Business Environment Scanning, Its Need And Techniques.

Submitted toMiss. Vidhu Koul

Asst. Lecturer

Submitted By:Riaz Ahmed

MBA(2nd sem)

CONTENTS

1. INTRODUCTION2. BUSINESS ENVIRONMENT3. ENVIRONMENTAL SCANNING4. ENVIRONMENTAL SCANNING NEED5. ENVIRONMENTAL SCANNING TECHNIQUES6. CONCLUSION7. REFETRENCE

• BUSINESSAccording to Professor Davis, The term Business is defined as, “The organized

efforts by the individuals to produce goods and services, to sell these goods and

services in the market place, and to reap some rewards from their efforts”.

INTRODUCTION

• ENVIRONMENTAccording to Webster's dictionary, Environment refers to the surrounding

conditions, influence or forces that modify as the aggregate of social and cultural

conditions that influence the life of an individual or a community

According to Keith Devis

Business Environment is the aggregate of all the

conditions, events, and influences that surround and

affect it.

It refers to those aspects of the surroundings of the Business enterprise which affect or influence its operations and determine

its effectiveness.

BUSINESS ENVIRONMENT

• Environmental Scanning is the data collection practice.

• It is aimed at collecting information about an environment

such as an office or institution that can be used in planning,

development, and ongoing monitoring by managers and

supervisors.

ENVIRONMENTAL SCANNING

Need to SCAN the Business Environment

1• Identification of Strengths

2• Identification of Weakness

3• Identification of Opportunities

4• Identification of Threats

5• Optimum use of Resources

6• Survival and Growth

7• To plan long term Business Strategy

8• Environmental Scanning aids Decision Making

ENVIRONMENTAL SCANNING TECHNIQUES

Techniques

SWOT

QUEST

Competitor Analysis

Industry Analysis

PEST

SWOT Analysis

HELPFULTo achieving the

objectives

HARMFULTo achieving the

objectives

INTERNAL(attributes of the Organization)

STRENGTHS WEAKNESSES

EXTERNAL(Attributes of the Environment)

OPPORTUNITIES THREATS

PEST

POLITICAL ECONOMIC

SOCIAL TECHNOLOGICAL

PEST

INDUSTRY ANALYSIS

It is a market assessment tool designed to provide a

business with an Idea of the Complexity of a particular

Industry.

It involves reviewing the economic, political and market factors that influence the way the Industry develops.

QUEST

The Quick Environmental Scanning Technique, is a scanning

procedure design to assist, executers and planners to keep side

by side of change and its implications for the organizational

strategies and plans.

QUEST produces a broad and comparative analysis of the

external environment.

COMPETITOR ANALYSIS

According to the Michael. E. Porter

The state of Competition in an Industry depends on five

basic competitive forces, these are

• Rivalry among existing firms

• Threat of new entrants

• Threats of substitute

• Bargaining power of Suppliers

• Bargaining power of Buyers

In rapidly changing environment, one

rule of thumb applies: if you don’t adapt,

you don’t endure. That’s the core idea

behind Environmental Scanning.

CONCLUSION

REFERENCE

BOOKS:

BUSINESS ENVIRONMENTBY: S.L KOHLI & N.K RESUTRA

WEBSITE:www.studymode.comwww.tutor2u.netwww.caclubindia.com

ANY QUESTION????