environmental scanning group3

8/3/2019 Environmental Scanning Group3

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Environment ScanningEnvironment ScanningWhen does environment scanning fails?

Group 3

20-July-2011


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IntroductionIntroduction

Environmental Scanning systems are useless in the face of Dangerous

Quantum Changes.

Fear is Healthy. Its the opposite of Complacency.

Why the Fear ?

Small Changes are identified very easily and the massive ones are either

missed or ignored.

Importance should be given to :-

Virtue of day-to-day contact with the real world.

Less dependence on Analytical Systems and Strategic Management

Operations.


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I

ntroduction Contd.I

ntroduction Contd.

y Andrew Grove stuck to doggedly stuck to plans of making chips when heknew that the Japanese manufactures were catching up fast.Why ?

y

The Answer Lies in CorporateI

dentity & Strategic Inflection Point.y Environmental Scanning did not help avoid a near disaster.

y Massive Changes are harder to identify than the Smaller ,more expected ones.

AsymmetricAttack :-

y Acting, organizing and thinking differently than opponents in order to one'sown advantages, exploit an opponent's weaknesses, attain the initiative , orgain greater freedom of action.

y Eg: Intel Outsourced functions to Japanese chip manufacturers who laterequaled Intel's market share in Chip manufacturing.


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CausesCauses Environment Scanning FailureEnvironment Scanning Failure

(i) Assumption of Detachment :- Belief on Strategic management

Group more than the Line managers.

(ii) Assumption of Formalization :- The Belief that thought must be

detached from Action , Strategy from operations, ostensible thinkers

from real doers , and therefore strategists from the object of the

strategists.

(iii) Assumption of Predetermination :- Belief that Strategy-making

process can be specified in advance of making strategy.

Mintzbergs assumptions


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DefenseDefense Strategic Inflection PointStrategic Inflection Point

y Broad and intensive debate

Include the line members along with the managers because they have access to unfiltered information and

have the intuition born out of experience to join the dots. Debates dont have the purpose of reaching

unanimity but to reach to level where each person understands the others viewpoint.

y Focused intelligence

Employees set aside all other issues to concentrate on the most important technical and business problem that

the company is facing .This helps capitalize intuition.

y Barriers within organizations

This is when parts of the organization are not in sync with each other. Thus information is not evenly available

to the employees thereby making it hard to complete the jigsaw puzzle.

y Conceptual ability

Synthesis is essential but to react to it is even more essential. The organization must be able to conceptualize its

observations and take the needful steps.

y Agility

Making modularity a central criteria which means acquiring people and systems that will plug in and play to

specific tasks.

y Do not procrastinate

React as soon as possible. Do not delay your plan of action.

y The right mixture of knowledge and creativity

Essential to create a plausible set of scenarios that could emerge in the near future.

environmental scanning group3

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