Process of environmental analysis ppt

Live Chat. The process of environmental analysis consists of the following stages : Environmental Scanning: Scanning means the process of analyzing the environment for identifying the factors which may influence the business.

Its purpose is to identify the emerging trends or early warning signals. Such trends may have evolved over time or may have appeared suddenly. Environmental scanning alerts the organization to potentially significant forces in the external environment so that suitable strategic initiatives may be taken before these forces become critical for the organization, Scanning is basically exploratory in nature. There are so many environmental factors which influence the operation of a business.

All these factors may not be relevant to an enterprise. Therefore, the critical and high priority factors must be identified. Several factors, e.

Environmental Analysis

Environmental Monitoring : At this stage information from the relevant environment is collected. Once the relevant factors in the environmental are identified, adequate data about these factors are gathered so as to ascertain their emerging pattern and trends. Monitoring is a follow up and deeper analysis of relevant environmental forces identified through scanning.

Several technique are used to collect the relevant facts about environmental factors. Company records, publications, spying and verbal talks with the employees, customers, dealers, suppliers and competitors are the main sources of data. Environmental Forecasting : Forecasting is the process of estimating the relevant events of future based on the analysis of their past and present behavior.

It is necessary to anticipate future events before any strategic plans are formulated. Forecasting can focus on future aspects of the environment which affects the organization.

Forecasts are made for economic, social, political and technological elements of environment, Several technique like time series analysis, econometric model, scenario building, Delphi method, etc. Diagnosis Assessment : Environmental factors are assessed in terms of their impact on the organization. Some factors in the environment may entail an opportunity while others may pose a threat to the organization.

The degree of impact may also vary from one factor to another. The four stages given above are intertwined as can be seen form Fig.Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker. Environmental analysis is a strategic tool.

The analysis entails assessing the level of threat or opportunity the factors might present. These evaluations are later translated into the decision-making process. Our market is facing changes every day. Many new things develop over time and the whole scenario can alter in only a few seconds.

process of environmental analysis ppt

There are some factors that are beyond your control. But, you can control a lot of these things. Businesses are greatly influenced by their environment. All the situational factors which determine day to day circumstances impact firms.

So, businesses must constantly analyze the trade environment and the market. There are many strategic analysis tools that a firm can use, but some are more common. Managers and strategy builders use this analysis to find where their market currently. It also helps foresee where the organization will be in the future. Each letter in the acronym signifies a set of factors.

These factors can affect every industry directly or indirectly. Often, managers choose to learn about political, economic, social and technological factors only. In that case, they conduct the PEST analysis. PEST is also an environmental analysis. Some of them gauge additional factors like ethical and demographical factors.

I will discuss the 6 most commonly assessed factors in environmental analysis. Economic factors involve all the determinants of the economy and its state.

What Is an Environmental Analysis for a Business?

These are factors that can conclude the direction in which the economy might move.Business Environmental analysis has three basic objectives, which are as follows:. Business Environment Analysis โ€” Objectives, Process. It is important that one must be aware of the existing environment. Business Environment analysis should provide an understanding of current and potential changes taking place in the micro environment. Micro environment specifies the type of products to be offered, the technology to be adopted and the productive strategies to be used to face the global competition.

Business Environment analysis should provide necessary data for strategic decision-making. Mere collection of data is not adequate. The data so collected must be used for strategic decision-making.

Business Environment analysis should facilitate and foster strategic linking in organizations. The process of Business environment analysis involves many steps, which are as follows:. Collection of necessary information is the first stage in the process of business environment analysis. It involves the observation of various factors prevailing in a particular area also.

If an environment is to be analyzed, written as well as the verbal information from various sources with regard to the elements of environment for that particular business is to be collected first. Scanning and searching is an important technique of business environment analysis. Once the necessary information has been collected, it should be put to scanning.

Besides, the search for other relevant information also continues. This technique gives results as to the hypothesis already established. This helps the analyst to know as to what are the conditions prevailing for a particular business at a time. Spying is also one of the techniques of business environment analysis. When the activities of a particular business are to be analyzed and such information cannot be collected by traditional methods, the technique of spying is resorted to.

This happens especially when business rivalry exists. Mostly, this technique is used to collect competitive information. Scanning provides a picture about the past and the present. However, strategic decision-making requires a future orientation. Forecasting is the scientific guesswork based upon some serious study.

So it helps to know how a business in particular and conditions in society in general are going to take shape. One can analyze a business environment by merely observing it.Business leaders can control aspects of the internal environment that can positively or negatively affect a company's operating and financial results.

However, the greatest challenges to business success may be a consequence of the external environment over which company leaders have little, if any, control.

To address these challenges, business leaders often conduct an environmental analysis and develop policies and processes that adapt company operations and products to this environment. An environmental analysis looks at the industry and the political, economic, technical, cultural and other environments in which the business operates.

The aim is to identify challenges facing the business, and opportunities it could exploit. The external environment consists of a general environment and an operating environment. The general environment consists of the economic, political, cultural, technological, natural, demographic and international environments in which a company operates.

The operating environment consists of a company's suppliers, customers, market intermediaries who link the company to its customers, competitors and the public. Both the general and operating environments provide business opportunities, harbor uncertainties and generate risks to which a business must adapt.

For example, countries with large populations may coincide with a large market size for particular products. However, to offer its products in these markets, a company may be required to contend with a government that erects obstacles to trade in the form of tariffs, product standards and customs procedures.

Successful businesses adapt their internal environment โ€” including human and financial resources, policies, technologies and operations โ€” to the external environment.

The company performs an environmental analysis to identify the potential influence of particular aspects of the general and operating environments on business operations. This analysis identifies the opportunities and threats in a business environment in terms of a company's strengths and weaknesses. For example, a company may consider the impact of operating in a communist country and the threats posed by government-controlled resources.

process of environmental analysis ppt

A company might also consider the opportunities of a government-controlled market in terms of competing products, the implications of well-educated and well-paid consumers to product development and sales and the impact of the location of its primary suppliers in a country in economic crises. An organization relies on strengths to capture opportunities and recognize weaknesses to avoid becoming a victim of environmental threats.

A company performs an environmental analysis to gain an understanding of these strengths, weaknesses, opportunities and threats. An environmental analysis is a three-step process in which a company first identifies environmental factors that affect its business. The company then gathers information about the selected set of environmental factors that are most likely to impact business operations. For example, the company might review government and industry reports and surveys that relay information about trade barriers that companies face in particular countries.

process of environmental analysis ppt

This information serves as input to a forecast of the impact of each environmental factor on the business. For instance, a company might project the volume of products likely to be sold in a country in light of existing poor economic conditions and significant trade barriers.

Environmental Impact Assessment (EIA): Definition, Process and Importance

An environmental analysis reviews current environmental conditions to forecast a future business environment. The static nature of the analysis ensures that unexpected environmental changes cannot be considered in a company's business projections.

In addition, the environmental analysis is but one source of information that's evaluated as a company develops a strategic plan. The benefit of the analysis is also limited by the reliability and timeliness of data used in the analysis. As a result, the analysis does not guarantee business success. Billie Nordmeyer works as a consultant advising small businesses and Fortune companies on performance improvement initiatives, as well as SAP software selection and implementation.

During her career, she has published business and technology-based articles and texts. Nordmeyer holds a Bachelor of Science in accounting, a Master of Arts in international management and a Master of Business Administration in finance.Definitions of EIA 2. Objective of EIA 3. Methodology 4. Process 5. Environmental Impact Assessment is defined as an activity designed to identify the impact on the biogeophysical environment, on man and well-being of legislative proposals, projects, policies, operational procedures and to interpret and communicate information.

The objective of EIA is i to identify, predict and evaluate the economic, environmental and social impact of development activities ii to provide information on the environmental consequences for decision making and iii to promote environmentally sound and sustainable development through the identification of appropriate alternatives and mitigation measures.

EIA is widely accepted as a tool to ensure sustained development with minimum environmental degradation.

External Analysis

In India, the Central Ministry of Environment and Forests issued a Notification on 27th January, making EIA statutory for 29 specified activities falling under sectors such as industries, mining, irrigation, power and transport etc. This Notification was amended on 4th May, and the amended version includes a self-explanatory note detailing the procedure for obtaining environmental clearance, technical information, documents required to be submitted for getting environmental clearance from the Ministry of Environment and Forests.

Description of proposed action construction, operation and shut down phase and selection of alternatives to the proposed action.

Business Environment Analysis | Objectives & Process

Whenever a new development project is planned which is likely to affect environmental quality, it is necessary to carry out EIA. The first step in EIA method is to determine whether the project under consideration follows the jurisdiction of the relevant acts and regulations and if so, whether it is likely to create a significant environmental disruption.

Finally, a political decision is taken. The development project may be i accepted or ii accepted with amendments or iii an alternative proposal is accepted or iv rejected. The decision makers of all parties are responsible for their action and decisions under the assessment process. The assessment process and its outcomes will ensure environmental protection at the least cost to the society.

The assessment process should be able to deal efficiently with any proposal and decision making situation. The information and outputs provided by the assessment process are readily usable in decision making and planning. Complete information in report including non-technical summary, methodologies used, results, interpretation and conclusions.

Review assesses adequacy of issues and facilitate decision making process. It is the Government policy that any industrial project has to obtain EIA clearance from the Ministry of Environment before approval by the planning commission. Top Menu BiologyDiscussion. Top 6 Environmental Acts Enacted in India. This is a question and answer forum for students, teachers and general visitors for exchanging articles, answers and notes. Answer Now and help others.Toggle navigation.

process of environmental analysis ppt

Help Preferences Sign up Log in. View by Category Toggle navigation. Products Sold on our sister site CrystalGraphics. Title: Environmental issues. Latest Highest Rated. Air-related Environmental Problems 2. Water-related Environmental Problems 3. Land-related environmental Problems 4. Other Environmental Problems 5 Air-related Environmental Problems Green House Effect The greenhouse effect is a process by which planetary surface emits thermal radiations that absorbed by atmospheric greenhouse gases, and re-radiated in all directions.

Rise in global temperature. A small increase in global mean temperature up to 2 C, measured against levels would result in net negative market sector impacts in many developing countries and net positive market sector impacts in many developed countries Non-market impact Health impacts, those impacts contributed substantially to the total costs of climate change.

Market sector Agriculture Fishery Other sectors Increased energy costs Coastal and storm damage Reduced food production Increased wild land fire costs Increased public health costs Lost recreation 8 Ozone Depletion Ozone depletion is the reduction of the protective layer of ozone in the Stratosphere by chemicals released on earth.

The main chemicals that are depleting stratospheric ozone layer are chlorofluorocarbons which are used in refrigerators, aerosols, and as cleaners in many industries. The damage is caused when these chemicals release highly reactive forms of chlorine and bromine Ozone depletion cause Skin cancer, Eye damage, Immune system damage, Reduction in phytoplankton, Damage to the DNA in various life-forms.

Disturbing the airways industries. Tourism industry is affected. Increase disease and cancer requires the cost of hospitalization. These gases react with water and oxygen to make carbonic, sulfuric and nitric acids. It is the precipitation of 5. The deposition of acids can Damage forests and soils Causes acidification of water bodies Disturb wildlife Impact on human health Erode of stons, rocks, steel, metals and paints to peel off 11 Economic Impacts Acid rain acidic water less fish less money for fisherman less money to spend and there for effecting the economy.

Acid rain damaged buildingsclaims on insurance less money for insurance company and there for effecting the economy. The economic cost of property damage caused by sulphur dioxide. While the costs of reducing automobile emissions nitrous oxide are higher. On the other hand, Marine acidification refers to the effect of anthropogenic carbon dioxide on the pH of the oceans 13 Economic Impacts Economic loss in commercial fisheries like mollusks, and potentially reduce harvests of economically important predators The catch, net and other equipment could be contaminated by oil containers, paint tins, oil filters and other chemicals.

Large items such as wires and old nets may be collected off the seabed and may damage the nets. If 50 of the Shetland fishing fleet was affected in the same way, which affect the income of local industries. Ongoing increases in property taxes to meet growing need for services.

Increased cost and difficulty of providing public transportation. Loss of agricultural and forestry jobs, and traditional land practices. Reduction of rural character or community sense of place. Sedimentation of waterways. Damage to irrigation infrastructure and pumping equipment.

Contamination of drinking water reserves. Increased frequency of flooding events. Increased dust concentrations. Impact on the aquatic environment.An organizations environment consists of two parts: 1 The macro environmental dimensions i.

The potentially relevant data for scanning. It frequently involves following signals or indicators unearthed during environmental scanning. The purpose of monitoring is to assemble sufficient data to discern whether certain trends and emerging. Thus, as monitoring progresses, the data turn frequently from imprecise to precise. Cont Three outcomes emerge out of monitoring: a A specific description of environmental.

They will also cause for further scanning and monitoring. Strategic decision-making, however, requires a future orientation. Naturally, forecasting is an essential element in environmental analysis. Forecasting is concerned with developing plausible of the direction, scope, and intensity of environmental change. It tries layout the evolutionary path of anticipated change.

For example, how long will it take the new technology to reach the market place? Are current lifestyle trends likely to continue? Unlike scanning and monitoring, forecasting is well focused and is much more deductive and complex activity. This is so because the focus, scope and goals of forecasting are more specific than the earlier two stages of environmental analysis. Unless their outputs are assessed to determine implications for the organizations current and potential strategies, scanning, monitoring and forecasting simply provide nice-to-know information.

Assessment involves identifying and evaluating how and why current projected environmental changes affect or will affect strategic management of the organization. Assessment, therefore, tries to answer questions such as what are the key issues presented by the environment, and what are the implications of such issues for the organization? Learn more about Scribd Membership Home. Read Free For 30 Days.

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