Essay on Organisational Environment

10968 Words Nov 8th, 2012 44 Pages
2.1 The General Environment

The General Environment

2.2 Scanning, Monitoring, and Forecasting Changes in the Environment

2.3 Scenario Planning

2.4 PEST Analysis

2.5 SWOT Analysis

2.6 The General and the Competitive Environments

Key Work Strategic decision making under conditions of uncertainty

Key Work Strategic inflection points and their impact on strategy

Tools and Techniques Writing a PEST analysis

Tools and Techniques Undertaking scenario planning

Main Reference Schoemaker, P.J.H. (1995). Scenario planning: a tool for strategic thinking. Sloan Management Review, 36(2), 25.

Learning Objectives
After completing this chapter you should be able to: • Define what constitutes the general
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What happens in the general environment is important to an organization. This is because changes that take place in the general environment may point to trends that can substantially impact upon an organization’s competitive environment. These changes, sometimes called discontinuities, fractures, or tipping points, that fundamentally impact on the competitive environment will be considered in this chapter. The tools of analysis an organization can use to discern changes in its general environment will also be considered. This includes scenario planning, which will be assessed as an aid to organizational decision making in uncertain environments. The benefits and limitations of a PEST framework, which includes political, economic, social, and technological factors, will be addressed. A SWOT analysis and its links with scenario planning and PEST analysis will be briefly discussed before being taken up in detail in a later chapter. The aim of the chapter is not simply to apply these techniques but, importantly, to understand their limitations. The chapter ends with a discussion of the links between the general and competitive environment. • Section 2.1 defines the general environment and explains its importance to the competitive environment. • Section 2.2 evaluates the role of scanning and monitoring the general environment to try to discern discontinuities that have the potential to disrupt an organization’s competitive

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