1. Chapter 3 Santiago Ibarreche © S. Ibarreche 2015 1

2.  Kendra S. Albright, “the internal communication process of external information about issues that may influence the organization decision process.” Source: Albright, K. S., 2004 “Environmental Scanning: Radar for Success,” Information Management Journal 38, no. 3: 38–45.  Includes:  Defining Parameters  Analyzing Trends  Understanding what surrounds the organization © S. Ibarreche 2015 2

3.  Its features are the basis for our existence, progress, and success or failure  Examples: The existence of an unsatisfied need, The creation of a new need  Most advantages come from imperfections that exist in the marketplace  Examples: A better way to solve a problem or deal with an issue, a new technology, experience.  It is also important to understand changes in the level of information or knowledge  Example: information about AIDS and HIV © S. Ibarreche 2015 3

4.  “To ascertain the extent, dimensions, quantity, capacity, etc. of specifications by comparison with a standard” or  “ to bring into comparison or competition” (Random House Dictionary,2009 Random house, Inc.: New York) © S. Ibarreche 2015 4

5.  Perception of what is important is filtered through prisms that screen the information and alter its meaning through the biases of the person or persons who read, analyze, and interpret the information  Information: the consequence of analyzing and interpreting data. © S. Ibarreche 2015 5

6.  According to Kendra Albright:  identifying the scanning needs of the organization,  gathering the information,  analyzing it,  communicating the results of the analysis, and  making informed decisions © S. Ibarreche 2015 6

7.  Main biases:  How we interpret  Who interprets  how interpreted data is communicated  How the data communicated is interpreted  Other sources of bias:  Timeliness  Access © S. Ibarreche 2015 7

8.  The main features that we look for in measuring the environment are:  Relevance,  congruence,  timeliness,  accuracy,  access, and  capacity for analysis and interpretation © S. Ibarreche 2015 8

9. 9 Strategies MeasuresActions Strategies are accomplished by actions Actions are motivated by measures Measures should promote the right strategies

10.  Classified by the level of control the Organization has:  External No control or very little control  Internal Control in a way that allows for decisions to be made  Level of Turbulence  Turbulence: defined as the degree of surprise (and the capacity to respond), that change produces ”(Igor H. Ansoff Implanting Strategy (Prentice Hall International, Upper Saddle River, NJ, c1984) © S. Ibarreche 2015 10

11.  According to Strategic management literature:  social environment (also known as the macro, global, or corporate environment),  competitive environment (also known as the business environment), and  functional environment (also known as the task environment, internal environment, or micro environment) © S. Ibarreche 2015 11

12.  Organizations have little or no control over its elements  Main Components:  the economy,  technology,  society (which includes the culture and demography),  government and law, and  Ecology © S. Ibarreche 2015 12

13.  Levels Indicators for:  General Macro Environment  Industry (competitive environment)  Expectations  Trends  Classification for level of Opportunity or Threat © S. Ibarreche 2015 13

14.  “Money, money, money makes the world go around”  Interaction among economic forces  Different economic systems  Sources of information:  Federal Reserve  Central Banks  UN  Commercial sources (Bloomberg, WSJ, etc.)  Industry publications © S. Ibarreche 2015 14

15. © S. Ibarreche 2015 15

16. © S. Ibarreche 2015 16

17. © S. Ibarreche 2015 17

18. © S. Ibarreche 2015 18

19. © S. Ibarreche 2015 19

20. © S. Ibarreche 2015 20

21. © S. Ibarreche 2015 21

22. © S. Ibarreche 2015 22

23. © S. Ibarreche 2015 23

24. © S. Ibarreche 2015 24