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Student Inserts His/Her Name Here

Last reviewed: August 30, 2011 ~6 min read

¶ … Student Inserts his/Her Name Here

Environmental scan constitutes both the internal as well as external environment of an organization (Moutinho & Chien, 2007). It gives a true picture of what is happening within the organization and inside its business environment (Waters, 2006). Environmental scan gives useful information about the organization's affairs to its key stakeholders, including customers, shareholders, supply chain members, employees, and the Government (Moutinho & Chien, 2007).

In this paper, the environmental scan of three real world organizations; Ferrari, Apple Inc., and Marks & Spencer has been explained in a concise but comprehensive way. The major focus of this paper is towards determining the competitive advantage, business strategies, and measurement guidelines used by each of these organizations. An analysis of the effectiveness of these measurement guidelines has also been made in order to have a deep insight into their business operational strategies.

Environmental Scan for Ferrari

Ferrari makes the fastest, stunning, best ever, and the most spectacular sports cars in the world (Ferrari.com, 2011). A customer, who once drives it, becomes aficionado of it. He never makes any other car his choice. This shows a great liking and attachment of customers with Ferrari. Its luxury, performance, status, prestige, and most importantly, the style make it a perfect brand (Ferrari.com, 2011).

Ferrari contentedly enjoys the competitive advantage of Brand loyalty. This brand loyalty has not just made Ferrari a market leader in sports car industry, but also made it the most favorite brand of the new millennium. Ferrari brand lovers always summon up their pleasing experiences in good terms. This is because Ferrari is the most unsurpassed brand in the world, the uppermost in contemplation and appreciation ubiquitously (Ferrari.com, 2011).

To create value in the eyes of its brand lovers and sustain the competitive advantage of brand loyalty, Ferrari ensures that every new model of its car is more stylish, higher in performance level, and faster in speed than all its previous models. To evaluate this strategic effectiveness, Ferrari has several checks and measures in place for the performance, fuel efficiency, speed, and design of its cars (Ferrari.com, 2011). These measurement guidelines are effective in all respects; from a customer's perspective as well as from the manufacturer itself. Customers are enjoying what they want to see in Ferrari car and Ferrari is enjoying the Brand loyalty of these prestigious customers (Ferrari.com, 2011).

Environmental Scan for Apple Inc.

Apple Inc. (formerly Apple Computers Inc.) is a successful American owned Multi-National organization incorporated in 1976. It manufactures and promotes various kinds of electronics and technological products; including Personal Computers and laptops, iPhone, iPods', software, iTunes, iPads, etc. Apple is a very well-established brand in the field of Information Technology all over the world (Business Insider.Com, 2011).

Apple Inc. has the most competitive Product and Process Design among all the electronics and technological product manufacturers. This is the reason why it is recognized as the leading brand of the World in terms of innovation. Innovation is the competitive advantage of Apple Inc. The business strategy behind this competitive advantage is heavy expenditures on continuous Research and Development. Apple has adopted the business strategy to bring the most innovative design of the products before any of its competitors.

Through this business strategy, Apple has created value in the eyes of its customers, employees, investors, and other stakeholders. Now everyone believes Apple to be the most successful technological giant of the present times (Business Insider.Com, 2011). To measure its strategic effectiveness, Apple expends a big part of its profits on the Research and Development (Business Insider.Com, 2011). Through Marketing Research, it gets acquainted with the positive or negative response of the general consumers about its new product offerings. It gives useful information to Apple about what improvements and innovative features its potential consumers want to see in its products.

As far as the effectiveness of these measurement guidelines are concerned, Marketing Research is the most effective way of knowing the consumers' response, whereas Development brings the most stylish and highly advanced products in the market. The investment which Apple makes on R&D never goes waste; instead, gives it returns that are many times higher than those investments.

Environmental Scan for Marks & Spencer's

Marks and Spencer's, incorporated in 1884 is among the top market leaders in garments and food industry in the United Kingdom (marksandspencer.com, 2011). Facing a stiff competition in both the businesses, Marks and Spencer's ensures the highest quality of its products all the way through highly efficient business operations and Total Quality Management (TQM) so as to maintain its top position.

Thus, the most important competitive advantage of Marks and Spencer's is its due concern for Total Quality Management principles. Marks and Spencer's garment products are known for their first-class quality, reliability, style, and variety. Since its incorporation in 1984 and international expansion in 1974, Marks and Spencer's has never compromised on these important factors; the reward of which is in the form of loyal customers all over the world (marksandspencer.com, 2011). To ensure the strategic effectiveness, Marks and Spencer's expends a lot on highly advanced machinery and takes the service of highly specialized engineers and professionals. The measurement of effectiveness is done by comparing its business operations with the international standards of quality and efficiency. These strategies and measurement guidelines are very effective to compete in such a stiff business environment. Reason being, customers want 'value' for their money which can only come from efficient business operations and TQM principles (Waters, 2006). Truly deserved, Marks & Spencer's has developed a good brand image on these two core competencies (marksandspencer.com, 2011).

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