Chap 6 scanning the environment

Chapter 6Scanning the Environment A.. Political Environment: Examples of Political Trends and Events TM 6-6 4.. Economic Environment: Examples of Economic Trends and Evetns TM 6-7 5.. So

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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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

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6-2

CONSTITUENTS OF ENVIRO NM ENT

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

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TECHNOLOGICAL ENVIRONMENT:

FIVE CATEGORIES OF TECHNOLOGY

 Energy

 Materials

 Transportation

 Communications and information

 Genetic

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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

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

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

492 CHAPTER 6: Scanning the Environment

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