Business Environment: Environment Scanning Program - Case Study Example

hi, I have seen my essay, the format and the structure are fine, but the content has a bit warp. 4 industries just can be selected shown as below. the 4 company should be in same industry.(An industry can be defined as “a set of organisations that produce similar products or services, using similar technologies and sell these into similar markets”.） 1 Pharmaceutical 2 Energy 3 Exploration and production 4 Renewable 5 Generation 6 Retail (supermarkets) 7 Automotive 8 Primary health care 9 Higher education 10 Agriculture 11Music distribution 12 Mobile telephony for example: supermarkets a) globally, eg: TESCO b) at national level eg: Sainsbury c) a large company eg Asda d) an SME. eg: Aldi&Kwik Save the example I have shown may be not very nicety in sort, but the should be in same industry. could you do a revised? Business Environment Name: Roll No: Class: Teacher: Subject: December 16, 2007 University: Environment Scanning Program Environment scanning is the attainment and usage of information about episodes, trends, and associations in the external environment of an organization, as it provides necessary information for assisting management in planning future of an organization’s course of action. Organizations by scanning the environment for the purpose of creating a better understanding of external forces relating to changes as to develop a successful response for sheltering and improving organization’s future. (Auster, E. Choo. W. 1992). Purpose of scanning is to evade astonish, recognize threats and exploit opportunities. A search for competitive advantage and improvement in long as well as short term planning is also sought. A firm’s capability to acclimatize to its environment is reliant on the cognizance and decoding the external alterations that are happening. Environment’s scanning comprises viewing of information and searching for the same. (Lester, R. Waters. J. 1988) Environmental scanning varies from a relaxed dialogue at an informal dinner of an annoyed customer to a formal research or a situation planning application. Scanning is prejudiced by external factors such as environmental commotion and resource reliance such as accessibility and quality of data base. (Halpern, D. and M. S. Nilan. 1988) Strategies of an organization refer to model of organizational deeds in relation to external environment. Peculiarity of management comprises manager’s operational specialization, hierarchical degree and cognitive manner. Scanning as a state of informational attitude encompasses information needs, searching of information and the usage of information. In the framework of environmental scanning, information needs mostly refer to concentration and range of scanning, predominantly the environmental areas where scanning is extensive to a greater extent. (Ghosal, S. S.K. Kim. 1986) Searching of information has been studied in relation to the sources used by scanning the environment along with organizational systems installed to supervise environment. Information usage is typically looked at in association to decision making and tactical planning. The benefits of environmental scanning are not only economic or financial. Scanning is significant constituent of organization’s strategic development process, improving of ability to respond and apply alterations in retort to external elements. Moreover, environmental scanning has also donated to enhanced communication between the front line staff and managers of the organization and superior involvement of employees in the decision making process. . (Auster, E. Choo. W. 1992). Environmental scanning tends to create a positive effect on the operations of an organization in the communication, strategic planning and shared vision. The most important effect is that environmental scanning provides a planned process that encourages people to participate in open discussions on the issues of planning and implementation. (Taylor, R.S. (1991) Information obtained from environmental scanning is used increasingly to implement the strategic planning process by the organizations in developed countries. Environmental scanning is connected with enhanced performance of organization. However, environment scanning is inadequate for complete assurance of performance. A significant effect of environment scanning is to enhance communication regarding future issues by the people in a firm. The availability of information on alterations in external environment, scanning can encourage strategic learning of organization. (Halpern, D. and M. S. Nilan. 1988) Environmental scanning program of a globally operated firms- IBM The persistent exigencies of global trade are forcing global coordination of standards beyond oratory to market requirements. Protectionism and heritage act as opposition forces but the strategies of international standards capitulate to new thoughts and business paradigms. Eventually worldwide requires apparent and coordinated system that keeps velocity with the innovation rate. (Auster, E. Choo. W. 1992). Persistent exigencies of Business IBM has decades of experience in operating worldwide supply of products and chains related to sophisticated informational technology areas. Company with its headquarter in the developed economy is sourcing basic functions to professional experts in developed and developing countries. Global expectations regarding quality, safety and performance have become a necessity for success in global trade. The World Trade Organization supports international standards in blockade to Trade agreement. Certain principles has been established by the world Trade Organization for generating international standard, but has not certified members of organization supports for a elastic system that permits legal and technical tactics to be identified. (Ghosal, S. S.K. Kim. 1986) Improvement of Performance Standards by Environmental Scanning Program Performance standards as methods to complement a variety of standards are ensured by IBM through implementing environment scanning program. The performance based aims and objectives are accomplished by IBM and employed to exhibit of the products and services meet the specified aims and objectives. (Auster, E. Choo. W. 1992) Dynamic growth as Market leader The pace set by the global business activities in harmonization is similar to the evolution of new technologies. Alliance in technologies can accelerate the standards developing procedures. As noted by the management of IBM that WEB technology permits standards developers for suggesting standard or revising the procedures within specified time. Development of Better Business Paradigms through Environment Scanning Program IBM has assessed that it should include its belief in standardization process that work in the direction for creating a world free in all standards. The environmental scanning programs tend to observe working relationship within and outside organizations. The scanning programs provide intellectual property being the base document. (Lester, R. Waters. J. 1988) Technology innovation Systems Global leadership is becoming a contest day-by-day for organizations where research and development cultivate invention and relevance. Systems are enabled to follow the benefits of geographic modernism where IBM can gain performance benefits. With a group harmonizing businesses contributes in specialized infrastructure, services and labor markets that could result in efficiencies and synergies and eventually a vital accumulation of entrepreneurial strength in the target market. (Auster, E. Choo. W. 1992) Environmental scanning program in local operations of Amtrak The objectives of Amtrak for environment scanning programs can be narrated as follows: Recognition of predictable alterations in the operations of firm in the next five years. Recognition of unforeseen changes in agreements with different government and private organizations in the next five years. Recognition of predictable alterations that mean for Amtrak Rails security and safety programs in terms of functions, responsibilities and job-load. (Halpern, D. and M. S. Nilan. 1988) The following activities were performed during environmental scanning program Interview Development: A guide with the purpose of conducting guide also including suggested questions were designed and vetted in accordance with Rail Safety management. Recognizing Participants: Detailed list of probable participants was developed that was vetted with the same management. Interviews on Telephone: Telephone interviews with participants were conducted and interview guide was also supplied to them. Presentation of Initial Results to Rail Safety Committee: A variety of themes were recognized in the interview observations. Analysis of Results: Information obtained from participants in the interviews was organized and analyzed. (Lester, R. Waters. J 1988) Challenges Identified Assume a regulatory theme for identifying a different class other than from competitors. Resolution of differences that arose from the uncontrollable elements present in external environment. Determination in the level and allocation of resources significant for providing successful guidelines ensuring safety and suggested methods for implementation. (Ghosal, S. S.K. Kim. 1986) These suggested methods included: Amtrak should assume a leadership role for the identification and implementation of railway safety system that work for accomplishment of basic objectives Amtrak should ensure application of performance based-safety system ensuring compliance of regulatory regime that could allow different divisions within Amtrak to monitory performance. Amtrak should coordinate its activities inside internal environment to resolve issues and complexities present in external environment. (Christensen, Clayton M. 1997) Competition Competition was a frequent premise in the environment scanning program. Competition within railway industry and between railway industry and trucking was analyzed in depth. It was identified that competitive pressure will continue to prevail in the forms: consistent downsizing in the short-run; increased concentration on operating unrest and productivity goals; better response by competitors to client needs and concerns; more outsourcing of railway work. (Ghosal, S. S.K. Kim. 1986) Innovative Technology Participants of environmental scanning research program indicated the recognition and implementation of new and innovative technologies aimed at: Improved detection, recognition and remediation system Satellite-based communiqué and interaction Labor saving appliance Additional computerized system (Taylor, R.S. (1991) Environmental scanning program in operations of Large Company- Yellow Transportation Accomplishments for the aims and objectives of Yellow Transportation a large firm mainly operating in North America can be achieved for the identification and resolution of emerging issues that possess the power to affect business activities. Environmental scanning is a method that is used in support of a strategic planning process. Environmental scanning has specific objective in endeavor to identify wider trends in political, economic and legal environment that Yellow Transportation finds in its operations. (Auster, E. Choo. W. 1992) Environmental scanning program is viewed by the scholars of strategic scholars as a precondition in the formulation of effective marketing and operational strategies. Environmental analysis supports a firm to recognize and build cognizance of rising opportunities and threats. It is argued that organizations intermingle with their environment for existence and success that is dependent upon effectiveness of management in dealing swiftly and altering information technology. Another used is that the environmental scanning program can be used for the background of continuous professional education. (Halpern, D. and M. S. Nilan. 1988) The management of Yellow Transportation commenced their environmental scanning program by conducting seminars of stakeholders in the transportation and postal industry. Evaluation forms were distributed at seminars and participants were motivated to complete their forms in every event. These forms contained questions about significance, venue and contained issues that participants sensed would emerge in future. Participants were also inquired to express their considerations of main issues faced by the relevant business with special emphasis on uncontrollable forces of external environment. (Christensen, Clayton M. 1997) Results of these seminars and interactive sessions were analyzed based on the evaluation forms. Every effort was made to obtain evaluation forms from the maximum possible participants. Their response was summarized and analyzed. Issues emerged and required early rectification during environment scanning program were related to; Technology and Internet concerns; economic considerations; organizational structure; competition; quality assurance matters; and political considerations. (Auster, E. Choo. W. 1992) The related concerns of respondents participating in environmental scanning programs were analyzed. There were concerns for market success, technology and quality issues. A sizeable data comprise to recognize the trends that remain skewed, prejudiced by categorization of individual remarks and by the usage of cryptic observations by respondents. The use of homogeneous lists might remove some deviation; it may result in reduction of capacity of network to recognize rising trends and may direct people towards specific answers. (Halpern, D. and M. S. Nilan. 1988) This environmental scanning program by Yellow Transportation supports the literature that recognizes the yielding outcomes. The results of environmental scanning Program were displayed in the officers of managers concerned aimed at the growth of marketing and operations in Yellow Transportation. Environmental scanning program in Operations of SME Economic Impact by Environmental Scanning Program The factors that impact on business are: interest rates; unemployment; special abatements; tax laws; consumer spending; taxes etc. Higher rates of interests have a negative impact on expansion strategies. This present opportunities for manufacturers to supply fabrication services aimed at the related industry. Small companies wait for drop in interest rates prior to investing in expansion projects. High rate of interests means higher costs that are passed to customers. (Auster, E. Choo. W. 1992) The environmental scanning process highlights that particularly in the case of small and medium enterprises the low employment is in fact an advantage because customers may feel difficulties in hiring high cost skilled laborers. A useful option available is the outsourcing for obtaining products that are manufactured in-house. If there is contraction in economy then organizations will likely to pull the labors-in-house for production. The influence of political and regulatory forces pointed by the employment scanning process is the new federal laws or climate. Industries are in continuous pressure from civic organizations and political leaders for protection of environment. The programs for protecting environment present opportunities for some firms and threats for others. (Lester, R. Waters. J 1988) The gender mix, living standards and the way they think cause change in demographics. Economy is dynamic and global in nature. Organizations need to change as attitudes change. Environment scanning programs require companies to introduce new products with comparatively lower levels of labor costs. (Auster, E. Choo. W. 1992) The environmental scanning programs affect stakeholders including vendors; competitors; strategic partners; and associations. It also affects customers, service centers, employees’ families and investors. The industries are global in their extents and the growing competition especially with low cost of labor is making it difficult to compete. There are different areas in small organization, in particular, that are affected by environmental scanning process. The affected operational areas include sales; engineering; production; shipping; billing; financial; customer service, new product development etc. management is sometimes hesitant in moving towards a superior facility due to the up to date employee categorizing and growth efforts and enhances the interest rates. As such lodging and development requirement needs to be done for current capability to control the development and remain competitive. (Taylor, R.S. (1991) Environmental Scanning Program from Analysis of External and Industrial Environment The model of environmental scanning program developed and employed by the researchers result in affecting the operational activities of the organization. Environmental scanning program is in fact a methodical effort for acquiring information about outside world will impact on organization. Scanning is significant in organizing alterations and keeping away from costly mistakes. (Auster, E. Choo. W. 1992) Collection of internal external data base by organizations is done through a variety of methods. Reader surveys; focus groups; member surveys; literature reviews; and conferences with specialists from internal and external environment. Environmental scanning leads a firm beyond collecting information, it in fact is a method to obtain information and transform it into knowledge usable in strategic planning. The scanning paradigm has four aspects: Macro environment is a larger opening that is common in different organizations. Scanning of environment observes elements like population and communal trends, and trends in industrial environment that affect professions. The immediate functional environment of an organization exploring internal tendency of trends and concerns. The different internal basis of continuous data gathering depicts trends that reciprocate allusions for planning. Information collected and organized from routine customer service actions, member satisfaction researches, conference registrations, call logs attendee assessments are illustrations of these resources. The organization environment that recognizes the trends prevailing reveals the sharing of similar trends in the industry. This comprises an awareness of developing governance formats, operational practices, technology trends, service to members, competition and different other trends monitored by organizations in the similar industry. Operation of organization in an environment requires the understanding of demographics, employment trends, workplaces and other conditions that have an impact on the employees. (Christensen, Clayton M. 1997) Leaders in organizations who are congregating the scanning teams should emphasize on assembling such people that have a direct experience in the professions of members and some people should be included having experience with organization management. In the scanning team some members should possess first-hand knowledge of organization’s operations, financial history. At least one of the members in environmental scanning team should be capable of bringing broad perception of the external environment. In addition to the gathering of information from internal and external sources, the organization should also conduct surveys specially designed to assess the less critical issues in external environment but not ignorable. Information gathered from research and survey of environmental scanning support in rectifying discernments of the trends in the operating environment and to measure the expectations of organization with regard to these trends. (Taylor, R.S. (1991) Survey questions should be designed in such a manner that operating environments can be used to analyze the external and industrial environment for understanding the prevailing trends. (Christensen, Clayton M. 1997) Reaction of Company to Environment in Order to Gain Competitive Advantage Environment scanning is mostly seen as acquiring and using information about incidence and trends that prevails in the external environment of an organization. The knowledge of external environment can assist the management for making plans of the future strategies to be adopted. (Auster and Choo, 1993) Environmental scanning is required to supply information for executives and decision makers to execute decisions intended to create strategic benefits for the organization to be successful in dynamics of environment. The consequence of environmental uncertainty discovers that managers who recognize environmental uncertainty attend more to scanning. Information about customers, suppliers and customers is also significant in environment scanning.( Goshal and Kim, 1986) Information sources used by managers and employees in an organization are mostly personal sources, whereas the online information and company library are less used. A truer image of information searched by a user group may be obtained by analyzing the data base use environment that contains people, elements of problems to be resolved. In case an organization sets a high priority on information about external environment the access to its decision-makers is more available to such options that can support their strategic planning and find resolution to complexities being confronted by the organization. (Taylor, 1991) Now-a-days the adaptability of an organization’s operation to external changes, for instance, stages in the business cycle, governmental policies, technological advances, etc can be enhanced through environmental scanning. If there is a high political instability then there is a dire need of experience present in the management for using information about external environment. (Lester and Waters, 1998) The environmental change if regarded as more strategic and significant than the quantity of scanning should also be larger. The apparent strategic uncertainty is implicated as a variable that can affect the organization’s scanning attitude. Information searching involves both assortment and utilization of resources. Users prefer those specified sources that are regarded to be more approachable instead of those sources that are assumed to be more qualitative. Some researchers are of the belief that the quality of perceived sources is based on importance and dependability of information that is obtained by the source may induce the consumer’s environmental scanning. (Halpern and Nilan, 1988) Reaction of Company to Environment in Order to Reduce Operating Risk Some of the risks faced by the company to environment are theft of equipment either from staff or from public areas. To reduce these kinds of risks present in the external or internal environment the organizations need to insure its assets. Physically locking with cables and recording serial numbers can also be effective to reduce operating risks. There are burglar alarms and marking equipments for encountering the physical and environmental risks present for the company. (Taylor, R.S. (1991) Theft of equipment from premises and external outlets is also present and for reduction in such risks one of the main tools available for the company is to create a general awareness among staff. Password protection is essential for securing the leakage of data. Usage of handy equipments like laptops is only necessary if no other option is available like memory pen or CDR. (Christensen, Clayton M. 1997) In case of fire a comprehensive insurance policy can mitigate the risk. Usage and awareness among employees for the fire alarms and extinguishers should be created generally. It could also reduce the risk present in environment. Equipment like portable mechanical testing is helping in reducing risk of electrical fires. Equipment should not be left on standby also. The risk of flood can be reduced by keeping all equipments in a safe distance from water supplies e.g. pipes. Equipment should also be raised off ground. ‘Flood rescue policy’ is helpful in alleviating risks present in the environment. (Ghosal, S. S.K. Kim. 1986) Power surge risks can be reduced by the usage of equipment known as ‘Uninterruptible Power Supply’ (UPS). Important equipments, in order to ensure safety from Power gush, are protected by servers, switches and routers. Circuit breakers and surge protection n other equipments can be used for diminishing risks. (Taylor, R.S. (1991) Chances are present in case a loss of back up media occurs. The measures adoptable for reducing such risks are to keep the back up data in a fireproof safe. Copies could be placed offsite for ensuring further protection. Multiple back ups should be obtained as back up taken on single tape of DVD is not reliable. Working of check back up must be ensured in order to restore. Reaction of Company to Environment in Order to Create Business Opportunities Environmental scanning is significant tool to sense the complexities of external environment in particular as a good scan can recognize the present trends and determine the future course of action. Scanning of environment is also destined for the identification of critical issues likely to create an impact on the organization. The important aspect of environmental scanning is that it is just a part of a larger and long-term strategic planning process. Many trends that can have an impact on organization are not included in the scanning process because it is up to the decision makers for including the required aspects and neglecting the irrelevant elements. For the creation of business opportunities a company should include best people in the scanning process. These persons may not be an important member of management but capable of participating in the scanning process. (Auster, E. Choo. W. 1992) An organization in order to reap benefits from the environment scanning process must draw a wider picture and synthesize significant and disparate information. The company is then in a better position in a competitive environment confronting the challenges offered by the intensive exigencies of competition. (Taylor, R.S. (1991) There are political and legal changes that can be understood and defied by an environmental scanning process. The up to date information can benefit a company to alter its internal policies to remain compatible with the local regulations and avoid from the hazards of legal irregularities. The data obtained should be transformed into simply apprehended picture for the required alterations in procedures. (Auster, E. Choo. W. 1992) The demographic alterations, the way people think, live and work are recorded and information used to change the organization for remaining compatible with the expectations of customers. Opportunities can be exploited by the organization as economy is being transformed more globally in nature. Environmental scanning programs can benefit organizations to identify the desires and wishes of their employees for better working environment. (Christensen, Clayton M. 1997) References Auster, E. Choo. W. (1992). Managing the flow of technology: technology transfer and the dissemination of technological information within the R & D organization. Cambridge, MA:MIT Press. Christensen, Clayton M. (1997). The innovator's dilemma: when new technologies cause great firms to fail. Boston, MA: Harvard Business School Press. Ghosal, S. S.K. Kim. (1986). Building effective intelligence systems for competitive advantage. Slogan management review, 28(1): 49–58. Halpern, D. Nilan, S. (1988). A step toward shifting the research emphasis in information science from the system to the user: An empirical investigation of source evaluation behavior information seeking and use. In: Borgman, CL. and E. Y. H. Pai. (Eds.) Proceedings of the 51st ASIS Annual Meeting 25. Medford, NJ: Learned Information, Inc.: 169–76. Lester, R. Waters. J (1988). Environmental scanning and Business strategy. London, England: British Library, Research and Development Department. Taylor, R.S. (1991). Information use environments. In: Dervin, B. and M.J. Voigt. (Eds.), Progress in communication science. Norwood, NJ: Ablex Publishing Corp.: pp. 217–54. Read More