University of Phoenix
MGT498 Strategic Management
Environmental scan is the vigilant monitoring and evaluation of a firm’s external and internal environments for detecting early signs of opportunities and threats that may influence current and future plans. In strategic planning, an environmental scan can help an organization increase understanding of the internal and external environmental factors that will require reaching the long term goals of the company. Pepsi and Coca-Cola serve as prime examples of major competitors in the beverage industry and strive to be different although each company produces a similar product.
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This would include basically the managers, employees, stakeholders, and especially the corporate culture of an organization. The external environment includes factors are out of the organizations control. Some of these factors include political, economic, sociological, technological, ecological, and legal factors (Carpenter, M, 2009)
Pepsi and Coca-Cola Environmental Scan
The environmental scan of Pepsi and Coca-Cola will involve monitoring, evaluating, and disseminating of information from the external and internal environments to the key people within the corporations An addition, each company will need to evaluate current performance results, review corporate governance, scan, and assess the external and internal environment, analyze the SWOTT factors, in order to develop the best strategy to implement and evaluate. Potential threats, opportunities for Pepsi and Coca-Cola will be deciphered by examining external factors, such as market trends, patterns, and events that will help each company assess their organizational impact. The internal environments of the cola companies include their vision, mission, strengths, and weaknesses, when culminated with the external analysis each company will develop strategic directions in order to cultivate strategic plans (Morrison, 2006)
Pepsi organization strategies
Officially patented in 1903 Pepsi came on the heels of Coca-Cola, offering a new beverage for the masses because the Pepsi’s growth has been phenomena Pepsi has evaluated continual growth in many of the same ways as Coca-Cola, however” animation a competitor, Pepsi will need to confirm guidance and set performance goals to maintain competitive advantages for investment potential. The most recent performance goals of Pepsi are to grow international revenues at two times of the actual global GDP rate. Increase snacks and beverages market share in the top 20 markets. Sustain brand equity scores. Continue to expand division operating margins, increase cash flow in proportion to the net income growth over the next three years, and deliver total shareholder returns in the top quartile of its industry group to achieve and sustain these goals, Pepsi will need to conduct environmental scanning which will include: defining the environment, industry environment, and macro environment (Andy, 2011)
Of the various scanning methods, such as undirected, conditioned, informal searching, and formal searching, Pepsi will need to focus on active scanning, to concentrate efforts on resources that span the industry and represent different views on each sector. Getting started, Pepsi will decide on the level of scanning commitment that will be the best in the current window of time, for example irregular, periodic, or continuous. With the size and success of Pepsi, levels of scanning will serve well. Primary value chain activities will support Pepsi’s strategic plan with inbound logistics, operations, marketing, and sales, and service. The marketing and...