Apple Computer on April 1, 1976 and incorporated the company on January 3, 1977 in Cupertino, California (Bellis). The Apple iPad was announced on January 27, 2010 with retail availability commencing in April and systematically growing in markets throughout 2010. The iPad is twice the size of the iPhone with the same capabilities of any other laptop computer, but still smaller, making it more convenient to carry with you. For an iPad with Wi-Fi, it has a reasonable price of $499 for a 16GB, $599 for a 32GB, and $699 for a 64GB. If you want one with Wi-Fi and 3G, you can find one for $629 for a 16Gb, $720 for a 32Gb and $829 for a 64GB. In this environmental scan, I am going to break down the iPad into five different environments, social, economic, technological, competitive, and regulatory. The first environment is the social environment...
Words: 1274 - Pages: 6
...Environmental Scan Ricky Gant Jr. MGT/498 July 21, 2014 Peter Baverso NOKIA COMPANY Nokia is the leading companies in the world of communication. The company has implemented different strategies to protect its unique product as well as the market share from other competing companies such as Samsung. Although the company produces other household product, Nokia mobile is the main product of the company (Worley et al., 2011). Porter’s five forces of Nokia Company. The Nokia Company faces the porter’s five forces of completion in its daily operation. The forces include the entry by other firms, power of the buyer, power of supply, competitive rivalry and substitute goods (Rampersad & Hussain, 2014). 1. Entry by new firms The threat to entry by other firms in the market is quite low as the company has established its strong market share in the mobile phone industry. The forces are low because new companies who wish to venture into the industry have to invest heavily in terms of innovation and marketing (Rampersad & Hussain, 2014). 2. Power of suppliers The threat of power of supply is moderate as the company can acquire the new materials from many equipment suppliers. Therefore, the company can easily negotiate and bargain with the willing mobile phone hardware (Steers et al., 2010). 3. Powers of buyers The company faces a high force...
Words: 1261 - Pages: 6
... eyeglasses, dental work) Recent trends = managers must pay attention and keep up with technology Agility = ability to respond quickly to demands and opportunities. Systems approach = “whole is greater than the sum of the individual parts” Pareto principle (80-20 Rule) = few (20%) items, factors account for the share (80%) of the problems. All things not equally important, identify key factors. Ch 2 7 ways to be competitive: Price, quality, special features, flexability, delivery time, service, location. Mission statement: a clear statement of companies purpose Strategy: need to be competitive and satisfy customers. Strategy Formulation: Distinctive competencies, environmental scanning Distic competencies: special abilities that give comp edge. (ex. Price, location) Environment scanning: consider events and trends that present threats and opportunities for the organization. New stratieges: Quality based strategy, time based strategy = lean product sys Productivitity: output to input, reflects effectiveness Labor productivity: output relative to labor hours worked Multifactor/Overall productivity: output relative to combo of resources. Low productivity reasons: gov regulations, mom-pop operations, liability claims Worker...
Words: 372 - Pages: 2
...‘BANK OF BHUTAN LIMITED, AN INTERNAL SCANNING STRATEGY’ CHAPTER ONE: INTRODUCTION 1.1. Introduction Bank of Bhutan Limited was incorporated by Royal Charter, 1986 and is now incorporated under the Companies Act of Kingdom of Bhutan 2000 and Financial Institution Act of Kingdom of Bhutan, 1992. The Bank was established as the public sector commercial bank until the establishment of the Royal Monetary Authority of Bhutan. Until then they served the function of central bank in the Bhutan. The Royal Monetary Authority of Bhutan is the Central Bank of Bhutan, which was established in 1982 and is responsible for the regulating the financial sector and formulating the monetary policies in Bhutan. Bank of Bhutan started with only 20 account holders and currently has about 150,000 accounts. The bank was established with a paid-up capital of Nu 2.5 million. Though the bank was established in May 1968, due to non-convertibility of the local currency the desired pace of growth could not be achieved. Consequently, in 1971, a team of banking experts from India and the representatives from Royal Government of Bhutan recommended for collaboration with the State Bank of India (SBI). SBI was identified as partner in management and share holding. Accordingly, Bank of Bhutan was reconstituted under the Royal Charter of bank of Bhutan (1972) inducting State bank of India as partner in capital (in the ratio of 60:40) and the management of Bank of Bhutan. The SBI share in Bank of Bhutan was reduced...
Words: 8089 - Pages: 33
