Topic 206 preparation test

Topic 206 Topic 206 Principal Investigator Co-Principal Investigator Paper Coordinator Prof. S P Bansal Vice Chancellor Maharaja Agrasen University, Baddi Prof YoginderVerma Pro–Vice Chancellor Central University of Himachal Pradesh. Kangra. H.P. Dr. Anil Gupta Senior Assistant Professor University of Jammu, Jammu 180006. Content Writer Prof. Alka Sharma The Business School University of Jammu Paper: 3, Strategic Management Module: 6, Environmental Scanning and Approaches Management Topic 206 Topic 206 1 Management Topic 206 Topic 206 ITEM DESCRIPTION OF MODULE Subject Name MANAGEMENT Paper Name STRATEGIC MANAGEMENT Module Name/ Title ENVIRONMENTAL SCANNING AND APPROACHES Module Id 6 Pre-requisites Understanding of business environment and its components Objectives Understanding environmental scanning, the methods and techniques for environmental scanning, SWOT Analysis, PESTLE Analysis Keywords Environmental Scanning, Business Environment Scanning, SWOT Analysis, PESTLE Analysis QUADRANT - I Module 6 : Environmental Scanning and Approaches 1. Learning Outcomes 2. Meaning of Environmental Scanning and Factors to be considered for Environmental Scanning 3. Need for Environmental Scanning 4. Approaches to Environmental Scanning 5. Sources of Information for Environmental Scanning 6. Methods and Techniques Used for Environmental Scanning 7. SWOT Analysis 8. PESTLE Analysis 9. Pitfalls in Environmental Scanning 10. Summary Management Topic 206 Topic 206 2 Management Topic 206 Topic 206 1. Learning Outcomes After studying this module, you shall be able to 1. Understand the concept of environmental scanning 2. Know different factors to be considered for environmental scanning 3. Understand the need for environmental scanning 4. Study various approaches to environmental scanning 5. Learn about the sources of information for environmental scanning 6. Analyse the methods and techniques for environmental scanning 7. Understand SWOT Analysis 8. Learn about PESTLE Analysis 2. Meaning of Environmental Scanning and Factors to be considered for Environmental Scanning Environmental Scanning relates to examining and understanding the environment in which a business unit exists, in order to facilitate strategic decision making. It refers to studying both internal as well as external environment and analysing its impact on the business opportunities. It also includes making prior judgements about the risks and uncertainties that the business may have to encounter in near future. Hunger pointed out that Environmental scanning is the monitoring, evaluating and disseminating of information from the external and internal environments to key people within the corporation. It is a tool that a corporation uses to avoid strategic surprise and to ensure long – term health. Azhar Kazmi, quoted in his book – “Business Policy and Strategic Management” that – “The process by which organizations monitor their relevant environment to identify opportunities and threats defecting their business is known as environmental scanning.” The businesses function in an environment which is ever changing as the environment is known to be dynamic; therefore the scanning of the environment has to be a fast and regular process. Management Topic 206 Topic 206 3 Management Topic 206 Topic 206 The environmental scanning cannot be a onetime action in a business; in fact it is constantly watching the external environment and micro-scoping of internal environment. Environmental Scanning provides a broader perspective to the management and planning department to formulate plans and strategies. In other words, it is the process which helps organisations to observe the environment in which they function in order to identify the opportunities and threats impacting their business. Factors to be consider for environmental scanning – 1. Events are relevant and specific incidents which take place in the different environmental factors. 2. Trends are the general courses of action along which the events take place. 3. Issues are the current matters that may arise as a result of the events and trends. 4. Expectations are the demands and requirements of the concerned groups in view of the trends and issues