PUBLIC POLICY

WORKSHOP
ENVIRONMENTAL SCANNING ( ENVIRONMENTAL & LEGAL)
RONALD A. OGANIA

 Environmental scanning is the

acquisition and use of information about
events, trends, and relationships in an
organization's external environment, the
knowledge of which would assist
management in planning the organization's
future course of action. Depending on the
organization's beliefs about environmental
analyzability and the extent that it intrudes
into the environment to understand it,
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Four modes of scanning may be

differentiated:

Undirected viewing,
Conditioned viewing,
Enacting, and
Searching.
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 We analyzed each mode of scanning by

examining its characteristic information
needs, information seeking, and
information use behaviors. In addition,
we analyze organizational learning
processes by considering the sense
making, knowledge creating and
decision making processes at work in
each mode.
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Undirected viewing
Undirected viewing takes place when the organization perceives the environment to
be un-analyzable and so does not intrude into the environment to understand it.
Information needs are ill-defined and fuzzy, and much of the information obtained
is non-routine or informal, usually gained through chance encounters. Since the
environment is assumed to be un-analyzable, the organization is satisfied with
limited, soft information and does not seek comprehensive, hard data.
The advantage of undirected viewing is that the organization need not expend
resources on formalized scanning, but this saving incurs the risk of the organization
being surprised or caught off-guard.
During undirected viewing, sense making is characterized by informal bracketing.
Bracketing of external signals is informal in that what the organization a notice
depends on what subjective cues observers happen to be attending to at the time.
Overall, the modus of learning in undirected viewing is one of stimulus-andresponse: the organization maintains its status quo until a strong stimulus is
recognized and necessitates a response.
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Conditioned viewing
Conditioned viewing, occurs when the organization perceives the
environment to be analyzable but is passive about gathering
information and influencing the environment. Information needs focus
on a small number of relatively well-defined issues or areas of concern.
During Conditioned Viewing, sense making is belief-driven, and there
are fewer cycles of equivocality reduction. Over time, the organization
(or the industry it is in) has developed a set of assumptions and beliefs
about the environment and uses them to define a number of areas of
particular interest to structure or 'condition' the scanning activity.
Overall, the modus of learning in conditioned viewing is for the
organization to use its existing knowledge about what is important in
the environment to focus its scanning and action taking.
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 Enacting
Enacting takes place when the organization perceives the
environment to be un-analyzable but then proceeds to
intrude actively into the environment in order to influence
events and outcomes. Information needs are those
required for experimentation and testing the environment.
During enacting, sense making is action-driven. The
organization intrudes actively into the environment to
construct new features and to then concentrate sense
making on these features.
Overall, the modus of learning in enacting is for the
organization to learn by doing by trying out new actions
in order to reveal new goals and methods.
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Searching
Searching (labeled as Discovery in the original Daft and Weick paper)
takes place when the organization perceives the environment to be
analyzable and it actively intrudes into the environment to collect an
accurate set of facts about the environment. Information needs are based
on well-defined search goals that are broad, detailed, and open-ended.
During searching, sense making is based on formal, systematic scanning
that is aimed at determining the objective facts of what is happening in
the external environment. This systematic scanning can be both actiondriven and belief-driven.
Overall, the modus of learning in searching is for the organization to invest
resources in collecting information about and analyzing the environment,
and then to adjust its actions in the light of this new knowledge.
The main difference between searching and conditioned viewing is that
searching requires significant resources for entering the environment to
create new features and/or to collect information.
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 A PESTEL analysis is a framework or tool used by

marketers to analyses and monitors the macroenvironmental (external marketing environment)
factors that have an impact on an organization. The
result of which is used to identify threats and
weaknesses which is used in aSWOT analysis.

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Environmental Factors
These factors have only really come to the forefront in the
last fifteen years or so. They have become important due to
the increasing scarcity of raw materials, pollution targets,
doing business as an ethical and sustainable company,
carbon footprint targets set by governments (this is a good
example were one factor could be classes as political and
environmental at the same time). These are just some of the
issues marketers are facing within this factor. More and more
consumers are demanding that the products they buy are
sourced ethically and if possible from a sustainable source.

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 Both consumers and governments penalize firms for having adverse

effect on the environment. Governments levy huge fines upon
companies for polluting. Companies are also rewarded for having
positive impact on the environment. The consumers are willing to
switch brands if they find a business is ignoring its environmental
duties. Impact on the environment is a rising concern.
Few common environmental factors are:
Competitive advantage
Waste disposal laws
Energy consumption
Pollution monitoring
Environmental protection laws

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Legal Factors
Legal factors include - health and safety, equal
opportunities, advertising standards, consumer
rights and laws, product labelling and product
safety. It is clear that companies need to know
what is and what is not legal in order to trade
successfully. If an organisation trades globally this
becomes a very tricky area to get right as each
country has its own set of rules and regulations.
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This step involves learning about the laws and regulations in your region. It is
critical for avoiding unnecessary legal costs.

This is the last factor in PESTEL. These factors overview the legal elements. Often,
start-ups link these elements to the political framework. Many legal issues can
affect a company that does not act responsibly. This step helps to avoid legal
pitfalls. You should always remain within the confines of established regulations.

Common legal factors that companies focus on include:

Employment law & regulations
Health and safety regulations
Product safety
Advertising regulation
Product labeling
Competitive regulations
Patent infringements

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Presentation Agenda

Introduction
PEST Analysis
PESTLE Analysis
Dimensions of the model
Aim of the analysis
Apple Inc PESTLE Analysis
Conclusion
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Introduction

Apple was founded bySteve Jobs,Steve Wozniak, andRonald Wayneon

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PEST Analysis

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PESTLE Analysis

PEST

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Dimensions of the model

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Aim of the Analysis

Exploit
Find
Identify
outthe
the
thechanges
external
current external
(opportunities)
factors that
factors
may
or
affecting
change
defend in
against
anthe
organization.
future.
them
(threats) better than competitors would do.

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Apple Inc PESTLE Analysis

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Political Factors

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Economic Factors

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Social Factors

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Technological Factors

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Legal Factors

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Environmental Factors

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Conclusion

PESTLE Analysis is one of the most comprehensive models to study the effe

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