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Environmental Appraisal: Strategic Management
Environmental Appraisal: Strategic Management
Appraisal
Strategic Management
Environment
The environment of any organization is
"the aggregate of all conditions, events
and influences that surround and affect
it".
Characteristics of Environment
Environment
is complex :-The
environment consists of a number of
factors, events, conditions, and
influences arising from different
sources. All these do not exist in
isolation but interact with each other to
create entirely new sets of influences
Environment
is dynamic. The
environment is constantly changing in
nature. Due to the many and varied
influences operating, there is dynamism
in the environment, causing it to change
its shape and character continuously
Environment
has afar-reaching
impact. The environment has a farreaching impact on organizations. The
growth and profitability of an
organization depends critically on the
environment in which it exists. Any
environmental change has an impact on
the organization in several different
ways
SWOT Analysis
Business firms undertake SWOT analysis to
understand their external and internal
environmental SWOT which is the acronym
for strengths, weakness, opportunities and
threats, is also Known as WUTS-UP or
TOWS analysis
ENVIRONMENTAL SECTORS
Market Environment
Customer or client factors, such as, the needs,
preferences, perceptions, attitudes, values,
bargaining power, buying behavior and satisfaction
of customers
Product factors, such as, the demand, image,
features, utility, function, design, life cycle, price,
promotion, distribution, differentiation, and the
availability of substitutes of products or services.
Technological Environment
The technological environment consists
of those factors that are related to the
knowledge applied and the materials
and machines used in the production of
goods and services which have an
impact on the business of an
organization
Impact
Supplier Environment
Cost,
Economic Environment
Regulatory Environment
Policies
Political Environment
The political environment consists of
factors related to the management of
public affairs and their impact on the
business of an organization
Socio-cultural Environment
The socio cultural environment consists of
factors related to human relationships
within a society; the development, forms
and functions of such a relationship;
and the learnt and shared behavior of
groups of human beings which have a
bearing on the business of an
organization
International Environment
The international (or global) environment
consists of all those factors that operate
at the transnational, cross-cultural, and
across-the-border level which have an
impact on the business of an
organization
ENVIRONMENTAL SCANNING
The methods and techniques employed by
the organizations to monitor their
environment and to gather data to derive
information about the opportunities and
threats that affect their business. The process
by which organizations monitor their relevant
environment to identify opportunities and
threats affecting their business is known as
environmental scanning.
Approaches to Environmental
Scanning
Sources of information
Documentary or secondary sources of
information,
like,
different
types
of
publications. These could be newspapers,
magazines, journals, books, trade and industry
association
newsletters,
government
publications, annual reports of competitors,
companies, and so on
Mass media such as radio, television and the
internet
Internal sources, like, company files and
documents, management information systems,
databases, company employees, and so on
International publications
Intergovernmental and international agencies like
UN, UNESCO, ILO, WHO, UNDP, FAO, World
Bank, OECD and others are a rich source of
international statistical data. World Development
Report, World Eco nomic Survey, Statistical
Yearbook of UN, International Trade Statistics
Yearbook of UN, among others are some
examples of major interna tional publications
International
2. Government publications
References,
such as,IndiaA
Reference Annual published by the Min
istry of Information, contains
comprehensive information on the geo
graphic and demographic features of
India, its political and social institutions,
economy and culture, plans,
programmes, and so on.
Institutional publications
The Bombay Stock Exchange Directorycontains
valuable and timely sta tistical and financial data
related to public limited companies (PLCs),
besides latest information on statutory and other
regulations.
The Centre for Monitoring India Economy
(CMIE), which is a private in stitution, provides
publications which contain comprehensive and
timely information on economic indices
Periodicals
and newspapers
Online databases and systems
Industrial espionage agencies
Environmental Appraisal
QUEST
Structuring
Environmental
threat andAppraisal
opportunity
Environmental
profile