Chap 6 scanning the environment
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Chapter 6
Scanning the Environment
A. Introduction
1. What Scanning Can Accomplish (TM 6-1)
2. Constituents of Environment (TM 6-2)
3. What External Information Do Managers Obtain? (TM 6-3)
B. Scanning Perspectives
1. Four Phases in the Evolution of Environmental Scanning (TM 6-4)
2. Technological Environment: Five Categories of Technology (TM 6-5)
3. Political Environment: Examples of Political Trends and Events (TM 6-6)
4. Economic Environment: Examples of Economic Trends and Evetns (TM 6-7)
5. Social Environment: Social Trends Having Marketing Significance (TM 6-8)
6. Regulatory Environment
C. Scanning Procedure
1. Scanning the Environment: Procedural Steps (TM 6-10)
2. Linking Environmental Scanning to Corporate Strategy (TM 6-11)
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227 CHAPTER 6: Scanning the Environment
6-1
WHAT SCANNING CAN ACCOMPLISH
• Helps organization capitalize on early
opportunities.
• Provides early signal of impending problems.
• Sensitizes organization to changing needs and
wishes of customers.
• Provides base of objective qualitative
information.
• Provides intellectual stimulation to strategists.
• Improves image of organization with its publics.
• Means of continuing, broad-based education for
executives.
CHAPTER 6: Scanning the Environment 228
6-2
CONSTITUENTS OF ENVIRONMENT
229 CHAPTER 6: Scanning the Environment
6-3
WHAT EXTERNAL INFORMATION
DO MANAGERS OBTAIN?
A. Market Tidings
Market potential
Structural change
Competitors and industry
Pricing
Sales negotiations
Customers
B. Acquisition Leads
Leads for mergers, joint ventures, or
acquisitions
C. Technical Tidings
New products, processes, and technology
Product problems
Costs
Licensing and patents
D. Broad Issues
General conditions
Government actions and policies
E. Other Tidings
Suppliers and raw materials
Resources available
Miscellaneous
CHAPTER 6: Scanning the Environment 230
6-4
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6-5
TECHNOLOGICAL ENVIRONMENT:
FIVE CATEGORIES OF TECHNOLOGY
• Energy
• Materials
• Transportation
• Communications and information
• Genetic
CHAPTER 6: Scanning the Environment 232
6-6
POLITICAL ENVIRONMENT:
EXAMPLES OF POLITICAL TRENDS
AND EVENTS
• Increase of geopolitical federations.
• Rising nationalism vs. world federalism.
• Limited wars: Middle East.
• Increase in political terrorism.
• Third-party gains in the United States.
• Rise of emerging nations.
• Minority (woman) president.
• Rise in senior-citizen power.
• Political turmoil in Saudi Arabia.
• Revolutionary change in Indonesia.
• Revolutionary change in South Africa.
• Instability in other places.
233 CHAPTER 6: Scanning the Environment
6-7
ECONOMIC ENVIRONMENT:
EXAMPLES OF ECONOMIC TRENDS AND
EVENTS
• Depression; worldwide economic collapse.
• Increasing foreign ownership of U.S. economy.
• Increasing regulation and management of
national economies.
• Several developing nations become
superpowers (e.g., Brazil, India, China).
• World food production: Famine relief vs. holistic
management.
• Decline in real world growth; or stable growth.
• Collapse of world monetary system.
• High inflation.
• Significant employee-union ownership of U.S.
businesses.
• Worldwide free trade.
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6-8
SOCIAL ENVIRONMENT:
SOCIAL TRENDS HAVING MARKETING
SIGNIFICANCE
• Orientation toward time
• Quality
• Health
• Environment
• Home
• Personal finance
• Diversity of lifestyles
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6-9
REGULATORY ENVIRONMENT
• Government influence on business appears to
be increasing.
• Astute management can avoid the trauma of
regulations by developing an explicit strategy,
rethinking relationships with customers,
considering new roles of play in the market, and
realigning their organizations accordingly.
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6-10
SCANNING THE ENVIRONMENT:
PROCEDURAL STEPS
• Keep tabs on broad trends.
• Determine relevance of a trend.
• Study the impact.
• Forecast the direction.
• Analyze the momentum.
• Study opportunities.
• Relate the trends to strategy.
237 CHAPTER 6: Scanning the Environment
6-11
