Environmental Scanning

Environmental scanning can be viewed as a way of acquiring information about outside events that can aid organizations in first identifying potential trends, then interpreting them

As economic growth increases moderately in 2014, the rate of inflation is expected to remain below 2 percent. The price of goods in the country will continue to be restricted by global competition and use of production capacities that are relatively low as compared to historical averages. In addition, the inflation rate will remain below 2 percent because of decrease in energy prices and small increase in the prices of food. Nonetheless, while energy prices continue to reduce this year, the percentage of the decrease will be less while food prices may regain normal rate of growth.

Environmental scan in essence analyzes and evaluates the internal as well as external data and factors that influence the organization. Environmental scan entails the acknowledgment of a company’s environment that has potential effect on the organization’s operations and consequently, is critical in devising and implementing successful strategies. Apple Inc. is a leading international company that specializes in the production of computer software, commercial servers and consumer electronics. Its key products include iPhones, iPad, iPod and Mackintosh computers. The company has been in operation for the past 36 years.

Many Americans spent their new disposable income on the automobile, which was one of the most significant innovations of the decade. It helped further stimulate the American economy while also improving transportation. Whereas only the wealthy and elite owned automobile prior to this decade, the advent of mass production made the automobile accessible to everyone. Mass production made it much easier and faster to make automobiles,

     In this year Henry Ford created the first affordable, combustion engine car called the Model-T. The creation of the Model-T changed the lives of every American. Vehicles were looked at as a way of freedom and excitement. Soon after, every household in America had a car. The demand for vehicles sparked a whole new industry, creating jobs, more revenues and improving the American economy in every way. With so many vehicles on the roads, roads needed to

During this time period, America saw a great change in its economy. After WWI, many citizens had extra time and extra money. Due to the surplus, they were eager to attain a variety of new products on the market. The greatest example of these technologies is the automobile. Not only did the car become affordable through the use of assembly lines, but it also gave the public an opportunity to travel and live in areas other than the city. Although there was not a great selection of cars back then, progressive advertisement strategies persuaded the public that they indeed needed a car.

1. Environmental scanning – A version of environmental scanning in which the firm identifies desirable markets by using the environmental forces to eliminate the less desirable markets

How should this market be segmented? Identify the key segmentation variables that are relevant for this market.

To assure the success of a business over a long period of time the business must be able to conduct regular analysis of their success. They must be able to determine where they are today and have a goal of where they would like to see themselves 5-10 years down the road. In order to conduct a true analysis of the company, one must complete an environmental scan of their organization. Thus scanning for events, trends, issues and expectations that they may be faced with in the future. Furthermore, examining all internal and external environment challenges. Internal environmental challenges may be with employees, shareholders or board of directors or the overall culture of the organization. External environmental

To stay tuned to the recent situation in order not to miss perspective opportunities, an organization should go on with continuous scanning of its environment. According to Jobber, environmental scanning is “the process of monitoring and analyzing the marketing environment of a company” (Jobber, 2010, p.93). Aguilar states (Aguilar, 1967, cited in Costa, 1995, pp.4-5) that environmental scanning serves the purpose of gathering information about the facts and events happening around the company in order to let the management lead the organization in the right direction. Most of the authors agree on the same main function of environmental scanning.

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

Environmental analysis is important for a company. This allows for the company to look at external factors that will help them to succeed or fail. Environmental analysis could be internal as well as external. The internal analysis allows the company to look within and analyze the successes and see where improvement can and should be made. The external analysis looks at factors such as location, marketing, and surrounding areas to analyze if the these factors are what is best for the company.

Environmental scanning involves an organization to look at any trend, opportunity or threat that could create issues for their company. Once any of these issues are identified, the organization should consider new strategies that react to these external factors. Issues should be examined that involve not only direct customers and suppliers, but also competitors, any changes in regulations and possible political involvement. External factors will be constantly changing so environmental scanning should occur frequently and regularly to ensure the current issues have been captured. Research and data analysis can help drive decisions regarding overall marketing changes that might be necessary.

Demand is being forecasted to grow at an annual rate of 20% for the next 3 years.

MPC's sales outside the United States now approached 40% of the total, two-thirds of which took