a. The lessons learned in this scenario relative to the importance and effectiveness of environmental scanning in relation to strategic thinking are that first of all, environmental scanning is only as good as the use that is made of the data and furthermore, even excellent data cannot compensate for poor strategic thinking or a lack of organizational cohesiveness.
The chairman and the CEO each have personal objectives that do not fit together, and neither of them seems to have based those objectives specifically on the environmental scanning data. Their goals and objectives are at cross purposes with each other, so neither one is likely to achieve what is hoped for. The environmental scanning data indicates that their customer base has expanded to include riders of all ages, yet neither one of them has a goal to capitalize on that fact. This is not optimum strategic thinking.
The purpose of environmental scanning is for the company to obtain a ôsustainable competitive advantageö by watching for changes in the business environment and adapting its strategies to take advantage of them when they arise (ôEnvironmental Scanningö). The CEO and chairman failed to do this. A more successful strategy than either of theirs would be to expand their products and services to service the new age groups in their customer base and continue to attract new segments, rather than focusing on producing lower-cost bikes or being labeled the No. 1 specialty retailer.
b. In this scenario, the concepts and analytic tools that can be used to develop a strategic plan with regard to thinking strategically would include Michael PorterÆs Five Forces Analysis and an Industry Analysis (ôPorterÆs Five Forcesö). Michael PorterÆs Five Forcesùsupplier power, buyer power, barriers to entry, threat of substitutes, and rivalryùcan be used to help the strategist understand the industry context that the company operates in (ôPorterÆs Five Forces...