Environmental Scan

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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
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Companies in the toy industries including Lego have ensured low suppliers’ bargaining power. Retailers play an important role in selling and distributing Lego’s company (Hjuler & Robertson, 2009).
Additionally, Lego has huge cost advantage since it does their production in low waged regions as well as the advantage of economies of scale. Lego also enjoys a vast variety of expertise that enables them to make competitive decisions. In addition, they have high brand equity that have been created for a long time. Metcalf & Lafranco (2013), argue that Lego has addressed the issue of threat brought about by computer games by moving to electronic gaming. Lego enjoys loyal customers worldwide with exclusive licenses, solid distribution network, financial liberty as well as market experience.
Harley Davidson’s Internal Environment
According to Agnihotri (2013), Harley Davidson is amongst the leading motorcycle companies that have applied technology to their image thus making it stay competitive. The organization possesses a lot of internal resources that strengthen their long-term strategies. It has a great corporate structure that counts as amongst the first divisional structure that used just in time inventory strategy. It is involved in a diversified kind of business that not only includes motorcycles but also includes other related products and financial services.

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