1. ENVIRONMENTAL SCANNING

2. BASIC ELEMENTS OF STRATEGIC MANAGEMENT PROCESS Environmental Scanning Evaluation & Control Strategy implementation Strategy Formulation

3. Environmental Scanning The factors that are important to the corporation’s future are referred to as strategic factors and are summarized with acronym S.W.O.T. Strength WeaknessesOpportunities Threats

4. Environmental Scanning Environmental Scanning includes : 1.External Analysis 2.Internal Analysis. External Analysis It consists of variables that are outside the organization and not typically within the short run control of the management. The external environment has two parts: a.Task Environment. b.Societal Environment.

5. TASK ENVIRONMENT Elements or groups that directly effect or are effected by an organization's major operations Elements or groups that directly effect or are effected by an organization's major operations Shareholders Governments Suppliers Local Communities Competitors Customers Creditors

6. SOCIETAL ENVIRONMENT It includes more general forces those who do not directly touch the short run activities of the organization but that can, and often do influence its long run decisions: Economic Socio-cultural Technological Political –legal forces.

7. Internal environment Structure Culture Resources Task Environment Suppliers Employees/ Labor Unions Competitors Trade Associations Communities Creditors Customers Governments Shareholders Economic Forces Technological forces Socio-cultural forces Political – legal forces

8. INTERNAL ANALYSIS The internal analysis consists of strengths and weaknesses that are within the organization itself but not usually within the STRUCTURECULTURERESOURCES

9. INTERNAL ANALYSIS STRUCTURE – It is the way a corporation is organized in terms of communication, authority and workflow. CULTURE – It is the pattern of beliefs, expectations and values shared. RESOURCES – These are the assets that constitute the raw materials for the organization's production of goods and services.