Chap 6 scanning the environment

Chapter Scanning the Environment A Introduction What Scanning Can Accomplish (TM 6-1) Constituents of Environment (TM 6-2) What External Information Do Managers Obtain? (TM 6-3) B Scanning Perspectives Four Phases in the Evolution of Environmental Scanning (TM 6-4) Technological Environment: Five Categories of Technology (TM 6-5) Political Environment: Examples of Political Trends and Events (TM 6-6) Economic Environment: Examples of Economic Trends and Evetns (TM 6-7) Social Environment: Social Trends Having Marketing Significance (TM 6-8) Regulatory Environment C Scanning Procedure Scanning the Environment: Procedural Steps (TM 6-10) Linking Environmental Scanning to Corporate Strategy (TM 6-11) 226 227 CHAPTER 6: Scanning the Environment 6-1 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 CHAPTER 6: Scanning the Environment 228 6-2 CONSTITUENTS OF ENVIRONMENT 229 CHAPTER 6: Scanning the Environment 6-3 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 CHAPTER 6: Scanning the Environment 230 6-4 231 CHAPTER 6: Scanning the Environment 6-5 TECHNOLOGICAL ENVIRONMENT: FIVE CATEGORIES OF TECHNOLOGY • Energy • Materials • Transportation • Communications and information • Genetic CHAPTER 6: Scanning the Environment 232 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 233 CHAPTER 6: Scanning the Environment 6-7 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 CHAPTER 6: Scanning the Environment 234 6-8 SOCIAL ENVIRONMENT: SOCIAL TRENDS HAVING MARKETING SIGNIFICANCE • Orientation toward time • Quality • Health • Environment • Home • Personal finance • Diversity of lifestyles 235 CHAPTER 6: Scanning the Environment 6-9 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 CHAPTER 6: Scanning the Environment 236 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 237 CHAPTER 6: Scanning the Environment 6-11 [...]...CHAPTER 6: Scanning the Environment 2 36 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 237 CHAPTER 6: Scanning the Environment 6- 11 ... policies E Other Tidings Suppliers and raw materials Resources available Miscellaneous CHAPTER 6: Scanning the Environment 230 6- 4 231 CHAPTER 6: Scanning the Environment 6- 5 TECHNOLOGICAL ENVIRONMENT: ... continuing, broad-based education for executives CHAPTER 6: Scanning the Environment 228 6- 2 CONSTITUENTS OF ENVIRONMENT 229 CHAPTER 6: Scanning the Environment 6- 3 WHAT EXTERNAL INFORMATION DO MANAGERS... customers, considering new roles of play in the market, and realigning their organizations accordingly CHAPTER 6: Scanning the Environment 2 36 6-10 SCANNING THE ENVIRONMENT: PROCEDURAL STEPS • Keep