Environmental Scan
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Environmental Scan
Shaleka McClelland
MGT/498
April 27, 2014
Stewart Edinger
Environmental Scan
Companies should do an environmental scan to monitor, collect, and evaluate information to look for changes in the natural, social, and environmental factors. This information will be used to determine if the trends will continue or if other ones will take their place. Companies also need to do an internal scan to determine their strengths and weaknesses. This will determine if they are capable of taking opportunities while avoiding threats. Companies must always be prepared to adapt their internal strategies to best fit their external operating environment. This environmental scan will provide an analysis on two companies operating in the same industry.
Walmart and Target are both discount retailers. Walmart is number one and Target is number two in the discount chain. They are in the same industry, but they cater to different customers. Walmart is a global retail company that is based in the United States. Target had been based only in America disregarding the need to become a global cooperation until March 2013 when they opened a store in Canada. They both sell general merchandise and groceries, Target is different from Walmart because they focus more on the quality of products more than the discounted ones.
Competitive Advantage through Business Strategies
“Wal-Mart’s superior profitability reflects a competitive advantage that is based on the successful implementation of a number of strategies.” ("Strategic Leadership: Managing The Strategy-Making Process for Competitive Advantage", n.d.). Their best competitive advantages are the number of stores that they have all around the country. Walmart has maintained a competitive advantage in the market by implementing cost leadership strategy and providing consumer goods at lower prices. The cost leadership strategies help Wal-Mart to reduce its cost of operations and as a result they...
Shaleka McClelland
MGT/498
April 27, 2014
Stewart Edinger
Environmental Scan
Companies should do an environmental scan to monitor, collect, and evaluate information to look for changes in the natural, social, and environmental factors. This information will be used to determine if the trends will continue or if other ones will take their place. Companies also need to do an internal scan to determine their strengths and weaknesses. This will determine if they are capable of taking opportunities while avoiding threats. Companies must always be prepared to adapt their internal strategies to best fit their external operating environment. This environmental scan will provide an analysis on two companies operating in the same industry.
Walmart and Target are both discount retailers. Walmart is number one and Target is number two in the discount chain. They are in the same industry, but they cater to different customers. Walmart is a global retail company that is based in the United States. Target had been based only in America disregarding the need to become a global cooperation until March 2013 when they opened a store in Canada. They both sell general merchandise and groceries, Target is different from Walmart because they focus more on the quality of products more than the discounted ones.
Competitive Advantage through Business Strategies
“Wal-Mart’s superior profitability reflects a competitive advantage that is based on the successful implementation of a number of strategies.” ("Strategic Leadership: Managing The Strategy-Making Process for Competitive Advantage", n.d.). Their best competitive advantages are the number of stores that they have all around the country. Walmart has maintained a competitive advantage in the market by implementing cost leadership strategy and providing consumer goods at lower prices. The cost leadership strategies help Wal-Mart to reduce its cost of operations and as a result they...