Environmental Scan

Environmental scans are essential to an organization because they assist in the planning and decision making process. Without environmental scans, an organization will have no idea on how to implement strategies, plan for success, or make decisions beneficial to the company. Companies need to understand the internal and external environmental factors in conjunctions with the interconnections of business success or failures. "A organization has little or no control over its environment but needs to constantly monitor and adapt to these external changes, proactive or reactive responses leads to significantly different outcome" (Gupta, 2009).

This paper will describe the internal and external environments of Elite HR Logistics and Daioh's First Choice Services, Competitive advantages, strategies of the two companies, and how each company creates value and sustains competitive advantage through business strategy. The measurement guidelines to verify strategic effectiveness will also be discussed for each company.

Elite HR Logistics

Elite HR Logistics is a transportation and logistics staffing agency that works with a large scale of top distribution and trucking companies throughout California and Nevada. Elite has built a reputation with their clients who allows the company full responsibility to select employees who will help the agency and the client excel in performance. The staffing industry is a very complex and competitive market because retaining employees and contracts are difficult when there may be the possibility of other agencies or employers offering higher pay rates or contact terms. Elite HR Logistics gains there competitive advantage by focusing on hiring permanent employees, offering health care, weekly pay, and reducing turnover rates. Some of these items are not normal for staffing agencies which is why Elite stands above their competitors. The strategies Elite uses are analyzing similar staffing agencies and determining what is needed to supersede their competitors. Elite makes a very cautious effort to define potential threats, opportunities, and trends so that they are aware of what is going on in the industry and will not be blindsided when changes occur.

The staffing industry is a difficult market to maintain because as trends change and unemployment, rates increase or decline companies must determine new methods for marketing and securing their position in the industry. Active scanning must be applied so that Elite is always aware of trends and stays on task toward the mission, vision, and goals of the company. Creating value is important for internal and external customers because knowing what strategies to implement can increase the longevity of the company along with employee morale. Elite involves the employees in accessing the strategies that will be implemented because a diverse background of employees involved provides leaders with a stronger proposal for the implementation process.

To measure effectiveness Elite ensures that documents have information recorded accurately, client contracts are up-to-date, salary rate structures are compliant with the state wage requirements, and implementation processes are clearly explained to employees. "This process involves continuously reassessing current strategies including objectives, action plans, and measurements. It also involves developing new or modified objectives, action plans, and measurements, whenever needed" (Donovan, 2013). The records maintained will be used as later resources to verify if strategies are effective and lead to the goals outlined for the company. Staffing agency strategies must have an innovate approach because of the ever changing society and environmental factors.

Daioh's First Choice Services

Daiohs First Choice Services is a very large company that distributes coffee, water, and other condiments to various state, government, corporate, and residential locations throughout 15 states. The company operates on a domestic and international level, which provides a diverse competitive strategy. Similar companies, such as Alhambra and Aramark provide the same services as Daioh's and their services are always analyzed so that Daioh's are aware of how their competitors are operating in