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How to achieve environmental scanning
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Recommended: How to achieve environmental scanning
How Environmental Scanning Helps an Organization to Fomulate Strategy Including Both Microenvironment and Macroenvironment Factors.
ENVIRONMENTAL SCANNING
Defination:
• “Aguilar (1967). Aguilar defines environmental scanning as acquiring information about events and relationships in a company’s outside environment, the knowledge of which would assist top management in its task of charting the company’s future course of action”( Principles of Marketing Kotler 14th Edition)
• Also defined as the process of gathering, examining, and allocating data for tactical and strategic purposes.
Purpose :
To provide strategic intellect by assessing potentially substantial environmental changes
Carries both current environmental standing and how it is changing movements.
Alarms organizers to drifts that are uniting, deviating, relating, rushing, or slowing.
Perfect end-goal: allows for adaptive preparation before these drifts arise or fully mature.
Explanation and Factors
The marketing environment involves forces outside marketing that affect the marketing management’s ability to develop and keep up successful associations with its target customers.The very sharp and smart marketing manager approaches to the marketing environment if is proactive relatively than reactive and understanding the external impacts so that be able to develop an effective reaction to adjust and secure the company’s position in the future.
The factors and forces can be generally be divided into two broad components
A. Micro Environmental Forces:
• The Company Itself.
• The Suppliers.
• The Competitors.
• The Intermediaries which are Marketing Channel Firms.
• The Customer Markets.
• The Public.
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People’s thoughts for others. Spectators have noted a change from a “me society” to a “we society.” Consumers are spending extra on products and services that will advance their lives relatively than their image.
People’s thoughts for organizations. People are eager to work for large organizations but assume them to develop gradually publically accountable.
People’s thoughts for society. This positioning influences consumption forms. “Buy in own country” versus buying abroad is an issue that will remain into the next era.
People’s thoughts for nature. There is a growing tendency toward people’s sensitivity of mastery over nature from end to end technology and the belief that nature is generous.
People’s thoughts for the universe. Educations of the beginning of man, religion, and thoughts frustrating ad campaigns are on the upswing.
Before the situation analysis of TCBY’ franchising system, it is essential to find out why franchising has become such a problem in this case. This can be achieved through an environmental scanning. Basically, three environ...
Characteristics of our society reflect in the outcome of purchasing tendencies. How many of us can honestly say we make a valid effort to purchase goods made in our own country? In our face paced world where both parents are in the work force, raising children, social activities and everything else, who has time to make an effort? Most often, consumers only care about marking off the s...
Davies, Paul. " Did God Create the Universe." The Intellectual Journey. 2nd edition. Ed John Apczyski. Boston, Massachusetts: Pearson Custom Publishing. 2002 75- 88.
Technological change, change in economic climate, natural occurrences and such-like are matters that concern the macro-environment of a business. These external, uncontrollable, influences can and will impact hugely on the success or failure of a business. One of the tools that are applicable in considering these factors is PESTLE. Political; Environmental; Social; Technological; Legal and Economic considerations will need to be engaged in order to prepare the business for macro-environmental influences. For this reason, PESTLE will be the most appropriate tool to use to identify and outline the main macro-environmental factors that may affect my business.
Individual’s consumption pattern and purchase decision are strongly influenced by cultural norms and values of the society he lives in (H. S. Kim & Drolet, 2003; Oyserman, Coon, & Kemmelmeier, 2002; Sun, Horn, & Merritt, 2004). Since individuals in collectivist society pay more attention towards harmony of the gro...
From the lone hiker on the Appalachian Trail to the environmental lobby groups in Washington D.C., nature evokes strong feelings in each and every one of us. We often struggle with and are ultimately shaped by our relationship with nature. The relationship we forge with nature reflects our fundamental beliefs about ourselves and the world around us. The works of timeless authors, including Henry David Thoreau and Annie Dillard, are centered around their relationship to nature.
Environmental – External environmental factors are forces or trends that can affect a business whether it is an opportunity, threat, or constraint. They can be divided into three interrelated subcategories of remote, industry, and operating environments. The remote environment includes factors beyond a company’s operating situation such as the economic, social, political, technological, and ecological factors. The industry environment includes factors that have more of a direct influence on a company’s business such as entry barriers, competitor rivalry, the availability of substitutes, and the bargaining power of buyers and suppliers.
The next major step in environmental analysis is analysis the organization¡¯s competitive position that is how it stands in relation to other organizations competing for the same resources, or customers, as it.
Businesses play a significant role with the economies of all countries, whether developed or developing. It contributes to the welfare of the society through the satisfaction of needs, provides a source of livelihood to millions of people worldwide. Businesses do not operate in vacuums but operate within business environments. The events in the environment of a company have a direct effect on the success or failure of that company. According to Jain, Trehan and Trehan (2009), business environments can be categorized in two: (1) internal business environment; (2) external business environment. Institutions and organizations are usually in a position of controlling their internal business environment. By doing so, they gain the ability of affecting their institutional performance. On the contrary, it is difficult for a business to control the external environment; however, businesses can identify in advance the opportunities and threats presented by the external environment and take decisive actions to ensure its continued success (Jain, Trehan & Trehan, 2009; Goyal & Goyal, 2009).
Many theorists suggest that consumption is correlated to the identity of an individual, that by purchasing goods from the mass market, it enables us to visibly establish our position within society. This differs from previous times in which a range of factors such as family histories, character and personal achievements played a significant role (Gabriel and Lang, 2006). Instead, there is the idea that the consumer has the ability to gain pleasure over objects, not just solely by the manipulation of objects, but through the degree of control over their meaning. The degree of control is developed and achieved through imagination and provides greater possibilities of pleasure experiences. This suggests that modern consumption can be seen as device that enables individuals to ‘dream’ about the desires they wish to fulfill. (Campbell, 1989: 79) (Cited in Gabirel & Lang, 2006)
In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization's supply and demand levels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The "radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization" (Tsiakkiros, 2002). A number of checklists have been developed as ways of cataloguing the vast number of possible issues that might affect an industry. A PEST analysis is one of them that is merely a framework that categorizes environmental influences as political, economic, social and technological forces. Sometimes two additional factors, environmental and legal, will be added to make a PESTEL analysis, but these themes can easily be subsumed in the others. The analysis examines the impact of each of these factors (and their interplay with each other) on the business. The results can then be used to take advantage of opportunities and to make contingency plans for threats when preparing business and strategic plans (Byars, 1991; Cooper, 2000).
Environmental scanning "is the acquisition and use of information about events, trends, and relationships in an organization's external environment, the knowledge of which would assist management in planning the organization's future course of action." Choo (2001) As explained by Gazzale (2007) all businesses external environment are made up of three facets ": 1) the remote environment (macroeconomic factors including inflation, GDP, interest rates, etc.), 2) the industry environment (barriers to entry, the level of competition within the industry, etc.), and 3) the operating environment (the business's customers, suppliers, and workforce, etc.).
To understand the nature-society relationship means that humans must also understand the benefits as well as problems that arise within the formation of this relationship. Nature as an essence and natural limits are just two of the ways in which this relationship can be broken down in order to further get an understanding of the ways nature and society both shape one another. These concepts provide useful approaches in defining what nature is and how individuals perceive and treat
For several decades, as if, a typical undergraduate dream has been characterized with few major steps – getting prestigious high education, taking or buying a diploma, and consequently becoming a successful rich careerist with intuitively main goal to consume as much as possible in order to boost one’s utility at highest potential level. In this way of thinking, development of personal individualism and pursue of human values are left behind the curtains. Everything that can be seen on the scene of our being is mass consumerism, which slowly, gradually, but surely is transferring us into a hedonistic consumer society. According to an article in European Journal of Marketing, “A consumer society is defined as one directed largely by the accumulation and consumption of material goods. The term "consumer society" is used in a pejorative sense, coming from the perception that such a society will inevitably be hedonistic. It is the search for instant gratification that we traditionally associate with hedonism….”(41 Issue: 2007). In our way to gain deep pleasure, we are over purchasing items and gadgets which once were thought to be extreme luxuries. Most of the times, we are interested in what kind of IPhone we possess, whether to buy a tablet or a laptop, are we are driving more expensive and fancy car than the others, what is more fashionable – a pair of Armani jeans or a pair of Dolce and Cabaña trousers.
Effects of the organisations on its environment are quite obvious in the case of cigarette manufacturing; liquor manufacturing, film making, pharmaceutical companies, etc. These organisations have an obvious impact on its environment.