It can be contrasted with skimming, which is reading quickly to get a general idea of meaning. Environment mainly consists of atmosphere, hydrosphere, lithosphere and biosphere. But it can be roughly divided into two types such as a Micro environment and b Macro environment. It can also be divided into two other types such as c Physical and d Biotic environment. Environmental scanning is essential to helping plot a future course for the company.
Identifying opportunities and threats is the very core of risk management. It enables companies to formulate important strategies and plans of actions while minimizing threats and taking advantage of opportunities that arise. Environmental scans cover everything from casual discussions to formal programs of market research and organizational planning. Often in business we look in-wards, we undertake a SWOT analysis and then make a decision based upon that. In reality, success or failure is more likely to be understood when we know what our competitors are doing, what our customers want, what is driving our suppliers and what is happening in the environment in which we all operate.
Our customer may well want product A or service B, but due to the economic situation may only be able to but product x. Our customer may want a big car, but due to changes in government and law, finds a large car too expensive to run, so buys a small one. Organizations have also to update the core competencies and internal environment as per external environment.
Environmental factors are infinite, hence, organization should be agile and vigile to accept and adjust to the environmental changes. For instance - Monitoring might indicate that an original forecast of the prices of the raw materials that are involved in the product are no more credible, which could imply the requirement for more focused scanning, forecasting and analysis to create a more trustworthy prediction about the input costs.
Also, an assessment of the nature, stage, dynamics and history of the industry is essential. It also implies evaluating the effect of globalization on competition within the industry. Analyzing the national environment needs an appraisal of whether the national framework helps in achieving competitive advantage in the globalized environment. Analysis of macro-environment includes exploring macro-economic, social, government, legal, technological and international factors that may influence the environment.
Strategic managers must not only recognize the present state of the environment and their industry but also be able to predict its future positions.
0コメント