Externalenvironmentalscan Report 130323100555 Phpapp02

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    Lets talk about

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    Definition of environmental

    scanningBackground

    Defining environment

    Defining scanning

    Getting started

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    The process of collecting, analyzing,and distributing information for

    tactical and strategic purposes

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    environmental scanning is "a kind of

    radar to scan the world

    systematically and signal the new,

    the unexpected, the major and the

    minor" (p. ix)

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    the systematic collection of external

    information in order to

    (1) lessen the randomness of

    information flowing into the organization

    and

    (2) provide early warnings for

    managers of changing external conditions

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    detecting scientific, technical, economic,

    social, and political trends and events

    important to the institution,

    defining the potential threats,

    opportunities, or changes for the

    institution implied by those trends and

    events,

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    promoting a future orientation in

    the thinking of management and

    staff, and

    alerting management and staff to

    trends that are converging,

    diverging, speeding up, slowingdown, or interacting

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    an effective environmental scanning

    program should enable decision

    makers to understand current and

    potential changes taking place in

    their institutions' external

    environments

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    Environmental scanning is one of fouractivities comprising external analysis.

    http://horizon.unc.edu/courses/papers/enviroscan/figure1.gif
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    organizations scanthe environment to

    identify changing trends and

    patterns, monitorspecific trends andpatterns, forecastthe future direction

    of these changes and patterns,

    and assesstheir organizationalimpact.

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    Merged with internal analysis of

    the organization's vision, mission,

    strengths, and weaknesses, externalanalysis assists decision makers in

    formulating strategic directions and

    strategic plans.

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    the goal of environmental

    scanning is to alert decision

    makers to potentially significant

    external changes

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    Fahey and Narayanan (1986) help by identifyingthree levels of environment for scanning.

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    is the institution's set of customers

    In higher education, this may include studentsand potential students, parents of students

    and of potential students, political leaders, and

    employers and potential employers of

    students.

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    comprises all enterprises associated with

    an organization in society.

    For higher education, factors such as public

    confidence in higher education or student aid

    legislation are industry factors affecting all

    institutions.

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    where changes in the social, technological,

    economic, environmental, and

    political (STEEP)sectors affect organizationsdirectly and indirectly.

    a national or global recession increases the

    probability of budget cuts in state government and,

    consequently, budget reductions in publiclysupported colleges and universities.

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    There are a number of ways to conceptualize scanning.Aguilar (1967) identified four types of scanning.

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    Undirected viewing consists of

    reading a variety of publications forno specific purpose other than to be

    informed.

    Conditioned viewing consists of

    responding to this information in

    terms of assessing its relevance to theorganization.

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    Informal searching consists of

    actively seeking specific informationbut doing it in a relativelyunstructured way.

    These activities are in contrastto formal searching, a proactivemode of scanning entailing formal

    methodologies for obtaininginformation for specific purposes.

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    Morrison, Renfro, and Boucher

    (1984) simplified Aguilar's four

    scanning types as either passive oractive scanning.

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    is what most of us do when we read journals

    and newspapers. We tend to read the same

    kinds of materials. However, the

    organizational consequences of passivescanning are that we do not systematically

    use the information as strategic information

    for planning, and we miss many ideas thatsignal changes in the environment.

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    focuses attention on information

    resources that span the task and

    industry environments as well as the

    macroenvironment. In active scanning, it

    is important to include information

    resources that represent different views

    of each STEEP sector.

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    Another way of looking at

    scanning was described by

    Fahey, King, and Narayanan(1981).

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    are used on an ad hoc basis and

    tend to be crisis initiated. These

    systems are used when an

    organization needs information

    for planning assumptions andconducts a scan for that purpose

    only.

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    are used when the planners

    periodically update a scan,perhaps in preparation for a

    new planning cycle.

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    use the active scanning mode

    of data collection tosystematically inform the

    strategic planning function of

    the organization.

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    decide which level of scanning commitment is

    best for your institution at this time: irregular,periodic, or continuous.

    A quick way of getting started is to interviewmajor decisionmakers regarding their view of themost critical trends and developments that could

    affect the institution.

    Also examine past program reviews, the lastinstitutional self-study, and the most current

    master plan.

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    Establishing a continuous scanning system requires

    more effort and resources. First, secure a resourcecommitment from the senior official responsible forplanning. At a minimum, a continuous scanning

    system requires a professional and a support person

    to devote half of their time to the enterprise.Further, a continuous scanning program requires a

    number of scanners who agree to rigorously and

    systematically review specific information

    resources. Assuming that you secure the resources,your next step is to recruit and train volunteers to

    perform active scanning.

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    Demographics

    SocialChange

    Economic

    Conditions

    Political &Legal Factors

    Technology

    Competition

    EnvironmentalScanning

    Target Market

    Product

    DistributionPromotion

    Price

    External Environment

    is not controllable

    Ever-ChangingMarketplace

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