Techniques Used For Environmental Scanning

SWOT ANALYSIS PEST ANALYSIS ETOP QUEST

SWOT: Studying Internal & External Environment

The aim of any SWOT analysis is to identify the key (internal and external) factors which are important to achieve the objective. x Internal factors The strengths and weaknesses of the organization. x External factors The opportunities and threats presented by the external environment.

SWOT Analysis

Opportunities and Threats

x x x x x x x x x x x x x x Takeovers Market Trends Economic condition Mergers Joint ventures Strategic alliances Expectations of stakeholders Technology Public expectations Competitors and competitive actions Poor Public Relations Development Criticism (Editorial) Global Markets Environmental conditions

PEST Analysis

A scan of the external macro-environment in which the firm operations can be expressed in terms of the following factors: Political Economic Social Technological

Political Tax policy Employment laws Trade restriction Political stability

Economic Economic growth Internal rate Exchange rate Inflation rate

Social Age Health consciousness Career

Technological Automation Rate of technology change

ETOP
The

preparation of ETOP involves dividing the environment into different sectors and then analyzing the impact of each sector on the organization. Environmental,Threat, Opportunity Profile (ETOP) is an important technique for the organizations to analyse its threats and opportunities and to provide favourable results. By means of ETOP, the organization knows where it stands with respect to its environment.

Outcomes of ETOP y Dimensions of ETOP  Issue selection  Accuracy of data  Impact studies  Flexibility in operations
y

QUEST
Quick environmental scanning technique y Proposed by B. Nanus y It is a four step processy
1. 2. 3. 4.

Observe the major events and trends in the industry Speculate on a wide range of important issue Prepare a report summarizing the major issues and their implications Identify feasible strategic options to deal with the evolving environment.