Techniques Of Environment Analysis

1. Environmental scanning
This is the process of gathering information about events and their relationships within an
organization internal and external environment. Purpose of Environmental scanning is to help
management determine the future direction of the organization. In scanning you simply review
and examine whatever information about internal and external environment that can be obtained
from several distinct sources. The sources include; External contacts with customers, suppliers, creditors, Bankers and consultants. Information may also be obtained by means of survey questionnaires or inventors. There is also a grant deal of information available in published materials such as trade journals, books, newspapers and general publications.

There are three types of environmental scanning systems;

a) Irregular scanning system
It involves or consists largely of adhoc environmental studies (one time unplanned) which are
largely activated by a pending environment crisis. They focus mainly on the path in an effort to identify an event that has already taken place their emphasis is intermediate to short run and they pay little attention to future events assured to be involved with the environment.

b) Regular scanning systems
This system revolved around a regular renew of the environment and its significance component.
This renew is often made annually or once a year being such a scan is presented as decision
oriented management commonly review their result deriving decision making process. The focus
of the system is still primary historical or respective although some thought as given to future conditions assured to be involved with the environment.

c) Continuous scanning systems
It involves constant monitor of the components of the organization environment as an ongoing
administers done by an established sector or department of the organization structures. It is not performance by a committed that is set up temporarily to complete such a scan. It is
recommended because their future oriented and considers all aspects of environment that are
neither irregular nor regular scanning systems.

2. Threats and opportunities Analysis
The purpose of performing an environmental analysis is to identify the assistance of
opportunities and threats that may affect an organization progress towards attaining its goals. A threat is anything negative that may affect ability of a firm to achieve its objective. Its suggests factors such as; Negative legislation or intense competition where there could be room for improvement. An opportunity on the other hand is anything positive that with facilitate
attainment of organization objectives. It includes good relations with the government and trade
unions among others management must ensure that information derived from environment
scanning is summarized and analyzed to determine what constitute a threat or an opportunity.

3. Environment Forecasting
This is the process of determining what conditions will exist within an organization environment at some future time. One aspects of environmental analysis is to gauge the present condition of the environment that may be sufficient for strategy development. Where performing
environmental forecasting the manage should try to predict to future status of critical
environment components at all environment levels. There are several types of environmental
forecasting including; marketing, technology, social and manpower forecasting. The methods
used in environmental forecasting include quantitative and qualitative ones such as; expert
opinion sampling (quantitative); trend correction (quantitative); dynamic model (quantitative
they use computers); Multiple scenarios; cross-impact analysis; and demand/ hazard forecasting.

i. The critical question analysis
This is a general framework that is also used to analysis organization environment and it is
current situation before formulating various strategies in management. The framework requires
the manager to seek solution to four basic questions.

Q1. What are the purposes and objectives of the organization?

• Where does the organization want to go? A manger should consider this question during
strategy formulation and is more likely than others to avoid inconsistency among mission,
objectives and strategies.

Q2. Where is the organization presently going?
• How does it intent to get there?
• How will managers ensure its arrival?

The answers to this question is an evaluation of how an organization is achieving its goals or it’s making satisfactory progress towards them. It will evaluate the type skills required by the personnel and the needs to develop such skills and competencies. It also considers issues of customer satisfaction and improve customer’s services improve product quality and higher
productivity.

Q3. What critical environment factors does the organization currently face?
The answer to this question address issues of internal and external environmental analysis. It will help the manager to develop priority for those areas that require immediately formulation of strategies. If for instance this is an increase in competitive pressure, a weak middle manager team within the organization then this are the strategies consensus and any strategy formulated should deal with this issues.

Q4. What can be done to achieve organization objectives more effectively in the future?
The answer to this question goes beyond environmental analysis result in the information of a
strategy organization. Its take into consideration additional question such as;
• What kind of skills competencies do we need in the organization in the future?
• Are organization system and structures in a position to meet future challenges in their present form?

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Titany answered the question on October 19, 2021 at 11:35