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Environmental Scanning for the Vermont Teddy Bear Company - Essay Example
This report presents an Environmental Scanning for the Vermont Teddy Bear Company. The aim of the Environmental Scanning is to provide an information the internal and external issues and trends that face the Vermont Teddy Bear Company in its current work…
Vermont Teddy Bear Company operates in a simple and static environment. Firms operating in a relatively simple and static environment can generally rely on management strategies that are based on historical data (and past success). Customer needs and hence sales forecasting can generally be predicted from past records. However there is a danger that managers become complacent and the survival of the business may be jeopardized by sudden and unexpected changes as with a change in the law making the sale of certain types of firework illegal.
The external scanning involves the threat of entry to an industry by new competitors depends up the 'height' of a number of entry barriers. Lower the entry barriers to an industry are, the more competitors i.e. be players in the industry. Barriers to entry can take a number forms. The size of the investment required by a business wishing to enter industry will be an important determinant of the extent new entrants. Manufacturing industry like Vermont Teddy Bear Company is subject to a complex regulate framework whereas others are less so. Still, even if it is possible to predict the needs of customer there are some threats and new opportunities which should be taken into consideration. The threat of entry was chosen because it is related to the ease with which a new business can establish itself in the same product market. ...