1. ENVIRONMENTAL SCANNING www.paperhint.com

2. What is environmental scanning? Definition The process of collecting, analyzing, and distributing information for tactical and strategic purposes www.paperhint.com

3. Purpose of an environmental scan: To provide strategic intelligence by evaluating potentially significant environmental changes Conveys both current environmental status and how it is changing  trends Alerts planners to trends that are converging, diverging, interacting, accelerating, or decelerating Ideal end-goal: allows for adaptive planning before these trends occur or fully develop www.paperhint.com

4. Often refers only to the environment that is external to the organization Good strategic planning requires information on internal organizational factors, so whenever possible include these also (unless obtained in separate processes) www.paperhint.com

5. How it fits in the planning cycle: www.paperhint.com

6. Types of environmental scans www.paperhint.com Ad HocPeriodicContinuous Gener al Chara cter- istics  Usually performed in response to crisis  Not as in-depth  Forecasts are more short-term  Tied to planning cycle (e.g., every 3 years)  In-depth  Forecasts 5 to 10 years  Also called Continuous Learning  Structured, in-depth data collection and analyses by dedicated staff  Data gathered is more comprehensive

7. Ad HocPeriodicContinuous Pros  Allows for quicker turn- around of scan results  Lower commitment of resources over time  Predictable frequency allows for appropriate budget planning  Frequency provides timely information gathering for planning  Planning is proactive…  Dedication of time by researchers allows incorporation of data from more sources  Provides planners with more comprehensive information  Informs planners of critical changes sooner  Plans can be adjusted or adopted more proactively www.paperhint.com

8. Ad HocPeriodicContinuous Cons  Data can be more superficial  Results may address immediate issues, but are less generalizable  If only conducted in response to crises, indicates lack of organized institutional planning efforts  Planning response is reactive  Reaction to unforeseen changes in environment (e.g., onset of recession) may require Ad Hoc scan to supplement information.  Planning response is then more reactive  Requires ongoing institutional commitment of resources (funding, personnel, and time) www.paperhint.com

9. SOURCES OF INFORMATION Documentary or secondary sources - Magazines, newspaper, journals, books, trade &industry Assn. publication, Govt. Publication, Annual report of competitor company Mass media Internal sources - employees, files, MIS, documents www.paperhint.com

10. SOURCES OF INFORMATION EXTERNAL AGENCIES - Customers, marketing intermediaries, suppliers, Govt. Agencies FORMAL STUDIES - Consultants, Educational Institutions, in-house www.paperhint.com

11. COMPETITIVE ENVIRONMENT SCANNING Market stability is threatened by short product life cycles, short product design cycles, new technologies, frequent entry by unexpected outsiders, repositioning by incumbents and tactical redefinition market boundaries as divers industries merge. The environment escalates toward higher & higher levels of uncertainty, dynamism, heterogeneity of players & hostility” www.paperhint.com

12. COMPETITIVE ENVIRONMENT SCANNING ENVIRONMENTAL THREAT- Challenges posed by an unfortunate trend - lead to erosion of company’s position ENVIRONMENTAL OPPORTUNITY - an attractive arena - that company enjoys a competitive advantage www.paperhint.com

13. INDUSTRIAL ENVIRONMENT Firm Relevant environment Micro environment Macro Environment Internal Environment www.paperhint.com

14. COMPONENTS OF MEGA ENVIRONMENT Regulatory Economic Political Technological Social Mega Environment www.paperhint.com

15. CHARACTERISTICS OF VARIOUS ENVIRONMENT TECHNOLOGICAL Transportation capability Mastery over energy Ability to alter character of material Mechanization of physical activities telecommunication network SOCIAL Population, demographic data Spread of literacy Income distribution Social Values Ethical standards Concern for health www.paperhint.com

16. CHARACTERISTICS OF VARIOUS ENVIRONMENT ECONOMIC GDP, Growth rate Money supply BOP Policies and regulations POLITICAL Regulatory Legal provisions Stability of Government www.paperhint.com

17. Suppliers Marketing Intermediaries Market Types Market demand Competition MICRO ENVIRONMENT Financial Institutions Regulatory Provisions Industrial relation climate Availability of skilled manpower www.paperhint.com

18. Indication where the opportunities exist Grasp of the major sources of threats to the industry Indication of the critical requirement for success in the industry SUPPLIERS - shortage, location, cost, quality MARKETING INTERMEDIARIES - distribution channels, transporters, advertising & marketing research firms - absence or presence www.paperhint.com

19. MARKET TYPES - consumer markets, industrial markets, institutional markets, international markets, resellers markets - stable or volatile MARKET DEMAND www.paperhint.com

20. FINANCIAL CLIMATE - Availability of funds, Incentives, exemptions REGULATORY ENVIRONMENT - Free trade zones, sales tax, tax rebates - central/state Govt. www.paperhint.com

21. SWOT STRENGTH - Inherent capacity which an organization an use to gain strategic advantage over it competitors WEAKNESS - Inherent limitations or constraint which creates a strategic disadvantage OPPORTUNITY - a favorable condition in the organization’s environment which enables it to consolidate and strengthen its position THREAT - an unfavorable condition in organization’s environment which creates a risk or causes damage to the organization www.paperhint.com

22. OPPORTUNITY MATRIX High Very Moderately Attractive Attractive Attractiveness Moderately Least Low Attractive Attractive High Low Probability of occurrence www.paperhint.com

23. THREAT MATRIX HighMajorModerateThreat Seriousness Moderate Minor LowThreatThreat High Low Probability of occurrence www.paperhint.com