Environmental Scan
Environmental Scan
Environmental scanning identifies the external and internal trends that influence the future direction of a business. This process provides the tools for evaluation within the three companies and how the process works. This paper will provide research regarding the internal and external environments for each of the three corporations. The changing environment in the marketplace will provide each business with the challenges and opportunities for competing and growing each business. The companies must adapt to the changes in the business environment for the long term survival. “Environmental scanning is the monitoring, evaluation, and dissemination of information from the external and internal environments to key people within the corporation” (Hunger & Wheelen, 2010, p. 98). The environment scanning for each company will be examined from each companys strategy for the sales.
Target
Target is following a functional strategy because it sells great products at low prices but it also makes product of equal value. External and internal environments have made Target come out with their brand that makes just about everything that customers require on a daily basis. They produce paper towels, clothes, sandwich bags and a variety of other products that are used in everyday life. They create value in their company by making products that fit every budget. There are items in the store that are of great quality and the price matches the quality but they also have low priced everyday use items that keep people in the store. Stockholders are getting returns on their investments and the customers are getting what they are paying for.
Their Red Card promotion links customers bank accounts to the store and gets a 5% discount on top of the other savings that they already get. (“Redcard®”, 2013). Target is very technologically savvy as well. They offer a free award winning application, mobile website, and full website to allow the technologically savvy generation to shop in every possible way they could imagine. There are other stores such as Wal-Mart that have the stereotype of attracting lower quality customers but Target prides itself on making sure customers expect more and pay less (“About Target”, 2013). Their brand means a lot to them and they want to give every customer a seamless shopping experience with great customer service.
Their return on investment is good for the company and it is seen in the stock trend of the company. They have continually increased their stock price over the last 5 years. Their stock took a dive during the recession that took place in 2008 dropping down to the high 20s but has since increased every year to its current status of $64.73 as of September. They are happy with the way things are currently going and only look to attract