Str_581_Weke_Two

Environmental Scan and Summary Julie Hull University of Phoenix Strategic Planning and Implementation STR/581 Calvin Lathan July 19, 2010 Environmental Scan and Summary The success of Kudler Fine Foods will depend on its ability to adapt to changes in its internal and external environment. The management team must understand and be able to make decisions as changes occur. To continuously update its strategy, Kudler Find Foods will need to perform environmental scans. Environmental scanning is a method that monitors a firm’s internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans (Business Dictionary, 2010). The objective of environmental scanning is to detect technological, social, economic, events that help define potential threats and opportunities in an organizations competing industry. It will help Kudler Fine Foods management informed of industry standards, forecasts, and trends. Having this knowledge will help Kudler Fine Foods develop a strong strategy. Kudler Fine Foods has several strengths. The company’s mix of products, high quality gourmet and fine foods it provides its customers, and strong reputation in the community because of the freshness and quality of its products are all strenths. This reputation and product mix allows the company to charge a higher price for its high quality specialty foods. In comparison, Kudler Fine Foods has several weaknesses. One weakness is the company has a limited presence and is currently not a national company. Another weakness for Kudler Fine Foods includes fewer resources then its larger competitors that makes it harder for the company to compete, its current network/database is subpar and will have to be upgraded if the company plans to expand, and its website does not adequately showcase the company or its products. Kudler Fine Foods has many opportunities it can take advantage of to make it a stronger company. The company can leverage its reputation and high quality products to help the company expand outside of the areas it currently occupies and into new territory. The company will be able to use its high quality and fresh product mix to help it gain a foothold in other areas and compete with other already established companies. In comparison, one of the major threats that face Kudler Find Foods is its ability to compete with the more established and larger national food chains and other smaller local companies. Another threat the company will have to take into account is its ability to discover and meet the tastes and preferences of the regions the company is entering and making sure that the company can meet those tastes and preferences in a timely manner. Internal scanning involves identification of the basic strengths of Kudler Fine Foods. These strengths are important in global operations because they tend to be the characteristics of the organization, in which host nations value. Within the internal scan, Kudler Fine Foods’ resource strengths and global capabilities will be analyzed. The resources that should be analyzed include technical and managerial skills, capital, labor, and raw materials. The global capabilities that External scanning involves the examination of critical features of the global environment with the attention to the status of the host nations in areas of economic progress, political control, and nationalism. Expansion of industrial facilities, favorable balances of payments, and improvements in technological capabilities over the past decade are gauges of the host nation’s economic progress. Political status can be gauged by the host nations power in and impact on global affairs (Pearson and Robinson, 2009). SWOT Analysis A commonly used strategy tool is a SWOT analysis. This strategy will analyze Kudler Fine Foods internal environment by identifying its strengths and weaknesses. It will also analyze the external environment by identifying its opportunities and threats. The table below illustrates what a SWOT analysis for Kudler Fine Foods might look like: | | Internal | External | |Strengths Strong vision |Strong sense of community | |Weaknesses Lack of distribution Lack of industry knowledge | |Opportunities Develop organic catering |Growth of business | |Threats Lack of product offering | Competition | Kudler Fine Food’s should ensure that its strategy involves increasing customer service. This will include utilizing technology and continuous internal and external scans to ensure customer satisfaction. The scanning will detect technological, social, economic, events that help define potential threats and opportunities in an organizations competing industry. By conducting appropriate industry scans and taking full advantage of available technology, Kudler Fine Foods can realize its optimal strategic direction. As Kudler Fine Foods grows and expands it will have to take advantage of its strengths and overcome its threats and weaknesses. The company will have to focus on reducing expenses and costs to stay competitive and continued growth. The company will also have to continue to offer high quality specialty food to its customers at affordable prices. Kudler Fine Foods will also have to make sure it institutes a comprehensive plan for future growth, which takes into account everything from future locations, expansion of its networks and databases, and the resources necessary to sustain growth. References BusinessDictionary.com (2010). Environmental Scanning. Retrieved on July 17, 2010 from www.businessdictionary.com Pearce, J. A., and Robinson, R. B., (2009). Strategic Management. Formulation, Implementation, and Control (11th ed.). McGraw-Hill, Inc. Kudler Fine Foods Virtual Organization. Retrieved on July 17, 2010 from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler/Internet/Index.htm