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Environmental Scanning in NTPC
Environmental Scanning in NTPC
Pradip Chanda
NTPC Corporate Planning
OBJECTIVES OF ENVIRONMENTAL SCANNING Detecting scientific, technical, economic, social and political trends. Define the potential threats, opportunities or changes for alternative. Promoting a future orientation in the thinking of management and staff Alerting management and staff to trends that are converging, diverging, speed up, slowing down or interacting.
INFORMATION-SEEKING FRAMEWORK
Undirected Viewing
Minimal
Many
- Scan broadly a diversity of sources, taking advantage of what's easily accessible - "Touring"
Conditioned Viewing
Increase understanding
Low
Few
"Sensemaking"
- "Tracking"
Informal Search
Medium
Few
Formal Search
High
Many
GETTING STARTED
SWOT ANALYSIS STRENGTH - Inherent capacity which an organization an use to gain strategic advantage over it competitors WEAKNESS - Inherent limitations or constraint which creates a strategic disadvantage OPPORTUNITY - a favorable condition in the organizations environment which enables it to consolidate and strengthen its position THREAT - an unfavorable condition in organizations environment which creates a risk or causes damage to the organization
GETTING STARTED
FIRST TO DECIDE THE LEVEL OF SCANNING WHETHER IRREGULAR, PERIODIC OR CONTINUOUS. RESOURCE ALLOCATION ACCORDINGLY. SEEK SIGNS OF CHANGE. LOOK FOR POTENTIAL EVENTS ON THE HORIZON. LOOK FOR FORECASTS OF EXPERTS. LOOK FOR INDIRECT EFFECTS. WRITE ABSTRACTS.
GETTING STARTED
SOURCES OF INFORMATION
Documentary or secondary sources - Magazines, newspaper, journals, books, trade &industry Assn. publication, Govt. Publication, Annual report of competitor company Mass media Internal sources - employees, files, MIS, documents
GETTING STARTED
SOURCE OF INFORMATION
EXTERNAL AGENCIES - Customers, marketing intermediaries, suppliers, trade Assn., Govt. Agencies FORMAL STUDIES - Consultants, Educational Institutions, in-house
AREA OF SCANNING
TECHNOLOGICAL Transportation capability Mastery over energy Ability to alter character of material Mechanization of physical activities telecommunication network SOCIAL Population, demographic data Spread of literacy Income distribution Social Values Ethical standards Concern for health
AREA OF SCANNING
ECONOMIC GDP, Growth rate Money supply BOP Policies and regulations POLITICAL Regulatory Legal provisions Stability of Government
WRITING ABSTRACT
Indication where the opportunities exist Grasp of the major sources of threats to the industry Indication of the critical requirement for success in the industry SUPPLIERS - shortage, location, cost, quality MARKETING INTERMEDIARIES - distribution channels, transporters, advertising & marketing research firms - absence or presence
WRITING ABSTRACT
MARKET TYPES - consumer markets, industrial markets, institutional markets, international markets, resellers markets - stable or volatile MARKET DEMAND Quantum - Volume / value Behaviour - Seasonally Structure - OEM + replacement, household consumers, concentration of consumers
WRITING ABSTRACT
FINANCIAL CLIMATE - Availability of funds, Incentives, exemptions REGULATORY ENVIRONMENT - Free trade zones, sales tax, tax rebates - central/state Govt.
NTPC CONTEXT
NTPC ENVIRONMENT
Macro Environment Micro environment
INTERNAL ENVIRONMENT
Culture Competency Creativity
Commitment
Social
Internal Env
internal Factors
Organisational climate survey to understand
Strength & weakness Social & cultural stability Adaptability to change Nurturing creativity.
Bodh and Disha are approach by NTPC to understand the internal environment
Market Types
Market demand
Competition
MICRO ENVIRONMENT
Financial Institutions
Regulatory Provisions
Issues
Regulatory risk.
Mitigation through policy advocacy Regulatory strategy
Fuel risk
Alternative resources Fuel mix strategy
Fund sourcing
Through Market Loan
Land, water
Issues
Technology risk.
Adoption Indigenization
Process
Where do we want to see ourselves may be 20 years henceforth?.
Vision and mission statement and revisiting the same. Management agenda Dynamic Corporate plan Alternative business opportunity. Research and development requirement. Extensive training for capability development Building relation with customer (CRM) Building image in the market Returning to the society (CSR).
OPPORTUNITY MATRIX
High
Attractiveness Low
Very Attractive
Moderately Attractive
Moderately Attractive
Least Attractive
THREAT MATRIX
High Seriousness Low Major Threat Moderate Threat
Moderate Threat
Minor Threat
IMPACT MATRIX
Trends Probability Impact on strategies of occurrence S1 S2 S3 S4 T1 T2 : Degree of quality of impact of each trend on different strategies using impact scale +2 Extremely favorable Impact +1 Moderately favorable Impact 0 No Impact +1 moderately unfavorable Impact -2 Extremely unfavorable Impact
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