October 8th, 2012
Environmental Scan Paper
A business environment is made up of both internal and external factors. The environment of a business must be scanned to be able to determine what factors the company can use to determine the development and forecasts that will help in the success of the business. The definition of Environmental Scanning, as per managementstudyguide.com, is the “possession and utilization of information about occasions, patterns, trends, and relationships within an organization’s internal and external environment”. Scanning is used to identify the threats and opportunities that exist in the business environment. Some of the internal environment factors that a company must observe include; employee interaction with each other, with management, manager interaction with other managers, and manager interaction with shareholders, brand awareness, organizational structure and the main staff (managementstudyguide.com, 2012). The company may use other resources to gain this information as in group discussions, surveys and interviews. This information than may be used to identify the strengths and weaknesses of the company. External environment plays an important role as a company starts to become more competitive and changes start to occur. As these changes start to occur, it becomes essential for the company to identify what their competitors are doing. These changes may also affect the internal environment, so it is important that the company update its core competencies as per the external environment. Because external environments are always changing, the company should be ready at all times to be able to accept and adjust to the environmental changes. External monitoring could include the original forecasts of raw materials, which may affect the credibility of the original source. This will force the company to be more focused on scanning, forecasting and analysis to create a more trustworthy prediction and the input costs (managementstudyguide.com, 2012). The external environment scan should include three areas; immediate/industry environment, national environment, and the broader socio-economic environment/macro-environment. Companies
The two companies that will be used in this paper will be Apple and Target. Both of these companies have survived a tough economy over the years by having to adjust to many external and internal environmental factors. Apple, as most of us know, is a successful producer of computer hardware and software. Target, is one of the largest retail companies, right behind Wal-Mart, in the U.S. The environmental scan is used to evaluate the threats, opportunities, strengths and weakness of both Apple and Target. This will help identify external and internal areas that may need help and the areas that have been successful. Strengths
There are many strengths that have made Apple a success. Apple is known to offer superior products such as the iPhone, iPad, iPod and many others. They control both the manufacturing of its products as well as its operating system (http://www.slideshare.net/edbiy/swot-analysis-for-apple, 2012). Apple also produces its own internal components for the core of their products. They also set a high standard for the quality of their products to make sure that the customer is extremely satisfied. Apple is always evolving and creating new and updated products. Apple has a very loyal customer base that will buy the new and updated product regardless of what it costs. The company stock is also the highest in their personal history. Target is a monster of a company as well. As of 2011, the diversification of its store chain was at 1,750 stores. The stores are big; anywhere between 95,000 to 135,000 square feet is size. As of 2011, Target has a presence in all states except Vermont. Due to the competition with Wal-Mart to keep their product prices low, Target...