STRATEGIC

ENTREPRENEURSHIP

TOPIC 2
DR ANIS AMIRA AB RAHMAN
SYAMSURIANA BINTI SIDEK
FACULTY OF ENTREPRENEURSHIP AND BUSINESS
UNIVERSITI MALAYSIA KELANTAN
anisamira@umk.edu.my

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ENVIRONMENTAL SCANNING
FOR STRATEGIC
ENTREPRENEURSHIP

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Strategic Entrepreneurship and Strategic

Management

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Source : Wheelen, T. L. and

Hunger, J. D. (2000 cited in
Kuratko, D. F. & Hodgetts, R. M.,

NEW PRODUCT AND STRATEGY

Includes:
New product in an established or
new market
Established product in a new market
A new organization
Entrepreneurial strategy
Set of decisions, actions, and
reactions that generate, and exploit,
a new entry over time
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NEW PRODUCT AND IDEAS

Types of ideas that develop based on different
ideas

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Environmental Scanning for

Strategic Entrepreneurship

Source : Hisrich, R. D., Peters, 2009

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Environmental scanning
Environmental scanning is one of the components
of global environmental analysis.
Other components are monitoring, environmental
forecasting and environment assessment
The global environment refers to macro
environment which comprises of industries,
markets, companies, clients and competitors.
Societal Environment, Task Environment and
Internal Environment are the components that
employed in environmental scanning

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External/Societal
Environment
External- refers to factors, forces or situation and
events outsides the organization and the affects of its
performance.
Economic forces, Sociocultural forces, political-legal
forces and technological forces construct the social
environment element.
The economic forces encompasses factors such as
interest rates, inflation, changes in disposable income
and stock market fluctuation.
The technological forces concerned on new systems
or technical knowledge in the business that have the
ability to influence the overall business performance.
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External/Societal
Environment
The sociocultural forces component focusing on
societal and cultural factors such as values,
attitudes, trends, traditions, lifestyles, beliefs,
tastes and patterns of behavior.
The Political-Legal forces are regulatory and
political dispensations of any given national or
state government are determined by the
orientations of its ideology. These political and
legal forces shape the profile of your business
environment. It is important to understand these
forces and their impact on the performance of your
business to navigate these channels successfully.
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Task Environment
(INDUSTRY)

Task environment (industry) analysis exposes that

shareholders,
suppliers,
Employees/labor
unions,
competitors, trade associations, communities, creditors,
customers, special interest group and governments are
ten parties that influencing the company performance.
For instance experts say that by 2050, the number of
companys customer will increase. This increasing of
customer may affect the overall business system in the
organization.
Besides that, government also plays an important role in
targeting the growth of the business. Some of laws and
legislation may affect the productivity of the company
entirely.
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Internal Environment
The Internal environment consist of company
structure, culture and resources.
The conditions, entities, events, and factors within
an organization will influence its activities and
choices, particularly the behavior of the
employees.
Factors that are frequently considered as part of
the
internal
environment
include
the
organization's mission statement, leadership
styles, and its organizational culture.
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References

Aashish Mehra, G. S. (2011). Managing rapid growth : How mid caps can
leap into the billion dollar club .
Kuratko, D. F., & Hodgetts, R. M. (2004). Entrepreneurship: Theory, process,
practice. Mason, Ohio: Thomson/South-Western
Dollinger, M, J. (2008). ENTREPRENEURSHIP: Strategies and Resources
Fourth Edition, Kelley School of Business, Indiana University. MARSH
publications, pp. 33-40.
Drucker, P. F., & Drucker, P. F. (2007).Innovation and entrepreneurship:
Practice and principles. Routledge.
Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2009).Entrepreneurship.
New York: McGraw-Hill Higher Education.
Lieberman, M. B., & Montgomery, D. B. (1988). Firstmover advantages.
Strategic management journal,9(S1), 41-58.
R. Barringer, Duane,(2009).Successfully Launching New Ventures: McGrawHill Higher Education.
Zimmerer, T., Scarborough, N. M., & Wilson, D. (2002).Essentials of
entrepreneurship and small business management(Vol. 2). Upper Saddle
River, NJ: Prentice Hall.
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