Scribd
Upload
61 views25 pages

Envrnmnt Scan Tech

The document discusses several techniques for environmental scanning: SWOT analysis involves identifying internal strengths and weaknesses and external opportunities and threats. PEST analysis examines the political, economic, social, and technological factors in the external environment. Porter's Five Forces model analyzes competitive rivalry, potential new entrants, substitute products, supplier power, and buyer power in an industry. QUEST is a scanning procedure to help executives keep updated on changes and implications for strategy. Preparing an ETOP identifies relevant environmental factors and their potential positive, neutral, or negative impact.

Uploaded by

Vandana Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
61 views25 pages

Envrnmnt Scan Tech

The document discusses several techniques for environmental scanning: SWOT analysis involves identifying internal strengths and weaknesses and external opportunities and threats. PEST analysis examines the political, economic, social, and technological factors in the external environment. Porter's Five Forces model analyzes competitive rivalry, potential new entrants, substitute products, supplier power, and buyer power in an industry. QUEST is a scanning procedure to help executives keep updated on changes and implications for strategy. Preparing an ETOP identifies relevant environmental factors and their potential positive, neutral, or negative impact.

Uploaded by

Vandana Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 25

ENVIRONMENT

SCANNING TECHNIQUES
Environmental Scanning & Monitoring

 Environmental scanning is a concept from business management by


which businesses gather information from the environment, to better
achieve a sustainable competitive advantage.
 To sustain competitive advantage the company must also respond to
the information gathered from environmental scanning by altering its
strategies and plans when the need arises.
Environmental Scanning & Monitoring- Techniques

SWOT

PEST Techniques QUEST

Industry Analysis Competitor Analysis


SWOT Analysis
SWOT
(Strength-Weakness-Opportunity-Threat)

Identification of threats and Opportunities in the


environment (External) and strengths and
Weaknesses of the firm (Internal) is the
cornerstone of business policy formulation; it is
these factors which determine the course of action
to ensure the survival and growth of the firm.
SWOT: Studying Internal &
External Environment

The aim of any SWOT analysis is to identify the key internal and

external factors that are important to achieving the objective. SWOT

analysis groups key pieces of information into two main categories:

◦ Internal factors – The strengths and weaknesses internal to the


organization.

◦ External factors – The opportunities and threats presented by


the external environment.
Strengths and Weaknesses Opportunities and Threats

◦ Resources: financial, ◦ Takeovers


intellectual, location ◦ Market Trends
◦ Creativity / ability to develop ◦ Economic condition
new products ◦ Mergers
◦ Valuable intangible assets: ◦ Joint ventures
intellectual capital ◦ Strategic alliances
◦ Competitive capabilities ◦ Expectations of stakeholders
◦ Technology
◦ Public expectations
◦ Competitors and competitive
actions
◦ Global Markets
◦ Environmental conditions
Uses of SWOT Analysis

Corporate planning

Set objectives – defining what the organisation is intending to do

Environmental scanning

◦ Internal appraisals of the organisations SWOT, this needs to include


an assessment of the present situation as well as a portfolio of
products/services and an analysis of the product/service life cycle
Establish critical success factors – the achievement of
objectives and strategy implementation

Preparation of operational, resource, projects plans for


strategy implementation

Monitoring results – mapping against plans, taking


corrective action which may mean amending
objectives/strategies.
PEST ANALYSIS
A scan of the external macro-environment in which the firm
operates can be expressed in terms of the following factors:

Political
Economic
Social
Technological
The acronym PEST (or sometimes rearranged as "STEP")
is used to describe a framework for the analysis of these
macroenvironmental factors. A PEST analysis fits into an
overall environmental scan as shown in the following
diagram:     
Environmental Scan
          /   \
External Analysis     Internal Analysis    
/                       \  
Macroenvironment  Microenvironment     
|
     
  P.E.S.T. 
Political Factors Economic Factors

tax policy economic growth


employment laws interest rates
environmental regulations exchange rates
trade restrictions and tariffs inflation rate
political stability
Social Factors Technological Factors

health consciousness R&D activity


population growth rate automation
age distribution technology incentives
career attitudes rate of technological
emphasis on safety change
Competitive Analysis: Porter’s Five Forces Model:

According to Porter,the nature of competitiveness in given

industry can be viewed as a composite of five forces:


o Rivalry among competitive firms
o Potential entry of new competitors
o Potential development of substitute products
o Bargaining power of suppliers
o Bargaining power of consumers
Use of the Information from Five
Forces Analysis

Five Forces Analysis can provide valuable information for three


aspects of corporate planning:

o Statical Analysis
o Dynamical Analysis
o Analysis of Options
QUEST
The Quick Environmental Scanning Technique,is a scanning

procedure designed to assist executives and planners to

keep uptodate of change and its implications for the

organizational strategies and policies.


The procedure permits administrators and top executives to share their

views and to develop a shared understanding of high priority issues,

future options and eventualities which have implications to the

institution. QUEST produces

a) broad and comprehensive analysis of the external environment and

b) analysis and assessment of the institutions capacity and strategic

options for dealing with the external environment.


The QUEST procedure involves four stages. These are:
a) preparation,
b) environmental scanning workshop,
c) intermediate analysis and report,
d) strategic options workshop and follow-up.
Preparation:involves four specific tasks.

o definition of the strategic issue,


o selection of participants (usually between twelve and
fifteen members),
o preparation of a notebook which contains information on
the major environmental trends and events which are
pertinent to the institution, and
o selection of suitable distraction-free sites for the QUEST
workshop.
Environmental Scanning Workshop:

Following the preparation phase, an all-day workshop is


organized to discuss the strategic environment in which the
institution operates.
Intermediate Analysis and Report:

The results are summarized in a written report.


The brief report is presented in two sections with the first part
dealing with the institution's mission, purposes,objectives,
stakeholders, and the second part presenting alternative
scenarios describing the external environments which the
institution may face in the interested future.
Strategic Options Workshop and Follow-up:

The final QUEST step is to hold a strategy meeting, usually


for about half a day, to discuss the report and the strategic
options open to the organization.
Preparing ETOP
Environmental threat and opportunity profile is referred as ETOP profile.

It identifies the relevant environmental factors. Such factors might be

general environmental factors and task environment factors. Thereafter,

it is necessary to identify their nature. Some factors are positive to the

organization whereas others are negative. Therefore, it is necessary to

find out their impact to the organization. Positive, neutral, and negative

sign in ETOP denotes the relevant impact of environmental factors.


Environmental threats and opportunities profile (ETOP) is a

commonly used profile related to external business


environment.

You might also like