Environmental scanning and strategic planning in technology-based organizations

Environmental Scanning: Remote and Industry

Environmental Scanning: Remote & Industry

Environmental Scanning

Remote and Industry

The objective of this work is to answer the questions from simulation of (1) What are the lessons learned relative to the importance and effectiveness of environmental scanning? (2) What concepts and analytic tools will you be able to use in the development of strategic planning for your own organization? (3) What do the results reveal about the challenges facing strategic planners? This work will also provide (1) a clear description of the business environment problem identified in the organization; (2) relevant facts and circumstances that created the identified problem (3) a brief discussion on how the current problem can be turned into an opportunity; (4) presentation of the risks associated with the implementation of the new business opportunity and suggestions of how to mitigate such risks; and will further identify the type of information the organization will need in order to keeps its competitive edge and capitalize on the proposed business opportunity. The chosen organization will be an SME organization, or one that is small-to-medium in terms of size, and specifically will be a high-technology firm that makes provisions of Internet access and is located in branches globally.

Introduction

The contemporary business is one that is characterized by unstable conditions that affect the prosperity potential of the business particularly if the management within the business is unprepared to respond to the variety of environmental affecters that are present in today's world. It is crucial that management be properly prepared through training and education in this aspect.

II. Environmental Analysis

Industry related information will be taken under consideration in terms of the customers, competitors, suppliers, distributors. The Macros information (Brush, 1992) will be concentrated on gaining information both national and international in terms of economics, socio-cultural, technological and other issues and trends. As the organization grows the need for "Irregular," "Intermittent" and "Continuous" scanning are often used because the conclusion has been stated that "continuous systems are the ideal systems because attention is directed not only towards mere problem solving but towards opportunity finding and the realization that planning systems contribute to the growth and survival of the organization is a proactive say" (Costa, 1995 p.6)

Internet Usage: Demographics

There are currently 120 million adults who use the internet. The average age of Internet users is stated by Georgia Technology Institute after having completed several different surveys spanning five years to be approximately 35.0 years of age. The U.S. has the dominator of use of the Web. There was noted to be a steady stream of new users on the Internet with an average of 40% of users in three of Georgia Technology Institute's respondents that are not willing to pay for Internet access. Of the total of all adults globally, 59% of adults use the Internet. 58% of those are women while 61% are men. In the age bracket of 18-29-72% use the internet, 69% of those in the age bracket 30-49 use the internet, 59% of those in the 50-64 age bracket use the internet, and those who use the internet in the 65 years of age and older was 24%.

In terms of race and ethnicity 62% of whites, 45% of blacks, and 52% of Hispanics use the internet. Of urban adults 60% use the internet, 64% of suburban adults use the internet and 50% of rural adults use the internet.

According to household income those making less than $30,000 per year equaled 43%, household income of $30,000 to $50,000 had 65% usage of the internet, in the $50,000 to $75,000 per year 80% used the internet with those in the $75,000 and above group using the internet was 84%. In terms of education 22% had less than a high school education, 48% had a high school education, 75% had some college and 82% had at least four years college educational attainment. A 45% increase has been noted in the use of internet while at school. In a recent internet- tracking survey between 537 internet users. 51% of 106 million American adults with home internet connections are connected to the internet through broadband connections outnumbering dial-up users. 80 million individuals or 67% of those users have made purchases online. 14% of internet users have made charitable contributions online.

Reasons Given for Internet Usage:

The reasons given for internet usage were varied from checking e-mail, search engine use, map seeking, research of products prior to purchase, weather checks, hobbies and interests, travel information, news purchases, entertainment purchases, reservations, research, medical provisions, phone number and address lookup, political information, banking, obtaining financial information, sports, job seeking, gaming, instant messaging, music, background checks, chat, share of files, online auctions, file download, stock buying/selling, online educational attainment, as well as many more. (Pew Internet & American Life project Tracking, 2000) East of these were stated with the higher percentage rate items descending to the lowest percentage rate items. Noted within surveys and as already stated is the increase of use of the internet in the school setting. This increase is noted as well as the increase of internet use on a global basis.

Economic Outlook:

Stated in the work entitled "The Political Economy of Communications and the Commercialization of the Internet" written by Rory O'Brien (1998) http://www.web.net/~robrien/papers/political%20economy%20of%20communications%20paper.html is that:

"The commodification of media content involves the transformation of messages into marketable products. Realization of profit depends on the extent to which labor, consumer and capital markets can be controlled.Personal information is also becoming a commodity. Corporate means of obtaining feedback about preferences for media products, such as audience ratings for TV programs, is becoming more sophisticated, making use of advanced communication and information technologies. This use is not constrained to the mass media - it is now a major part of most economic transactions to collect information about those transactions and sell it to others. Credit card purchases are a good example; they provide the credit card company with information on your buying preferences. This becomes the basis for categorizing you into a database of demographic profiles, which are then sold to companies whose products and services are purchased most by consumers with your profile. Besides opportunities for direct marketing and sales, companies' decisions regarding such things as pricing, location of stores, inventory, and product development are also enhanced with such information, hence its value as a commodity."

Further stated by O'Brien (1998) is the fact: "The push toward globalism by large-scale business interests has been matched, and fueled by, the globalism of trans-national media corporations ....According to Matrix Information & Directory Services (MIDS), an Internet measurement organization, ... there are currently 57 million users on the consumer Internet worldwide (chart). At its current growth rate, which MIDS fully expects could sustain, the estimated number of users in the year 2000 is 377 million ... The World Trade Organization (WTO) and the International Monetary Fund both are committed to encouraging a global media market to serve the needs of a global economy ...."(O'Brien, 1998) Finally stated is that advertising and consumer spending is steadily increasing via the internet as O'Brien (1998) relates: "Last month, AOL increased the price of banner advertising for online brokerages in its personal finance center tenfold. In return, AOL agreed to limit the number of brokerages advertising in the center. Three online brokers took the bait and anted up $12.5 million each for a one-year presence." (Weisul 1998)

Future Issues & Risks and the Mitigation of those Risks:

Some inherent risks will be inclusive of legalities concerning privacy and information with the new expanded laws included in the U.S. Patriot Act.

Information Needed in Order to Maintain Competitive Edge and Capitalize on Business Opportunity:

Constant and updated technological elements and issues will be that which the organization that operates as a provider of internet services over the next several decades of business. The organization that plans to avert complications in this area should stay up-to-the-minute in terms of new developments and applications of technological impact in today's global internet environment in business.