Environmental Scan

1557 Words Jun 29th, 2013 7 Pages
Environment Scan
The week three assignment for Strategic Management MGT 498 involves researching the environmental scanning practices of two to three real-world companies’ internal and external environments and describe their internal and external environments. This assignment provides a brief overview on the competitive advantages of each identified company and what strategies these companies use. Included in the assignment is information on how each company creates value and sustains their competitive advantage through business strategies and what measurement guidelines each company uses to verify their strategic effectiveness. Last, the assignment provides the effectiveness of these measurement guidelines. This paper contains the
…show more content…
The organizational analysis shows Pizza Hut maintains high overhead costs with their full service restaurants, high cost of pizza products leading, and an internal conflict among franchisee owners. In contrast, the external environmental analysis reveals Pizza Hut’s opportunities remain in pricing by creating and offering innovative pizza selections, increased brand loyalty through good customer service, updating customer online ordering system, expanding home delivery services, and entering new markets. Threats, facing Pizza Hut come from Domino’s Pizza as the number one competitor in delivery service. Because Pizza Hut boasts claims as the number one pizza manufacturer, the organization faces threats of competitors matching their products and imitating their strategy methods to gain market share ("Scribd.com," 2012).
The competitive advantage used by Domino’s Pizza is in their delivery service market and the fact Domino’s does not incur the overhead costs associated with sit-in dining restaurants. The competitive advantage Pizza Hut has over Domino’s is in name recognition, brand- in-store dining, and a variety of menu selections. The external environmental factors used by each organization to determine environmental scanning and strategic planning are societal, task, and natural environment reports. Societal environment scanning influences long-term strategic

More about Environmental Scan

Open Document