OrgMan

• Environmental Scanning is the actual monitoring and evaluation of information from the external and internal environment of a business organization.
• information is provided to the key people to guide the organization in its business operations and in preparing for the target market operations.
• 3 modes of environmental scanning:

  Ad hoc Environmental Scanning, Regular Scanning, Continuous Scanning
• Environmental Scanning must be evidence-based and is vital for good decision-making.
• Ad hoc Scanning is not often done.
• Ad hoc is only applicable during a crisis situation.
• Ad hoc is done to know whether it is external or internal
• Regular scanning is done at least once a year or at regular intervals
• Continuous scanning is a continuous collection of data on a broad range of environmental factors
• Continuous scanning is a continuous learning
• Continuous is done to monitor the components of an organization's internal environment
• the environment of the firm:

  external and internal
• internal environment have a direct impact on business operations
• internal environment is directly controlled and can be freely modified by the firm itself
• examples of the internal environment are the employees, board of directors, managers
• external environment have a indirect but significant influence on the operations of a business
• external environment cannot be controlled by the firm
• external environment have microenvironment and macro environment
• microenvironment are called "operating environment"
• microenvironment have a direct relevance but uncontrollable.
• examples of microenvironment are customers, suppliers, regulatory agencies, and competitors
• macro environment are called "general environment"
• macro environment are beyond the control of the firm
• examples of macro environment are economic, political, social, legal, and technical environment of the business organization
• meaning of SWOT analysis - Strengths, weaknesses, Opportunities, threats
• Strengths and Weaknesses are part of the internal environment
• Opportunities and Threats are part of the external environment
• SWOT Analysis is used to identify strengths, weaknesses, opportunities, and threats that may affect an organization's ability to achieve its objectives.
• Strengths contribute to the company's good performance and positive reputations
• Weaknesses are the attributes that needs to be improved or changed
• Weaknesses may hinder the company's growth and performance
• Opportunities are factors/events that can give positive impact to the company if properly addressed.
• Threats may negatively impact the company
• PEST analysis: Political, Economic, Social, Technological
• Political are the laws, regulations, and restrictions mandated by the government that may intervene or affect the company's business course
• Economic are the factors that directly affect the capability of a business to generate profits
• Social includes the demographic aspects of consumers
• Technological includes the research and development activities, licensing, patenting, technological shifts, and outsourcing decisions
• Benefits of using SWOT and PEST:

  help companies in:

  • formulating strategies
  • aligning their vision and mission to the general direction of the business environment
• Benefits of using SWOT and PEST:

  may be forewarned about significant threats and opportunities that may hinder or boost revenues