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1. Environmental Scanning
Technique for Strategic Planning
Mukesh Yadav

2. ENVIRONMENTAL SCANNING
Definition:
The process of collecting, analyzing, and distributing
information for tactical and strategic purposes.
Brown and Weiner defined environmental scanning as "a
kind of radar to scan the world systematically and signal the
new, the unexpected, the major and the minor"
8/17/2017By:Mukesh Yadav Institute of Engineering, WRC 2

3. WHY DO WE NEED TO SCAN?
 To know what is the appropriate PLAN to start at the place.
• To develop strategies that you will do to get ahead of
competitors
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4. TO CONDUCTING ENVIRONMENTAL SCAN
•Don’t try to do this alone!
•Assemble a research team
•Divide the workload
•Allow your team ample time to do the work
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5. PURPOSE OF ENVIRONMENTAL SCANNING
• Effective utilization of resources
• Constant monitoring of resources
• Strategy formulation
• Identification of threats and opportunities
• Useful for the managers
• Prediction of future
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6. FACTORS TO BE CONSIDERED FOR
ENVIRONMENTAL SCANNING
External
environment
of business
Event
s
Expectations
of people
Issues
Trends
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7. HOW IT FITS IN THE PLANNING CYCLE
Environmental Factor
External Factors
•Collect Data
•Assemble data
•Identify Trends
•Internal Factors
•Vision
•Mission
•Values
•Institutional
Climate
SWOT Analysis
•Strength
•Weakness
•Opportunities
•Threats
Gap Analysis
Given where
we presently
are,
where should
we be going
How we
will get
there?
When we
will get
there?
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8. Social Environment
Task
Environment
Internal
Environment
Structure
Culture
Resources
Economic
Force
Technological
Force
Sociocultural
Force
Political
Legal Force
Government
Stakeholders
Suppliers
Communities
Customers
Employ/labor
Interest Group
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9. INTERNAL ENVIRONMENT
An analysis of internal organizational factors which
reviews and investigates the prevailing resources, processes
and performance of organization
The analysis identifies major strengths and weaknesses - of
all the key functional elements (Structure, Functions, HR,
Finance, IT, Rules, Procedures, etc.)
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10. EXTERNAL ENVIRONMENT
Covers the various stakeholders outside the organization
The analysis indicates the opportunities and threats faced by the
organization from its relationship with external stakeholders
Major categories of external environment
Forces and trends – PEST
Clients, customers, or payers
Actual or potential competitors or collaborators
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11. STRATEGY
• is a plan / tactics / scheme one adopts to get something done under conditions of
uncertainty
• is a method or plan chosen to bring about a desired future, such as achievement
of a goal or solution of a problem
• is an action oriented plan of operation for achieving desired goals based on
situation analysis, and emphasizes what an organization will be doing in future
• Strategies are simply a set of actions that enable an organization to achieve
results
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12. WHY STRATEGIC PLANNING
To generate competitive advantage of a firm
To cope with the risks and uncertainties of business
To minimize the effect of bounded rationality of decision makers
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13. 8/17/2017By:Mukesh Yadav Institute of Engineering, WRC 13

14. TYPES OF STRATEGIC PLANNING
1. Managerial Intent
 Logical incremental
 Rational command
2. Cultural / Political Process
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15. LOGICAL INCREMENTAL
• Standardized planning procedures
• Systematic data collection and analysis
• Constant environmental scanning
• On going adjustment of strategy
• Tentative commitment to strategy
• Step by step small scale change
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16. RATIONAL COMMAND
• Senior managers determines and direct strategy
• Strong vision or mission
• Definite and precise objectives
• Analysis and evaluation of environments
• Clear plans
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17. A CULTURAL/POLITICAL PROCESS
• Managing conflicting interest groups
• Powerful groups with control over critical resources more
likely to influence strategy
• Standardized way of doing things
• Routines and procedures embedded in organizational
strategy
• Deeply rooted beliefs and assumptions
• Strong resistance to change
• Gradual adjustment to strategy
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18. STRATEGIC PLANNING
• disciplined effort to produce fundamental decisions and
actions that shape and guide what an organization is, what
it does, and why it does it with a focus on the future
• focuses on the best ‘fit’ between an organization and its
environment
defined as the process of addressing the following questions
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19. CONT….
SWOT VMO Strategy
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20. DEVELOPING THE PLAN
Mission
• Core purpose of your organization
• Presented in a clear, short statement that focuses on attention
in one clear direction by stating purpose of the group’s
uniqueness
Vision
• What is your organization’s vision of excellence
• Has to be realistic and not something impractical
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21. CONT…
Values
• What are the principles, standards, and actions
considered worthwhile in the organization
• Includes how people treat each other, how groups
conduct business and what is most important to
the organization
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22. STRATEGIC PLANNING PROCESS
Goals and Objectives Should Be SMARTER
• Specific
• Measurable
• Acceptable
• Realistic
• Timeframe
• Extending
• Rewarding
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23. 5 PS OF STRATEGY – H MINTZBERG
Strategy
Plan
Ploy
PatternPosition
Perspective
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24. STRATEGY …
• PLAN
• Consciously intended course of action, a set of guidelines to deal with the
situation
• PLOY
• Specific maneuver intended to outwit an opponent or competitor
• PATTERN
• In a stream of actions…consistency in behavior whether or not intended
• POSITION
• Means of locating an organization in an environment
• PERSPECTIVE
• An engrained way of perceiving the world
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25. STRATEGIC PLANNING PROCESS
ETOP(environmental threats and
opportunities) Analysis
SWOT(strengths, weaknesses,
opportunities and threats) analysis
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26. ETOP
Steps involved in the preparation of ETOP:
 Dividing the environment into different sectors
 Analyzing the impact of each sector on the organisation
 Subdividing each environmental factor into sub factors for a comprehensive
ETOP
 Analyzing the impact of each sub factor on the organization in the form of a
statement
 Preparing a summary to show the major factors for the sake of simplicity
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27. IMPORTANCE OF ETOP
• Provides a clear picture to the strategists of the sectors and
the different factors in those sectors
• Helps the organization in knowing where it stands with
respect to its environment
• Helps the organization in formulating appropriate strategy
to take advantage of the opportunities and threats in its
business
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28. SWOT PROFILE
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29. SOURCES OF INFORMATION AND
METHODS OF INFORMATION COLLECTION
Sources of Information
 Primary
 Secondary
Methods of Information Collection
 Interview
 Focus group discussion / Workshop
 Questionnaire Survey
 Observation
 Reviewing available materials
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30. BENEFITS OF SWOT ANALYSIS
• Produces information vital to the organization's survival
and prosperity
• Allow seeing the organization as whole in relation to its
environment
• Clarify for the organization the nature of the ‘tension
fields’ within which it exists
• Timely actions may be taken to deal with threats and
weaknesses
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31. PEST ANALYSIS
• It is very important that an organization considers its
environment before beginning the marketing process. In
fact, environmental analysis should be continuous and feed
all aspects of planning. The macro-environment consists of
e.g. Political (and legal) forces, Economic forces,
Sociocultural forces, and Technological forces. These are
known as PEST factors.
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32. PEST
political Economic
Technological
Social
cultural
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33. CONT…
Political Factors:
The political arena has a huge influence upon the regulation of
businesses, and the spending power of consumers and other businesses.
Economical Factors:
Marketers need to consider the state of a trading economy in the short
and long-terms. This is especially true when planning for international
marketing. One need to look at
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34. CONT…
Socio cultural Factors:
The social and cultural influences on business vary from country to
country. It is very important that such factors are considered
Technological factors:
Technology is vital for competitive advantage, and is a major driver of
globalization.
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35. STRATEGIC PLANNING TOOLS &
TECHNIQUES
• Appreciative Inquiry
• Effective for changing organizational culture
• Based on 4-D model
• Discover, Dream, Design and Destiny
• Open Space Technology
• New method for working effectively with large groups (10 - 1000
participants)
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36. STRATEGIC PLANNING TOOLS &
TECHNIQUES
• Public Consultation
• Involve public and stakeholders in your planning process
• Achieve public consultation through
• Interviews
• Facilitated meetings
• Open houses
• Website discussion papers/surveys
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37. STRATEGIC PLANNING TOOLS &
TECHNIQUES
• Public Meeting
• Provides opportunity for input for all stakeholders
through
• Open house to review plans, maps, charts
• Facilitated meeting with presentation on what you
plan to do
• Facilitated meeting on interim and final report
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38. STRATEGIC PLANNING TOOLS &
TECHNIQUES
• Focus Groups
• Provides opportunity to address specific issues
• Provides opportunity for maximum
participation
• Provides maximum information in short period
of time
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39. STRATEGIC PLANNING TOOLS &
TECHNIQUES
• Website feedback
• Online survey
• Online discussion paper to generate comments
• Surveys
• Online survey
• Community survey
• Can be developed and administered locally
• Can be conducted by firm specializing in surveys
• Research
• Focus groups, surveys (primary)
• Literature review (secondary)
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40. BENEFITS OF STRATEGIC PLANNING
• Defines mission,
vision & values
• Establishes
realistic goals,
objectives &
strategies
• Ensures
effective use of
resources
• Provides base to
measure
progress
• Develops
consensus on
future direction
• Builds strong
teams
• Solves major
problems 8/17/2017By:Mukesh Yadav Institute of Engineering, WRC 40

41. STRATEGY IMPLEMENTATION
• However beautiful the strategy,
you should occasionally look at
the results.
- Winston Churchill
For effective implementation, it
needs to be translated into more
detailed policies that can be
understood at the functional level
of the organization.
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42. WHY STRATEGIC INITIATIVES FAIL?
SI will fail when one is STUPID:
Sponsorship not forthcoming
Team member do not function as agents of
change
Unclear vision and commitment
Poorly planned change programme
Inappropriate/ Insufficient Communication
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43. THE SUCCESS PRINCIPLE
Shared vision
Understand the organization
Cultural alignment
Communication
Experience help where necessary / Executive support
Strong leadership
Stakeholder buy-in / Systematic planning / Short-term wins
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