Aligning Competitive Strategy With The Term Paper

Length: 4 pages Sources: 1 Subject: Business Type: Term Paper Paper: #14657898 Related Topics: Environmental Scan, Reading Strategies, Growth Strategy, Internal Environment
Excerpt from Term Paper :

That is not so much a contradiction of the research but a limitation of it in terms of applicability to practitioners running small manufacturing companies.

Critique of Environmental Scanning: Frequency and Scope

Beal (2000) bases his methodology for assessing environmental scanning on twenty eight specific items that CEOs of 101 small manufacturing companies responded to as part of the research effort, and later analyzed them using factor analysis. Using Varimax rotation in factor analysis to explain variances across the results, company's management capabilities and resources (.824) and company's financial capabilities and resources (.811) were found to be the greatest two factors across all twenty-eight measured in terms of explaining variations in environmental scanning resulting impact on related environment/competitive strategy alignment. Scanning multiple situations or events occurring in an environmental sector will be positively related to environment-competitive strategy alignment, which is the second hypothesis of the research project (H2) looks at the effect of scope of scanning on external alignments by stage of the industry lifecycle. What emerges from this analysis, shown in Table 4 of the Beal (2000) article is that alignment of low cost ownership and the maturity stage have the highest mean square error (.56* followed by alignment of innovation differentiation during the growth phase (.502). It is feasible to argue that these are tow two most visible aspects of an industry's lifecycle as well, and that even cursory external environmental scanning of an industry can delineate its relative growth through innovation, or its relative stagnant level of sales and the inevitable price competition markets that have matured begin to exhibit. What is most surprising of all in this study however published by Beal (2000) is the statement "Third, the frequency at which CEOs of small manufacturing companies scan their environments may not be critical to aligning their firms' competitive strategies with the stage...


44) contradicts other findings, assumptions and research from the literature review of the entire published article. Isn't this the basis for the article in the first place? That externally scanning the environment can pay major dividends even to small manufacturers? Incredulously this statement sticks out after the argument and factor analysis including Varimax rotation to ascertain the level of variation defined by twenty three differentiation factors and twenty eight environmental scanning factors. Apparently the results were not as conclusive from a theoretical as they were from an empirical standpoint for Beal to make this assessment.


While Beal (2000) posits a unique and potentially insightful methodology of isolating both the sources of differentiation, their effects on small manufacturers, and the outcomes of external environmental scanning, the author fails to deliver prescriptive and concrete findings for the small business and small manufacturing practitioner.

Instead of having a set of processes to evaluate and consider for improvement first through external scanning and then through internal implementation, benchmarking, and continual improvement, the author stays at such a strategic level on the analysis as to make all findings generic in nature. The author, Beal, needs to go back and delve deeper into which manufacturing processes need improvement, by specific manufacturing verticals, to make this analysis useful for the small manufacturers it is presumably completed to assist. Lastly, contradictions that create confusion such as the statement on page 44 defined earlier need to be intermediated against so the entire article has a single, cohesive direction.


Beal, R (2000).Competing effectively: Environmental scanning,…

Sources Used in Documents:


Beal, R (2000).Competing effectively: Environmental scanning, competitive strategy, and organizational performance in small manufacturing firms. Journal of Small Business Management. 1, 27-476.

Cite this Document:

"Aligning Competitive Strategy With The" (2007, October 19) Retrieved July 4, 2022, from

"Aligning Competitive Strategy With The" 19 October 2007. Web.4 July. 2022. <>

"Aligning Competitive Strategy With The", 19 October 2007, Accessed.4 July. 2022,

Related Documents
Competitive Strategy of Kraft
Words: 1777 Length: 5 Pages Topic: Business - Management Paper #: 28340733

Kraft Foods' Competitive Strategy Kraft Foods is a one of North America's largest packaged food companies. To reach its current competitive position the organization is changed to great deal of the last decade, with increased focus on the core products, and the sale or spin-off of the non-core divisions, for example the sale of the frozen pizza division 2010 to Nestle, and in 2012 the demerger of Mondel-z International (Kraft

Competitive Strategy at Corporate, Business, and Function Levels
Words: 1370 Length: 5 Pages Topic: Business Paper #: 56372076

Mission and Vision Statements and the Company's Strategic Direction Mission/Vision/Strategic Dissection Research the challenges the organization is facing consider the objectives the organization has established for revitalization; Evaluate the mission and vision statements to determine whether these statements align with the objectives of the organization (this requires research to identify new objectives); Mission Statement & Vision Characteristics Comparison Article & Mission Statement Mission Statement Critique Quality products & services Broad in scope Increased differentiation through marketing portals Great value

Company's Competitive Strategy and Value
Words: 3492 Length: 12 Pages Topic: Business Paper #: 18181073

Product Returns is a third process area that Imperial Tobacco has to contend with, specifically from its distributors and channel partners. Typically Tobacco products are returned if a specific lot of tobacco or packaging has been found to be defective. There have at times been product recalls as defined by governments. A third reason for product returns is when a product has been discontinued and Imperial is not willing to

Competitive Advantage in Healthcare Through Competitive Pricing
Words: 3293 Length: 10 Pages Topic: Healthcare Paper #: 24423762

Competitive Advantage in Healthcare Through Competitive Pricing The healthcare industry is just like any other service sector that needs uniqueness and control over costs to excel. Since the cost of conducting business is increasing, there is a need that the healthcare professionals should understand that cost plays a vital role in attracting physicians as well as the patients. The patients are increasingly getting control over the price than the provider. Organizations

Competitive Advantage and the Value of Wow Stories at Ritz Carlton...
Words: 1359 Length: 4 Pages Topic: Careers Paper #: 83424575

Business Ritz Carlton Case Study Question 1; Competitiveness of Ritz Carlton Ritz Carlton appears to compete extremely effective, with a high level of service that has created a strong reputation of the delivery of five star services. To appreciate how and why the firm has been successful it is beneficial to look at the concept of competitive advantage. Michael Porter examined the ways that firms competed and argued that for firms to be successful

Classic Standby Business Strategy Tools
Words: 1474 Length: 5 Pages Topic: Business Paper #: 86839567

Strategy and SWOT Analysis Key Concepts in Business Strategy and SWOT Analysis Creating a competitive business advantage is a complex endeavor. Various techniques have been developed to guide the self-analysis process practiced by business enterprises. Traditional strategic planning engages a company in both internal and external analysis. In order to conduct a strategic analysis that makes niche or unique opportunities salient, it is necessary to have a robust view of the competitive