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
Assess the potential environmental impact of a proposed construction project on the local natural environment.
Raven, P., Berg, L., & Hassenzahl, D. (2010). Environment. (7th ed.). Hoboken, NJ: John Wiley and Sons, Inc.
Environmental scanning involves an organization to look at any trend, opportunity or threat that could create issues for their company. Once any of these issues are identified, the organization should consider new strategies that react to these external factors. Issues should be examined that involve not only direct customers and suppliers, but also competitors, any changes in regulations and possible political involvement. External factors will be constantly changing so environmental scanning should occur frequently and regularly to ensure the current issues have been captured. Research and data analysis can help drive decisions regarding overall marketing changes that might be necessary.
The scanning function would allow the organization to see the current trends or issues of similar establishments and using that data to improve. Monitoring allows tracking the issues in scanning and has several important functions. “The monitoring process investigates the sources of the information obtained in the scanning process and attempts to identify the organization or organizations creating change and the sources reporting change.” (Ginter, Duncan, & Swayne, 2013, p. 53) Assessing involves evaluating the collected data; it includes “development of the vision, and mission, and formulation of the strategic plan.” (Ginter, Duncan, & Swayne, 2013, p. 54)
Environmental scanning can be viewed as a way of acquiring information about outside events that can aid organizations in first identifying potential trends, then interpreting them
It is the first basic element in strategic planning. It is a process of cautious monitoring of external and internal
However, there is a slightly different view on that presented by Boone and Kurtz (2011, p.61). They argue that the main purpose of environmental scanning is to identify the present trends and the extent to which they affect the company. If any trend provides an opportunity or poses a real threat to the business, appropriate action should follow.
Environmental scan in essence analyzes and evaluates the internal as well as external data and factors that influence the organization. Environmental scan entails the acknowledgment of a company’s environment that has potential effect on the organization’s operations and consequently, is critical in devising and implementing successful strategies. Apple Inc. is a leading international company that specializes in the production of computer software, commercial servers and consumer electronics. Its key products include iPhones, iPad, iPod and Mackintosh computers. The company has been in operation for the past 36 years.
Environmental analysis is largely strategic thinking and strategic planning and consists of understanding the issues in the external environment to determine the implications of those issues for the organization (Ginter,2013). Strategic management does not replace traditional management activities such as budgeting, planning, monitoring, marketing, reporting, and controlling. Rather, it integrates them into a broader context, taking into account the external environment, internal organizational capabilities, and your organization's overall purpose and direction. With having a strategic plan and someone to administer the plan, the organization can flow
External influences cover a wide variety of factors, and their influence can differ between business types. These include the following:
Environmental analysis is important for a company. This allows for the company to look at external factors that will help them to succeed or fail. Environmental analysis could be internal as well as external. The internal analysis allows the company to look within and analyze the successes and see where improvement can and should be made. The external analysis looks at factors such as location, marketing, and surrounding areas to analyze if the these factors are what is best for the company.
These factors influence the internal environment of an organisation and they help in identifying the past and the present of the company, It also provides a frame work for reviewing strategy position and direction of the company.
Scanning of internal and external environment are key part for decision making and planning for achieving of organizational objectives. Internal and external environment are called SWOT Analysis.
To assure the success of a business over a long period of time the business must be able to conduct regular analysis of their success. They must be able to determine where they are today and have a goal of where they would like to see themselves 5-10 years down the road. In order to conduct a true analysis of the company, one must complete an environmental scan of their organization. Thus scanning for events, trends, issues and expectations that they may be faced with in the future. Furthermore, examining all internal and external environment challenges. Internal environmental challenges may be with employees, shareholders or board of directors or the overall culture of the organization. External environmental
As globalization continues and the earth’s natural processes transform local problems into international issues, few societies are being left untouched by major environmental problems like flooding, global warming, strange death of humans and animals, loss of biodiversity among others. This outcome of the global environmental disasters have produces a bloodstone to the