Environmental Scan Paper Essay Example | Topics and Well Written Essays - 1250 words

Environmental Scan Paper - Essay ExampleEvaluation of the inborn and external environments is so followed by crucial decisions regarding long and short term goals and finally organizes for the implementation of the plan of action. This writing describes the inherent and external environments of Lego and Harley Davidson companies using an environmental scan. The argument of this writing is to carefully examine, evaluate and analyze both the internal and external environments of Lego and Harley Davidson that enable them gain competitive advantage in their respective industries. Lego is a comp both that has been favored in the toy and over 150 different types of products for the last 60 years and above. Lego Company has remained successful because of her great global and competitive strategies it has employed. LEGO Group has strived to beat her competitors in the industry due to her initiative of embracing new technology. Internal Environment According to Metcalf & Lafranco (2013) , inbound logistics which emphasizes on raw material is fundamental in the companionships operations. It acquires her main bulk of chemical materials from Lanxess, a German company which provides standardized ingredients without any bottleneck that may interfere with Legos company. Lego further focuses on her products future demands by ensuring proper product mix. ... The companys patented plastic ingredient ensures durable product and enviable colors as well as adherence to the European CE-labeling thus ensuring conformation with the European kernel legislation (Hjuler & Robertson, 2009). Additionally, Lego has outsourced her distribution to DHL Excel Supply Chain in Eastern Europe hence minify excess capacity during summer when sales are low. It further helps them to concentrate in the production go and letting experts do her distributions. Lego has also diversified her operations such as entering into a strategic partnership with organizations such as Lucas Arts and Warner B ros that has enabled Star Wars and Harry Porter act as the the Nazarene of Lego (Metcalf & Lafranco, 2013). Hjuler & Robertson (2009), posit that several businesses combinations that Lego has entered itself in make it enjoy indirect marketing thus contributing to their salient increase in sales. The company has been expanding her production facility closer to their customers as well as legion(predicate) promotional strategies such as conventional media and philanthropic charity. The company also uses superior prices and avoids any fighting in price strategy and associates her high prices with better quality. It has also integrated some of her programs with educational institutions as a way of improving her products. External Environment Considering Legos bargaining power, her significant supplier is inwardly the chemical market which is very competitive thus reducing the suppliers bargaining power. The company has categorized her suppliers based on stakeiness hence making thei r largest suppliers to be in low risk countries and smaller group of suppliers in high risk countries. Companies in the toy industries including Lego have ensured low