Environmental Scanning? Environmental Scanning Generally

¶ … environmental scanning? Environmental scanning generally produces large amounts of data. What are some questions to ask to aid you in screening that data to determine its usefulness? What is the importance of continuously validating an environmental scan? The concept of environmental scanning focuses on evaluating each of the dominant types of forces that can significant impact the performance of an organization over time. The inclusion of both microeconomic and macroeconomic factors is critical, as this technique centers on gaining advance insight into trends that will potentially impact the organization.

The delineation of high and low rich information sources is often included in the analysis, in addition different items to measure the five dimensions of competitive strategy as well (Beal, 2000) with Beal's approach encompassing twenty-three different factors in a Varimax-based factor analysis model. Beal (2000) and other argue that it is the frequency and scope of environmental scanning will be positively related to environment and competitive strategy alignment (Decker, Wagner, SrScholz, 2005).

Results that emerge from the primary research and subsequent factor analysis however is at times contradictory and at the same time, intuitively obvious in that environmental scanning can provide a very accurate assessment of the stage an industry lifecycle is in as derived by competitors, consolidation market forces, and pricing strategies for example (Stewart Jr., May, Kalia, 2008).

It is critically important to continuously scan the environment to ensure strategic plans continually stay in alignment with the broader economic, social, political and technological factors that can potentially impact a strategic plan and its execution. Question # 2: Choose a specific industry (a Pre-Paid Phone Card Business) and, relying solely on your impressions, evaluate the impact of the five forces that drive competition in that industry.

Porter's five forces model (Porter, 2008) includes the factors of the bargaining power of suppliers, bargaining power of customers, threat of new entrants, threat of substitute products and competitive rivalry within the industry. In the context of the prepaid phone industry the bargaining power of suppliers is very significant, as there continues to be consolidation of telecommunications companies. Customers' bargaining power is also forcing lower prices and a higher level service for the lower price as well.

The threat of new entrants is also quite high due to Asian and Indian providers who have attained pricing efficiencies being able to penetrate larger westernized markets. In summary the five forces on the pre-paid phone market will have a very significant effect on the prepaid phone card industry. Question # 3: Please discuss the various long-term objectives needed for the strategic evaluation of an organization, (Pre Paid Phone Card Company).

The long-term objectives of the pre-paid phone card company need to first focus on gaining new customers quickly, ensuring they stay loyal over the long-term. This has much more to do with branding and service than price. In addition to this strategic objective, there is also the need to continually add new services and innovation to attract new customers, while requiring suppliers to also innovate over time (Porter, 1980).

The additional objectives include the defining of supply chain efficiencies and the continual development of relationships with the key suppliers the company is based on. Question # 4: Please discuss the tools needed for the performance of an environmental analysis in an organization (Pre Paid Phone Card Company). The tools required to complete an environmental analysis include market research tools, strategies and techniques used for capturing both qualitative and quantitative data (Beal, 2000).

There is also the need for quickly finding patterns from unstructured content obtained from the market, so that models can quickly be created. This ability to parse or analyze unstructured content is also critical for gaining insights into trends not readily identifiable from looking at mainstream data (Decker, Wagner, SrScholz, 2005). Ultimately any environmental analysis needs to have a foundation of solid data collection and analysis applications in conjunction with the ability to interpret their impact and quickly take action on the knowledge gained. References Beal, R (2000).Competing effectively:.