Environmental scanning

The environmental analysis ( engl. environmental analysis) analyzes the environment of a unit or organization according to various criteria. In strategic management, marketing, financial management, etc. Several priorities for environmental analysis are set.

  • 3.1 Task Environment
  • 3.2 Competitive Environment
  • 3.3 Public
  • 3.4 Macro - Environment
  • 7.1 mass
  • 7.2 Patt
  • 7.3 Fragmented
  • 7.4 specialization

Background

The environmental analysis affects both information on the structure, that is, were searched methodically and deliberately, as well as unstructured information collected (ie information that is one of the analyst has exquisite for example ). However, because complete information is virtually impossible, hence comes to a subjectification of the analysis. This subjectification also that the methods are referred to as environmental scanning ( scanning the environment), since this term is less precise results.

The subjectification is counteracted in general by teams make the analyzes. In selecting the teams the usual rules of the broad base and the open task apply. The team members wear then - mostly schematically - factors together, acting on the examined object (person, company, organization, country, etc.). We distinguish so-called strong signals ( engl. strong signal ), which are easily recognizable by the weak signals ( engl. weak signals ) that are not so obvious. The strongest and most clearly discernible influence on future developments have the strong signals of course. Since these are so easy to recognize competing analysts can identify these signals like light and position themselves accordingly. Advantages for one side in a competitive situation can only be achieved if one is able to detect weak signals and be able to implement this in action later. Therefore, some authors, for example, J. F. Aguilar and Michael E. Porter propose detailed observation systems for businesses, which are intended to competitive analysis. Whether such systems act or whether the cost of maintenance exceed the benefits have not been investigated.

In business administration different analysis tools are common. But among them may be thought not an exact measurement as with physical measuring instruments, but a - usually proposed by individual authors or groups method that is used by a group within the branch of knowledge. Typical examples are:

3- environments model

The 3- environments model ( engl. three environments; . Stapleton et al ) divides the environment of an organization in

Internal environment

The internal environment ( engl. internal environment) are assigned not only the individual factors, but also the processes and skills that only generate qualified to functioning of the individual factors. The internal environment is under the ( apparent ) control of management.

The close environment ( engl. near environment / specific environment) includes customers, suppliers and direct competitors. This can not be controlled, but influenced. In this environment, most marketing activities of an organization are concentrated. A typical method for analyzing this " Middle Environment" is the stakeholder analysis.

Distance environment

The remote environment ( engl. far environment / general environment) summarizes all the factors that can not be controlled or influenced by an organization. We call these factors often with STEP or STEEP (see STEP analysis). Some sectors are trying to influence the distant environment, in particular the political factors through lobbying, but for most is the best hope to understand and anticipate these factors.

Kotler's Four Levels

From the perspective of marketing identified P. Kotler four environmental levels of an organization.

Task environment

The task environment is characterized by the key stakeholders in the provision of services an organization's suppliers, distribution channels and customers.

Competitive environment

The competitors of an organization, both direct as well as those that compete for needed resources, and so limit the availability.

Public

The supervisory and reporting organizations that monitor the sector of the organization and report on it.

Macro - environment

In the macro - environment Kotler sees the STEP environment in the broadest sense, that is, even with extensions.

Tasks and competitive environment can be described in detail by Porter's industry structure analysis. Public will like covered only partially by STEP analysis or extensions, while the macro - environment is largely covered by the STEP analysis. This division is particularly well suited for marketing tasks.

Stakeholder analysis

Under a stakeholder analysis refers to a determination of the stakeholders ( engl. stakeholders ) of a thing, as well as the way of the relationship. In projects it is called then the project environment analysis. Amitai Etzioni identifies three reasons why a stakeholder is interested in an organization. These are:

Stakeholders are often summarized by the stakeholder diagram, where the list of stakeholders are grouped graphically by the lying in the center of the organization. Typical stakeholders of a company are

  • Supplier
  • Customers
  • Employee
  • Management
  • Government ( municipal, provincial, federal )
  • Authorities ( tax authorities, regulators )
  • Competitors
  • And much more.

In analyzing these according to need, together with the nature of the relationship (if this is not clear anyway) listed.

STEP analysis

STEP analysis after the English acronym Sociological, Technological, Economical and Political Change (less flattering also known as PEST ) is an environmental analysis model whose results can be used for example in a SWOT analysis. The STEP analysis lists the factors of the individual categories that can have an influence on the examined unit.

  • Sociological factors; such as values ​​, lifestyle, demographic influences
  • Technological factors; eg research, new products and processes
  • Economic factors; eg economic growth, inflation, interest rates
  • Political factors; eg competition supervision, legislation, political parties

Fahey & Narayanan (1986 ) emphasize the interdependence of factors, where a change ( often ) results in an area also to changes in other areas. Also, it is essential not only to list factors, but also to identify the driving forces that bring about change. It is less important what category appears an influence, but the presence of the factor is important.

STEEP is the extension of the STEP - factors for factor Environment ( Stapleton et al., 2000), i.e., the environment. These are values ​​such as the ozone hole, global warming, or at the corporate level also waste disposal or remediation. If you add the factor of Legal added that particularly focuses on legal aspects, you get another extension called PESTLE.

Industry structure analysis

The industry structure analysis ( Porter's five forces ) by Michael E. Porter is described in a separate article and is therefore considered briefly here. The Industry Structure Analysis examines the strategic environment of a company after five competitive forces:

  • The competitive behavior within an industry
  • The threat that new competitors enter the competition
  • The bargaining power of customers
  • The bargaining power of suppliers
  • The threat that the product of the industry is substituted

Strategic Environmental to Boston Consulting Group

The Boston Consulting Group ( BCG) has developed a matrix for the analysis of the strategic environment of industries. Unlike Michael Porter ( see industry structure analysis) is not received on market structures, but the markets are in a two-dimensional model based on the criteria size of a strategic advantage (large or small ) and number of strategic benefits (a few - many ) into four categories divided.

Mass

Mass - shops are the areas where there are few sources of advantages, but at a considerable distance, often with economies of scale

Stalemate

Patt - environments are characterized by a few benefits and little distance. The environment is therefore very competitive, many companies compete with similar strategies, without anyone being able to achieve a significant advantage. This is the result of widespread resources and skills to perform these strategies. Most are producers of bulk commodities. It is referred to as essential to understanding stalemates and to leave the industry early. Once in the industry, this requires cost-conscious corporate cultures, low overheads and efficient operations.

Fragmented

Fragmented environments know a myriad of benefits, but only a small distance. At low brand loyalty, diffuse technology and low economies of scale normally highly differentiated goods are offered. Benefits can be achieved by low cost through efficient production, selection of attractive market niches, quick response to changes and new forms of differentiation. Successful companies are often start-ups, franchising the drug of choice when economies of scale with the flexibility and decentralization are to be united. Alternatively you can try fragmented industries in a specialization or volume - environmental change as McDonald's reached with the fast-food industry. Today, Starbucks ( coffee) tried in another market at a similar strategy.

Specialization

Specialized environments offer many possibilities great advantages. Customers have a variety of different needs, where early strategic adjustment high brand loyalty has the result of economies of scale and high specific costs associated with the fulfillment of niche needs, which offers wide can gain no advantage. In principle, each company is doing something else, so the competition is only indirect. Competition pursuit depends on product development, design and brand advertising, not price.

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