Environmental Scan

Environmental Scan

This paper will investigate and interpret the internal and external environment of two organizations (Coca-Cola and Pepsi) using environmental scanning. The paper will identify the strategies of the two organizations, their competitive advantages and how the organizations create value and sustain competitive advantage through business strategy. The measurement guidelines used by both organizations to verify each strategy and their effectiveness will also be discussed.

Environmental Scanning.

The text book definition, “Environmental scanning is the monitoring, evaluation, and dissemination of information from the external and internal environments to key people within the corporation” (Wheelen & Hunger, 2010). Environmental scanning is necessary and important to any organization that wants to stay competitive in today’s rapidly changing business environment. It helps an organization project factors in both internal and external environments that influence the success of the organization. Environmental scanning helps organizations set goals and provide ideas on how to reach those goals. It helps determine competitive advantages and adds value to the organization by helping the organization in the development of a business strategy. In order to overcome competition, organizations must use environmental scanning to mitigate threats and identify opportunities.

Internal and External Environments

The two organizations chosen for this paper is Coca Cola and Pepsi. According to Carpenter (2009), internal environment scanning will cover organizational structure, interaction between employees, brand awareness, organization culture, stakeholders, managers and employees. External environment scan will include legal, technological, economic ecological and sociological factors. Internal environment factors can be controlled by the organization, but external environment factors cannot. Internal and external environment is a crucial part of strategic...