The document discusses analyzing a business's external environment. It covers scanning the economic, political/legal, social/cultural, technological, and global environments to identify relevant changes. It also discusses monitoring these environments continuously to anticipate changes and act proactively. The document outlines trends, fads, and megatrends that present opportunities. It analyzes how industrial revolutions from water/steam power to the current digital revolution have changed production technology. Finally, it discusses managing change and discontinuity in today's era of turbulent change.

1. Analysis of Business
Environment
Dr. L. Mothilal,
Assistant Professor,
Department of Management Studies
Pondicherry Central University, India
Email: mothilal2020@gmail.com
https://www.linkedin.com/in/dr-mothilal-lakavath-7469b34/
https://www.slideshare.net/mothilalacad
https://www.facebook.com/mothilal2020

2. Scanning the Environment

3. Analysis of Environment
Scanning
Monitoring
Forecasting
Assessment

4. Scan for Relevant Changes in
Economic Environment
Political and Legal Environment
Socio-Cultural Environnent
Technological Environment
Global Environment

5. Assessing the Current and
Future Environmental Changes
Economic
Political &
Legal
Socio-
Cultural Technological &
Global

6. Fad

7. Fad is short lived
mushrooming of
opportunity which is
difficult to predict and
forecast. Business profit
from fad is pure matter of
luck and chance.
Source: http://www.managementstudyguide.com/scanning-market-
environment.htm

8. Trend

9. Trend is something which
takes time to build up
compared to fad and has a
predictable future.
Trend is sometimes co-
related with changes in
social culture and economic
situation.
Source: http://www.managementstudyguide.com/scanning-market-
environment.htm

10. Megatrend

11.  Megatrend is much slower in
development and is associated with
political, socio-economical,
technology and regulatory changes.
 Megatrends are estimated to last
around half decade or more.
 For companies trend and megatrend
are of great importance because they
present business opportunities to
them.
Source: http://www.managementstudyguide.com/scanning-market-
environment.htm

12. This trend-spotting (scanning) activity can
be undertaken by company itself or
through market research. This activity can
also be outsourced to companies, which
specialize in analyzing current social and
economic changes.
Fitness and diet are trend, which witness
growth across the globe.

13. Factors influencing the Business
Environment
Globalization is affecting the way
companies are conducting their
business.
Communication and connectivity are
reaching at a new level every day.
New economic powers like India,
China, Brazil and Russia are exerting
their influence.

14. Monitoring

15. The Business Environment consists of a complex set of
interacting forces and influences outside the Organization.
The Business Environment affects the organization's ability
to build and maintain mutually beneficial relationships with
its target customers.
Through continuous monitoring its Business Environment a
company must be able to anticipate change and act in a
proactive way rather than leaving it to a reactive reaction.
It must also keep up to date by realizing.
Source: http://www.studymode.com/subjects/importance-of-monitoring-
marketing-environment-page1.html

16. Forecasting

17. Qualitative
Quantitative
Categories of Forecasting

18. Historic Revolutions

19. Historical Revolutions
Black Revolution – Petroleum Production
Blue Revolution – Fish Production
Brown Revolution – Leather/non-conventional(India)/Cocoa
production
Golden Fibre Revolution – Jute Production
Golden Revolution – Fruits/Overall Horticulture development/Honey
Production
Green Revolution – Food grains
Grey Revolution – Fertilizer
Pink Revolution – Onion production/Pharmaceutical (India) /Prawn
production

20. Revolutions Continued…
Red Revolution – Meat & Tomato Production
Round Revolution – Potato
Silver Fiber Revolution – Cotton
Silver Revolution – Egg/Poultry Production
White Revolution (In India: Operation Flood) – Milk/Dairy
production
Yellow Revolution – Oil Seeds production
Evergreen Revolution – Overall development of Agriculture

21. Changes in Production Technology

22. Since Prometheus stole the fire
of knowledge from right under
the noses of the gods on Mount
Olympus and bestowed it upon
mankind, humans have not
stopped fiddling with it
and creating striking innovations
all throughout their evolution
Source: https://www.sentryo.net/the-4-industrial-revolutions/

23. THE FIRST INDUSTRIAL REVOLUTION –
1765
The first revolution spans from the end of the 18th century
to the beginning of the 19th century
Replaced agriculture with industry as the foundations of the
economic structure of society
Mass extraction of coal along with the invention of the
steam engine created a new type of energy that thrusted
forward all processes - Development of railroads and the
acceleration of economic, human and material exchanges.
Source: https://www.sentryo.net/the-4-industrial-revolutions/

24. THE SECOND INDUSTRIAL REVOLUTION – 1870
New technological advancements initiated the emergence of a new source of
energy: electricity, gas & oil
The development of the combustion engine set out to use these new resources to
their full potential. Furthermore, the steel industry began to develop and grow
alongside the exponential demands for steel
Chemical synthesis also developed to bring us synthetic fabric, dyes and fertilizer.
Methods of communication were also revolutionized with the invention of the
telegraph and the telephone and so were transportation methods with the
emergence of the automobile and the plane at the beginning of the 20th century
Industrial model based on new “large factories” and the organizational models of
production as envisioned by Taylor and Ford
Source: https://www.sentryo.net/the-4-industrial-revolutions/

25. THE THIRD INDUSTRIAL REVOLUTION – 1969
A third industrial revolution appeared with the emergence of a
new type of energy whose potential surpassed its
predecessors: nuclear energy.
This revolution witnessed the rise of electronics—with the
transistor and microprocessor—but also the rise of
telecommunications and computers.
This new technology led to the production of miniaturized
material which would open doors, most notably to space
research and biotechnology.
For industry, this revolution gave rise to the era of high-level
automation in production thanks to two major inventions:
automatons—programmable logic controllers (PLCs) - & Robots.
Source: https://www.sentryo.net/the-4-industrial-revolutions/

26. The first industrial revolution
used water and steam to
mechanize production
The second used electric energy
to create mass production
The third used electronics and
information technology to
automate production.
Source: https://www.sentryo.net/the-4-industrial-revolutions/

27. Today a fourth industrial revolution is underway which
builds upon the third revolution and the digital revolution
that has been taking place since the middle of the last
century.
This fourth revolution with exponential expansion is
characterized by merging technology that blurs the lines
between the physical, digital and biological spheres to
completely uproot industries all over the world.
The extent and depth of these changes are a sign of
transformations to entire production, management and
governance systems.
Fourth Industrial Revolution
Source: https://www.sentryo.net/the-4-industrial-revolutions/

28. Its genesis is situated at the dawn of the third millennium with the
emergence of the Internet.
This is the first industrial revolution rooted in a new technological
phenomenon—digitalization—rather than in the emergence of a new type
of energy.
This digitalization enables us to build a new virtual world from which we
can steer the physical world.
The industry of today and tomorrow aim to connect all production means
to enable their interaction in real time. Factories 4.0 make
communication among the different players and connected objects in a
production line possible thanks to technology such as Cloud, Big Data
Analytics and the Industrial Internet of Things (IIoT)
Fourth Industrial Revolution contd…
Source: https://www.sentryo.net/the-4-industrial-revolutions/

29. However, this fourth industrial revolution could be the first to
deviate from the energy-greed trend—in terms of non-renewable
resources—because we have been integrating more and more
possibilities to power our production processes with alternative
resources.
Tomorrow, factories 4.0 will be embedded in smart cities and
powered by wind, sun and geothermal energy.
Within this context of profound technological and societal
changes—because the two always go hand in hand during
industrial revolutions—which is taking us towards global
digitalization, industrial cybersecurity will become a leading
sector
Fourth Industrial Revolution contd…
Source: https://www.sentryo.net/the-4-industrial-revolutions/

30. Change for Better…

31. Era of Turbulent Change
In era of turbulent
change, managing
change &
discontinuity is a
key Issue

32. Era of Turbulent Change
PDCA - PDCA
P – Plan
D – Development
C – Check
A – Act

33. Era of Turbulent Change
Companies are operating in a
war zone of rapidly changing
Competitors
Technology
New Laws
Trade Policies
 Diminishing Customer Loyalty

34. Era of Turbulent Change
“ It is not the strongest
nor the most intelligent
that will survive but the
one who is the most
responsive to the
change” – Charles Darwin