STRATEGIC ENTREPRENEURSHIP

TOPIC 2
ENVIRONMENTAL SCANNING FOR
STRATEGIC ENTREPRENEURSHIP
Strategic Entrepreneurship and Strategic Management

Source : Wheelen, T. L. and Hunger, J. D.

(2000 cited in Kuratko, D. F. & Hodgetts,
R. M., 2004: 521).
 NEW PRODUCT AND STRATEGY
 
 

Includes:
• New product in an established or new
market
• Established product in a new market
• A new organization

Entrepreneurial strategy
• Set of decisions, actions, and reactions that
generate, and exploit, a new entry over time
 NEW PRODUCT AND IDEAS

• Types of ideas that develop based on different ideas

Environmental Scanning for Strategic
Entrepreneurship
 
 

Source : Hisrich, R. D., Peters, 2009

 Environmental scanning
 Environmental scanning is one of the components of global
environmental analysis.
 Other components are monitoring, environmental
forecasting and environment assessment
 The global environment refers to macro environment which
comprises of industries, markets, companies, clients and
competitors.
 Societal Environment, Task Environment and Internal
Environment are the components that employed in
environmental scanning
 External/Societal Environment

 External- refers to factors, forces or situation and events

outsides the organization and the affects of its performance.
 Economic forces, Sociocultural forces, political-legal forces
and technological forces construct the social environment
element.
 The economic forces encompasses factors such as interest
rates, inflation, changes in disposable income and stock
market fluctuation.
 The technological forces concerned on new systems or
technical knowledge in the business that have the ability to
influence the overall business performance.
 External/Societal Environment

 The sociocultural forces component focusing on societal

and cultural factors such as values, attitudes, trends,
traditions, lifestyles, beliefs, tastes and patterns of behavior.
 The Political-Legal forces are regulatory and political
dispensations of any given national or state government are
determined by the orientations of its ideology. These
political and legal forces shape the profile of your business
environment. It is important to understand these forces and
their impact on the performance of your business to
navigate these channels successfully.
 Task Environment (INDUSTRY)
 Task environment (industry) analysis exposes that
shareholders, suppliers, Employees/labor unions, competitors,
trade associations, communities, creditors, customers, special
interest group and governments are ten parties that influencing
the company performance.
 For instance experts say that by 2050, the number of
company’s customer will increase. This increasing of customer
may affect the overall business system in the organization.
 Besides that, government also plays an important role in
targeting the growth of the business. Some of laws and
legislation may affect the productivity of the company entirely.
 Internal Environment

 The Internal environment consist of company structure,

culture and resources.
 The conditions, entities, events, and factors within an
organization will influence its activities and choices,
particularly the behavior of the employees.
 Factors that are frequently considered as part of the internal
environment include the organization's mission statement,
leadership styles, and its organizational culture.
 References
 
 Aashish Mehra, G. S. (2011). Managing rapid growth : How mid caps can leap into the billion
dollar club .
 Kuratko, D. F., & Hodgetts, R. M. (2004). Entrepreneurship: Theory, process, practice.
Mason, Ohio: Thomson/South-Western
 Dollinger, M, J. (2008). “ENTREPRENEURSHIP: Strategies and Resources Fourth Edition”,
Kelley School of Business, Indiana University. MARSH publications, pp. 33-40.
 Drucker, P. F., & Drucker, P. F. (2007). Innovation and entrepreneurship: Practice and
principles. Routledge.
 Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2009). Entrepreneurship. New York:
McGraw-Hill Higher Education.
 Lieberman, M. B., & Montgomery, D. B. (1988). First‐mover advantages. Strategic
management journal, 9(S1), 41-58.
 R. Barringer, Duane,(2009).Successfully Launching New Ventures: McGraw-Hill Higher
Education.
 Zimmerer, T., Scarborough, N. M., & Wilson, D. (2002). Essentials of entrepreneurship and
small business management (Vol. 2). Upper Saddle River, NJ: Prentice Hall.