Dr.
Roopali Srivastava November 2008
Dr. Roopali Srivastava Jan 2011
The dictionary meaning is “to look carefully
into or to examine”.
The term environmental scanning in business
means to “carefully analyze the various
factors influencing the business.
The process of collecting, analyzing,
and distributing information for
tactical and strategic purposes
Dr. Roopali Srivastava November 2008
Dr. Roopali Srivastava November 2008
Ad Hoc Periodic Continuous
Also called Continuous Learning
Usually performed in
Tied to planning cycle Structured, in-depth data
General response to crisis
(e.g., every 3 years) collection and analyses by
Character- Not as in-depth
istics In-depth dedicated staff
Forecasts are more short-
Forecasts 5 to 10 years Data gathered is more
term
comprehensive
Dedication of time by researchers
Predictable frequency
allows incorporation of data
allows for appropriate
from more sources
Allows for quicker turn- budget planning
Provides planners with more
Pros around of scan results Frequency provides
comprehensive information
timely information
Informs planners of critical
gathering for planning
changes sooner
Data can be more superficial
Reaction to unforeseen
Results may address
changes in environment
immediate issues, but are
(e.g., onset of
less generalizable Requires ongoing institutional
recession) may require
Cons If only conducted in response
Ad Hoc scan to
commitment of resources
to crises, indicates lack of (funding and time)
supplement
organized institutional
information.
planning efforts
Dr. Roopali Srivastava November 2008
Effective utilization of resource :All this evolves the evaluation
of the company’s strength & weaknesses in the light of the
environmental threats & opportunities & give the measures to
harness the opportunities or to compact the threat.
Help in converting threats into opportunities
Strategic management starts with environmental scanning
Constant monitoring of the environment : E.S provides clear
cut idea about the existing environment. Without it ,it would
not be possible to know the change in consumer’s taste &
preferences, competitors& latest policy development .
Useful for the manager.
Prediction of future
Dr. Roopali Srivastava November 2008
Often refers only to the environment that is
external to the organization
(also called the macroenvironment)
Good strategic planning requires information
on internal organizational factors, so
whenever possible include these also
Dr. Roopali Srivastava November 2008
Dr. Roopali Srivastava November 2008
One cycle in the strategic planning process
Dr. Roopali Srivastava November 2008
An organizational resource or capability
May be used to advance the organization’s /
program’s interests
Your specialist marketing expertise.
A new, innovative ideas.
Location of your business.
Quality processes and procedures.
Any other aspect of your business that adds value to
your product or service.
The absence of certain strengths or capabilities
that are needed to move the organization forward
Lack of marketing expertise.
Undifferentiated products (i.e. in relation to your
competitors).
Location of your business.
Poor quality goods .
Damaged reputation.
May be identified by asking questions:
◦ Why does business do well?
◦ What do we do less well?
◦ In what areas is business healthy & robust?
◦ In what areas is business weak or struggling?
May be identified by asking questions: ?
◦ What resources can we call upon?
◦ How do these resources compare with our needs?
Chances for growth or positive change in direction
revealed by changes or trends in the external
environment
A developing market such as the Internet.
Mergers, joint ventures or strategic alliances.
Moving into new market segments that offer
improved profits.
A new international market.
A market vacated by an ineffective competitor.
Changes or trends in the external environment
“Threats” are sometimes described as “Traps”
A new competitor in your home market.
Price wars with competitors.
A competitor has a new, innovative product or
service.
Competitors have superior access to channels
of distribution.
Are identified by looking beyond the
boundaries of the organization
Questions might include the following:
◦ What are the external trends that will affect us?
How?
◦ What is changing in our communities that will affect
us? How?
Questions might include the following:
◦ What are the needs in the external environment that
could be met by deploying the strengths of
business and its members?
◦ Do any of our weaknesses make us particularly
vulnerable to a changing environment?
S-O strategies are strategies that build on
organizational strengths and resources to
pursue opportunities
W-O strategies require the organization to
overcome weakness to pursue opportunities
S-T strategies utilize the organization’s
strengths to overcome external threats
S-W strategies create a defensive plan to
keep an organization’s weakness from
making it susceptible to external threats
Be realistic about business’s strengths &
weaknesses
◦ Not too modest, not overly critical
Seek a balance between strengths &
weaknesses
Distinguish between where is business today
and could be tomorrow
Look at business in relation to competing
(external) organizations & interests
Be as specific as you can
◦ Avoid fuzziness or shades of gray in this analysis
Keep it short & simple.
◦ Don’t over-analyze
The aim is not to identify every factor
affecting business’s future
◦ Identify key factors
◦ A good target would be 10 factors in each of the
four areas
Remember that SWOT is subjective
◦ There is no right or wrong answers
The underlying purpose is to develop
strategies that ensure the best alignment
between the external environment
(opportunities & threats) and the internal
environment (strengths & weaknesses)
A SWOT exercise is a valuable way of
obtaining observations and predictions from
a group of knowledgeable and involved
participants during the planning process
Be realistic about the strengths and weaknesses of
your organization when conducting SWOT analysis.
SWOT analysis should distinguish between where
your organization is today, and where it could be
in the future.
SWOT should always be specific.
Always apply SWOT in relation to your competition
i.e. better than or worse than your competition.
Keep your SWOT short and simple. Avoid
complexity and over analysis
Depends…
◦ Type of scan (Ad hoc, Periodic, Continuous)
◦ Your institution’s relationship to its service area
◦ How the scan information will be used
Dr. Roopali Srivastava November 2008
Rate factors on two dimensions:
◦ Potential impact on your institution
◦ Probability of occurrence
Look for changes in current trends
Look for potential interaction effects between
factors.
Dr. Roopali Srivastava November 2008