The strategic management application and description of Environmental Scanning fully with various processes & resulting strategies.

1. Nature & Components of Environmental Scanning Presented by: Ashutosh Mishra MBA (Mrktg.)

2. What is Environmental Scanning? Environmental Scanning: “A term coined in the mid-1960’s by Francis Aguilar, a Harvard Business School professor, to describe the action of watching and collecting information on a company’s rivals and the overall market.” Source: Fuld & Company, Inc. Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or consider entering.

3. Common part of strategic analysis. Environmental Scanning Internal elements & external elements. All are interrelated.

4. Factors affecting Environmental Scanning External Environment Internal Environment Events Trends Issues Expectations Infrastructure HR Hardware Abilities Structure

6. Ad-hoc: Conduction of special surveys & studies to deal with specific environmental issues.

10. It provides an early signal of impending problems, which can be defused if recognized well in advance.

11. It sensitizes an organization to the changing needs and wishes of its customers.

12. It provides a base of objective qualitative information about the environment that strategists can utilize.

13. It provides intellectual stimulation to strategists in their decision making.

14. It improves the image of the organization with its publics by showing that it is sensitive to its environment and responsive to it.

16. Components

19. Intelligence Cycle

20. Linear Process

21. Concentric Circles

22. Scientific Method

23. Hub & Spoke

25. I N T E L L I G E N C E C Y C L E Source: Journal of Business Strategy, May/June, 1988

26. L I N E A R P R O C E S S

27. C O N C E N T R I C C I R C L E S

28. S C I E N T I F I C M E T H O D Source: Cliff Kalb, Merck

30. Adaptation strategy - adapt your marketing plan to the new environmental conditions .

31. Offensive strategy - try to turn the new influence into an advantage - quick response can give you a competitive advantage .

32. Redeployment strategy - redeploy your assets into another industry .

33. Contingency strategy- determine a broad range of possible reactions - find substitutes .