Environmental Scanning
Contrasting Environmental Scanning to Competitive Analysis
Peter F. Shore
HLTH 5020
November 3, 2013
Sandra Guerra
Contrasting Environmental Scanning to Competitive Analysis
Environmental Scanning
Environmental scanning is a prerequisite for the formulation of successful business strategies whereas competitive analysis is an assessment of the strengths and weaknesses of competitors (both current and potential) usually drawn from data during environmental scanning (Beal, 2000).
Social Issues and Technology
Environmental scanning allows an organization to learn about stimuli (whether conditions of events) that threaten the organization’s performance or survival (Beal, 2000). To scan the organization environment better, it is important to list what to look for. Social issues give insight into consumer, vendor, corporate, and industry atmosphere, needs, and wants. Technology is extremely important in this “I want it now and accurate” mentality of society. Not permitting technological growth, including anticipation of more advanced products, can threaten an organization’s survival.
Environment and Political Climate
Environmental scanning mandates that organizations look at environment, both actual and corporate. Knowing both will set the stage for better preparation during competitive advantage strategies (Walker, Kapelianas, & Hutt, 2005). Political climate and economic forces are important factors when conducting environmental scanning because the organization must understand its attractiveness. New laws, trade barriers, policy changes, and economies affect organizations, depending on the scope of organization.
Demographics
Demographics and psycho-demographics are factors of environmental scanning because demographic shifts may increase or decrease the demand for a particular service or product. Changes in age groups, education, and income of an area factor the effects on an organization. Consumer lifestyle also plays a role
Peter F. Shore
HLTH 5020
November 3, 2013
Sandra Guerra
Contrasting Environmental Scanning to Competitive Analysis
Environmental Scanning
Environmental scanning is a prerequisite for the formulation of successful business strategies whereas competitive analysis is an assessment of the strengths and weaknesses of competitors (both current and potential) usually drawn from data during environmental scanning (Beal, 2000).
Social Issues and Technology
Environmental scanning allows an organization to learn about stimuli (whether conditions of events) that threaten the organization’s performance or survival (Beal, 2000). To scan the organization environment better, it is important to list what to look for. Social issues give insight into consumer, vendor, corporate, and industry atmosphere, needs, and wants. Technology is extremely important in this “I want it now and accurate” mentality of society. Not permitting technological growth, including anticipation of more advanced products, can threaten an organization’s survival.
Environment and Political Climate
Environmental scanning mandates that organizations look at environment, both actual and corporate. Knowing both will set the stage for better preparation during competitive advantage strategies (Walker, Kapelianas, & Hutt, 2005). Political climate and economic forces are important factors when conducting environmental scanning because the organization must understand its attractiveness. New laws, trade barriers, policy changes, and economies affect organizations, depending on the scope of organization.
Demographics
Demographics and psycho-demographics are factors of environmental scanning because demographic shifts may increase or decrease the demand for a particular service or product. Changes in age groups, education, and income of an area factor the effects on an organization. Consumer lifestyle also plays a role
References: Beal, R. M. (2000). Competing effectively: Environmental scanning, competitive strategy, and organizational performance in small manufacturing firms Food and Agriculture Organization of the United Nations. (2013). Chapter 6: A competitive analysis and strategy Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2013). Strategic management of health care organizations (7th ed.) McComb, E. D. (2008, May). Which psycho-demographic factors predict a doctor 's intention to leave new zealand general practice? The New Zealand Medical Journal, 121(1273)