We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Environmental Scan Paper

The whole doc is available only for registered users

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

The concept of environmental scanning is important because of the short term and long term success of a company. This tool helps companies scan, monitor, evaluate, and forecast the internal and external parts of the company. In order to obtain an accurate assessment of the internal and external variables of a company, the business managers would have to use a SWOT analysis to develop awareness to different of the company. For example, the company could want to measure consumer behavorior, competitor behavior, and current trends in their marketplace. Environmental Scan and SWOT Analysis

The information discovered from conducting an environmental scan and SWOT Analysis is vital to an organization’s success as it will help businesses gain an accurate assessment of the opportunities, trends, and consumer behavior taking place in their market environment. Develop a full-awareness of their marketplace so that their organization can improve on their strategic planning and decision-making (U.S. Department of Health and Human Services, n.d.). This information will also help companies Verify if the organization has the internal resources they need to achieve their organizational goals and objectives. The environmental scan and SWOT Analysis will help establish the vision and strengths of the organization so that they can identify their organization’s strengths, weaknesses, opportunities, and threats (CPS Human Resource Services, 2007).

To show the benefits of an environmental scan and competitive advantages that could result from this tool, this paper will conduct an environmental scan of the companies A.O. Smith Water Products Company and Nike Incorporated. The environmental scan of these two companies will examine A.O. Water Products Company and Nike Inc value and sustain their competitive advantages using their business strategies. This environmental scan will analyze the measurement guidelines that both companies use to verify their strategic effectiveness. The environmental scan will also; examine the effectiveness of both companies’ measurements guidelines. Nike Incorporated

Nike Incorporated is one of the more successful Fortune 500 companies as this organization has built a business reputation as the leading sports apparel and footwear provider in the world (Nike, 2011). Nike creates value and sustains their competitive advantage in their marketplace by focusing on these following strategic initiatives such as acquisitions and global partnerships. Nike has partnered with global soccer associations, and they have acquired subsidiaries, such as Converse, Cole Haan, Hurley International LLC. (Nike, 2012). Inside Nike Incorporated

The company has created a large selection of new, innovative products that could be commercialized and distributed to Nike consumers around the globe. Nike Incorporated is Continuing the process of ingenuity and innovation of Nike Technology and finding different ways to create a more efficient and sustainable product and supply chain. Nike Incorporated connects with Nike’s consumers through communication channels, such as digital marketing, sports marketing, and event marketing. Nike continues to look for new ways to improve efficiency and lower costs without sacrificing the quality of their products and the delivery times that it takes to get Nike products to Nike’s consumers in a timely manner. Nike Incorporated main Focus is on using more environmentally friendly materials, and reduce the amount of waste that Nike’s organization’s uses to manufacture their products.

In order to measure the effectiveness of their strategic initiatives, Nike has implemented a manufacturing index, which allows their organization to take a comprehensive look at their factories total performance, and the techniques those contract factories are using to achieve sustainability (Nike, 2012). Nike’s manufacturing index is a very effective assessment tool as it allows Nike to “elevates labor and environmental performance alongside traditional supply chain measures of quality, cost and on time delivery” (Nike, 2012). After conducting an environmental scan on Nike, this research has discovered that Nike has placed their organization in the best position to sustain their reputation as the world’s leader of athletic shoes and apparel. Nike Incorporated has limited competition because no athletic shoe company can sustain the level of innovation and excellence that Nike has done over the years. A.O. Smith Water Products Company

A.O. Smith Water Products Company is one of the world’s leading manufacturers of residential and commercial water heating equipment and technology. Because of the company’s engineering excellence and customer service, A.O. Smith has been able to expand the business operations into more than 60 foreign territories by increasing the development of their water heating equipment by way of innovative technology and acquiring different domestic, global partnerships, and acquisitions. To establish and sustain the success they have already achieved, the business leaders at A.O. Smith implemented a vision that would allow their organization “to be the global leader in applying innovative technology and energy efficient solutions that provide comfort and convenience to life” (A.O. Smith, 2008). A.O. Smith’s company vision has allowed the organization to net annual sales of $1.49 Billion (2010) and $1.71 Billion (2011) with earnings of $57.3 million and $111.2 million in 2010 and 2011 in succession (A.O. Smith, 2011). Growth

A.O. Smith creates value and sustains their competitive advantage in the marketplace environment by following strategic initiatives in the company’s growth. The company develops and introduces a consistent stream of new and innovative residential and commercial boilers, motors, and hybrid heaters Such as solar heaters, water heaters, and gas heaters. The company also acquires partnerships and acquisitions in different foreign markets to increase their product awareness, consumer or investor based sales, and profits. The company has continually delivered quality products and customer service at a reasonably affordable price. The company offers different contractor rewards, warranties, and logo merchandise. (A.O. Smith, 2012). Business Improvement

A.O. Water Products Company creates maximum return value on each dollar the company invests. The company offers continual improvement of their products by limiting the number of product defaults, and improving the effectiveness of their business processes and systems. A.O. Smith improves their customer service flexibility, speed, and communication. The company has also created a world class supply chain that has the capability to deliver their boilers and heaters in a time efficient manner to the more than 60 countries. A.O. Water has achieved and sustained their competitive advantages over their competitors by maintaining their innovative edge and number of products sold and delivered around the world.

A.O. Smith sustains a high quality organization by establishing and sustaining a strong effective leadership structure. The company has created and promoted an innovative workplace environment that will allow A.O. Smith to stay ahead of the technological environment as it changes. A.O. Smith promotes a workplace environment that encourages diversity, equality, and cross cultural team participation. The company has created a history of quality and energy efficient products. in order to measure the effectiveness of these strategic initiatives, A.O. Smith uses evaluation tools such as creating a strategic map of the company’s financials, growth, customer service, and scorecards that tracks the number of products defective or causalities. A.O Smith uses a survey that measures the quality and speed of things, such as the speed and efficiency of their energy efficient products, consumer satisfaction, and training programs. The company conducts random inspections that examine the effectiveness of their supply chain process through the use of IT metrics.

Each of these measuring guidelines is very effective at ensuring that each of A.O. Smith organizations domestic and foreign are sustaining the standard success and engineering excellence. Additionally, these measuring guidelines also helps A.O. Smith align their organization to their strategic initiatives and gauge the effectiveness of those actions. As far as A.O. Smith threats, there are no immediate internal threats to their A.O. Smith dominance of the water industry, there are several external threats their organization must be cautious of and those threats includes a constantly changing technological and economic environment. Decreased consumer demand for their products because of rising costs such as production, materials, distribution, and similar energy efficient products sold at a cheaper price. Each of these issues could have a tremendous affect on the financial performance of A.O. Smith in the marketplace. Conclusion

The environmental scan of A.O. Smith and Nike Incorporated has identified and examined how those successful organizations have established and sustained their competitive advantage. The environmental scan has evaluated how Nike and A.O. Smith measure the success and effectiveness of strategic initiatives. The information discovered from this research has displayed the importance of environmental scanning and how even the most successful corporations use that assessment tool to maintain their present and future success in their business marketplace.


A.O. Smith. (2011). About A.O. Smith. Retrieved, November 17, 2014 from, http://www.aosmith.com/About/Default.aspx?id=54 A.O. Smith. (2008). Vision and strategy. Retrieved, November 17, 2014 from, http://www.aosmith.com/About/Detail.aspx?id=122 CPS Human Resource Services. (2007). Workforce planning tool kit: Environmental Scan and SWOT Analysis. Georges, R. (1999). The importance of environmental scanning in business and ICT environments. Retrieved November 17, 2014 from, http://www.ehow.com/facts_7879244_importance-scanning-business-ict-environments.html Nike, Inc. (2012). Career areas. Retrieved November 17, 2014 from, http://nikeinc.com/pages/career-areas Nike, Inc. (2012). FYI 10-11 sustainable business performance summary. Retrieved November 17, 2014, from, http://nikeinc.com/news/nike-inc-introduces-new-targets-elevating-sustainable-innovation-within-business-strategy

Related Topics

We can write a custom essay

According to Your Specific Requirements

Order an essay
Materials Daily
100,000+ Subjects
2000+ Topics
Free Plagiarism
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access

Your Answer Is Very Helpful For Us
Thank You A Lot!


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59