CHAPTER 3 Flashcards
Systematic monitoring of trends affecting the organization.
ENVIRONMENTAL SCANNING
4 stages of external environment:
- SCANNING
- MONITORING
- FORECASTING
- ASSESSING
4 sources of information:
- PUBLICATIONS
- PROFESSIONAL ASSOCIATIONS
- CONFERENCES AND SEMINARS
- PROFESSIONAL CONSULTANTS
Also called “business intelligence”, is a formal approach to obtain information about your competitors.
COMPETITIVE INTELLIGENCE
4 criteria suggested for identifying significant trends:
- ARE THERE RIPPLE EFFECTS?
- HOW PROFOUND ARE THE IMPACTS?
- HOW LARGE IS THE IMPACT SCOPE?
- WILL THE CHANGES ENDURE OVER TIME?
7 environmental factors:
- ECONOMIC CLIMATE
- GLOBALIZATION
- POLITICAL AND LEGISLATIVE FACTORS
- TECHNOLOGICAL FACTORS
- DEMOGRAPHIC FACTORS
- SOCIAL AND CULTURAL FACTORS
- STAKEHOLDERS
The process by which inputs from an organization’s environment are transformed into outputs.
TECHNOLOGY
The study of population statistics.
DEMOGRAPHICS
Exceeds the demand for them in middle management and senior ranks.
BABY BOOMERS
Created a bottleneck in the organization. There are few and most are very well educated and trained, so can command significant incomes.
BABY BUSTERS
Have lived with technology all their lives. They have fewer expectations of organizations and perceive themselves as independent agents.
GEN X
Value family connections, have an ability to multi-task and use social media instead of face-to-face interactions, and can manage both simultaneously.
GEN Z
3 main social and cultural factors in environmental scanning:
- RIGHT TO PRIVACY
- WORK-LIFE BALANCE
- CONTINGENT WORKERS
Groups of people who have vested interests in an organization’s decisions.
STAKEHOLDERS
This group develops the vision, mission, strategy, and objectives for the organization.
BOARD OF DIRECTORS AND SENIOR EXECUTIVES
