Kmart Corporation - Environmental Scanning

Environmental Scanning

Introduction:

Environmental scanning is the acquisition and use of information about events, trends, and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action. Organizations scan the environment in order to understand the external forces of change so that they may develop effective responses which secure or improve their position in the future. They scan in order to avoid surprises, identify threats and opportunities, gain competitive advantage, and improve long-term and short-term planning. To the extent that an organization's ability to adapt to its outside environment is dependent on knowing and interpreting the external changes that are taking place, environmental scanning constitutes a primary mode of organizational learning. Environmental scanning includes both looking at information (viewing) and looking for information (searching). A crucial reason for environmental scanning is to stay ahead of the competition. Competitors may be gaining an edge by broadening service or product lines, improving quality, or lowering costs.

Kmart Corporation is a mass merchandising company that serves America through its 1,479 Traditional Kmart, Big K-Mart and Kmart Super Center retail outlets in 49 states, Puerto Rico and the Virgin Islands. Traditional Kmart Stores is the one most people recognize. Traditional Kmart stores average between 80,000 to 110,000 sq. ft. in size and can carry a full selection of general merchandise and include a Pharmacy. The first Kmart store opened in Garden City, Michigan in March 1962.

Big Kmart signals a different kind of Kmart. These stores