Environmental Scan Paper Essay

For any company to survive in the business environment, they must be accustomed toward any situation within the environment because of certain issues, perceptions, chances, and resources. These are such reasons every business must observe any applicable changes, which can occur within the environment and invent from existing policies to adjust toward variations. For any company to succeed the company will need to conquer the trials and tribulations of the constant shifting environment. An environmental scan were conducted for the two following companies Starbucks, and Cocoa Cola. With the environmental scanning it will increase their chances and distribute their resources in the expectation of the constant changes within the environment. Starbucks was originated in 1971 in Seattle Washington on Pikes Place Market. Starbucks is a specialized whole bean, ground coffee, and tea business/distribution.

Over the course of their years Starbucks until this present day builds relationships with millions of customers in over 17,000 stores all over the world. Starbucks are known in Argentina, Aruba, Australia, Austria, Bahamas, Bahrain, Belgium, Brazil, Bulgaria, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Egypt, El Salvador, England, France, Germany, Greece, Guatemala, Hong Kong, Hungary, Indonesia, Ireland, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, New Zealand, Netherlands, Northern Ireland, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Scotland, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates, United States, and Wales. As it has been read Starbucks are very much known all over the world.

Of course Starbucks just is not about coffee, they are also specialized in more than 30 different blends of coffee both hot and iced. They also make smoothies (for the health conscious), and different variety of teas such as black tea, green tea, calm tea (herbal tea), and passion tea (herbal tea) just to name a few. Starbucks also sells pastries, sandwiches, yogurts parfaits, salads, fruit cups, and oatmeal. Of course they also make (which is what they are known for) the infamous Frappuccino. The internal environment of the Starbucks company is a representation of the general conditions, which affect their aptitude in executing a successful strategy. The internal elements are their growth of strategy (diversified portfolio), brand management, and human resources. The external environment of the Starbucks company are focused on competition, which are within the same business as them, legal and, political changes, opportunities such as environmental concern, and the demographic social issues such as income per household.

Coca Cola one of the major producers, supplier, and vendor of the soft drink industry sells a variety of up to 35,000 different products ranging from their regular soft drinks, to clothing, and collectable toys. Coca Cola sells four of the five top selling soft drink beverages, which are Diet Coke, Sprite, Fanta, and of course, Coca Cola. The Coca Cola company also sell water, juices, and sport drinks. The internal environment for Coca Cola have key attributes, which include competence in the production method, from excellent communication and management skills. For the Coca Cola company to monitor their internal environment, they would need to evaluate the process, which by they can take action on the factors that would cause any kind of inadequacies on the phases of production.

Such things as obesity, scarcity, and quality of water have changed the nonalcoholic beverage business, which include changes with consumer preferences based on health and nutritional research. Because of the research consumer taste and needs have changed and also because of the changes of the law and new regulations the Coca Cola company needed to adopt the additional warning requirements, and additional labeling for the warning requirements. Coco Cola understands that the external environment may affect the business and its revenues. The increases and decreases of the economy, the attitudes from consumers, the principals of the consumers, and the demographics of society have a big impact on Coca Colas revenue. Competitive Advantages and Current Strategies

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Starbucks

Starbucks has contributed toward the green movement by informing the public they will only deal with the suppliers that meet the Starbucks standards for sustainable development. Starbucks understands the social influence and how it can ether force a change or contribute toward a change because the company understands that individuals are becoming more concerned with the preservation of the planet earth, which is why Starbucks have teamed up with the “Green Team” to established company wide recycling, reduction of waste, conserving energy, and conserving water programs. Another concern that Starbucks have taking into consideration are the publics growing concern of healthy eating habits. It is imperative for Starbucks to guarantee that their products are not labeled as unhealthy, so they have added more health conscious choices such as salads, smaller portions of pastry, and healthier liquid choices for the health conscious consumer who enjoys the Starbucks environment.

Coca Cola

Coca Colas strategy is to target the distinct market groups that are divided by competitive intensity and socioeconomic levels. They have implemented a planned product, pricing, and packaging strategy through certain channels of distributions so they can gain operational efficiency within the company. Coca Cola have used such events as the Super Bowl and the World Series to attract the consumers attention with their commercials. The customer surveys help the Coca Cola company with their marketing strategy and show, which adjustments would need fixing. Such marketing strategies such as phone surveys, social media, mail surveys, e-mail surveys, and text messaging assist the company on further marketing strategies on improving their revenue.

Such things as market leadership, joint ventures, managerial expertise, inventive business solutions, and flexible organizational structure have giving Coca Cola a competitive advantage (Coca-Cola FEMSA, 2010). Coca Cola also provide managerial expertise training programs to improve their abilities, The inquiries for both companies on sugar content in the products have increased. Also there are negative doubts about their recipe of sugar content effecting weight control, pop culture, and society. Over the course of the years Coca Cola have adjusted their recipe because they are using crafty marketing and distributing smaller products so criticism can decrease on their products. To improve further recognition in Latin America the Coca Cola company have had joint ventures with companies in Mexico and Brazil. They also have plans on heightening engineering and supply capacity so they can boost operational effectiveness.

References

Business Unit. (2010). Retrieved from http://www.femsa.com/en/business/coca_cola_femsa/ Coca Cola . (2012). Retrieved from http://www.thecoca-colacompany.com/citizenship/energy_climate_protection.html Recycling and Reducing waste. (2012). Retrieved from http://www.starbucks.com/responsibility/environment/recycling Goals and Progress . (2012). Retrieved from http://www.starbucks.com/responsibility/global-report/environmental-stewardship

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Environmental Scan Paper Essay

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 has seen increases in revenue year after year, with their 2011 revenue equaling $67 billion. Target has adapted to their specific demographic locations and offer three different types of stores; Target Green Lands, Super Target, and their urban stores. And most important, Target offers a wide variety of goods; clothing, electronics, beauty, and home furnishings to just name a few.

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Weaknesses

As being the leader in the electronic industry, Apple is faced with having to ensure their product is consistent and quality is number one. Not all of Apple’s products are without flaws. With their competitors making similar devices, Apple must continue to invest in research and development, to make sure any flaws don’t hamper future success. With Apple being a financial stable company, any lack of debt could be seen as a weakness for their infrastructure as it may pose a risk for stock acquisition by other companies (http://www.slideshare.net/edbiy/swot-analysis-for-apple, 2012). As for Target, their lack of an internal presence is a weakness. Though their products are considered low cost, the quality of their product is better than Wal-Mart, which makes Target’s products a higher price than their competitor. Employee wages have also been considered low, forcing some employees to look for work elsewhere.

Threats

With Apple products saturating the market, Microsoft has still be able to hold a consistent share of the market as well. Within the industry, there are many competitors that appeal to the economic conscience. Companies such as HP and Dell are offering low-budget computers that are appealing to customers that cannot afford the Apple product. Apple must be able to produce their products and set a financial standard so they do not lose out on a certain market of people.

Target has their threats as well. Kmart and Wal-Mart both offer similar products but at a lower cost. With today’s economy, customers may sacrifice the quality of a product to get a lower price. Target may have to restructure their product base to keep from losing out to the competition.

Opportunity

With Apple being a technological leader, they are known for their originality and innovative thinking. iLife is a new product that allows users to link up multiple programs through one central application. Apple has found a way to simplify a person’s “life”, by consolidating what that person needs into one little package. That is innovation at its finest. Apple will continue to develop new opportunities through innovation and breaking new ground in different markets.

Target introduced that the company will expand into Canada, this being the first step into the international market. The company will focus on reducing operational cost and increasing their revenue ratio. Target will continue to push the private labled products to customers, to focus on low cost products. These companies are creating value by offering a product that is made up of tangible and intangible attributes that the customer values. These companies are able to obtain money for the costs which then generates benefits that it values. Apple and Target create products that offer many solutions for their customer. This creates a competitive advantage for these companies.

Creative advantage is the “advantage that a company has over its competitors, allowing it to generate greater sales or margins and/or retains more customers than its competition” (Investopedia.com, 2012). Both companies have shown that they offer a product that has been superior to their competition, which in turn has generated greater sales for these companies. The mission statement of a company is a way to evaluate how a company may measure their effectiveness. Apple states, “Apple computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate.

We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services”. Target states, “Our mission is to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional guest experiences by consistently fulfilling our Expect More. Pay Less.® brand promise”. Both Apple and Target have shown continued success, both following their mission to create a better experience for their customers.

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References

Answers, W. (2012). Answers. Retrieved October 08, 2012, from WikiAnswers.com: http://wiki.answers.com/Q/What_is_the_mission_statement_of_apple_inc

Investopedia. (2012). Competitive Advantage. Retrieved October 08, 2012, from Investopedia.com: http://www.investopedia.com/terms/c/competitive_advantage.asp#axzz28k4ujJ6x

Managementstudyguide.com. (2008-2012). Environmental Scanning-Internal & External Analysis of Environment. Retrieved October 08, 2012, from Managementstudyguide.com: http://www.managementstudyguide.com/environmental-scanning.htm

Mixx, M. (2012). Targer SWOT Analysis. Retrieved October 08, 2012, from MarketMixx.com: http://marketingmixx.com/marketing-basics/swot-analysis-marketing-basics/177-target-corporation-swot-analysis.html

Target Brands, I. (2012). Mission & Values. Retrieved October 08, 2012, from Target.com: http://corporate.target.com/about/mission-values

Unknown. (2012). Slideshare.net. Retrieved October 08, 2012, from SWOT Analysis for Apple: http://www.slideshare.net/edbiy/swot-analysis-for-apple

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