Environmental Scanning Techniques
ENVIRONMENTAL SCANNING
Environmental Scanning can be defined as the process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business for the purpose of taking strategic decisions.
Factors to be Considered for Environmental Scanning
The external environment in which an organization exists consists of a bewildering variety of factors. These factors (could also be termed as influences) are events, trends, issues and expectations of different interested groups. These factors are explained below:
Events are important and specific occurrences taking place in different environmental sectors.
Trends are the general tendencies of the courses of action along which events take place.
Issues are the current concerns that arise in response to events and trends.
Expectations are the demands made by interested groups in the light of their concern for issues.
Take the example of the first public issue of shares of Reliance Industries in 1977. That was a specific event. The trend that started was of wider participation of public in equity investment in private sector companies. Note that earlier to that event, equity participation in India was limited to an exclusive class of investors and the general public was not aware or interested in investing money in shares. The issue that emerged was of the development of equity culture in India. The expectations by the general public that resulted was that the fruits of the economic development in the corporate sector would be shared by all and sundry. An allied expectation that ensued was of protection of small or minority shareholders from rapacious private business persons through legislation and governmental action.
Environmental influences are a complex amalgam of the events, trends, issues and expectations that continually shape the business environment of an organization. There is some research evidence to suggest that Indian organizations conduct
Environmental Scanning can be defined as the process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business for the purpose of taking strategic decisions.
Factors to be Considered for Environmental Scanning
The external environment in which an organization exists consists of a bewildering variety of factors. These factors (could also be termed as influences) are events, trends, issues and expectations of different interested groups. These factors are explained below:
Events are important and specific occurrences taking place in different environmental sectors.
Trends are the general tendencies of the courses of action along which events take place.
Issues are the current concerns that arise in response to events and trends.
Expectations are the demands made by interested groups in the light of their concern for issues.
Take the example of the first public issue of shares of Reliance Industries in 1977. That was a specific event. The trend that started was of wider participation of public in equity investment in private sector companies. Note that earlier to that event, equity participation in India was limited to an exclusive class of investors and the general public was not aware or interested in investing money in shares. The issue that emerged was of the development of equity culture in India. The expectations by the general public that resulted was that the fruits of the economic development in the corporate sector would be shared by all and sundry. An allied expectation that ensued was of protection of small or minority shareholders from rapacious private business persons through legislation and governmental action.
Environmental influences are a complex amalgam of the events, trends, issues and expectations that continually shape the business environment of an organization. There is some research evidence to suggest that Indian organizations conduct