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BUSINESS STRATEGY XI ENV SCAN

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					BUSINESS STRATEGY XI
Environmental Scanning
DEFINITIONS & FACTORS
   The process by which an organisation monitors its
    relevant environment for identification of
    opportunities & threats is environmental scanning
   Factors to be considered are Events which are
    specific and important occurrences in different
    sectors, Trends general tendencies and courses of
    action along which evens take place, Issues current
    concerns in response to events & trends &
    Expectations are the demands made by the
    interested in the light of their concerns
ONE EXAMPLE
   First public issue of Reliance Industries in
    1977-EVENT
   TREND started was of wider participation of
    public in equity investments in private sector
    companies
   ISSUE was of developing equity culture in
    India
   EXPECTATIONS among general public that
    fruits of corporate sector will be shared by
    all & sundry
APPROACHES
   Systematic Approach- information collected
    systematically and continuously re: markets,
    customers, legislation, govt. policies and
    updated continuously
   Ad Hoc Approach- special studies and
    surveys regarding specific issues very often
    for special projects
   Processed Form Approach- using
    information from different sources inside
    and outside
SOURCES OF
INFORMATION
   Documentary or Secondary Sources- from
    different forms of publications – print
    media, trade and industry association
    newsletters, govt. publications, annual
    reports of competitors
   Mass Media- radio, TV, Internet
   Internal Sources- company files, databases,
    company employees etc.
SOURCES OF
INFORMATION
   External Agencies- customers, dealers,
    trade associations, govt. agencies
   Formal Studies made by employees,
    market research bodies, consultants,
    institutions etc.
   Industrial Espionage- spying and
    surveillance agencies
METHODS & TECHNIQUES
OF SCANNING
   Single Variable Extrapolations
   Unstructured Expert opinion
   Structured expert opinion
   Structured inexpert and unstructured
    inexpert opinions
   Scenario building
   Simulation
METHODS & TECHNIQUES
OF SCANNING
   Complexity Theory- a set of mathematical
    techniques to deal with the dynamic nature
    of real world problems- fractals, fuzzy logic,
    genetic algorithms, swarm stimulations,
    Monte Carlo Method, the chaos theory
   Techniques based on artificial intelligence,
    neural networks, data mining etc.
PITFALLS

   Over focusing on the relevant environment
    and missing out on the trends and issues in
    the general environment
   Paralysis by analysis- study of environment
    does not mean number-crunching and
    paper pushing
   The Scanning should be done to uncover
    influences that matter for the future of
    corporate strategic decision making
PITFALLS

   Scanning should be kept separate
    from operations
   Scanning cannot become an
    impersonal Staff function
   It should not be too far from the
    realities of the organisation
FACTORS AFFECTING
ENVIRONMENT APPRAISAL
   Strategist-related Factors- the personality
    and the identity of the strategist has a
    central role and when a group of
    consultants is used the group dynamics
    among them
   Organisation-related factors- size, nature of
    the business
   Environment-related factors- is it complex,
    stable, changing, turbulent and so on and
    so forth

				
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posted:7/28/2012
language:English
pages:11
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