ENVIRONMENTAL SCANNING

INTRODUCTIONIt is a process by which organization monitor the relevant environment to identify opportunities available & threats affecting their business.It is a process by which managers monitor the economic, governmental, technological, legal, social & cultural factors to determine the threats to the enterprise & opportunities available to organization.

CHARACTERISTICS OF ENVIRONMENTAL SCANNINGContinuous ProcessExploratory processHolistic exercise.

FACTORS TO BE CONSIDERED FOR ENVIRONMENTAL SCANNINGEventsTrendsIssuesExpectations

SIGNIFICANCE OF ENVIRONMENTAL SCANNINGTo understand impact of socio economic changes at national & international level.To develop broad strategies.To make long term policies.To make one aware of environmental organization linkage.To know threats & opportunities for organization.To keep oneself dynamic in management of organization.To develop action plans to deal with technological changes.

APPROACHES OF ENVIRONMENTAL SCANNINGSystematic ApproachAd hoc ApproachProcessed Form Approach

SOURCES OF INFORMATION FOR ENVIRONMENTAL SCANNINGVerbal InformationWritten Information or documentary informationInternal sourcesExternal sourcesIndustrial Espionage & surveillanceFormal studiesNewspapers, periodicalsGovernment PublicationsInstitutions PublicationsInternational sources

TYPES OF ENVIRONMENTAL SCANNINGEconomic ForecastsSocial forecastsPolitical ForecastsTechnological Forecasts

STEPS IN ENVIRONMENTAL SCANNINGScreening the environment to detect warning signalsMonitoring specific environmental trendsForecasting the directions of future environmental changesAssessing current & future environmental changes for their organization implication.

TECHNIQUES OF ENVIRONMENTAL SCANNINGEconometric TechniquesTrend ExtrapolationScenario DevelopmentJudgment modelsBrain StormingStrategic issue analysis

ENVIRONMENTAL APRAISALSWOT ANALYIS or ETOP

LIMITATIONS OF ENVIRONMENTAL ANALYSISIt cannot eliminate uncertaintyDoes not guarantee organizational effectivenessIt depends on how it is practicedOverloading of informationErrors in variables