Business plan environmental scanning in business

Jennifer Garrett Here are some recommended resources for starting your research, organized around the types of considerations involved in creating a business plan.

Business plan environmental scanning in business

Micro-environment[ edit ] Company aspect of micro-environment refers to the internal environment of the company. This includes all Departmentalization departments such as management, finance, research and development, purchasing, Business operations and accounting.

Each of these departments influences marketing decisions.

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For example, research and development have input as to the features a product can perform and accounting approves the financial side of marketing plans and budget in customer dissatisfaction. Marketing managers must watch supply availability and other trends dealing with suppliers to ensure that product will be delivered to customers in the time frame required in order to maintain a strong customer relationship.

These are the people that help the company promote, sell, and distribute its products to final buyers. They match the distribution to the customers and include places such as Wal-Mart, Target, and Best Buy. Marketing services agencies are companies that offer services such as conducting marketing research, advertising, and consulting.

Financial intermediaries are institutions such as banks, credit companies and Insurance companies. There are different types of customer markets including consumer markets, business markets, government markets, Globalization international markets, and reseller markets.

What Is An Environmental Scan?

The consumer market is made up of individuals business plan environmental scanning in business buy goods and services for their own personal use or use in their household. Business markets include those that buy goods and services for use in producing their own products to sell.

This is different from the reseller market which includes businesses that purchase goods to resell as is for a profit. These are the same companies mentioned as market intermediaries. The government market consists of government agencies that buy goods to produce public services or transfer goods to others who need them.

International markets include buyers in other countries and includes customers from the previous categories. To remain competitive a company must consider who their biggest competitors are while considering its own size and position in the industry.

business plan environmental scanning in business

The company should develop a strategic advantage over their competitors. Citizen-action publics include environmental groups and minority groups and can question the actions of a company and put them in the public spotlight.

Macro-environment[ edit ] The macro-environment refers to all forces that are part of the larger society and affect the micro-environment.

business plan environmental scanning in business

It includes concepts such as demography, economy, natural forces, technology, politics, and culture. The purpose of analyzing the macro marketing environment is to understand the environment better and to adapt to the social environment and change through the marketing effort of the enterprise to achieve the goal of the enterprise marketing.

Demography refers to studying human populations in terms of size, density, location, age, gender, race, and occupation. An example of demography is classifying groups of people according to the year they were born.

These classifications can be referred to as baby boomerswho are born between andgeneration Xwho are born between andand generation Ywho are born between and Each classification has different characteristics and causes they find important.

This can be beneficial to a marketer as they can decide who their product would benefit most and tailor their marketing plan to attract that segment. Demography covers many aspects that are important to marketers including family dynamics, geographic shifts, workforce changes, and levels of diversity in any given area.

Another aspect of the macro-environment is the economic environment. This refers to the purchasing power of potential customers and the ways in which people spend their money. Within this area are two different economies, subsistence and industrialized. Subsistence economies are based more in agriculture and consume their own industrial output.

Industrial economies have markets that are diverse and carry many different types of goods. Each is important to the marketer because each has a highly different spending pattern as well as different distribution of wealth.

The natural environment is another important factor of the macro-environment. This includes the natural resources that a company uses as inputs that affects their marketing activities. The concern in this area is the increased pollution, shortages of raw materials and increased governmental intervention.

The last concern, government intervention can make it increasingly harder for a company to fulfill their goals as requirements get more stringent. The technological environment is perhaps one of the fastest changing factors in the macro-environment.

This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. As these markets develop it can create new markets and new uses for products.

It also requires a company to stay ahead of others and update their own technology as it becomes outdated. They must stay informed of trends so they can be part of the next big thing, rather than becoming outdated and suffering the consequences financially.

In order to understand the different spending patterns, marketers need to also take into consideration about the development of digital technology and its effect on market growth and employment.Strategic Business Planning for Commercial Producers Business Environment Purdue University is an equal opportunity/equal access institution.

Strategic Planning: External Environmental Scanning Craig Dobbins In conducting an environmental scan, the farm business manager is asked to review, evaluate, and disseminate information from the. Learn the role and environmental scan plays in the strategic planning process.

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You plan to take an alternate route that will keep. Creating a Marketing Plan Environmental Scan Search this Guide Search.

Creating a Marketing Plan An environmental scan includes an industry analysis where you will discuss the external environmental factors that have, or could have, an impact on business operations. Competitive Environment: What to . These types of environmental scanning are not necessarily done to address a specific need or crisis, but rather are done to keep up with what is on the horizon for your business environment at large.

Although continuous scanning has the ability to keep you current and provide a steady stream of new ideas, it requires a constant dedication of. Environmental Scan Template Environmental scanning can be defined as ‘the study and interpretation of the political, economic, social and technological events and trends which influence a business, an industry or even a total market’.

The factors which need to be considered for environmental scanning are events, trends, issues and expectations of the different interest groups. Definition of environmental scanning: Careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its .

Market environment - Wikipedia