Scanning the Environment

Running head : Scanning the Environment

Scanning the Environment - The Vermont Teddy Bear

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Case Study - The Vermont Teddy Bear Co

Information is a power which organization need specially while making important strategic decisions . This information can be regarding internal or external forces . Environmental scanning is one way of obtaining this information which is related to internal strengths and weaknesses of an organization in relation to the external opportunities and threats it faces . All organizations need to keep abreast with what is happening in and around them for making better plans

and making the right decisions . Principles of Environmental Scanning are ( Environmental Scan ' 2005

Explore both sides of the ledger to gain a complete picture

Think macro and micro

Use multiple lenses to look at the same information or situation

Think beyond felt needs and opportunities

An environmental scan is an ongoing process that comprises two phases an internal environmental assessment and an external environmental scan The internal environmental assessment identifies strengths and weakness of the company . The external environmental scan identifies opportunities and threats in the environment (Bryson , 1989

Conducting an Internal Assessment of Strengths and Weaknesses

An internal assessment concentrates on inputs and outputs . The inputs are evaluated based on the data acquired on the number of employees (FTE , resources used to deliver services or products . Outputs translate into current strategies to deliver services and /or products . With regard to the outputs , the data is collected based on the number and type of services or products and the number of customers /users as well as the categories of users served

Determining External Events or s for the Environmental Scan

For environmental scanning of external factors , the most important aspect is the identification of external events that impact an industry These events not only provide the information about the opportunities available to be explored but also gives an insight of the threat perception . Typical focal points of environmental scanning of external factors include competition , technology , regulatory activity and the economy . In an environmental scan , the competition has to be defined in the broadest sense , going beyond obvious competitors to potential competitors in other industries

Environmental Scan of Vermont Teddy Bear Company

In 1981 , Mr . John Sorinto founded the Vermont Teddy Bear Company which turned out to be a slam dunk in the bear industry . The company started expanding fast and it soon became too big for Mr Sorinto to manage . In 1995 , he gracefully stepped down and paved way for the new CEO . The company kept its focus mainly on soft cuddly teddy bears , which by then had become a must child toy in United States . Since inception , the company 's hallmark remained its bear-gram delivery service . The company successfully implemented its marketing strategy through radio advertisements by popular disc jockeys , and catalogs . This study will carry out an environmental scanning basically to assess the elements having profound bearing on the Vermont Teddy Bear Co . Accordingly , a SWOT analysis has been conducted to identify the strategic factors (external and internal...