environmental analysis anim

8/8/2019 Environmental Analysis Anim

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Environmental Analysis


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Features of Environment

Complex/multi-faceted.

Dynamic.

Challenging. Far-reaching impact.


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Features of Environmental Analysis

Holistic exercise.

Exploratory process.

Continuous activity.


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Environmental Scanning:

Factors Events.

Trends.

Issues. Expectations.


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SWOT

Opportunity: A favourable condition in the

organisations environment.

Threat: An unfavourable condition in theorganisations environment.

Strength: Inherent capacity of the

organisation.

Weakness: Inherent limitation of the

organisation.


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Boultons Matrix


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Low

Priority

Low

Priority

To be

WatchedL

Low

Priority

High

Priority

High

PriorityM

Low

Priority

High

PriorityCritical

HPR

OBABILITY

OF

IMPACT

LMHIMPACT ON BUSINESS


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QUEST


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QUEST

QUick Environmental Scanning Technique

Proposed by B. Nanus.

A four-step process using scenario-writingfor scanning the environment and

identifying strategic options.


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QUEST: Steps

Make observations about the major events

and trends in the industry.

Speculate on the important issues thatmight affect the future of the organisation

by scanning the environemnt broadly and

comprehensively.


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QUEST: Steps

Prepare a report summarising the major

issues and their implications, and three to

five scenarios incorporating the major

themes of the discussion.

The report and scenarios are reviewed by a

group of strategists who identify feasible

strategic options to deal with the evolvingenvironment. The options are ranked and

teams are designated to develop strategies.


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Identify

Industry

Trends

ScanEnvironment

Develop

Scenarios

Review

Scenarios


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Extended Threat Opportunity

Profile

(ETOP)


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ETOP

Suggested by Glueck.

Involves dividing the environment into

different sectors. Analysing the impact of each sector on the

organisation.

Dividing each environmental sector intosub-factors.


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ETOP

Describing the impact of each sub-factor

on the organisation in the form of a

statement.

Indicating the nature of the impact

favourable, unfavourable, neutral.


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ETOP

Provides a clear picture of the type of

impact of environmental sectors on the

organisation.

Helps in taking advantage of the threats

and countering the threats.


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A Bicycle Company: ETOP

Industry growth rate is 7-8%/year

For sports cycles, growth rate is 30%

Largely unsaturated demand Technological upgradation of industry in

progress

Import of machinery is simple Mostly ancillaries and associated

companies supply parts and components


18/21

A Bicycle Company: ETOP

Imported raw materials easily available

Growing affluence among urban

consumers Bicycle industry a thrust area for exports

Customer preference for sports cycles

Emerging threat from cheap imports fromChina

Export potential promising


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Food Processing Industry

An Example


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Food Processing Industry:

Opportunities A high demand potential. Rising disposable income.

Nuclear families. Rise in the number of working women.

Shift in Indian eating habits.

Spread of TV as an effective advertisingmedium.

Emergence of a retailing culture.


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Food Processing Industry:

Threats Conservative governmental policies reservation of several items for small scale

sector, over-regulation.

High taxation.

Lack of investment in cold chains cold

storages, refrigerated vehicles.

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