Environmental scanning is a process of gathering, analyzing, and dispensing information for

tactical or strategic purposes. The environmental scanning process entails obtaining both factual

and subjective information on the business environments in which a company is operating or

considering entering.The businesses have to be aware of what is happening in environment

generally because the environment has impact in the business operation. A business unit has to

monitor key macroenvironmental forces (demographic-economic, natural, technological, political-

legal, and social-cultural) and significant microenvironmental actors (customers, competitors,

suppliers, distributors, dealers) that affect its ability to earn profits. The business unit should set

up a marketing intelligence system to track trends and important developments. For each trend or

development, management needs to identify the associated opportunities and threats.[1] There

are three modes of scanning the business environment:

Ad-hoc scanning - Short term, infrequent examinations usually initiated by a crisis

Regular scanning - Studies done on a regular schedule (e.g. once a year)

Continuous scanning (also called continuous learning) - continuous structured data

collection and processing on a broad range of environmental factors

Most commentators feel that in today's turbulent business environment the best scanning method

available is continuous scanning because this allows the firm to act quickly, take advantage of

opportunities before competitors do and respond to environmental threats before significant

damage is done.

A significant challenge for those undertaking the scanning function is turning their data into useful

information for the organisation. A key component for effective Environmental Scanning (ES) is

having a framework that allows you to both seek out types of information, as well as categorise

the information you already have available.

There are a number of common approaches - PESTLE which stands for Political, Economic,

Societal, Technological, Environmental and Legal is one and STEEP which stands for Social,

Technological, Economic, Environmental and Political is another. The STEEP model sees the

legal aspect identified in PESTLE as a sub-set of the Political process. A more recent

development over the past few years has been the introduction of Values based thinking into the

Environmental Scanning function. Strategic Futurist and Values Systems specialist Marcus

Barber suggests that the Very STEEP (VSTEEP) approach allows organisations to consider the

way in which human values (based on theSpiral Dynamics model) influence the way in which

societies behave or technology is used or the political process is enacted etc).

Whatever the model used, having a process that you use consistently will enable a sifting of the

interesting signals from the mere noise of day to day activity. A number of activities (listed below)

can provide starting points for building a great ES capability

McKinsey 7S FrameworkThe McKinsey 7S Framework is a management model developed by well-known business

consultants Robert H. Waterman, Jr. and Tom Peters (who also developed the MBWA--

"Management By Walking Around" motif, and authored In Search of Excellence) in the 1980s.

This was a strategic vision for groups, to include businesses, business units, and teams. The 7S

are structure, strategy, systems, skills, style, staff and shared values.

The model is most often used as a tool to assess and monitor changes in the internal situation of

an organization.

The model is based on the theory that, for an organization to perform well, these seven elements

need to be aligned and mutually reinforcing. So, the model can be used to help identify what

needs to be realigned to improve performance, or to maintain alignment (and performance)

during other types of change.

Whatever the type of change – restructuring, new processes, organizational merger, new

systems, change of leadership, and so on – the model can be used to understand how the

organizational elements are interrelated, and so ensure that the wider impact of changes made in

one area is taken into consideration.

When it comes to asking the right questions, we've developed a Mind Tools checklist and a matrix

to keep track of how the seven elements align with each other. Supplement these with your own

questions, based on your organization's specific circumstances and accumulated wisdom.

McKinsey and Company have developed a model know as, "the seven elements of strategic fit," or the "7-S's."

7-S's include:1. strategy (the coherent set of actions selected as a course of action);2. structure (the division of tasks as shown on the organization chart);3. systems (the processes and flows that show how an organization gets things

done);4. style (how management behaves);5. staff (the people in the organization);6. shared-values (values shared by all in the organization); and7. skills (capabilities possessed by the organization).

The underlying concept of the model is that all seven of these variables must "fit" with one another in order for strategy to be successfully implemented.

 Wal-Mart in India:- Wal-Mart, a US based retail industry, which is

known as the giant in the retail industry has survived and is still the huge enterprise in

the world which deals with almost all the F&B products, apparels, etc. It is not only the

largest company in world but also the largest company in the history of world.(Fishman,

2006) The present paper is divided into four sections to understand and answer as what

makes Wal-Mart the best in the industry, 1) retailing industry at the time of Wal-Mart's

innings, 2) Wal-Mart's Competitive advantage and key components, 3) Wal-Mart's

Strategy and 4) Sustainable growth of Wal-Mart.

‘In most countries, supermarket chains create and manage well-oiled supply chains to offer consumers

lower prices and dampen inflationary trends. Inflation in India is touching decade-highs. But then it’s a fallacy

that in India it is always about low price’. Companies like Tata, Birla and Reliance have all attempted to enter

food-and-grocery retailing in India with mixed success. Will Wal-Mart’s supply chain work in India?

Contents

1. Introduction – Wal-Mart’s first store in India

2. Joint venture with Bharti Enterprises

3. About Wal-Mart

4. Wal-Mart – Background Note

5. Wal-Mart – Timeline

6. Wal-Mart – Quick Facts

7. The world’s largest retailer isn’t new to India

8. India’s first special skills training centre

9. Exhibit – Wal-Mart’s business model in India

10. Mera Kirana programme

11. Exhibit – Foreign hypermarket chains in India

12. Wal-Mart Internationally

13. Exhibit – Wal-Mart and Expansion into International Markets

14. Wal-Mart’s imperfect success record in a foreign country

15. Cost-Leadership Strategy- Wal-Mart’s core philosophy – EDLP (every day low prices)

16. Will Wal-Mart succeed in expanding outside the U.S.?

17. Best Practices and lessons from the International Markets

18. Wal-Mart India – Plans and Challenges

19. Wal-Mart’s Strategy and Supply Chain tuning for India

20. Physical and Regulatory Challenges

21. The Indian Consumer

22. Bringing private label suppliers to India

23. Will the kirana store go out of business?

24. Advantages of a small Indian shopkeeper – The Kirana store

25. Exhibit: Wal-Mart – Store Formats

26. Exhibit: Wal-Mart – International operating formats

27. Questions for Discussion

Sample Page/Content

"India is a price sensitive market and therefore we will be devising our strategy for her very carefully…

Retailing is like a game of three dimensional chess where we operate as a local, regional and global player,

so depending on the needs of the market we shall change our format and adapt." – John B Menzer,

President and CEO, Wal-Mart International.

"India is not a homogeneous market, so ours is not a cookie-cutter approach from the U.S. …Wal-Mart is in

no hurry to unfurl the Wal-Mart flag nationally. The easiest thing is to roll out stores, but the most difficult is

to sustain and feed them." -Raj Jain, President of Wal-Mart India in May 2009.

"Wal-Mart operates with multiple private brands around the world. In each market that we operate, we look

to be local. We treat each market as unique and India, in this respect, is no different." -Arti Singh, vice-

president of Corporate Affairs at Bharti Wal-Mart.

1. Introduction – Wal-Mart’s first store in India

In December 2006, Wal-Mart Inc. believed that by the year 2015, 35% of India’s retail sales could be from

chain stores . This was a radical increase from the prevailing 2%. In May 2009, Wal-Mart was ready to open

its first store in India. The reason for Wal-Mart’s entry in India was clear – The Indian middle class . The

world’s biggest retailer had been silently working on its strategy for India for around two years. Mom-and-

pop stores and traditional distribution networks dominated the $375 billion Indian retail market. Wal-Mart’s

first outlet was set to launch in the city of Amritsar, Punjab in North India. The first store air-conditioned and

built over 50,000 sq. ft. was on the outskirts of the city, Amritsar. The store employed 200 locals and was

likely create 500 indirect jobs. In the first few weeks itself, the company had managed to sign on close to

35,000 members. However, the debut outlet was not to carry the familiar Wal-Mart brand. Did this mean

Indian consumers could not benefit from Wal-Mart’s everyday low prices?

Download PDF file to read more.

Case Updates/Snippets

50:50 joint venture: In India, Wal-Mart has a 50:50 joint venture with Bharti Enterprises in the

wholesale cash-and-carry segment.

Direct Farm Program: Multinational retail giant, Wal-Mart’s Direct Farm Program in India is a

partnership with 110 small and marginal farmers near Ludhiana in Punjab where it encourages

cultivation of safe, high-quality, seasonal vegetables. Farmers are advised at every stage of cultivation

by field agronomists. Farmers learn about nursery management, transplanting, nutrient management, as

well as harvest and post-harvest practices.

Wal-Mart India in 2010: In 2010, Bharti-Wal-Mart plans to launch seven Best Price Modern

Wholesale Cash-And-Carry stores across India. These stores will be 100,000 sq ft in size and each store

will involve an investment of $6-7 million.

Sourcing from India: Wal-Mart has a large sourcing business in India. The retail major sources

goods worth $125 million a year from Punjab. In 2010, Wal-Mart is planning to increase sourcing from

India to strengthen its global business.

Preference for Kirana/local retailers: According to a survey by ASSOCHAM in early 2010 in

which it interviewed 5000 shoppers in various cities in India, kirana stores (mom and pop stores) and

local retailers were the preferred destination for shoppers as compared to shopping malls. The survey

found that goods were less expensive (as much as 25%) in local kirana stores as compared to big

shopping malls. Smaller stores also offered more variety and affordable options with sustainable quality

at a negotiable price (reduced margins).

Training centers: Inheriting a model from its U.S. parent, Bharti-WalMart (Best Price Modern

Wholesale) intends to set up its own training centers to train less-privileged youth to work in retail stores.

FDI in retail in India: In India, the Government presently does not allow foreign investment in

multi-brand retail. It allows 51% FDI in single-brand retail and 100% in wholesale venture. In 2007,

Walmart Stores and Bharti Enterprises entered into a joint venture and began cash & carry stores under

the brand Best Price Modern Wholesale.

Carrefour in India – Carrefour Wholesale Cash & Carry: In December 2010, Carrefour, the

French international chain, launched its first cash & carry store in India (in the capital in New Delhi). The

store with an area of 5200 square meters offers about 10,000 SKUs in food and non-food to local

businesses, restaurants and local mom and pop stores.

METRO Cash & Carry in India: In 2003, METRO Cash & Carry entered the Indian market in the

self-service wholesale category. By early 2011, it had six wholesale distribution centers in four major

cities (Bangalore, Hyderabad, Mumbai and Kolkata). The company caters to business customers (hotels,

offices and small retailers) and sources a large part of its products locally from local suppliers, co-

operatives and self-help groups.

Tags: India, Retail, Wal-Mart

Restructuring

Restructuring is the corporate management term for the act of reorganizing the legal, ownership,

operational, or other structures of acompany for the purpose of making it more profitable, or

better organized for its present needs. Alternate reasons for restructuring include a change of

ownership or ownership structure, demerger, or a response to a crisis or major change in the

business such as bankruptcy,repositioning, or buyout. Restructuring may also be described as

corporate restructuring, debt restructuring and financial restructuring.

In US education system, restructuring refers a requirement in the No Child Left Behind act of

2001, which requires schools identified as chronically failing for 5 years or more to undertake

rapid changes that affect how the school is led and instruction delivered.[1]

Executives involved in restructuring often hire financial and legal advisors to assist in the

transaction details and negotiation. It may also be done by a new CEO hired specifically to make

the difficult and controversial decisions required to save or reposition the company. It generally

involves financing debt, selling portions of the company to investors, and reorganizing or reducing

operations.

The basic nature of restructuring is a zero sum game. Strategic restructuring reduces financial

losses, simultaneously reducing tensions between debt and equity holders to facilitate a prompt

resolution of a distressed situation.

Steps:

ensure the company has enough liquidity to operate during implementation of a complete

restructuring

produce accurate working capital forecasts

provide open and clear lines of communication with creditors who mostly control the

company's ability to raise financing

update detailed business plan and considerations[2