Environmental Scanning

Environmental scanning is the process by which an organization uses to determine the steps needed to become successful within a competitive market. By using internal and external analysis, a company can stay ahead in the economy by breaking down what they can do as a company that others do not do. Environmental scanning is gathering information for the external and the internal environment of the company. Companies use a SWOT analysis, (strengths, weaknesses, opportunities and threat) to help gather information about the environment that the company is in and also to determine internal opportunities and threat associated with the business. A SWOT analysis helps determine the strengths, weaknesses opportunities and threats with the market that they are involved and is an excellent tool to use to help determine strategies and plans to stay competitive. This paper will breakdown the internal and external environments of two companies functioning in today's economy.

The first company that we will discuss is Pampered Paws and Claws. Pampered Paws is a premier animal boarding and grooming facility located in Arkansas. The company's internal environment scanning consists of employee interaction with other employee, manager interaction with employees and the ability to see the company structure by all employees involved with the company. The external scanning process with the company happens in many different ways. As the company grows, management turns to information from other companies within the same market. There are many questions that are asked by management to include; how much do other companies charge for service, what marketing strategies do other's in the industry use, what is the other companies area of operation look like compared to ours, how is the economy affecting other businesses within the market and what are possible downfalls within the industry. Pampered Paws and Claws looks at how other businesses within the industry conduct business and determines the best course of action when it comes to determining what customers want that other companies do not offer.

Pampered Paws and Claws use a simple strategy to help drum up business. Customer service, along with animal care is the number one priority. Location is also a major factor in the business strategy that is used by management. The location of the facility is not far from the Air Force Base and helps attract military customers whom are deploying or taking leave. The facility in itself sells itself with customers. Most boarding facilities in the Central Arkansas area generally leave animals in cages for long periods of time and have no outside area for playtime or even bathroom breaks. Pampered Paws and Claws have rooms with runs that animals can stay in during the day and also an acre of land that each animal can play and run in. All of the above mentioned is what gives Pampered Paws and Claws the competitive edge within the industry.

FedEx is the second company that we will discuss. FedEx's external environment consists of several factors that can affect the company positively and negatively. Externally, government, weather, and the economy are major factors that FedEx faces in the market. FedEx does not have a very large external environment because their operations are not affect by many outside sources.

The government affects FedEx's operations by providing security regulations. A regulation that affects them is increased security regulations that were just recently enforced by the federal government. These regulations protect FedEx from any external threats that can be within the goods they deliver. This protection can also negatively affect FedEx's operation by adding additional time to the delivery and processing operations of FedEx.

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