Chapter 1 - Business environments:
- Environmental scanning
¬ Defined as the process of obtaining information
about possible, current and future events that may
have an impact on the business.
Why is environmental scanning done?
- It is done to ensure the business is ready for
development in the internal and external environments.
Purpose of environmental scanning.
➢ To identify possible challenges.
➢ To identify possible opportunities.
➢ Will also help management to understand the impact of business decisions
on the competitive position and sustainability of the business.
Where does Environmental scanning fit into the strategic?
1. Vision/mission.
2. Formulate strategy.
Continuous
Environmental
scanning.
3. Implement strategy.
4. Evaluation and control.
, Conducting Environmental scanning.
Environmental
Scanning
External environment Internal environments
Macro Environment Market environment Micro environment
Uses Pestle to identify Uses Porters model to identify
O&T Looks at S & W
O&T
SWOT Analysis:
Strengths – tangible & intangible factors
➢ Give business a competitive advantage.
➢ Adds value to the performance of business.
Weakness – Exact opposite effect on the success of the
business.
Opportunities – External factor
➢ Presents business with a chance to outperform competitors.
Threats – External factor
➢ Could hamper the success or growth of the business.
- Environmental scanning
¬ Defined as the process of obtaining information
about possible, current and future events that may
have an impact on the business.
Why is environmental scanning done?
- It is done to ensure the business is ready for
development in the internal and external environments.
Purpose of environmental scanning.
➢ To identify possible challenges.
➢ To identify possible opportunities.
➢ Will also help management to understand the impact of business decisions
on the competitive position and sustainability of the business.
Where does Environmental scanning fit into the strategic?
1. Vision/mission.
2. Formulate strategy.
Continuous
Environmental
scanning.
3. Implement strategy.
4. Evaluation and control.
, Conducting Environmental scanning.
Environmental
Scanning
External environment Internal environments
Macro Environment Market environment Micro environment
Uses Pestle to identify Uses Porters model to identify
O&T Looks at S & W
O&T
SWOT Analysis:
Strengths – tangible & intangible factors
➢ Give business a competitive advantage.
➢ Adds value to the performance of business.
Weakness – Exact opposite effect on the success of the
business.
Opportunities – External factor
➢ Presents business with a chance to outperform competitors.
Threats – External factor
➢ Could hamper the success or growth of the business.
