Environmental Scan
Environmental Scan – Lego and Harley Davidson
MGT/498 Strategic Management
November 14, 2013
Mario Ducret
Environmental Scan – Lego and Harley Davidson
Internal and external environments are very important for businesses operating globally due to local and external competitions. Healthy businesses must analyze their internal and external environments in their strategy formulation. Strategic planning requires that an organization must initially scan the environment for the presence of numerous competitors as well as analyzing physical resources and skills of the workforce. Evaluation of the internal and external environments is then followed by crucial decisions regarding long and short-term goals and finally organizes for the implementation of the plan of action. The internal and external environments of Lego and Harley Davidson companies are described using an environmental scan.
Environmental Scanning
According to Wheelen & Hunger an environmental scan “is the monitoring, evaluation, and dissemination of information from the external and internal environments to key people with the corporation” (Wheelen & Hunger, 2010, p. 98). External environments are identified by the possible opportunities and threats outside the organization. Internal environments are identified by the strengths and weaknesses within the organization. In addition, successful businesses analyze the following forces that drive industry competition, threat of new entrants, rivalry among existing firms, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and relative power of other stakeholders.
Lego’s Internal Environment
According to Metcalf & Lafranco (2013), inbound logistics, which emphasizes on raw material, is fundamental in the company’s operations. It acquires her main bulk of chemical materials from Lanxess, a German company that provides standardized ingredients without any bottleneck
MGT/498 Strategic Management
November 14, 2013
Mario Ducret
Environmental Scan – Lego and Harley Davidson
Internal and external environments are very important for businesses operating globally due to local and external competitions. Healthy businesses must analyze their internal and external environments in their strategy formulation. Strategic planning requires that an organization must initially scan the environment for the presence of numerous competitors as well as analyzing physical resources and skills of the workforce. Evaluation of the internal and external environments is then followed by crucial decisions regarding long and short-term goals and finally organizes for the implementation of the plan of action. The internal and external environments of Lego and Harley Davidson companies are described using an environmental scan.
Environmental Scanning
According to Wheelen & Hunger an environmental scan “is the monitoring, evaluation, and dissemination of information from the external and internal environments to key people with the corporation” (Wheelen & Hunger, 2010, p. 98). External environments are identified by the possible opportunities and threats outside the organization. Internal environments are identified by the strengths and weaknesses within the organization. In addition, successful businesses analyze the following forces that drive industry competition, threat of new entrants, rivalry among existing firms, threat of substitute products or services, bargaining power of buyers, bargaining power of suppliers, and relative power of other stakeholders.
Lego’s Internal Environment
According to Metcalf & Lafranco (2013), inbound logistics, which emphasizes on raw material, is fundamental in the company’s operations. It acquires her main bulk of chemical materials from Lanxess, a German company that provides standardized ingredients without any bottleneck