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Environmental Scanning &

Environmental scanning is a concept from
business management by which businesses gather
information from the environment, to better achieve
a sustainable competitive advantage.
To sustain competitive advantage the company must
also respond to the information gathered from
environmental scanning by altering its strategies
and plans when the need arises.

Environmental Scanning & Monitoring.Techniques SWOT PEST Techniques Industry Analysis QUEST Competitor Analysis .

.SWOT (Strength-Weakness-Opportunity-Threat) Identification of threats and Opportunities in the environment (External) and strengths and Weaknesses of the firm (Internal) is the cornerstone of business policy formulation. it is these factors which determine the course of action to ensure the survival and growth of the firm.

SWOT Analysis .

Albert Humphrey. The Research Team were Marion Dosher. Dr Otis Benepe. • It all began with the corporate planning trend.• The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. Weaknesses. Threats. which seemed to appear first at Du Pont in 1949. SWOT is an acronym for Strengths. The background to SWOT stemmed from the need to find out why corporate planning failed. • SWOT analysis came from the research conducted at Stanford Research Institute from 1960-1970. Robert Stewart. Birger Lie. By 1960 every Fortune 500 company had a 'corporate planning manager' (or equivalent) and 'associations of long range corporate planners' had sprung up in both the USA and the UK. . Opportunities. The research was funded by the fortune 500 companies to find out what could be done about this failure.

it runs the risk of being useless.O. A SWOT analysis may be incorporated into the strategic planning model.W. . An example of a strategic planning technique that incorporates an objective-driven SWOT analysis is SCAN analysis.Strategic and Creative Use of S.T Analysis : Orienting to An Objective If SWOT analysis does not start with defining a desired end state or objective.

SWOT: Studying Internal & External Environment The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. – External factors – The opportunities and threats presented by the external environment. . SWOT analysis groups key pieces of information into two main categories: – Internal factors – The strengths and weaknesses internal to the organization.

In this case. SWOTs are: –Strengths: attributes of the organization that are helpful to achieving the objective. .• If a clear objective has been identified. SWOT analysis can be used to help in the pursuit of that objective. –Weaknesses: attributes of the organization that are harmful to achieving the objective. –Opportunities: external conditions that are helpful to achieving the objective. –Threats: external conditions that are harmful to achieving the objective.

Examples of SWOTs • Strengths and Weaknesses – Resources: financial. location – Cost advantages from proprietary knowhow – Creativity / ability to develop new products – Valuable intangible assets: intellectual capital – Competitive capabilities – Big campus selection . intellectual.

• Opportunities and Threats – – – – – – – – – – – – – – Takeovers Market Trends Economic condition Mergers Joint ventures Strategic alliances Expectations of stakeholders Technology Public expectations Competitors and competitive actions Poor Public Relations Development Criticism (Editorial) Global Markets Environmental conditions .

This may include gap analysis (compare its actual performance with its potential performance which will look at environmental factors) • Strategic Issues defined – key factors in the development of a corporate plan which needs to be addressed by the organisation .Uses of SWOT Analysis • Corporate planning • Set objectives – defining what the organisation is intending to do • Environmental scanning – Internal appraisals of the organisations SWOT. this needs to include an assessment of the present situation as well as a portfolio of products/services and an analysis of the product/service life cycle • Analysis of existing strategies. this should determine relevance from the results of an internal/external appraisal.

projects plans for strategy implementation • Monitoring results – mapping against plans. taking corrective action which may mean amending objectives/strategies. . resource.• Develop new/revised strategies – revised analysis of strategic issues may mean the objectives need to change • Establish critical success factors – the achievement of objectives and strategy implementation • Preparation of operational.

competitor evaluation. . business and product development and research reports. Use SWOT analysis for business planning.Also. strategic planning. marketing.

Handling SWOTs • Strengths (maintain. build and leverage) • Opportunities (prioritise and optimise) • Weaknesses (remedy or exit) • Threats (counter) .