This document discusses environmental scanning and the QUEST technique. It defines environmental scanning as monitoring, evaluating, and disseminating external and internal information. The QUEST technique is a 4-step process where strategists 1) identify events and trends, 2) speculate on issues, 3) prepare scenarios, and 4) identify strategic options. It allows for rapid development of potential futures at low cost. While it relies on senior executives, it ensures implementation. Evaluation notes its speed and cost but over-reliance on executives could contaminate results. After scanning, strategists prepare an environmental threats and opportunities profile to analyze impact of different sectors.

1. Strategic Management
Environmental Scanning- QUEST

2. Environmental Scanning – factors and
approaches
 “Environmental scanning is the monitoring, evaluating
and disseminating of information from the external and
internal environments to key people within the
corporation.”
J.David Hunger
It is a corporate tool to avoid strategic surprise and to
ensure long – term health

3. Factors for environmental scanning
1. Events are important and specific occurrences
taking place in different environmental sectors.
2. Trends are the general tendencies or the courses of
action along which events take place.
3. Issues are the current concerns that arise in
response to events and treats.
4. Expectations are the demands made by interested
groups in the light of their concern for issues.

4. QUEST
(Quick environmental scanning technique)
 The 4 step process which uses scenario – writing for
quick, inexpensive analysis of possible future an
organization may face, based on the perception,
experience, knowledge, and observation of senior
executive team.
 The Four steps involved in applying this technique are:

5. 2. Speculate on a wide range of important ISSUES
that might affect the future of their organization.
3. Preparing a report summarizing the major issues
and their implications and 3-5 scenarios
incorporating the major themes of their discussion.
4. Report and scenarios are reviewed by a group of
strategists who identify feasible strategic options to
deal with the evolving environment.
1. Internal strategists will observe and identify the
major events and trends in the Industry.

6. Evaluation of QUEST- Advantages
 Clearly one of the main advantage of QUEST technique
is the fact that at a relatively low cost, organizations
can rapidly develop a view of the potential futures an
organization may encounter.
 The direct control of senior executives ensures the
implementation of results into strategic and tactical
organizational thrusts.

7. Evaluation of QUEST- Disadvantage
 A key disadvantage of QUEST is the almost
exclusive reliance on the perception, experience,
knowledge, and observation of senior executive
team.
 The potential group may contaminate the
results.

8. After environmental scanning
 After the environmental scanning process is
complete, the strategists start to appraise the
environment - called environmental appraisal.
 It is structured by the preparation of the
environmental threats and opportunities profile
(ETOP), which involves dividing the environment
into different sectors and then analyzing the impact
of each sector on the organization