Scanning The Environment

I wrote an exam on strategic planning yesterday.Please don't ask me for the results.One interesting concept that came up as i was preparing,was that of the importance of scanning the environment of operation.Many managers will at times think that the events external to the organisation or core operation will not have an impact.If on the other hand they are thought to have an impact,the extent or magnitude is not comprehended.The key question is how can the environment be scanned and who is responsible for doing so?

Hold on for your biggest shock.How many organisations in Africa have you come across that have employed a person dedicated full time to scanning the environment?An employee who looks out for the age old tried and tested PEST events.(Political,Environmental Social Technological changes).I have not as yet.I don't even know what they would be called.A business analyst perhaps,that i have come across,albeit,only a hand full.The lack of scanning the environment results in events that are obvious to everyone not being analysed to check for their impact on the business.

Let me take a simple case in point.America is managing its economy out of recession a range of monetary policies are being applied.Keeping interest rates low and keeping the almighty united states dollar not so strong in order to boost exports.Early in the week Mr. Obama and the Republican leaders agreed to extend the Bush tax cuts for the middle class and the wealthy this has raised prospects for economic growth for the following year and has resulted in a rush for ten year US bonds and that has resulted in the US dollar moving to a high of 1.32 against the Euro.This most likely means a gain also against other currencies not in the G10 such as my home country's Zambian Kwacha or others such as the Tanzanian Shilling and the Botswana Pula.This will of course be to various magnitudes depending on the fundamentals in each country.

The key question to ask is,what aspect of my operation is affected by the movements of the USD?The first for most will be fuel.Those who export will be more competitive prices internationally due to weaker local currencies,well for those that import their inputs, the impact will be directly higher costs.A realization of the change coming will help you take positions by for example reducing overtime to manage the cost of goods produced in the wake of a clear increase in raw material costs.In short we should move away from just getting hit by "stuff" to knowing whats coming towards us and taking immediate positions, "duck."

My point is simple. Scan the environment.