Kudler_Fine_Foods_Strategic_Plan_Update

Environmental Scan and Summary University of Phoenix Environmental Scan and Summary The Executive Team at Kudler has expressed a desire to grow more rapidly and as a result Kudler must consider some alternative strategies. Whether Kudler Fine foods succeeds or not depends on its ability to adapt to the changes it faces in its external and internal environment. As changes occur, management must be able to understand and make decisions. In an effort to update its strategy, Kudler must perform environmental scans. “Environmental scanning refers to possession and utilization of information about occasions, patterns, trends, and relationships within an organization’s internal and external environment” (Management Study Guide, 2009). Environmental scans monitor the firm’s external and internal environment. It is used to detect early signs of threats and opportunities that could affect current plans and future plans. Environmental scanning is used to detect technological, economic, and social events that help define potential threats and opportunities in Kudler’s competing industry. The environmental scan will help Kudler’s management stay informed of industry standards, tends, and forecasts. This knowledge will help Kudler develop a stronger strategy. Internal Scanning is an internal analysis of Kudler’s environment and is the first step of environment scanning. Observing Kudler’s internal environment entails employee interaction with other employees and management, management interaction with other managers and shareholders, access to natural resources, organizational structure, brand awareness, operational potential, etc. Surveys, interviews, and discussions can also be used to assess Kudler’s internal environment. Evaluating the internal environment is useful for determining the strengths and weaknesses of any organization. Major changes in the external environment occur when a business becomes more competitive. The information from Kudler’s external environment will be crucial to the effectiveness of Kudler’s long-term plans. Kudler has to be agile and vigil to adjust the external environment changes since environmental factors are infinite. Changes in factors like competitor’s activities, market tastes, preferences, and technology are external environmental factors for which Kudler must scan. Three related environments should be studied and analyzed in Kudler’s external analysis: national environment, immediate/industry environment, and macro environment/socio-economic environment. When examining the national environment, an appraisal should be done of whether the national framework aids in reaching competitive advantage in the globalized environment. An appraisal should be done of the competitive structure in Kudler’s industry when examining the immediate/industry environment. This includes the competitive position of Kudler and its major rivals. When analyzing the macro environment/social-economic environment, the macro-economic, social, legal, government, international, and technological factors that could influence the environment should be analyzed. In conclusion, an environmental scan is necessary to complete in order to accomplish Kudler’s Executive Team’s desire to grow more rapidly. Changes in Kudler’s internal and external environment play a major role in Kudler’s potential for future success. An environmental scan evaluates relationship the internal and external environment of the organization and can be used to update Kudler’s strategy. Other related environments that should also be considered are addressed as well. References Management Study Guide. (2009). Environmental Scanning – Internal and External Analysis of Environment. Retrieved September 27, 2010, from http://www.managementstudyguide.com/environmental-scanning.htm.