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environmental scanning
INDUSTRY ANALYSIS PAPER POINTERS

ENVIRONMENTAL
SCANNING
and
INDUSTRY ANALYSIS
1

Objectives of the Paper
§ To diagnose the complexity of the external environment § To examine the Opportunities and Threats in the: • Societal Environment – general environment
• Task Environment – groups directly affected by and who directly affect a firm

§ To identify environmental shifts and analyze their impacts on the industry

7/12/11

Conrado T. Montemayor, PhD

Consuelo B. Estepa PhD

Consuelo B. Estepa, PhD

INDUSTRY ANALYSIS PAPER POINTERS

Rationale behind Environmental
Scanning and Industry Analysis
The O & T analysis (from SWOT ) is necessary to determine:
1. If there is a strategic fit between what the environment wants and the firm has to offer, and
2. If there is a strategic fit between what the firm needs and the environment can provide.

7/12/11

Consuelo B. Estepa PhD

2

Framework for Scanning the External Environment
Analysis of Societal Environment
Political-Legal, Economic, Sociocultural, Technological Factors

Market
Analysis
Community
Analysis

Competitor
Analysis
Supplier
Analysis

Interest Group
Analysis

7/12/11

Conrado T. Montemayor, PhD

Selection of
Strategic Factors
• Opportunities
• Threats

Figure 1

Governmental
Analysis

Consuelo B. Estepa PhD

Consuelo B. Estepa, PhD

INDUSTRY ANALYSIS PAPER POINTERS
Your Operating
Environment

Your
Organization’s
External
Environment
Figure 2

Your
Industry

Ecological and natural issues Power or suppliers Current markets Global forces Current competitors Economic indicators Your
Market

Your
Organization

Customers

New competitors Growing or declining

Demographic movements New markets Market size Substitute products Social and cultural shifts

Competitive rivalry Technology trends Political winds 7/12/11

Power of buyers Consuelo B. Estepa
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