MGT 498 Environmental Scanning Paper

MGT 498 Environmental Scanning Paper - Environmental...

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Environmental Scanning 1 Running Head: Environmental Scanning Environmental Scanning Paper MGT 498 August 7, 2011
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Environmental Scanning 2 Environmental scanning is the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends (SDSU, 2011). Organizations use the process of environmental scanning to create a business strategy to determine value and sustain a competitive advantage. Organizations use measurement as a guideline to determine strategic effectiveness. Environmental trends typically arise from five sources: social, economic, technological, competitive, and regulatory forces. The declining consumption of coffee is an example of a trend identified by environmental scanning. Providing an explanation for the trend and assessing its implications are also an important part of environmental scanning (SDSU, 2011). Internal and External Environments Using Environmental Scan at Whole Foods Market Whole Foods Market uses multiple tactics to conduct an environmental scan as a way to achieve long-term success. Whole Foods Market creates SWOT analysis to elaborate an environmental scanning of the external environment to identify opportunities and threats and its internal environment for strengths and weaknesses (Whole Foods Market, 2011). External environments cover legal, economic, technological, and cultural forces. The external environment includes analyzing factors, which were considered as opportunities or threats and also general forces/trends within societal environment. The internal environment covers the organization structure, culture, marketing issues, financial issues, research, and developing issues, operation issues, and human resources. These factors have either a positive or negative influence on this organization’s performance, depending on how the management handles each of them (Garcia, 2001). Whole Foods Market use EFAS and IFAS matrix as a business analysis tool to formulate strategies to be successful in the economic marketplace. Whole Foods Market
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Environmental Scanning 3 hire statisticians to create the EFAS and IFAS matrix and management make decisions based on the results.
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