Environmental Scanning Techniques

1335 WordsAug 9, 20136 Pages
ENVIRONMENTAL SCANNING Environmental Scanning can be defined as the process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business for the purpose of taking strategic decisions. Factors to be Considered for Environmental Scanning The external environment in which an organization exists consists of a bewildering variety of factors. These factors (could also be termed as influences) are events, trends, issues and expectations of different interested groups. These factors are explained below: Events are important and specific occurrences taking place in different environmental sectors. Trends are the general tendencies of the courses of action along which events…show more content…
These approaches may range from an informal assessment of the environmental factors to a highly systematic and formal procedure. Informal assessment may be adopted as a reactive measure to a crisis and ad hoc studies may be undertaken occasionally. A highly systematic and formal procedure may be used as a proactive measure in anticipation of changes in environmental factors and structured data collection and processing system may be used continuously. Methods and Techniques Used for Environmental Scanning The range of methods and techniques available for environmental scanning is wide. There are formal and systematic techniques as well as intuitive methods available. Strategists may choose from among these methods and techniques, those which suit their needs in terms of the quantity, quality, availability, timeliness, relevance and cost of environmental information. Various authors have mentioned the methods and techniques used for environmental scanning. LeBell and Krasner outline nine groups of techniques: single-variable extrapolation, theoretical limit envelopes, dynamic modes, mapping, multivariable interaction analysis, unstructured expert opinion, structured expert opinion, structured inexpert opinion and unstructured inexpert speculation. Fahey, King and Narayanan have included ten techniques in their survey of environmental scanning
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