Enviromental Scanning
Environmental scanning
MGT/498
October 29, 2012
John Fritch
Environmental scanning
Coco-Cola and Pepsi are two major competitors in the beverage industry but each company is working on being different even though each company has similar products. Both companies are very popular and each company needs to develop and maintain a competitive edge that will help one or the other stay above the other. To gain a competitive edge, measurement guidelines need to be implemented to make sure that strategic planning is effective and to confirm that the plan is effective.
This paper will examine both companies and what competitive advantages each company has and the strategies each company is using to keep the advantage. The competitive advantages will be shown by examining strategies, such as creation of value and sustain, measurement guidelines, and the effectiveness of the measurement guidelines used by each company
Internal and external environment scan
Environmental scanning according to Wheelen and Hunger (2010) will involve monitoring, evaluating, and disseminating of information from the external and internal environments to the key people within the corporations (p. 98). Each company will need to establish what level of environmental scanning is best for the company such as continuous or periodic. Each company will need to evaluate the performance of the products, review the SWOT factors to develop the best strategy to implement. Both Coca-Cola and Pepsi should “scan the environment to identify changing trends and patterns, monitor specific trends and patterns, forecast the future direction of these changes and patterns, and assess their organizational impact. Merged with internal analysis of the organization 's vision, mission, strengths, and weaknesses, external analysis assists decision makers in formulating strategic directions and strategic plans” (Morrison, 2006).
Competitive Advantages
By looking at the competitive advantages, a comparison can
MGT/498
October 29, 2012
John Fritch
Environmental scanning
Coco-Cola and Pepsi are two major competitors in the beverage industry but each company is working on being different even though each company has similar products. Both companies are very popular and each company needs to develop and maintain a competitive edge that will help one or the other stay above the other. To gain a competitive edge, measurement guidelines need to be implemented to make sure that strategic planning is effective and to confirm that the plan is effective.
This paper will examine both companies and what competitive advantages each company has and the strategies each company is using to keep the advantage. The competitive advantages will be shown by examining strategies, such as creation of value and sustain, measurement guidelines, and the effectiveness of the measurement guidelines used by each company
Internal and external environment scan
Environmental scanning according to Wheelen and Hunger (2010) will involve monitoring, evaluating, and disseminating of information from the external and internal environments to the key people within the corporations (p. 98). Each company will need to establish what level of environmental scanning is best for the company such as continuous or periodic. Each company will need to evaluate the performance of the products, review the SWOT factors to develop the best strategy to implement. Both Coca-Cola and Pepsi should “scan the environment to identify changing trends and patterns, monitor specific trends and patterns, forecast the future direction of these changes and patterns, and assess their organizational impact. Merged with internal analysis of the organization 's vision, mission, strengths, and weaknesses, external analysis assists decision makers in formulating strategic directions and strategic plans” (Morrison, 2006).
Competitive Advantages
By looking at the competitive advantages, a comparison can
References: Andy. (2012,). A Brief Pepsi History. Retrieved from Pepsiholic Haven: http://www.sirpepsi.com/pepsi11.htm Coca-Cola FEMSA investor relations. (2011). Retrieved from Coca-Cola FEMSA http://www.coca-colafemsa.com/femsa/web/conteudo_en.asp?idioma=1&conta=44&tipo=27617 Morrison, J.L (2006). Environmental scanning. Retrieved from Horizon Site http://horizon.unc.edu/courses/papers/enviroscan/ Sustainability leadership. (2011). Retrieved from PepsiCo http://www.pepsico.com/Purpose/Overview/Sustainability-Leadership.html PepsiCo to share outlook and growth strategies at two-day investor meeting. (2011). Retrieved from PepsiCo http://www.pepsico.com/PressRelease/PepsiCo-to-Share-Outlook-and-Growth-Strategies-at-Two-Day-Investor-Meeting03222010.html Porter, M.E. (2010). Competitive advantages. Retrieved from Quick MBA http://www.quickmba.com/strategy/competitive-advantage/ RetroPlanet. (2008). Coca-Cola Company History in Brief. Retrieved from Zimbo.com: http://www.zimbio.com/Coca-Cola/articles/56/Coca+Cola+Company+History+Brief Wheelen, T.L., & Hunger, J. (2010). Concepts in Strategic Management and Business Policy: Achieving Sustainability (12th Ed.). Upper Saddle River, New Jersey: Prentice Hall. Retrieved from The University of Phoenix eBook Collection database.