CHAPTER:-1 INTRODUCTIONEnvironmental scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats. An organization gathers information about the external world, its competitors and itself. The company should then respond to the information gathered by changing its strategies and plans when the need arises.The environmental scanning process encompasses several steps. The first step is for an employer to gather information about the world in which it operates, including information about the economy, government, laws and demographic factors such as population size and distribution.Next, the organization should focus on its competitors. The company should examine the research for trends, opportunities and threats that might impact its business.The next step is to conduct an internal scan of the organization. Examine the companys strengths and weaknesses. Consider where the company is now and where it plans to be in five or 10 years. Interview or survey leaders of the companySometimes an organization also might decide to gather information from community service and religious groups and interview the leaders of the groups or use surveys. This might help a company decide, for example, whether it should try to work with the other organizations and what activities to pursue. The company then might decide to plan joint activities that will meet the needs of both groups or to encourage employees to get involved in community activities, such as building a house for Habitat for Humanity or serving food to the homeless at the local shelter.When conducting an environmental scan, a variety of methods should be used to collect data, including publications, focus groups, leaders inside and outside the organization, media, civic associations and the library. After the data is collected, the final step is to analyze the data and identify changes that can be made.Environmental analysis will help the firm to understand what is happening both inside and outside the organization and to increase the probability that the organisational strategies developed will appropriately reflect the organizational environment.Environmental scanning is necessary because there are rapid changes taking place in the environment that has a great impact on the working of the business firm. Analysis of business environment helps to identify strength weakness, opportunities and threats. SWOT analysis is necessary for the survival and growth of every business enterprise.

Environmental scanning is the acquisition and use of information about events, trends, and relationships in an organization's external environment. It is used to assist management in planning the organization's future course of action. Organizations scan the environment in order to understand the external forces of change so that they may develop effective responses which secure or improve their position in the future, in order to avoid surprises, identify threats and opportunities, gain competitive advantage, and improve long-term and short-term planning.Environmental scanning is a method for determining how others perceive a company's policies and procedures. Environmental scanning includes both looking at information and looking for information. It could range from a casual conversation at the lunch table or a chance observation of an angry customer, to a formal market research program or a scenario planning exercise. It may be conducted once, or on a regular or continuous basisEnvironmental scanning is a data collection practice. It is aimed at collecting information about an environment such as an office or institution that can be used in planning, development, and ongoing monitoring by managers and supervisors. Once data has been collected with scanning it can be processed and analyzed to create a brief to be used in decision making.Some environmental scanning is performed on an ad-hoc basis, as needed. This scanning is done in response to a specific issue or concern such as the need to plan for a new product launch. Regular scanning is conducted on a regular basis; an example might be an annual review of a working environment conducted with surveys, observation, and other study methods. In continuous scanning, an environment is constantly being scanned and analyzed. While a continuous process is time consuming and costly, it allows for rapid adaptations to changing situations.One reason to use environmental scanning is in preparation for a major change such as a new facility, a big shift in policy, or a product launch. Scanning and gathering data before entering the planning stage is a useful tool to help identify weaknesses, opportunities, threats, and strengths. These can be built upon in the planning stage to create a strong and effective plan to address issues identified during environmental scanning. Failure to collect information before starting plans can result in costly mistakes and missed opportunities.Any organization should constantly perform an environmental scanning to detect emerging trends and create a set of scenarios (Robbins and DeCenzo. 2008. Fundamentals of Management). Today`s organizations might use a large of number of resources to conduct effectiveenvironmental scanning. A fast and recognized way of doing that iscompetitive intelligence, which states that most of the competitors related information is available through public sources of information. Hardcopy and online publications are available, also reports from government agencies and industry associations. Also, advertisement in newspapers, radio, television, and social networking. There are also a large number of companies that help you to search for specific sets of records you can use to scan your environment.Once the organization has gathered enough information to understand the environment where it is embedded in, the next step is to identify internal and external factors that impact the organization. This can be done through a strengths, weaknesses, opportunities, and threats (SWOT) analysis. Strengths and weaknesses are considered external factors.Strengthsare internal resources or things that the company does well and they might represent unique skills or actions that can be used to develop the organizationscompetitive advantage. On the other hand, weaknesses is the lack of certain resources or the identification of activities or things that the firm or organization does not do well. For the organization is very important to truly understand what these internal factors are and how these factors affect the organization.Looking outside the organization, the organization should be able to identifyopportunitiesthat can exploit to achieve competitiveness and at the same time it is necessary to identifythreatsthat the organization might face. There are important dynamics that happen outside of the organization such as changing demographics, regulatory policy, availability of financing, new competitors, substituted products, etc. that can affect the company in a negative or positive way. In any case, the organization should be able to develop a SWOT analysis from the environmental scan and also from internal sources of information. Based on the SWOT analysis the organization should be able to re-evaluates its mission and vision statements, and strategic objectives.

CHAPTER:-2NEEDS AND IMPORTANCEThe need and importance of environmental scanning are as follows:Environmental analysis will help the firm to understand what is happening both inside and outside the organization and to increase the probability that the organisational strategies developed will appropriately reflect the organizational environment.Environmental scanning is necessary because there are rapid changes taking place in the environment that has a great impact on the working of the business firm. Analysis of business environment helps to identify strength weakness, opportunities and threats. SWOT analysis is necessary for the survival and growth of every business enterprise.The following is the need and importance of environmental scanning:1. Identification of strength:Strength of the business firm means capacity of the firm to gain advantage over its competitors. Analysis of internal business environment helps to identify strength of the firm. After identifying the strength, the firm must try to consolidate or maximise its strength by further improvement in its existing plans, policies and resources.2. Identification of weakness:Weakness of the firm means limitations of the firm. Monitoring internal environment helps to identify not only the strength but also the weakness of the firm. A firm may be strong in certain areas but may be weak in some other areas. For further growth and expansion, the weakness should be identified so as to correct them as soon as possible.3. Identification of opportunities:Environmental analyses helps to identify the opportunities in the market. The firm should make every possible effort to grab the opportunities as and when they come.

4. Identification of threat:Business is subject to threat from competitors and various factors. Environmental analyses help them to identify threat from the external environment. Early identification of threat is always beneficial as it helps to diffuse off some threat.5. Optimum use of resources:Proper environmental assessment helps to make optimum utilisation of scare human, natural and capital resources. Systematic analyses of business environment helps the firm to reduce wastage and make optimum use of available resources, without understanding the internal and external environment resources cannot be used in an effective manner.6. Survival and growth:Systematic analyses of business environment help the firm to maximise their strength, minimise the weakness, grab the opportunities and diffuse threats. This enables the firm to survive and grow in the competitive business world.7. To plan long-term business strategy:A business organisation has short term and long-term objectives. Proper analyses of environmental factors help the business firm to frame plans and policies that could help in easy accomplishment of those organisational objectives. Without undertaking environmental scanning, the firm cannot develop a strategy for business success.8. Environmental scanning aids decision-making:Decision-making is a process of selecting the best alternative from among various available alternatives. An environmental analysis is an extremely important tool in understanding and decision making in all situation of the business. Success of the firm depends upon the precise decision making ability. Study of environmental analyses enables the firm to select the best option for the success and growth of the firmCHAPTER:-3 APPROACHES AND TECHNIQUES USED FOR ENVIRONMENTAL SCANNINGThe external environment in which an organization exists consists of a bewildering variety of factors. These factors are events, trends, issues and expectations of different interested groups. Events are important and specific occurrences taking place in different environmental sectors.Trends are the general tendencies or the courses of action along which events take place. Issues are the current concerns that arise in response to events and trends. Expectations are the demands made by interested groups in the light of their concern for issues.By monitoring the environment through environmental scanning, an organization can consider the impact of the different eve trends, issues and expectations on its strategic management process. Similarly any organization-facing environment as a complex the scanning is absolutely essential, and strategists have to deal cautiously with process environmental scanning.The effort has to be to deal with it is such a manner that unnecessary time and effort is not expended, while important facts are not ignored. For this to take place, it is important to devise an approach or a combination of different approaches, to environmental scanning.Approaches to Environmental Scanning:The experts have suggested three approaches, which could be adopted for, sort out information for environmental scanning.1. Systematic Approach:Under this approach, information for environmental scanning is collected systematically. Information related to markets and customers, changes in legislation and regulations that have a direct impact on an organizations activities, government policy statements pertaining the organizations business and industry, etc, could be collected continuous updating such information is necessary not only for strategic management but also for operational activities.2. Ad hoc Approach:Using this approach, an organization may conduct special surveys and studies to deal with specific environmental issues from time to time. Such studies may be conducted, for instance, when organization has to undertake special projects, evaluate existing strategy or devise new strategies. Changes and unforeseen developments may be investigated with regard to their impact on the organization.3. Processed-form Approach(SWOT):For adopting this approach, the organization uses information in a processed form available from different sources both inside and outside the organization. When an organization uses information supplied by government agencies or private institutions, it uses secondary sources of data and the information is available in processed form.Sources of Information:A company can obtain information from different sources, but it should be ensured that the information is correct. The correct source should be tapped for specific information for more accuracy. Information received form secondary sources may sometimes even misguide strategy managers.Hence it is important that information should be verified for correctness before it is processed and decisions are taken based on it.The various sources from where information can be gathered include:1. An internal document viz, files, records, management information system, employees, standards, drawings, charts, etc.2. Trade directories, journals, magazines, newspapers, books, newsletters, government publications, annual reports of companies, case studies, etc.3. Internet, television, radio news etc.4. External agencies like customers, suppliers, inspection agencies, marketing intermediaries, dealers, advertisers, associations, unions, government agencies, share holders, competitors, etc.5. Market research reports, consultants, educational institutions, testing laboratories etc.6. Spying considered as a powerful way of extracting information from other companies.It is found that chronological order of information is also quite important for strategy managers. Usually information received from government agencies is quite complex since processing takes more time. The information received from competitors is quite expensive but it is usually fresh and is quite useful.Techniques Used for Environmental Scanning:The techniques used for environmental scanning may be either very systematic to intuitive. Selection of a technique depends on data required, source of data, timelines of information, relevance, cost of information, quantity, quality and availability of information, etc.Some of the methods widely used can be categorized as follows: Scenario Writing, Simulation, Single Variable Extrapolation, Morphological Analysis, Cross Impact Analysis, Field Force Analysis, Game Theory, etc. The techniques are either statistical or mathematical in nature. However, judgmental and institutive techniques are also widely used.The entire process consists of following steps:1. Major events and trends in environment are studied.2. A cause and effect relationship established with regard to events and trends for long and short term. This is done through brain storming in a group.3. Diagrams showing interrelationships amongst various factors are prepared and an attempt is made to quantify the results.4. The study is reviewed by a group of experts who deliberate on each aspect and on the possible strategies that may be decided.

CHAPTER:-4 FACTORS INFLUENCING ENVIRONMENTAL SCANNINGINDIVIDUAL FACTORSThe individual factors identified as influencing the scanning activity were information consciousness and exposure to information.

Information consciousness means the attitude towards information-related activities, denoting the value attributed to information. This category emerged in the course of the analysis process, as a result of grouping together events, and the concepts describing them, which were judged as pertaining to the same category of events. Those concepts included the personal sense of responsibility for environmental scanning and the communication pattern developed by the individual. All the interviewees agreed about the vital role of information in business. Top managers of large and medium-size companies operating in different sub-sectors described their role, as far as environmental scanning is concerned, as a mix of personal monitoring and dissemination of information among direct collaborators.

Communication among managers was made up of a mix of oral information and written information; the nature of this mix and the reasons that determine the choice of either of the forms of communication was not entirely clarified. However, some interviewees associated the choice of oral communication with the generic scope of the information or its potential for starting action.

Exposure to information means the frequency of opportunities of contact with well- informed people and information-rich contexts. The emergence of this category was based on the analysis of the information networks developed by managers. All the interviewees played a very similar role, since they were all managers, either chief executives or entrepreneurs, or functional directors, mainly marketing and commercial directors. They were therefore in a privileged position concerning the degree of exposure to information.

Exposure to information is strongly influenced by the 'outwardness' of the organization: some organizations provide more opportunities of contact with well-informed people or information-rich contexts. It is also influenced by the role played by the individual within the organization: marketing and commercial directors have a much greater exposure to information than financial or administrative directors. But exposure to information is also influenced by the information climate of the organizations, which differ in the range of conditions of access to and use of information by their staff.

ORGANIZATIONAL FACTORSThe organizational factors identified as influencing the environmental scanning activity were information climate and outwardness.

The information climate means the setting of conditions that determine access to and use of information in an organization. It was assessed through the information infrastructure implemented, i.e., the processes, technologies and people used in information acquisition and handling (collecting, organizing and making information available, and disseminating it). But it was the emergence of evidence relating to the role of organizational culture in shaping the information infrastructure that led to the creation of the construct "information climate".

Organizational culture emerged as an important factor in the analysis of information issues within these organizations. The type of information culture that prevails in the pharmaceutical companies analyzed is a formal information culture, meaning cultures "which exhibit extensive formalization and systematization of information channels",

CHAPTER:-5 SWOT ANALYSISExamining the strengths, weaknesses, opportunities, and threats (SWOT) of a company is an integral part of strategic planning for that company. In many respects, the SWOT analysis is a report card on where the subject company is positioned in the competitive marketplace. Any attempt to identify the direction a company should take in the future must be grounded in an honest understanding of where that company is now.Without assessing each of the key areas of SWOT analysis, no effective strategic plan can be formulated.

Strategic Planning and SWOTThis strategic planning process includes the following five elements:1. Mission and Objectives2. Environmental Scanning3. Strategy Formulation4. Strategy Implementation5. Evaluation and ControlSWOT analysis is part of the environmental scanning step in the strategic planning process.Essentially, the environmental scanning step is broken down into three specific activities:1. A thorough internal analysis of the firms strengths and weaknesses.2. A task environment analysis of the firms industry that looks at entry barriers, suppliers, customers, substitute products, and competitors.3. An external macro environmental analysis that focuses on opportunities and threats.SWOT Analysis: DefinedSWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.A SWOT Analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.1. Strengths:characteristics of the business or team that give it an advantage over others in the industry.2. Weaknesses:are characteristics that place the firm at a disadvantage relative to others.3. Opportunities:external chances to make greater sales or profits in the environment.4. Threats:external elements in the environment that could cause trouble for the business.Identification of SWOTs are essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated. The SWOT Analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.SWOT Analysis BreakdownStrengthsStrengths must focus upon what the firm can do with its internal resources. Any asset that the firm owns could certainly be classified as a strength, but the degree of each assets contribution to the competitive position of the firm may vary greatly. Newer assets such as state-of-the-art production line machinery would provide greater strengths to the firm than older assets such as an aging truck fleet. Not all strengths are physical in nature. A strong brand-name presence, recognized customer service excellence, and/or exclusive access to a strong supply chain network are all examples of nonphysical asset strengths.One type of strength that is often overlooked is well-trained and experienced staff. Good employees can substantially benefit the firm.WeaknessesWeaknesses can include any area in which the company lacks strength. Poor product positioning, deteriorating physical assets, out-of-date production equipment, and poor customer service all are among the weaknesses of the firm. High employee turnover that causes the firm to lose talented people can be a major weakness of the firm. Talent is hard to replace, especially in the innovative environment of today. Sometimes a strength can be a weakness, such as if the firms physical plant is state of the art but saddles the firm with a large amount of debt that limits what the company can invest in to improve earnings.OpportunitiesOpportunities can be subject to interpretation. In general, any changes in the external environment can be an opportunity to the firm. If competitors are weakened by a poor cash-flow position, it is an opportunity for the firm to capture market share. Changes in tax structure, improvements in economic trends, or the passage of favorable laws can all be opportunities of which the firm should take advantage. Market positioning, new technologies, and international trade agreements can provide substantial opportunities as well.ThreatsThreats arise from a lack of opportunities or from the strengths of competitors that may place the firm at an extreme disadvantage. Changes in consumer preferences, new competitor innovations, restrictive regulations, and unfavorable trade barriers are all examples of threats. Loss of favorable distribution networks and the restrictions on the firms cash flows can threaten the firms market position. Changes in the economic climate can also put a substantial strain on the firm.Optimizing After SWOTAfter completing the SWOT analysis, the firm should try to configure its overall position in the marketplace by seeking the best combination of strengths and opportunities that can optimize returns. Not every opportunity can be pursued and every strength is not necessarily an exploitable advantage to the firm. Choices need to be made by the firm to take complete advantage of its position; likewise, the firm should seek to improve its weaknesses and minimize its threats.Internal and External FactorsThe aim of any SWOT Analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the companys unique value chain. SWOT Analysis groups key pieces of information into two main categories:1. Internal Factors Thestrengthsandweaknessesinternal to the organization.2. External Factors Theopportunitiesandthreatspresented by the external environment to the organization.The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organizations objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4Ps(product, price, place, and promotion); as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a quadrant matrix chart.SWOT Analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is actually important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats.It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of individual SWOTs will be revealed by the value of the strategies it generates. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important.SMART Marketing ObjectivesAll businesses need to set objectives for themselves or for the products or services they are launching. What does your company, product or service hope to achieve?Setting objectives are important. It focuses the company on specific aims over a period of time and can motivate staff to meet the objectives set.A simple acronym used to set objectives is called SMART objectives.SMART stands for:1. Specific Objectives should specify what they want to achieve.2. Measurable You should be able to measure whether you are meeting the objectives or not.3. Achievable (Attainable) Are the objectives you set, achievable and attainable?4. Realistic Can you realistically achieve the objectives with the resources you have?5. Time (Traceable) When do you want to achieve the set objectives

CHAPTER : -6 ADVANTAGES & DISADVANTAGES OF SWOT ANALYSISThe small business owner's challenge is to create products and services the customer values and the means to produce and deliver those products and services in ways that are exceptional compared to the competition. To address these challenges, a company must define business objectives and address operational issues based on its current situation and the factors that impact its financial and operational goals. Such decision-making processes are frequently supported by structured brainstorming, which, in turn, can be supported by a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. The advantages of the SWOT methodology, such as its appropriateness to address a variety of business issues, make it a desirable tool to support some brainstorming sessions. However, the tool's disadvantages, such as the subjective analysis of an issue, make it less desirable for others.The SWOT method is not a process in itself, such as strategic planning, opportunity analysis or competitive analysis. Instead it's a tool used to structure a particular brainstorming session. As a result, a problem or process that's addressed using the SWOT tool may itself be thought of in terms of phases or a life cycle. For example, strategic planning is a process consisting of multiple steps or phases. However, the SWOT analysis, like a brainstorming session, is simply a tool that may be used one or more times to gain a collection of ideas regarding a particular issue or problem. For example, a business determines on each occasion, if a brainstorming session is appropriate to address a strategic plan or competitive analysis. If so, the business then decides if it will use the SWOT method or an alternative tool to facilitate the session.Advantage: Problem DomainSWOT analysis can be applied to an organization, organizational unit, individual or team. In addition, the analysis can support a number of project objectives. For example, the SWOT method can be used to evaluate a product or brand, an acquisition or partnership, or the outsourcing of a business function. In addition, SWOT analysis can be beneficial in evaluating a particular supply source, a business process, a product market or the implementation of a particular technology.Advantage: Application NeutralitySWOT analysis is conducted by specifying an objective and conducting a brainstorming session to identify internal and external factors that are favorable and unfavorable to the objective's achievement. This approach remains the same whether the analysis is used to support strategic planning, opportunity analysis, competitive analysis, business development or product development processes.Advantage: Multi-Level AnalysisValuable information about your objective's chances can be gained by viewing each of the four elements of the SWOT analysis -- strengths, weaknesses, opportunities and threats -- independently or in combination. For example, identified threats in the business environment, such as new government regulations regarding a product design or the introduction of competing products, might alert the business owner that a proposed investment in a new manufacturing production line should be more carefully evaluated. In addition, an awareness of a company weakness such as a lack of qualified employees might suggest a need to consider outsourcing particular functions. In turn, opportunities such as the availability of low-interest loans for startups might encourage the entrepreneur to pursue the development of a new product to meet a rising customer demand. In contrast, identified strengths, such as extensive experience in an industry experiencing rapid international growth, might suggest the need to partner with foreign companies.Advantage: Data IntegrationSWOT analysis requires that quantitative and qualitative information from a number of sources be combined. Access to a range of data from multiple sources improves enterprise-level planning and policy-making, enhances decision-making, improves communication and helps to coordinate operations.Advantage: SimplicitySWOT analysis requires neither technical skills nor training. Instead, it can be performed by anyone with knowledge about the business in question and the industry in which it operates. The process involves a facilitated brainstorming session during which the four dimensions of the SWOT analysis are discussed. As a result, individual participants beliefs and judgments are aggregated into collective judgments endorsed by the group as a whole. In this way, the knowledge of each individual becomes the knowledge of the group.Advantage: CostBecause SWOT analysis requires neither technical skills nor training, a company can select a staff member to conduct the analysis rather than hire an external consultant. In addition, SWOT is a somewhat simple method that can be performed in a fairly short time.Disadvantage: No Weighting FactorsSWOT analysis leads to four individual lists of strengths, weaknesses, opportunities and threats. However, the tool provides no mechanism to rank the significance of one factor versus another within any list. As a result, any one factor's true impact on the objective can't be determined.Disadvantage: AmbiguitySWOT analysis creates a one-dimensional model in which each problem attribute is viewed as a strength, weakness, opportunity or threat. As a result, each attribute is seen to have only one influence on the problem being analyzed. However, one factor might be both a strength and a weakness. For example, locating a chain of stores on well-traveled streets that grant easy access to customers might be reflected in increased sales. However, the costs of operating high-visibility facilities can make it difficult to compete on price without a large sales volume.Disadvantage: Subjective AnalysisTo significantly impact company performance, business decisions must be based on reliable, relevant and comparable data. However, SWOT data collection and analysis entail a subjective process that reflects the bias of the individuals who collect the data and participate in the brainstorming session. In addition, the data input to the SWOT analysis can become outdated fairly quickly.

CHAPTER:-7 DIFFERENCE BETWEEN AN ENVIRONMENTAL ANALYSIS & A SWOT ANALYSIS

Companies use several types of analyses as barometers of business health. Some reveal how the company can better utilize cash flow, while others show how the price of inputs may double in the coming months. A SWOT analysis and an environmental analysis are additional tools used by organizations. Though both give businesses insight into potential barriers and shortcomings, these reports differ in subtle ways.

Environmental AnalysisAn environmental analysis surveys the business landscape to determine how external variables will affect its decision-making. Robert Grant, author of the book, Contemporary Strategy Analysis, categorizes environmental influences as either source or proximity. Grant explains that sources include political, economic, social and technological factors; these factors form whats known as a PEST analysis. The business is not always in a position to control these variables; it can only plan for them and make decisions accordingly. Companies use an environmental analysis to prepare for a variety of potential scenarios. For instance, an organization may prepare for a downturn in the economy by drafting several production schedules that are contingent on different levels of consumer demand.

SWOT AnalysisA SWOT analysis reviews the businesss strengths, weaknesses, opportunities and threats. As is the case with an environmental analysis, a SWOT analysis also surveys external circumstances. However, this type of analysis also takes into consideration internal components. Within the strengths and weaknesses section of the SWOT analysis, the company assesses factors unique to the organization. Examples of these components may include the businesss leadership abilities, patents and intellectual property, technology available within the company and the strength of its brand name. The company can control these factors, so it attempts to strengthen its best assets and improve its apparent weaknesses.Benefits of Environmental AnalysisA PEST analysis prepares the business for handling external factors. Robert Chapman, author of the book, Simple Tools and Techniques of Enterprise Risk Management, explains a PEST analysis helps the business be proactive with market trends. Instead of reacting to market forces, Chapman explains a PEST analysis gives the business the tools to prepare for potential risks. For instance, this type of analysis may disclose that government legislation will increase the cost of raw materials by 20 percent. If the business can preempt this as a possibility, it can switch vendors, stock up on raw materials or find cheaper alternatives. Such preparation ultimately saves the company money and in turn gives it a competitive advantage.

Benefits of a SWOT AnalysisA SWOT analysis offers a well-rounded, holistic picture by revealing both internal and external issues. Though the "opportunities" and "threats" sections of the analysis do not differ much from a PEST report, the "strengths" and "weaknesses" components highlight the internal issues of the organization. Carlos Moore advises in his book, Small Business Management, to ask additional questions about how these strengths, weaknesses, opportunities and threats can help the business prepare for future events. This turns the SWOT analysis into an insightful tool that allows the company to capitalize on future possibilities and avoid potential pitfalls.

CHAPTER:-8 CASE STUDYThe three members of the leadership team at a small marketing consulting firm were interested in expanding their offerings to their clients. Currently the firm has 20 employees (including the three members of the leadership team) many of whom are consultants with the balance being administrative and marketing staff.The last time the company had done a SWOT analysis was when they were first starting up in business and were working on their business plan. The SWOT session enabled them to develop their business plan by having them think through their business goals and objectives for viability and feasibility. At the time, the three of them, plus a few members of their Advisory Council participated in the SWOT analysis.The goal of this SWOT session would be to: Determine ways to better position the company in marketplace. Determine new products and services to offer clients to better compete in a crowded marketplace.Preparing for the SWOT sessionThe leadership team wanted to set aside 3 hours for the SWOT session. Given that the business was small, the leadership team felt that everyone should participate. The following decisions were made: All 20 employees would participate in the SWOT session A Friday morning in mid-summer would be set aside for the session (andas a thank you for participating employees would be given the balance of the day off to spend with family and friends) The focus of the SWOT session would be toward determining products and services to offer to clients and that information would be provided to participants beforehand so they can begin to think about it A professional facilitator would be brought in to lead the session since this SWOT exercise was essential to the companys continued growth and successAdditionally, the leadership team was going to provide all participants with a copy of the SWOT analysis done at the very beginning before the business venture began. While it had a different purpose, it would be valuable for the SWOT session participants to view it and, from the leadership perspective, it would be interesting to compare then to now.The SWOT sessionBrainstorming was used during the SWOT session to gather data for the companys strengths, weaknesses, opportunities and threats. The facilitator led the group starting with strengths and working through to threats. An hour was allocated for this task.Each participant spent time writing on sticky notes their thoughts, ideas, opinions, beliefs and known truths regarding the companys strengths, weaknesses, opportunities and threats. When done, all of the information was posted on the walls under the appropriate heading (e.g. Strengths, etc.)Prioritizing the informationThe next hour and a half was spent reviewing the data with an eye toward: Looking for themes/commonalities combining similar sticky notes under themes (e.g., Customer Service) Prioritizing based on: Significant information/data provided by large numbers of participants (e.g, ineffective use of social media was mentioned 15 times!) What could be quick hits for the company to start to effectively compete against the competition Products and service ideas that can be created within a years time frameThe table below is a small sampling of the data gathered during the brainstorming session. This particular data is selected as when they prioritized their efforts these were the areas of focus.STRENGTHSWEAKNESSESOPPORTUNITIESTHREATS

Long-term employees committed to the company Customers love the work done by the company Customer retention is high Well-known brand in the local area Company has made a profit every year in business Client base was growing No blog on the website Ineffective use of social media No global customers The business hasnt expanded in the last few years and seems stagnant. No presence at trade shows or industry events/ conferences No new blood bringing in fresh ideas Client base not growing as quickly as in past Ask current customers to refer business Use social media and blogging to build brand name and gain new customers Expand business nationally Target smaller start-ups who needed strong marketing to get their business off the ground Provide sales support services for clients Offer dashboards for tracking marketing Competition was increasing A number of local competitors were already blogging and utilizing social media Current customers wanted social media consulting and it was difficult to do so when the company doesnt do social media themselves Lots of individuals and other new small businesses popping up who do marketing consulting

Based on the information gathered during the brainstorming sessions and what the participants believed could be accomplished in a one to two year timeframe to have a significant impact on the business, the following was decided to meet the objectives:Objective: Better position the company for success in the marketplaceObjective: New products and services

Develop a blog Assign responsibilities for social media accounts: LinkedIn, Twitter, Facebook Ask current customers to refer business Expand business nationally Develop and offer dashboards for customers to manage marketing initiatives Provide services to start-ups who need a strong marketing initiative Provide social media services and support

Next stepsThe companys next steps were to take the projects they decided to accomplish toward achieving their goals and: Assign responsibility for that project Develop a project plan including a timeframe and budget needs Prioritize the projects further Begin work!

A survey done of all participants after the SWOT session showed that they were excited about the process and the path they had developed to help meet company goals. By getting all employees involved, the leadership team showed that they valued all employees and wanted their contributions to help make the company a success.Once a month the leadership team would meet with each project lead to check on project status.It was decided that on an annual basis employees would participate in SWOT sessions to work on strategy for the upcoming year. As the company grew, employees would have the opportunity to participate on a rotating basis.

CHAPTER:-9 CONCLUSION

Companies that use environmental scanning can move quickly when they identify a problem or an opportunity. This includes everything from a product release by a competitor that might threaten a company's market share to a security issue in an office. The data gathered in environmental scanning can be processed to develop an organized report to provide information to managers and other officers of the company who may be interested. Dispensing the information effectively is an important part of this practice, as data is useless if it never gets into the right hands.Numerous tools can be used for environmental scanning. These include surveying employees to get information about working conditions, considering a workplace within a larger social and economic context, and evaluating company communications to determine what kinds of messages the company sends to the public. A third party may be called in to objectively evaluate or a company may scan internally. Using insiders can sometimes result in getting more information because insiders know where to look, but their bias can also affect the outcome of the scanning.Organizational environment consists of both external and internal factors. Environment must be scanned so as to determine development and forecasts of factors that will influence organizational success.Environmental scanning refers to possession and utilization of information about occasions, patterns, trends, and relationships within an organizations internal and external environment. It helps the managers to decide the future path of the organization. Scanning must identify the threats and opportunities existing in the environment. While strategy formulation, an organization must take advantage of the opportunities and minimize the threats. A threat for one organization may be an opportunity for another.

CHAPTER:-10 BIBLOGRAPHYhttp://www.shrm.org/templatestools/hrqa/pages/cms_021670.aspxhttp://www.yourarticlelibrary.com/environment/approaches-and-techniques-used-for-environmental-scanning/23556/http://smallbusiness.chron.com/advantages-amp-disadvantages-swot-analysis-41398.htmlhttp://smallbusiness.chron.com/difference-between-environmental-analysis-swot-analysis-20684.html

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