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

Environmental Scan Paper - Essay Example Evaluation of the internal and external environments is then 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 internal 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 company that has been successful 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 r aw material is fundamental in the company’s 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 Lego’s company. Lego further focuses on her product’s future demands by ensuring proper product mix. ... The company’s patented plastic ingredient ensures durable product and desirable colors as well as adherence to the European CE-labeling thus ensuring conformation with the European Union legislation (Hjuler & Robertson, 2009). Additionally, Lego has outsourced her distribution to DHL Excel Supply Chain in Eastern Europe hence reducing excess capacity during summer when sales are low. It further helps them to concentrate in the production services 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 Bros that has enabled Star Wars and Harry Porter act as the savior 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 dramatic increase in sales. The company has been expanding her production facility closer to thei r customers as well as numerous promotional strategies such as conventional media and philanthropic charity. The company also uses superior prices and avoids any engagement 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 Lego’s bargaining power, her significant supplier is within the chemical market which is very competitive thus reducing the supplier’s bargaining power. The company has categorized her suppliers based on riskiness hence making their 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