Environmental Scan Essay

The week three assignment for Strategic Management MGT 498 involves researching the environmental scan practices of two to three real-world companies subjective and external environments and describe their internal and external environments. This assignment provides a brief overview on the free-enterprise(a) advantages of from each wizard identified company and what strategies these companies use. Included in the assignment is information on how each company creates value and sustains their hawkish advantage through demarcation strategies and what measurement guideposts each company uses to verify their strategic say-so.Last, the assignment provides the effectiveness of these measurement guidelines. This paper contains the environmental practices of half mask pizza pie, Inc. versus pizza pie field hut, Inc. Stakeholders, customers, and members of an giving medications board of directors expect executive leaders to balance the strategic flout of a company to what the envi ronment wants and what the corporation has to offer. The expectation necessitates executives to strike a balance between what the corporation needs to what the environment can provide.The organisational balance involves both the internal and the external stakeholder. Environmental scanning allows an presidential term to identify possible external opportunities and threats, and look within the organizations internal environment for potentials and weaknesses (Wheelan & Hunger, 2010). The fast fodder culture in the unify States has grown from a $6 billion-a-year industry in 1970 to a big corporate franchising empire earning more than $170 billion in unrivaled-year revenue (Food Empowerment Project, 2010). Leading the way in the fast food culture is the pizzeria industry.The pizza industry is a upliftedly competitive securities industry. Although there are many pizza makers ranging from local pizzerias to international franchises, half masks pizza pie, Inc. , and pizza pie H ut, Inc. are two major restaurants within the industry. In 2009 pizza pie Hut, lead the industry with $29 billion and 18% of pizza sales, whereas dominos pizza took 10% of this food market with approximately $290 jillion in sales revenue (Young, 2009). The two enemys battle for consumer appetites, consumer dollars, and consumer attention.Before founding into a major marketing campaign, development valuable corporate resources each company implements a strategic plan with an analysis to identify the weaknesses and threats of their competitor. When eye masks conducted an organizational analysis to identify strengths and weaknesses, the company recognized their biggest strength is in name recognition, pizza delivery, and take-out pizza. The company bring ins the importance of mail look-alike and further understands a healthy marking image creates customer homage and helps the company when introducing new products into the market. eye masks enjoys a strong problem networ k with franchise owners and boasts a diversified franchise market. Because of the diversification and strong network capabilities with franchisees, Dominos can ontogeny domestic and planetary market office, and change magnitude sales opportunities. In contrast, Dominos weakness relates to a decline in domestic store sales impact brand image and companys profits (Henry, 2010). Consequently, Dominos opportunity over competitors is their focus on pizza delivery services.Pizza delivery for Domino has improved operating effectiveness with minimized spending. other opportunity for Dominos is the mobile device industry. Threats to Dominos let in competition in the pizza delivery industry, consumer health awareness, and an increase of labor and food prices (Henry, 2010). On the other hand, Pizza Hut, Inc. is the figure one pizza manufacturer in the pizza industry enjoying strong brand image and recognition, and their organizational analysis revealed some of the same strengths as with Dominos.In addition to a strong brand name, their organizational strengths include a competitive advantage in developing a biggish network of full service pizza restaurants with delivery service, targeting different segments with a broad shop of products, and a strong franchisee network. The organizational analysis shows Pizza Hut maintains high overhead costs with their full service restaurants, high cost of pizza products leading, and an internal conflict among franchisee owners.In contrast, the external environmental analysis reveals Pizza Huts opportunities remain in touch on by creating and offering innovative pizza selections, increased brand loyalty through good customer service, updating customer online ordering system, expanding home base delivery services, and entering new markets. Threats, facing Pizza Hut be from Dominos Pizza as the number one competitor in delivery service. Because Pizza Hut boasts claims as the number one pizza manufacturer, the organization f aces threats of competitors matching their products and imitating their strategy methods to gain market share (Scribd. om, 2012).The competitive advantage employ by Dominos Pizza is in their delivery service market and the fact Dominos does non incur the overhead costs associated with sit-in dining restaurants. The competitive advantage Pizza Hut has over Dominos is in name recognition, brand- in-store dining, and a variety of menu selections. The external environmental factors utilise by each organization to determine environmental scanning and strategic planning are societal, task, and natural environment reports.Societal environment scanning influences long-term strategic planning and takes into consideration economic forces, technological forces, political-legal forces, and sociocultural forces. Task environmental scanning involves remaining aware of the trends and changes within the single industry, and natural environmental scanning involves those factors bear upon the ec ological system and how the organizations light speed footprint affects the ecological system (Wheelan & Hunger, 2010). both Dominos and Pizza Hut value and understand the power of the consumer and are attentive to trends affecting consumers.The business strategy applied by each organization focuses on the customer and making each operation more efficient. For instance, Dominos focus is on the fast-food side of the pizza industry and places emphasis on take-out and delivery services. Pizza Hut on the other hand, prefers to offer consumers the survival of take-out, delivery, or dining-in. Each has created value with advantages of the Internet. With online ordering and delivery services offered by both, placing value on consumer personal time is a value added.However, Pizza Hut sustains a competitive advantage over Dominos with customer service, upgrading customer online ordering systems, expanding home delivery services (Wheelan & Hunger, 2010). twain restaurants use various adver tising strategies as a measurement guideline to verify how their strategic effectiveness brings a return on investment. Both restaurants rely heavily on television advertising campaigns, which account for 92% of Pizza Huts paid media advertising, and 94% of Dominos paid media advertising (Young, 2009).In using kindly-media as a strategy, Pizza Hut implemented a broad-range of programs across social media outlets. According to reports, intimately 400,000 people view Pizza Hut advertising through social media. Dominos social media efforts, reaches 370,610 potential customers with both Dominos and Pizza Hut tripling their investment in online advertising. Dominos primarily promoted delivery service across a broad range of sites, including Amazon, Ask, Yahoo , MySpace, Facebook, College Humor, Yellow Pages, and local newspaper sites.Pizza Hut used their key product calendar to push online sales, sending users to the companys website to place delivery orders targeting a younger and mor e female-skewed audience to sites, including ETonline, Cosmo Girl, Elle, Fandango, and bedevil News. Each restaurant uses mobile device apps to reach consumers. Pizza Huts app allows customers to order menu items directly from their mobile devices by using an intuitive touch-screen interface. The Dominos mobile-ordering application is an iPhone optimized web app.By visit Dominos. om, customers use an ordering system designed specifically for iPhones or an iPod Touch. Dominos Pizza used an outdoor campaign, whereas Pizza Hut did not (Young, 2009). The effectiveness of the guidelines used by each company to measure their efficacy to grab the attention of consumers is in the tale of sales receipts. According to Young, Dominos use of TV ads directed toward recession-related advertising, and value-based offers showed good focus and resulted in a positive impact on traffic and sales. Their online and search practise supporting those promotions led to increased uptake with online delive ry.A recent market share report ranked Dominos Pizza number one in online sales with an increase of 28% in market share, up from 11%. On the other hand, Pizza Huts use of smart media programs, particularly in social media did not increase sales. In fact, Pizza Huts receipts were down by 8% (Young, 2009). In conclusion, environmental scanning allows companies to dissect the competition to determine opportunities and threats allowing management to create a strategic plan to propel their organization in front of respective competitors.The process allows organizations to look within to understand internal strengths and weaknesses and look at changes needed to support identified opportunities and threats of competitors. In the case of Pizza Hut and Dominos, Pizza Hut has brand and name recognition above Dominos Pizza. However, Dominos environmental scanning identified an opportunity against Pizza Hut with online sales, thence propelling Domino has to gain valuable market share increase sales by 11% whereas Pizza Huts sales fell by 8%.