The environment of any organization consists of internal and external factors. An organization should conduct a scan of its environment in order for it to determine development, and a forecast on the factors that may influence the success of the organization. Scanning the environment refers to the possession and utilization of the information that an organization has about trends, patterns, occasion and the external and internal relationship that are within an organization.
A scan of the environment may assist the management team of an organization in making a decision about the future path of the organization. A good scan aids in identifying the opportunities and threats that an organization has in the market (Bateman, 2012). The Biddy Company is a company that deals with the manufacturing of cooking oil. This company has employed approximately three hundred employees. It has several branches in the major cities in United States. An internal environmental scan shows that the employees in the organization interact freely.
This includes the relationship between employees and the management team, between the employees themselves, between managers and other managers and the interaction of stakeholders and managers. All these groups interact freely in the organization which makes work simpler and more effective. The company also has a recruiting system that is effective which enables it employ competent workers. An external scan of the environment show that the company is performing well in the market (Alkaline, 2003). There are a number Of threats that the company has.
The many has competitors that threat to attract more customers. The company needs to do more advertising on its products so as to make more customers aware of its products. It also has opportunities such as attracting more customers through production of other types of oils such as margarine. This will improve the customer base for better returns. The Alpacas Company is an organization that deals with the manufacturing of car tires. It is a company that deals with the production of all types of tires for all the model of vehicles. The company has employed approximately two hundred employees.
These employees deal with running of the machines, packing the finished products and assist in distribution. An internal scan of the business shows that the employees of this company have a relationship that is not close. Everyone has his or her own assigned job and to not get enough time to interact. The management team as well only gives orders and ensures that the organization is successfully running. The relationship of the management team and the stakeholders is better than that of the management team and the employees. The activities in the organization run smoothly though there is gap between the employees relationship.
On the other hand, an external scan of the organization’s environment shows that the company is competitive in the market. The company is able to satisfy its Customers as required. There are other competitors in the market that offer stiff competition to the organization. This is a threat to the company. The company has opportunities as well such as expanding its market to the international level. An external scan of the environment is able to provide the external opportunities and threat that the company has. Each of the impasses has a competitive advantage in the market.
The Biddy Company uses high quality technology and good management to provide quality goods and services. The company uses this in attracting more customers and influencing them positively to consume more of its services and goods. On the other hand, the Alpacas Company has a competitive advantage which is production of a variety and all ranges if tires for all types of vehicles. The competing companies produce tires for specific type of vehicles. This competitive advantage aids in attracting more customers and ensuring that hey are always satisfied with the quality of goods and services they offer in the market.
The Biddy Company sustains its customers and creates value through better management. The management team ensures that all the activities in the company run smoothly. Through good management, production of goods in the company is made easier and employees are motivated to provide better services and relate well with the customers. Better services improve the quality of the goods produced. This attracts the consumption of more goods and services, which yield better returns to the organization. The Alpacas Company as well sustains and creates value of its customers through better and more quality’ production of goods.
The company ensures that its products are better than those Of its competitors. It does this through production of longer lasting tires that ensures their customers keep coming back for more purchases. This aids in attracting more customers and retaining the existing customers. If the quality of its goods is good, the customers of the company may be used for advertising purposes. This may be done through them informing their friends about the products of he company and may increase the number of its customers.
The guidelines used by these two companies in measuring the effectiveness of their strategies are similar. The companies use a comparative method of determining the effectiveness of their strategies (Wheeled, 2006). They take the number of sold goods in every last Friday of the moth after the implementation of the strategies. These numbers are then compares to one another. The number of goods sold in one month is compared to the number of goods sold in the previous month. If the difference of these two months is costive, the strategic plans of the companies are working and may be effective for its growth.
This method of evaluating the effectiveness of the two companies is very efficient. This is because the companies are able to identify and compare the amount of goods sold in a certain period of time. If the amount of goods being sold is not improving, this means that the strategies employed by these companies are not working. If the companies’ sales analysis improves over the months, it means that the strategies employed by these companies are working and should be fully adopted to improve the ales of the companies.
An internal and external scan of the environment an organization has may be effective. It may aid the organizations in identifying the opportunities and threats that it has in the market environment. This may aid in knowing its weaknesses and try to change them. It may as well be used in identifying its strength and may use them to the advantage of its competitors. An internal scan aids in identifying the threats within an organization. These threats may include poor management as well as poor relationships between the employees and managers.
Scanning the environment is effective in every organization and should be performed after a certain period of time. This may assist the management team in making future decisions for an organization.