Environmental Scan Presentation, Academic Assignment Homework Help

Question Description

Prepare 5-8 minute oral presentation accompanied by 5-10 Microsoft® PowerPoint® slides and speaker notes in which you complete the following:

Company: Starbucks and FIFA Football (using the essay attached) (please put minium information on the slides and details in the footnote notes)

  • Research and describe the internal and external environments of 2 to 3 real-world companies using an environmental scan.
  • Based on the results of the scan: Determine what competitive advantages each company has and what strategies each company is using.
  • Provide an explanation of the following:
  • How does each company create value and sustain competitive advantage through business strategy?
  • What measurement guidelines is each company using to verify its strategic effectiveness?
  • How effective are the measurement guidelines that each company is using?

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Startbucks and FIFA Football Organization Environmental Scan Lurinda Green MGT/498 5/9/2016 Shannon Mathis-Roberts, MA, MBA 2 Startbucks and FIFA Football Organization Environmental Scan Evaluate the internal and external environments of each company using an environmental scan. Starbucks primarily operates at a retail level selling coffee as well as snacks. It has branches in over 62 countries across the globe. The company not only specializes in making and selling coffee and snacks but also has taken appropriate measures to market its various brand products in its other companies bearing its portfolio such as Tazo, Verismo, Starbucks VIA, La Boulange, as well as Teavana among others. This measure increases the company’s productivity and advantage over the dynamic market forces (Coffman, 2002). As of 2013, the company registered a net income of $14.9 billion. An environmental scan reveals that there are numerous factors that affects this high revenue company some of them being advantageous while others come as a risk to the company. External Analysis of the company using Porters Five Forces Analysis Treat of New Entrances The coffee market industry is almost saturated; hence, the company faces minimum threat of market entry by new competitors. Although the threat of new market entries is fairly high, the factors limiting new market entries by competitors are not high enough. The competition in this market segment is monopolistic and gives smaller coffee shops the ability to hold a competition advantage over Starbucks as the price factor remains constant. Although entry into the market is moderate, chances of surviving in the industry are moderate as well so it is not a guarantee that a new market entry will guarantee success. 3 Threat of substitution This threat of being substituted or replaced is fairly high as there are numerous beverages that have a strong ability of replacing Starbuck Corporation such as tea, energy drinks, soft drinks, water, as well as sodas including other beverages. Pubs that offer nonalcoholic beverages such as sodas and fruit juices offer a major threat to Starbucks as they give the customers an extra advantage of social relationships. The company lacks alternative costs to opt in cases where competition prevails and threatens to draw the company out of market. The current economical factors can force the customer to brew their coffee locally which is cheaper, more affordable at pocket-friendly prices (Coffman, 2002). These factors make the threat of substitution very high. The company has taken various measures to counter this threat and these include broadening their range of products to include coffee packs, as well as coffee maker among other to beat the completion of substitution that remain at large. Bargaining power of buyers The bargaining power of the customers range from moderate to minimal as with the many buyers dominating the industry, it is close to impossible for a single customer to ask for price concession. With the numerous products offered in the company, the power of customer is minimized as all products are clearly differentiated providing the customers with numerous alternatives to choose from. Bargaining power of suppliers The bargaining power of moderators also range from moderate to minimal as the possibility of choosing between various consumers is low since there two fundamental inputs 4 into the industry, premium Arabica coffee as well as coffee beans which are only available at given areas of the globe minimizing the ability to look for alternative suppliers. Internal Company analysis The competence of Starbucks can be associated with has being its strategy of product differentiation into premium products that are characterized by high quality of its coffee as well as the coffee. The company has brand equity established via producing as well as offering best coffee quality in the market and also giving its customers a special treatment that is characterized by clean culture as well as stores that are kept in good quality that coincide with features adored in the local community giving the company a special experience often known as “Starbucks Experience” that is unique and characteristic of the company. This special culture has resulted into a high level of customer loyalty among the locals. Both the internal as well as the external relationships provides the company with another core competence as it has unique and excellent relationship with suppliers and the customers at large that are not only local but are distributed in all stores across the globe. Analyze the competitive advantage of each company The company faces a monopolistic type of competition whereby it holds the largest market shares with its next competitor exerting a lot of pressure on the company as its market shares are relatively high as well. Cost cannot be used as a differentiating factor among the competitors and this increases the level of competition as well as rivalry among key competitors. The company holds a competitive advantage over its competitors as it differentiates all its 5 products into premium commodities providing the consumers with a list of options to choose from. Evaluate the strategies each company uses to create value and gain competitive advantage. The one strategy employed by the company is product differentiation that has given the company an added advantage over its sole competitors. The differentiators presented by this strategy include good reputation in terms of coffee beverage, exquisite customer service, locations, as well as premium product mix. The combination of these factors produces a unique brand that is impossible to imitate by the closest competitors. The company defied all other models present in the industry such as franchise or joint ventures to create an exceptional model that distinguishes it from other stores. To aid in the process of diversification, the company has obtained certain provisions such as Bay Breads, Evolution Fresh, as well as Teavana among other that are effective in product differentiation. The globalization of Starbucks has being a critical step in ensuring its competitive advantage as it has extended into growing as well as emergent markets in over 60 countries globally. Examine the measurement guidelines each company uses to verify its strategic effectiveness. To ensure its strategy effectiveness, the company uses VRIO framework in its analysis. It clearly determines the competitive position as well as the strategic positioning of the company. The framework analyzes the fundamental concepts that a firm must possess in order to hold a competitive advantage and these entail non-substitutable, valuable, imperfectly imitable, as well 6 as rare. According to the framework, a resource that meets all the highlighted requirements stands a higher chance of competitive advantage over its sole competitors. Evaluate the effectiveness of the measurement guidelines that each company uses. The VRIO framework has being very effective with the Starbucks company as it has maintained the company on its toes and ensuring that it remains competitive at all times. The strategy has maintained the organization at a higher level compared to its sole competitors (Smeltzer et al., 1988). Thus, the use of the VRIO Framework to determine the company’s competitive advantage has enabled it to determine strongholds for remaining competitive advantage and employing those strategies has managed to help the company gain the largest market shares as it knows what needs to be done and when it should be done. FIFA Football Organization Evaluate the internal and external environments of each company using an environmental scan. From a SWOT analysis that monitors both the internal and external environment, the football organization is presented with numerous strengths as well as threats. Strengths The organization is international increasing its total number of players. It also has a good financial basis and this gives the organization the opportunity to invest in various operations that are essential (Smeltzer et al., 1988). 7 For example, it built numerous stadiums in Brazil to hold the match even though the match was temporary and they were not going to require the stadiums after the match. Although the organization is still investing in building stadiums for holding World Cups, they do not require as many as they need in the past decade in today’s world as people focus on watching games online with advancement in technology. Weaknesses The company has faced cases of fund embezzlement over the first couple of years that had negative repercussions on the institutions as it turmoil its name. As a result, top executive officials were fired and this required the company to replace all top management members. Opportunities More countries have taken a special interest in sports with most of them focusing on soccer. This presents a golden opportunity for FIFA as it should target these new countries to recruit them into their organization. Technology advancement is another opportunity that FIFA can invest in technology advancement that can closely monitor all goals scored by the referee to ensure that none of them go undetected. Analyze the competitive advantage of each company 8 The company’s primary competitive advantage over its competitors is the use of a comprehensible strategy that takes into consideration all global standards held by the various member countries as well as focusing on sustainability operations. The company has taken appropriate measure to ensure collaboration with various essential stakeholders including the various stadium authorities, federal government, host cities, as well as commercial affiliates (Smeltzer et al., 1988). Evaluate the strategies each company uses to create value and gain competitive advantage. Being an international organization, FIFA holds an advantage over its primary competitors, UEFA which is a European based football organization. FIFA often collaborates with its competitors, in this case UEFA and in situations where either isn’t holding games, they borrow and share most of their primary players. As a result, the two primary competitors are not rivals as they often borrow players. Examine the measurement guidelines each company uses to verify its strategic effectiveness. To verify the effectiveness of its strategies, the company analyzes how the strategies help achieve the company objectives and the plans utilized to achieve these objectives as well. A strategy is considered by the football organization to be effective if it makes good use of the resources allocated to it and produces the predicted outcomes. Therefore, guidelines are essential to determine whether the strategy helps meet the set goals and produce the anticipated outcomes. To determine the effectiveness of a strategy, the organization first determines whether it is 9 measurable (Smeltzer et al., 1988). A strategy must be measurable to meet the set objectives and to also determine whether it is effective. The next step involved involves determining whether the results set by the company are achievable and within the attainable limits of the strategy. The strategy is also monitored at constant intervals to compare the results obtained in the course with the anticipated outcomes to determine whether the strategy is operating according to plan or deviating from the set course of action (Coffman, 2002). Once the strategy has being implemented, its effectiveness is achieved by determining whether or not the strategies put in place were effective. These are the guidelines employed by the FIFA Football Organization to determine effectiveness of the strategies it employs and implements. Evaluate the effectiveness of the measurement guidelines that each company uses These guidelines are effective as they keep track of the strategy from the moment it is introduced and keeps a track of it measuring it at constant intervals to determine whether it is following the set course of action. Once they are implemented, the guidelines also measure the strategies put in place have met the set objectives. 10 References Coffman, J. (2002). Public communication campaign evaluation: An environmental scan of challenges, criticisms, practice, and opportunities. Smeltzer, L. R., Fann, G. L., & Nikolaisen, V. N. (1988). Environmental scanning practices in small business. Journal of Small Business Management, 26(3), 55-62. ...
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Environmental Scan

Operates at a retail level selling coffee as well
as snacks
Has branches in over 62 countries across the
As of 2013, the company registered a net
income of $14.9 billion
An environmental scan reveals fundamental
factors that affects its revenue

Treat of New Entrances
The coffee market industry is almost
saturated; hence, the company faces
minimum threat of market entry by new
 Threat of substitution
This threat of being substituted or replaced is
fairly high
However, t...

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