ENVIRONMENTAL

SCANNING & ANALYSIS

By:
GROUP I
 MEANING

Environmental scanning is the process of

analysing the environment for the
identification of the factors which
impact on or have implications for the
business. Such factors may include
those which have appeared suddenly or
evolved over a time.
 IMPORANCE
 
Environmental analysis has several benefits like those
mentioned below,
• The very idea of environment analysis makes one aware of
the environment-organisation linkage.
• A corollary of the above is that (environmental analysis
helps) an organisation to identify the future threats and
opportunities.
• Environmental analysis will provide a necessary and very
useful picture of the important factors which influence the
business.
• Environmental analysis helps to understand the
transformation of the industry environment.
• Technological forecasting will indicate some of the future
opportunities and challenges.
• A very important benefit of environment analysis is its
contribution to identification of risks.
• Environmental analysis is a prerequisite for formulation of right
strategies – corporate business and functional.
• Environmental monitoring helps suitable modifications of the
strategies as and when required.
• Environmental analysis keeps the managers informed, alert and
often dynamic.
 METHODS OF
ENVIRONMENTAL ANALYSIS

• Verbal & Written information

• Search & Scanning
• Spying
• Forecasting
 TYPES OF FORECASTING
• Economic forecasting
• Social forecasting
• Political forecasting
• Technological forecasting
 TECHNIQUES FOR ENVIRONMENTAL
FORECASTING

• ECONOMETRIC TECHNIQUES
• TREND EXTRAPOLATION
• SCENARIO DEVELOPMENT
• JUDGEMENT MODELS
• BRAIN STROMING
• DELPHI METHOD
• STRATIGIC ISSUE ANALYSIS
PROCESS OF
ENVIRONMENTAL
ANALYSIS

The process of environmental analysis may be

divided into following 4 stages:
• Scanning the environment to detect warning
signals
• Monitoring specific environmental trends
• Forecasting the direction of future environmental
changes
• Assessing current & future environmental
changes for their organizational implications
LIMITATIONS

• The selection of variables included in the

predictive model
• The selection of the functional form for
linking these predictor variables to the
variables being predicted
• The estimation of the correct values for
the predictor variables
THANK YOU