Environmental Scanning Power Point

8/8/2019 Environmental Scanning Power Point

1/23

Environmental Scanning &

Monitoring


2/23


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 companymust also respond to the information gathered

from environmental scanning by altering

itsstrategiesandplans when the need arises


3/23


Monitoring-TechniquesSWOT

QUEST

CompetitorAnalysis

IndustryAnalysis

PEST TECHNIQUES


4/23

SWOT

(Strength-Weakness-Opportunity-Threat)

Identification of threats and Opportunities in

the environment (External) and strengths

and Weaknesses of the firm (Internal)

-the cornerstone of business policy

formulation; it is these factors whichdetermine the course of action to

ensure the survival and growth of the

firm.


5/23


6/23

TheSWOT analysisisan

extremelyusefultoolfor

- understanding and decision-making

for all sorts of situations in businessand organizations. SWOT is an

acronym for Strengths, Weaknesses,

Opportunities, Threats


7/23

SWOT analysiscamefromthe

researchconductedatStanford Research Institute from 1960-1970.

The background to SWOT stemmed from

the need to find out why corporateplanning failed. The research was funded

by the fortune 500 companies to find out

what could be done about this failure. The

Research Team were Marion Dosher, DrOtis Benepe, Albert Humphrey, Robert

Stewart, Birger Lie


8/23

Itallbeganwiththecorporate

planningtrendWhich seemed to appear first at Du

Pont in 1949. By 1960 every Fortune

500 company had a 'corporateplanning manager (or equivalent) and

'associations of long range corporate

planners' had sprung up in both theUSA and the UK


9/23

Strategic and Creative Use of S.W.O.T

Analysis : Orienting to An Objective

If SWOT analysis does not start with

defining a desired end state or objective, it

runs the risk of being useless. A SWOT

analysis may be incorporated into the

strategicplanningmodel.

An example of a strategic planningtechnique that incorporates an objective-

driven SWOT analysis is SCAN analysis.


10/23

SWOT: Studying Internal &

External Environment

The aim of any SWOT analysis is to

identify the key internal and externalfactors that are important to achieving the

objective. SWOT analysis groups key

pieces of information into two main

categories


11/23

Internal factors The strengths and

weaknesses internal to the organization.

External factors

The opportunities and threat s presented by

the external environment.


12/23

If a clear objective has been identified, SWOT

analysis can be used to help in the pursuit of thatobjective. In this case, SWOTs are

Strengths: attributes of the organization

that are helpful to achieving the objective

Weaknesses: attributes of the organization

that are harmful to achieving the objective.


13/23

Strengths:

attributes of the organization that are

helpful to achieving the objective.

Weaknesses:

attributes of the organization that are

harmful to achieving the objective.

.


14/23

Opportunities:external conditions that are helpful

to achieving the objective.

Threats:

external conditions that are harmfulto achieving the objective.


15/23

Examples of SWOTs

StrengthsandWeaknesses

Resources: financial, intellectual, location

Cost advantages from proprietary know-

how

Creativity / ability to develop new products

Valuable intangible assets: intellectual

capital

Competitive capabilities

Big campus selection


16/23

Opportunitiesand Threats

- Takeovers

Markettrends

Economiccondition

Mergers

JointventuresStrategicalliances

Expectationsof

stakeholders

Technology

Publicexpectations

Competitorsand

competitiveactions

Poorpublicrelationsdevelopment

Criticism (editorial)

Globalmarkets

Environmentalconditions


17/23

Uses of SWOT Analysis

Corporateplanning

Setobjectives defining what the organization is

intending to do

Environmentalscanning

Internal appraisals of the organizations SWOT, thisneeds to include an assessment of the present

situation as well as a portfolio of products/


18/23

Analysisofexistingstrategies, this should

determine relevance from the results of an

internal/external appraisal. This may includegap analysis (compare its actual

performance with its

potential performance which will look atenvironmental factors)


19/23

StrategicIssues defined key factors in

the development of a corporate plan

which needs to be addressed by the

organisation

Developnew/revisedstrategies

revised analysis of strategic issues may

mean the objectives need to change


20/23

Establishcriticalsuccessfactors the

achievement of objectives and strategy

implementation

Preparation of operational, resource, projects plans for strategy implementation

Monitoringresults

mapping against planstaking corrective action which may mean

amending objectives/strategies


21/23

Also;

Use SWOT analysis for business planning,

strategic planning, competitor evaluation,marketing, business and product

development and research reports


22/23

HandlingSWOTs

Strengths (maintain,buildandleverage)

Opportunities (prioritise andoptimise)

Weaknesses (remedyorexit)

Threats (counter)


23/23

Environmental Scanning Power Point

Documents

Transcript of Environmental Scanning Power Point