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Presented by: VIDYA.V
Roll No: 83
S1 MBA
ENVIRONMENTAL SCANNING



MEANING
The process by which organizations monitors their
environment to identify opportunities...
PURPOSE
The basic purpose of environmental scanning is to help
management determine the future direction of the
organizati...
Factors affecting environmental scanning
EVENTS
 TRENDS
 ISSUES
 EXPECTATIONS

EVENTS
Important and specific occurrences that taking
place in a certain sector . Past events of
business environment is t...
TRENDS
The general tendencies of courses of action
along which these events take place. Not to just
see the past events ar...
ISSUES
The current concerns that arise in response to
events and trends. As a businessman, have to
scan both cold and burn...
EXPECTATIONS
The demand made by interested groups in the
light of their concern for issues.
Three approaches to scanning


Systematic : Information related to markets &
customers , changes in legislation &regulati...
Environmental scanning

External analysis

Macro environment

PEST analysis

Internal analysis

Micro environment

Five fo...
A scan of the external macro-environment in which the
firm operates can be expressed in terms of the following
factors:
Po...
Political Factors include government regulations
and legal issues and define both formal and informal
rules under which th...
A scan of the external micro-environment in which the
firm operates can be expressed in terms of five force
analysis.

FIV...
CONCLUSION
Environmental scanning is one essential component of
the global environmental analysis. Environmental
scanning ...
environmental scanning
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environmental scanning

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environmental scanning

  1. 1. Presented by: VIDYA.V Roll No: 83 S1 MBA
  2. 2. ENVIRONMENTAL SCANNING  MEANING The process by which organizations monitors their environment to identify opportunities and threats affecting their business, is known as environmental scanning.
  3. 3. PURPOSE The basic purpose of environmental scanning is to help management determine the future direction of the organization.
  4. 4. Factors affecting environmental scanning EVENTS  TRENDS  ISSUES  EXPECTATIONS 
  5. 5. EVENTS Important and specific occurrences that taking place in a certain sector . Past events of business environment is the important factor of business environment.
  6. 6. TRENDS The general tendencies of courses of action along which these events take place. Not to just see the past events are defective but to establish the trends on the basis of events is also very important factor of business environment scanning.
  7. 7. ISSUES The current concerns that arise in response to events and trends. As a businessman, have to scan both cold and burning issues on daily basis.
  8. 8. EXPECTATIONS The demand made by interested groups in the light of their concern for issues.
  9. 9. Three approaches to scanning  Systematic : Information related to markets & customers , changes in legislation &regulations that have a direct impact on organization’s activities that could be collected continuously to monitor changes.  Ad-hoc: Conduction of special surveys & studies to deal with specific environmental issues.  Processed form: information available from different sources both internal & external of the organization in processed form.
  10. 10. Environmental scanning External analysis Macro environment PEST analysis Internal analysis Micro environment Five force analysis
  11. 11. A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors: Political Economic Social Technological The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macro environmental factors.
  12. 12. Political Factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate Economic Factors affect the purchasing power of potential customers and the firm‘s cost of capital. Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets cost of capital. Technological Factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions.
  13. 13. A scan of the external micro-environment in which the firm operates can be expressed in terms of five force analysis. FIVE FORCE ANALYSIS      Threat Of New Entrants Threat Of Substitutes Bargaining Power Of Buyers Bargaining Power Of Suppliers Rivalry Among Existing Firms
  14. 14. CONCLUSION Environmental scanning is one essential component of the global environmental analysis. Environmental scanning can be defined as ‘the study and interpretation of the political, economic, social and technological events and trends which influence a business, an industry or even a total market’.

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