IntrotoEnvironmentalScanningPresentation_000

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Tuesday, August 23, 2011Prof. Shivaji JAgatap 1


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` Introduction to the environmental scanning

process Definition of scanning

Types of scans

` What to include in your scans

` Tips on conducting scans

` Tips on producing scan report

` Resources` References



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Tuesday, August 23, 2011Prof. Shivaji JAgatap

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` The process of collecting, analyzing, and

distributing information for tactical andstrategic purposes



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` To provide strategic intelligence by evaluating

potentially significant environmental changes

Con

veys both curren

t en

vironm

ental status a

nd how it ischanging trends

Alerts planners to trends that are converging, diverging,

interacting, accelerating, or decelerating

Ideal end-goal: allows for adaptive planning before these

trends occur or fully develop



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` Often refers only to the environment that is

external to the organization

(also called them

acro en

vironm

en

t)

` Good strategic planning requires information on

internal organizational factors, so whenever

possible in

clude these also(unless obtained in separate processes)



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` One cycle in the strategic planning process



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Ad Hoc Periodic Continuous

General

Character-

istics

Usually performed in response

to crisis

Not as in-depth

Forecasts are more short-term

Tied to planning cycle

(e.g., every 3 years)

In-depth

Forecasts 5 to 10 years

Also called Continuous Learning Structured, in-depth data collection

and analyses by dedicated staff

Data gathered is more

comprehensive

ProsAllows for quicker turn-around of

scan results

Lower commitment of resources

over time

Predictable frequency

allows for appropriate

budget planning

Frequency provides timely

information gathering for

planning

Planning is proactive

Dedication of time by researchers

allows incorporation of data from

more sources

Provides planners with more

comprehensive information

Informs planners of critical changes

sooner

Plans can be adjusted or adopted

more proactively

Cons

Data can be more superficial

Results may address immediate

issues, but are less

generalizable

If only conducted in response to

crises, indicates lack of

organized institutional planning

efforts

Planning response is reactive

Reaction to unforeseen

changes in environment

(e.g., onset of recession)

may require Ad Hoc scan

to supplement information.

Planning response is then

more reactive

Requires ongoing institutional

commitment of resources (funding,

personnel, and time)

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` PESTEL

` SWOT Analysis

` ETOP

` QUEST` EFE Matrix

` CPM



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` PESTLE is an analytical tool which considers

external factors and helps you to think abouttheir impacts


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` Is a useful tool for understanding the bigpicture of the environment in which you areoperating

` By understanding your environment, you cantake advantage of the opportunities andminimize the threats.

` This provides the context within which moredetailed planning can take place to take fulladvantage of the opportunities that presentthemselves.


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` P Political The current and potential influences from political pressures

` E - Economic The local, national and world economic impact

` S - Sociological The ways in which changes in society affect the project

` T - Technological How new and emerging technology affects our project / organization

` L - Legal How local, national and global legislation affects the project

` E - Environmental Local, national and global environmental issues


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` Political: Government type and stability Freedom of the press, rule of law and levels of bureaucracy and corruption Regulation and de-regulation trends Social and employment legislation

Tax policy, and trade and tariff controls Environmental and consumer-protection legislation Likely changes in the political environment

` Economic: Stage of a business cycle Current and projected economic growth, inflation and interest ratesUnemployment and supply of labor

Labor costs Levels of disposable income and income distribution Impact of globalization Likely impact of technological or other changes on the economy Likely changes in the economic environment


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PESTLE

` Sociological: Cultural aspects, health consciousness, population growth rate, age distribution, Organizational culture, attitudes to work, management style, staff attitudes Education, occupations, earning capacity, living standards Ethical issues, diversity, immigration/emigration, ethnic/religious factors

Media views, law changes affecting social factors, trends, advertisements,publicity Demographics: age, gender, race, family size

` Technological: Maturity of technology, competing technological developments, research funding,

technology legislation, new discoveries Information technology, internet, global and local communications Technology access, licensing, patents, potential innovation, replacement

technology/solutions, inventions, research, intellectual property issues, advancesinmanufacturing

Transportation, energy uses/sources/fuels, associated/dependent technologies,rates of obsolescence, waste removal/recycling


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PESTLE

` Legal: current home market legislation, future legislation

European/international legislation

regulatory bodies and processes

environmental regulations, employment law, consumer protection

industry-specific regulations, competitive regulations

` Environmental: Ecological environmental issues, environmental regulations customer values, market values, stakeholder/ investor values

management style, staff attitudes, organizational culture, staff engagement


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Strengths

Opportunities

Weakness

Threats

Factors Internal

to Organization

Factors External

to Organization


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`A SWOT analysis generates information thatis helpful inmatching an organization orgroups goals, programs, and capacities to

the social environment in which it operates.` Factors internal to the firm usually can be

classified as strengths (S) or weaknesses(W), and those external to the firm can be

classified as opportunities (

O) or threats (

T).

` It is an instrument within strategic planning.

` When combined with dialogue it is aparticipatory process


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` StrengthsPositive tangible and intangible attributes, internal to anorganization. They are within the organizations control.

` Weakness

Factors that are within an organizations control thatdetract from its ability to attain the core goal. Which areasmight the organization improve?


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` Opportunities External attractive factors that represent the reason for

an organization to exist and develop. What

opportunities exist in the environment, which willpropel the organization?

Identify them by their time frames

` Threats External factors, beyond an organizations control,

which could place the organizationmission oroperation at risk. The organizationmay benefit byhaving contingency plans to address them if theyshould occur.

Classify them by their seriousness and probability ofoccurrence. Back to Design


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` Be realistic about the strengths andweaknesses of your organization or group.

` Distinguish between where your organizationis today, and where it could be in the future

` Be specific: Avoid gray areas.

`Always analyze in relation to your coremission.

` Keep your SWOT short and simple. Avoidcomplexity and over analysis

` Empower SWOT with a logical conceptualframework.


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Environmental threats and opportunity profile.

1. List Environmental Factors

2. AssessIm

pact of Each-other3. Get a Big Picture



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Environmental Factors Impact on Each other

Economic (+) Rising income Levels

(-) Price Competition

Social (+) Change in Lifestyles

(-) Change in customer tastes

Technical (+) Product becomes unique

(-) Acquisition ofnew tech. is

expensive

Customer (+) Loyalty is high

(-) preference for differentiated goods

Supplier (+) High input cost(-) Improved cost



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` The threat matrix


MajorThreats Moderately Threats

Moderate Threats Minor Threats

High

Seriousness

Low

LowHigh

Probability of occurrence


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` The opportunity matrix


Very attractive Moderately attractive

Moderate attractive Least attractive

High

Attractiveness

Low

LowHigh



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` The impact matrix


Trends Probability of

occurrence

Impact on strategies

S1 S2 S3 S4 S5

T1T2

T3

T4

T5

T- Trends

S- Strategies

(Five point scale )


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Depends (Example of Educational Institute)

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` Depends Type of scan (Ad hoc, Periodic, Continuous)

Your institutions relationship to its service area

How the scan information will be used

` Things to consider including: Customer analyses

x Current and potential students

x

Current and potential students parentsx Current and potential employers

x Other institutions of higher education (for transfer students)



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` Community relations Community satisfaction

Community needs assessment

` Competitors Other public and private CCs,

universities, and technical colleges

` Campus (& District) Climate Students

Staff

Faculty

Administration

` Macroenvironment: STEEP Socio-cultural

x Demographicsx population size and distribution

x age distribution

x education levels

x income levels

x race and ethnicity

Socio-Cultural (continued)x Attitudes about higher education

x Cultural shifts

Technologicalx New products and services training

opportunities

x New manufacturing processes

x Infrastructure changes

Economicx Industry/career demand and decline

x Unemployment

x Inflation

Environmental/Ecologicalx New industry opportunities

Politicalx

Political clim

ate/stabilityx State budget deficit or surplus

x Changes in legislation



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` Rate factors on two dimensions: Potential impact on your institution


` Look for changes in current trends

` Look for potential interaction effects between

factors.



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` Dont try to do this alone! Assemble a research team

Divide the workload

` Allow your team ample time to do the work*


* Then give yourself evenmore time!

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` Use an editor to create a common voice in the

text.

` Consider your audience.` Present your data so that it tells a story, then

actually tell that story. Because

` The readermust be able to envision the future and

engage in future-thinking.



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` Again, consider your audience.` Use charts and graphs to clearly present past and future trends.` Refer to The Visual Display of Quantitative Information by Edward Tufte

for guidance of best practices.

` Use color in charts and graphs to draw readers attention to importantfactors, and avoid chart clutter. But, make sure they are still readable if photocopied or printed in grayscale.


Dont do what we did! (And we even knew better)

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` Morrison, J. L. (1992). Environmental scanning. In M. A.Whitely, J. D. Porter, and R. H. Fenske (Eds.), Aprimer fornew institutional researchers (pp. 86-99). Tallahassee,Florida: The Association forInstitutional Research. Out ofpublication, but still available on the web:http://horizon.unc.edu/courses/papers/enviroscan/

` http://en.wikipedia.org/wiki/Environmental_scanning

` Tufte, E. R. 2001. The Visual Display of QuantitativeInformation. Cheshire, Connecticut: Graphics Press LLC.


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