Strategic Plan Part 1 External Environmental Scan Grading Gu

Strategic Plan Part 1 External Environmental Scan Grading Guidestr5

The paper uses an organization according to the following:

  • Current employer
  • Most recent or former employer
  • Place of business that you have patronized or have been familiar with over a long period of time.
  • The organization can be a start-up that you or a significant other may create in the future.

For a start-up, focus on an entrepreneurial idea that is of substantive interest, so this project leaves you with a product you may leverage in the future. The paper includes a determination of how to create value and sustain competitive advantage through environmental scanning strategy. The paper includes an evaluation of the company’s external environment. The paper includes an assessment of the company’s general environment. The paper includes an evaluation of the organization’s industry operating environment.

The paper is 1,050 words in length. Format your paper according to APA guidelines.

Paper For Above instruction

The development of a comprehensive environmental scan is a vital component of strategic planning, serving as the foundation for organizations to identify opportunities and threats in their external environment, and to formulate strategies that maintain competitive advantage. This paper conducts an environmental scan for an organization chosen based on familiarity and accessibility, evaluating its external environment, general environment, and industry operating environment, and determining strategies to create value and sustain competitive advantage.

Organization Selection and Rationale

For this analysis, I have selected a regional hotel chain where I have previously worked. This organization operates within the hospitality industry, which is highly competitive and sensitive to external environmental factors such as economic conditions, technological changes, and consumer preferences. The hotel industry is a suitable focus because it has experienced significant transformation due to technological advancements and external disruptions like the COVID-19 pandemic, making it a compelling case for environmental analysis.

Creating Value and Sustaining Competitive Advantage through Environmental Scanning

The core of sustaining competitive advantage lies in understanding external environmental factors that influence organizational performance and leveraging this understanding to adapt strategic initiatives. Environmental scanning provides insights into these factors, enabling organizations to anticipate changes and respond proactively. For the hotel chain, focusing on technological innovation, customer experience enhancement, and operational efficiency are crucial areas where environmental scanning can be strategically employed.

By continuously monitoring external trends such as changes in tourism patterns, technological developments like mobile check-ins and contactless payments, and economic fluctuations, the hotel chain can develop strategies to differentiate itself and create added value for customers. These strategies include targeted marketing, technological upgrades, and diversification of services aligned with customer preferences. Moreover, the ability to adapt quickly to environmental shifts ensures the organization can sustain competitive advantage over rivals who may be slower to respond.

Evaluation of the External Environment

The external environment encompasses macro-environmental factors that influence the organization’s performance. Using frameworks such as PESTEL analysis—Political, Economic, Social, Technological, Environmental, and Legal factors—we analyze these external influences.

  • Political: Government policies related to tourism, travel restrictions, and regulations affect the hotel industry. Political stability in the regions where the hotel operates is also critical.
  • Economic: Economic cycles, inflation rates, disposable income levels, and currency fluctuations impact travel and accommodation spending.
  • Social: Changing consumer preferences towards sustainable tourism, health consciousness, and personalized experiences influence service offerings.
  • Technological: The advent of digital booking platforms, mobile apps, and online reviews shape customer engagement and operational efficiencies.
  • Environmental: Increasing emphasis on sustainability requires the hotel to adopt eco-friendly practices to attract environmentally conscious consumers.
  • Legal: Compliance with labor laws, health and safety regulations, and ADA requirements are essential for avoiding legal penalties and maintaining reputation.

Assessment of the General Environment

The general environment refers to broader societal factors that indirectly influence the organization. For the hotel chain, demographic trends such as aging populations and increased international travel broaden market opportunities. Technological advancements, especially in artificial intelligence and automation, are transforming service delivery. Cultural shifts towards experiences and wellness tourism provide avenues for innovation. Also, climate change concerns demand the adoption of sustainable practices, which can serve as a competitive differentiator.

Evaluation of the Industry Operating Environment

The hotel industry operates within a highly competitive landscape with both traditional players and new entrants, including Airbnb and alternative lodging services. Key industry forces include:

  • Competitive Rivalry: Intense competition among hotel chains and alternative accommodations pushes organizations to innovate and improve service quality.
  • Threat of New Entrants: Low entry barriers in the digital age facilitate new competitors, increasing industry rivalry.
  • Threat of Substitutes: Short-term rentals and eco-lodges serve as substitutes to traditional hotels.
  • Supplier Power: Suppliers of essential services (e.g., cleaning, maintenance) influence costs, but hotel chains with diversified suppliers can mitigate this power.
  • Buyer Power: Consumers have numerous options and access to online reviews, making customer loyalty critical.

Strategic responses to this competitive environment involve differentiation, technological innovation, and personalized services to attract and retain guests.

Conclusion

This environmental scan underscores the importance of proactive strategies driven by a thorough understanding of external influences. The hotel chain can create value by leveraging technological advancements, emphasizing sustainability, and enhancing customer experience. Maintaining a flexible approach to environmental changes will help sustain competitive advantage in a dynamic industry, ensuring long-term growth and profitability.

References

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  • Porter, M. E. (2008). The Five Competitive Forces That Shape Strategy. Harvard Business Review, 86(1), 78–93.
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  • Peiró, J. M., & Vargas, P. (2022). Sustainability in the Hospitality Industry: Trends and Challenges. Journal of Hospitality & Tourism Research, 46(2), 159–172.
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  • Vargo, S. L., & Lusch, R. F. (2016). Service-Dominant Logic 2025. International Journal of Research in Marketing, 33(1), 46–67.
  • Yuksel, A., & Almog, O. (2020). Digital Transformation in Hospitality: Impact and Strategies. Tourism Management Perspectives, 34, 100632.
  • Mintzberg, H., Ahlstrand, B., & Lampel, J. (2009). Strategy Safari: A Guided Tour Through The Wilds of Strategic Management. Pearson.
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  • Kim, W. C., & Mauborgne, R. (2015). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Review Press.

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