process of business environment
- 1. Submitted to: L.M. Maha Lakshmi M.B.A., Assistant Professor Department of Business Administration V.V.Vanniaperumal College for Women, Virudhunagar. Name: V.L. Aruna Shivani Roll no: PS0711 Topic: Process of Environment Analysis
- 2. PROCESS OF ENVIRONMENTAL ANALYSIS Done by: V.L. Aruna Shivani B.B.A., D.F.aD.,
- 3. Monitoring Forecasting Assessment Scanning Four stages given below are intertwined
- 4. ❖ Environmental scanning means: Environmental scanning is the ongoing tracking of trends and occurrences in an organization's internal and external environment that bear on its success, currently and in the future. The results are extremely useful in shaping goals and strategies. ❖Purpose: To identify the emerging trends or early warning signals. ❖ Scanning is basically exploratory in nature. ❖ There are so many environmental factors which influence the operation of a business. The critical and high priority factors must be identified. Eg ., managerial philosophy, age, size, power, geographic dimension, type of business of the organization influence the selection of relevant environmental factors.
- 5. The two firms, Nike and Adidas, have different internal and external environmental factors. The external and internal factors are analyzed using PESTEL and SWOT analysis.
- 6. ❖Monitoring is a follow up and deeper analysis of relevant environmental forces identified through scanning. The techniques are used to collect the relevant facts about environmental factors such as ⮚ Company records ⮚ Publications ⮚ Spying and verbal talks with the employees ⮚ Customers ⮚ Dealers ⮚ Suppliers ⮚ Competitors
- 7. ❖ Forecasting is the process of estimating the relevant events of future based on the analysis of their past and present behaviour. ❖It is necessary to anticipate future events before any strategic plans are formulated. ❖ Focus on future aspects of the environment which affects the organization. Forecasts are made for: Economic, social, political and technological elements of environment. Techniques used for forecasting: Time series analysis, econometric model, delphi method.
- 8. ❖ Environmental factors are assessed in terms of their on the organization. ❖ Some factors in the environment may entail an opportunity while other may pose a threat to the organization. The degree of impact may also vary from one factor to another. Techniques used for environmental diagnosis: ❖ SWOT analysis ❖ ETOP