Environmental Scanning

Environmental Scanning


Environmentalscanning is the dissemination, evaluation and monitoring of theinformation originating from both the internal and externalenvironments to vital people in the organization or corporation. Anycorporation makes use of this tool to minimize occurrences ofstrategic surprises, and ensuring it is a longstanding health.Indeed, before the onset of organizational strategy formulation, itis essential to scan through the external environment to establishany available opportunities as well as threats. Additionally,scanning internal environment is equally important in identifying anyweaknesses and strengths[ CITATION Whe10 l 1033 ].Thispaper will comprise of researchand description of both the external and internal environments of 2real world corporations making use of environmental scan. Further tothis paper, the competitive advantages of each company as well as thestrategies each of them uses will be established.

Ofthe two companies to be examined, Walmart will be examined firstfollowed by Samsung Company. According to Walmart, their mission isto save their client’s money, thus enabling them to live a better.To stay profitable and competitive, Walmart must scan both micro andmacro environments and make any adjustments to soothe her customers.The internal environment of Walmart is considered pleasant. Walmartis a place where people can go for shopping. Samsung Company on theother hand has a huge selling distribution network in the world,compared with other mobile phone companies. Recently, Samsung Companystarted making almost all devices, ranging from smartphones tosmartphones, and has become one of recognizable and powerfulcompanies in the world of technology.



Walmartfocuses on the training and knowledge of employees. The company’smanagement and leadership are devoted to provide efficient andeffective operations. Additionally, customer needs are accorded highpriority in the company, and the entire team works to surpasscustomer prospects. Although Walmart is not in the list of toppaymasters, its working conditions cannot be conceded.


Themacro environment is made of social, economic, political, legal andtechnological factors. The corporations embraces latest technologiesto produce the best output, both good and services. Indeed, Walmartobeys the laws of respective countries in which they operate in.Societal development is achieved effectively through her offerings.Moreover, regarding its friendly prices it’s rarely affected byeconomic repercussions. In any situation, people have to visitWalmart outlets worldwide to fulfill their prerequisite needs.Importantly, political interferences must be considered for thecompany’s sustained growth.


Walmartpossess the competitive advantage of being the sole store that isclaiming to be offering the lowest prices in the industry. Thecompany has made various strategies to maintain this competitiveadvantage. Its ability to utilize its capacities and resources inbetter manner as compared to her competitors is one of thestrategies. Additionally, the company uses refined inbound logisticsthat minimizes inbound activities cots. As a result, the prices ofgoods sold are lowered drastically. Alternatively, Walmart has madestrategic partnerships with major suppliers, thus providing them witha better access to inputs, as opposed to her competitors.

Thecompany also has a superior culture, which forms the backhaul for theprovision of low cost to her customers. Strong brand presence is oneof the cost leaders, in addition to a set of exclusive operationalundertakings that provides sustained cost advantage. The combinationof sustained cost savings as well as exclusive operationalundertakings, which are not easy to be imitated by the competitors,provides some assurance that the chain will proceed to control theindustry.


Walmarthas affiliated itself with the Sustainability Consortium in order toidentify metrics of key indicators in its progress in her growth. Theconsortium comprises of a working group executives from organizationssuch as Kimberly Clark, Unilever and many others. The consortiumdevelops a standardized agenda for the announcement of informationrelated to sustainability of the Company throughout its chainworldwide. The measure facilitates severe assessment of productdegree life cycle. The framework further provides platform forsharing data regarding sustainability across its chains globally.



Samsung’sproducts are user friendly, and are of high quality, which isattributed to their strong financial capacity in making innovationstranquil. Indeed, Samsung’s financial ability makes it a profitablecompany, while its wide range of products makes its appealing for theconsumers. The main issue is the pricing of the products. Some ofthe company’s products are not user-friendly, thus did not registerany success in the market. Moreover, some countries like India have avery small number of services centers and after sales amenities areconsidered poor. Majority of the devices are bulky, which makes itchallenging to handle.


Indeed,telecommunication industry is expanding rapidly. Consequently,Samsung has had an opportunity to boost its sales and her marketshare. Due to the increasing purchasing power of consumers, Samsungis obliged to target the correct customer groups, at the designatedtime to gain as much as possible out of the situation. They furtherhave the chance of entering into the 3rdgeneration (3G) market, and can facilitate her rate of growth byminimizing the profit ratio. The Samsung Company has to confront themaintenance of her leadership in the market position. However, theentrance of more competitors into the market is a substantial threatfor the company. The company thus has to strategize to overcome theposed threats, both in the current the future markets. Some of theSamsung’s competitors are offering products at cheaper costs, andas the economic levels are falling, the customers are finding lowprice products appealing.

CompetitiveAdvantages SamsungCompany is finding telecommunication market to be highly competitive.Information and media technology applications and telecommunicationsin the near future will amalgamate together. As a result, Samsung islooking for deferential strategies that will develop its presentstrengths, comprising of its technology in high frequency throughcentering on customer expectations. While researchers claim thatsocial media such as tweeter and Facebook competitive advantage inthe future on the onset of new smart phones from companies such asApple and Techno, it omits the point. The strategy of social media insustaining a huge success with the company’s ability to comprehendthe consumer needs as well as through creation of exclusive andinnovative design in an effective manner that is stylish, affordableand user friendly.MeasurementGuidelines Themeasurement guidelines used by Samsung Company in verifying herefficiency and effectiveness is originated from the company itself,through emphasis on the flexibility and speed of making decisions.The company’s values comprises of customer fulfillment as well asthe involvement of all shareholders, constituting of employees trust,working in both the informal and formal networks. This is achievedthrough the understanding of company’s business impact on itsenvironment and people. Progressive learning provides employees witha chance to build them and to be updated in the technologicalperspective. The company’s employees are exhilarated to share theirexperiences, learn as a team and take perils[ CITATION Caf05 l 1033 ].

Theguidelines that Samsung is making use of through progressive learningimplies that employees aid one another’s growth as well as boostingthe correlation by exchanging and building of concepts. This strategyfurther helps in giving freedom to employees to select the best timeand venue for their personal development. The company has alsoensured that her mobile phone designs are marketed globally. Theapproach of expanding to the global markets is particularly thecompany’s efforts.


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Wheelen T. &amp Hunger D. (2010). Essentials of Strategic Management . Chicago: rentice Hall 5 edition.