Environment Scanning

By:- Divya Pandey MBA( General C) Id No:-152510133Environment ScanningOn Walmart

Environment Scanning

Environmental Scanning gives a road map for further processes.

The process of collecting, analyzing, and distributing information for tactical and strategic purposes

Brown and Weiner defined environmental scanning as "a kind of radar to scan the world systematically and signal the new, the unexpected, the major and the minor" .

Kinds of environmental scanning:-Ad-hoc scanning :- Short term, infrequent examinations usually initiated by a crisisRegular scanning - Studies done on a regular schedule (e.g. once a year)Continuous scanning (also called continuous learning) - continuous structured data collection and processing on a broad range of environmental factors.Purpose of an environmental scan:To know what is the appropriate business to start in the place.To develop strategies that you will do to get ahead of competitors.A corporation uses this tool to avoid strategic surprise and to ensure its long-term health.

Environmental Scanning & Monitoring Techniques:-

Techniques

SWOTQUESTPESTCompetitor AnalysisIndustry Analysis

Environmental scanning on "WalMart":-

History Overview:-

1970: Walmart became public1990: 1st National retailer1991: International Expansion1993: Creation of Great Value1962: Walten Brothers opened fist Walmart in Arkansas2003: Largest corporation in the world2012: 50th Anniversary

Mission Statement: To help people save money so they can live better Goal: Becoming in an international brand Vision: If we work together, well lower the cost of living for everyonewell give the world an opportunity to see what its like to save and have a better life. Advertising slogans: Save Money. Live better

Walmart store inc. the largest retailer and the largest company in terms of revenue.

LOGOS:-The above are the logos of Walmart since 1962 and then upto now.

Founder Of Walmart:-Samuel Moore "Sam" Walton was an American businessman and entrepreneur best known for founding the retailers Walmart and Sam's Club.(March 29, 1918 April 5, 1992)

Background:-

Started on 2nd July 1962 ,headquarters in Rogers, Arkansas.Public Traded company Listing in New York stock exchangeLaunch of supercenter concept

ORIGINATION STRUCTURE:-

Information system is centralizedOperation is decentralizedMeetings provides opportunity for customer feedbackOrigination is based on 3 basic valuesRespect for the individualService to the customersStriving for excellence

Internal And External Analysis Of The Firm :-

Firms Value Chain:-

General administrationHuman resource managementTechnology developmentProcurementInbound logisticsOperationsOutbound logisticsMarketing and salesService

Firms infrasctructure: close connection between headquarter and local stores.

Human resources: Based on Interaction practices between company and employeesLow pay but other benefits (health care plans, retirement plans, or promotion opportunities)2.2 millionassociates globally. Every time we open a supercenter, we provide roughly 300 jobs Women57%of our U.S. workforce, 27% of corporate officers, and 20% of ourBoard of directors.Techonology development: It is the key factor of the company. It constitutes a competitive advantage against competitors.- Computer-based technology POS (Point of sales) system Satellite SystemProcurement:Wal-Mart deals directly with manufacturers, by passing all intermediaries. EDI : Electronic data interchange MANUFACTURER WALMART - CUSTOMERS

Support Activities:-

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Primary ActivitiesInbound LogisticsOperationsOutbound LogisticsMarketing and salesService-VMI system (Vendor managed inventory) continuous replenishmentEDI (Electronic Data Interchange 3 business segments:a)WalMart storesSuper centersDiscount centersNeighborhood markets

b) SAMS Club

c)WalMart internationalHub and spoke distribution system.

CROSS DOCKING: logistic technique to make the distribution process more efficient

- Word of mouth communication.

focuses on everyday low prices

Save money, live better

Sales are on a self-service, cash-and-carry basis.

accepting returned goods

Satisfaction guarantee

- Opening hours(24/7)

Business Formats:-Walmart Discount Stores 629 in the US

Walmart Supercenter: Walmart Discount Stores + Full Service Supermarket. 3,029 in the US.

Walmart Market: Previously branded as Walmart Neighborhood Market. 199 in the US.

2) Sams Club. Buy in large quantities. 611 opened in the US.

1) Walmart Stores

Distribution Channels:- Saturation StrategyThe company owns a fleet of more than 3,000 trucks and 12,000 trailers.The Wal-Mart Way Cross Docking.

SWOT analysis of WalMart:-

SWOT is a acronym for: (STRENGTHS-WEAKNESS- OPPURTUNITIES,-THREATS) STRENGTHS:-Employee advancement programsCampus recruitmentGood retention rateTraining and DevelopmentSams suggestion systemWalmart is powerful retail plant

Walmart has grown substantially over recently year, and has experience global expansionThe company has a core competency involving its user of IT to support its international logistics systemA focus strategy in place for HRM and development.

WEAKNESS:-The corporate is huge but still has presence in 14 countries Customers sometimes are curious about the quality of productsKeep poor performance employee on hand The market share is low outside the US marketSupplies profit margin is very low OPPURTUNITIES:-Take over , merge with , or form alliances with global retailers focusing on specific market such as Europe or China

THREATS:-Due to recession in 2008-09 the purchasing power of customers is reducedMarket development untapped market specially.Being leader it faces a lot of competitionPoor human relation

PESTEL Analysis Of Walmart :-Political: Policies on economy, trading agreements (NAFTA) . Economical: Unemployment Rate, slightly increase in consumption.Socio Cultural: Faster pace of live- Efficiency is key. Technological: Use of IT technologies. Online shopping. Environmental: Recycling, Contamination issues. Legal: More laws and more complex.

Bargaining Power of Customers: LowCustomers usually make small purchases. A large number of customers.Wal-Marts main customers are individuals.2. Bargaining Power of Suppliers: Medium-LowWal-Mart purchases huge quantities of products from its suppliers.Low switching costs from one supplier to another.Products have a lot of substitutes.Almost all the products are not critical for Wal-Mart.The Five Forces Model

The Five Forces ModelPotential entrants / Barriers to entry: Medium-HighEconomies of scale.High capital requirements.Customers mainly look for products with low prices and standard quality.Low switching costs among companies for customers.Requires a precise distribution system.Power of Substitutes: HighPrices and quality of substitute products are very competitive.Performance of substitute products are similar.Consumer switching costs are low.

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5. Potential Competitors/ Rivalry: HighWal-Mart represents the 25% share of the U.S. Supermarket business.Competitors have similar sizes.Industry growth is slow.Exit barriers are high.There is a high production capacity

WAL-MART main competitors:Retailer Industry: Target K-MartSupermarket Industry: Dollar General Lowes Food.

Article N0-1 This article is on A Primer on Environmental Scanning in Higher Education By Society For College which acts as integrated planning for Higher Education by:-Phyllis T. H. Grumman Age: 10, born about 1930 Birthplace : MichiganGender: FemaleRace: White

Phyllis Grumman has over thirty years of experience as a change agent and community builder. As an organizational psychologist and facilitator, she engages work groups in optimizing their human and business interactions. Phyllis Grumman's career provides her with a knowledge of organizations in manufacturing, insurance, mental health, policy analysis and development, and education and training .

Analysis and Review:-

This article describes about environmental scanning and its dimensions as well as this article focuses on deep scan of environmental of various dimension includes demographics, economics , Global Education ,Politics and Technology to plan for integrated and higher education . This article was written by Phyllis T.H. Grumman.

Describes the demographics of the schools of regional, national as well as includes population estimate , increase in any fatal diseases and other, as well describes about changes and effect of migration pattern of people in schooling system.

Factors such as the costs of energy, construction materials, and consumer goods, as well as increases in demand across the globe, have had significant effects on local markets and economies. Scanning for trends in global education involves attending to the economics and politics of education, as well as changes in the efficacy and delivery of instruction and research. Politics is about power, and understanding how power is being exerted is a necessary part of any environmental scanning process. Higher education contributes to political discussion, for example, through research studies that influence policy decisions. Any political changes that might affect the willingness of a country, state, or region to fund and support education are ones that must be watched over time. Technological advances affect education in many ways: how students are taught, where they learn, what research faculty members can pursue, how institutions are operated and managed. Also helps in identifying and using the emerging trends.

Article 2 :-

This article was published on 2008 july on Environmental Scans on Can Fam Hospitals by following researchers to enquire about the health care environmental scanning:-Paul Graham,( MA MLIS ), Research associate and librarian working in the Department of Sociology at the University of Saskatchewan in Saskatoon.Trina Evitts, (MA), Research facilitator in the College of Nursing at the University of SaskatchewanRoanne Thomas-MacLean, (PhD), Associate Professor in the Department of Sociology at the University of Saskatchewan

Analysis and Review :-according to this article , is about critical examination of the environmental factors to design the effective health programs uniquely according to the need of the communities and how can the health services utilized.

These environmental scans is a tool for retrieving and organizing data for decision making. Not only to business organizations but other as well health organization carry on these scans and get benefited to know about nutrition , women's health and other issue to gain knowledge.This article gathers the internal as well external sources of data including memos, personal communication, minutes of the meeting or other internal documents and various other sources. Includes two approaches:- a) Passive Approach :- (collecting existing knowledge)b) Active Approach :- (i.e. creating new knowledge involves an organization taking action and analyzing reactions and creating data collection tools to obtain data.According to this , still environmental scanning lacks the effective measure of scanning because of absence of diverse approaches. One of the scan was used to determine cancer screening among African Americans and screened out 312 men and 169 women suffered from cancer. and also the researchers realized the best way to train volunteers and staff ,to reach them was face to face meeting. This approaches mainly helped for collecting data for being conducted to determine what types of physician mentorship programs are in place in Canada. At last as the article covers a short description of the health scan area , this is the valuable tools in health decision making and if environmental scanning method is designed in consultation with and information specialist and provides evidence for policy and decision making and program planning and resulted as same that lead to evidence based solutions to health care issues.

Article no:- 3 Writer of The Article and Background :- Bronwyn HiggsLecturer at Victoria University Melbourne Area, Australia Education ManagementAs Bronwyn Higgs explains, environmental scanning can enrich your understanding of the marketplace and give your company a competitive edge.Soon to be retired academic in marketing and advertising, has been a regular contributor to Australian Marketing Magazine (mainly in the area of new media and implications for marketing theory and practice), has published scholarly articles in academic journals in fields of advertising, media usage, consumer behavior, arts marketing and local history, also works as a freelance journalist on a range of historical topics, has carried out honorary service as publicist to sporting clubs and an amateur symphony orchestra, has also assisted various musicians with publicity, marketing, advertising as well as applications for grants/ funding.

Specialties: Professional: social and interactive media, problem based learning, marketing of the artsPersonal: jazz, gardening, history, genealogy

Analysis and review:-This article is an adaptation from the book of Marketing in 2006.Environmental Scanning is the technique of Analyzing the environment and many of the researchers focuses on the PEST Analysis Technique of the Scan . PEST is the acronym for Political, Economic, Social and technological and this scan would be very systematic and effective method . Following measures are defined to be taken in consideration for the environment scan:-Keep an open mind:- An analyst must be always open to "what you are looking for" and "what you want to do".Scan internally and externally:- Deep research of the internal scan of the employees of the organization as well as the documentation etc. and external san of the environment of political, economic , social and technological.Scan Copious amounts of data and use of various analytical techniques :- Relevant and ample of data to be scanned and for numeric presentation technique to be used for evidence based results.Focus on change:- Change is the rule of nature and to be maintained in the dynamic world just flow with it but in a right direction.Conduct an initial , superficial Scan and using reliable sources of data :- None can go through the deep, so suface scan in a quick manner is to be done and data must be relevant.