Presentation2

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ENVIRONMENTAL SCANNING AND FREQUENCY OF SCANNING TOWARDS THE STRATEGIC PLANNING EFFECTIVENESS .

MARINE RELATED COMPANIES.MANJUNG DISTRICT, PERAK DARUL RIDZUAN.

Harris bin Yusoff 56280111014

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TABLE OF CONTENTS Chapter 1.0 INTRODUCTION

1.1 Background Of The Research

1.2 Definition Of Term 1.3 Research Problem 1.4 Research Objectives 1.5 Research Questions 1.6 Significance and scopes of research 1.7 Company background 1.8 Limitation of the research

CHAPTER 3.0 METHODOLOGYo 3.1 Hypothesis developmento 3.2 Unit of Analysiso 3.3 Data analysis o 3.4 Respondents o 3.5 Design of Questionnaireo 3.6 Theoretical Frameworko 3.7 Flow chart of activities o 3.8 Financial Implication

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Chapter 1.0 INTRODUCTION

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1.1 BACKGROUND OF THE RESEARCHo Environmental scanning is a component of the

global environmental analysis.o Environmental scanning refers to the macro

environment.o The various sources of information scanned by

management and to determine the frequency from the information obtained to the company strategic planning effectiveness

o The scope of this research will be based on marine related companies at Manjung district in Perak.

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1.2 DEFINITION OF TERMS Planning Planning can be defined as, a detailed scheme,

method, for attaining an objective.( F.R .Plan 1678).

Planning (also called forethought) is the process of thinking about and organizing the activities required to achieve a desired goal.

Planning involves the creation and maintenance of a plan.

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DEFINITION OF TERMS Strategic planning Strategic planning is a disciplined effort to

produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Bryson, 1988.)

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DEFINITION OF TERMS

Strategic planning effectiveness Strategic planning effectiveness scan be defined

as the Scanning provides strategic intelligence useful in determining organizational strategies . (Fahey and Naravanan, 1986).

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DEFINITION OF TERM

Environmental scanning It is “a kind of radar to scan the world systematically

and signal the new, the unexpected, the major and the minor" (Brown, 1985).

There are two types of environmental source. Internal source is the analysis of the organization's

vision, mission, strengths, and weaknesses, external analysis assists decision makers in formulating strategic directions and strategic plans.

External source comes from analysis of organizations scan the environment to identify changing trends and patterns, monitor specific trends and patterns, forecast the future direction of these changes and patterns, and assess their organizational impact.

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DEFINITION OF TERM Frequency of scanning Frequency of scanning can be defined as the

Scanning provides strategic intelligence useful in determining organizational strategies.

The consequences of this activity include fostering an understanding of the effects of change on organizations, aiding in forecasting, and bringing expectations of change to bear on decision-making.

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DEFINITION OF TERMS Marine related companies There are several types in maritime industry there

such a marine construction, marine repairing and marine fabrications. In this research, researcher chooses Ship’s Construction and Repair.

This research will be collected from two group of management that are top management and middle management.

In Manjung district, population for Ship’s Construction and Repair Company is around 50 but the researcher chooses for only 14 companies for the sample.

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1.3 RESEARCH PROBLEM

The research is to determine the extent to which the marine related firms practices environmental scanning.

Besides that, it also helps to analyze whether this environmental scanning leads to the organizational strategic planning effectiveness.

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1.4 RESEARCH OBJECTIVES The objectives that will be gained from this

research are as follows:

i. To analyze which marine related firms conducts environmental scanning.

ii. To examine the extent of utilization of scanned information.

iii. To identify the effect of environmental scanning toward the effectiveness of strategic planning.

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1.5 RESEARCH QUESTIONS

This research will try to answer these following questions:

i. which marine related firms conduct environmental scanning?

ii. How frequent do they use the scanned information for strategic planning?

iii. To what extent does related scanned information is being used to evaluate the effectiveness of strategic planning?

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1.6 SIGNIFICANCE AND SCOPES OF RESEARCH This research is to examine the various sources of

information scanned by management and to determine the frequency from the information obtained to the company strategic planning effectiveness.

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1.7 COMPANY BACKGROUND Our research region at around Manjung district where this

location is well knwon for shipbuilding and shiprepair industries. Manjung is the district's principal urban center while smaller

towns include Lumut town, Sitiawan town, Ayer Tawar, Pantai Remis and Beruas.

• With its strategic location – coastal, its growth are mainly contributed from industrial activities,shipbuilding and ship repair , tourism activities, agroculture, aquaculture and housing development.

• At least 50 marine related companies located at Manjung district especially Shipbuilding and shiprepair sector.

Lumut

Sitiawan

Seri Manjung

Manjung district

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1.8 LIMITATION OF THE RESEARCH

This research is to be carried on practices environment scanning of marine related companies in Manjung District, Perak .

The period of this research is within 12 months and the research is done gradually.

The budget is provided to a student for this research is RM 250.00.

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CHAPTER 2.0LITERATURE REVIEW

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OBJECTIVE OF ENVIRONMENTAL SCANNING

Environmental scanning systems provide early warning about important changes and detect "weak signals" that indicate plans should be amended.

the objective of a scanning system is simply to find early indications of possibly important future developments to gain as much lead time as possible.

(Spies, 1991)

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ENVIRONMENTAL SCANNING FACTORS

Internal environment

SWOT analysis application

StrengthWeaknessOppurtunities Threats

External environment

PEST analysis application

Political EconomicSocial-cultural Technological

( Kazmi ,2008)

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STAGES OF STRATEGIC MANAGEMENT

Strategy formulation • includes

developing a vision and mission,

• identifying an organization’s external opportunities and threats

• determining internal strengths and weaknesses

Strategy evaluation • includes

developing a strategy-supportive culture, creating an effective organizational structure, preparing budgets, developing and utilizing information systems

Strategy implementation • Reviewing external

and internal factors that are the bases for current strategies,

• Measuring performance,

• Taking corrective actions

Source (David ,1999)

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THE COMPONENTS OF EXTERNAL ENVIRONMENT ANALYSIS

Scanning is very important to the organization by identify any environmental changes signals, so that organization can use the information for effective strategic planning.

Components Description

Scanning Identifying the early signal of the environmental changes

and trends

Monitoring Detecting meaning through ongoing observations of the

environmental changes and trends

Forecasting Developing projections of anticipated outcomes based on

monitored changes and trends

Assessing Determining the timing and importance of environmental

changes and trends for firm’s strategies and their

management

(Hitt, 2003)

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CONCEPTUAL FRAMEWORK FOR ENVIRONMENTAL SCANNING

Situational dimensions

Organizational strategies

Information needs

Information use

Information seeking

Managerial traits

Source: Choo, 2001

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THE STRATEGIC PLANNING APPROACH

Environmental Assessment•Assess positioning for the

future

Implementation Planning•Identify actions required

Organizational Direction•Develop high-level

direction

Strategy Formulation•Establish goals and

objectives

Simyar, Lloyd-Jones, and Caro (1988 )

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RELATIONSHIPS BETWEEN KEY EXTERNAL FORCES AND AN ORGANIZATION

Economic forcesSocial,

cultural, demographic,

and environment natural forcesPolitical, legal,

and governmental

forcesTechnological

forcesCompetitive

forces

• Competitors•Suppliers•Distributors•Creditors•Customers•Employees•Communities•Managers•Stockholders•Labor unions•Governments•Trade associations•Special interest groups•Products•Services•Markets•Natural environment

AN ORGANIZATION’SOPPORTUNITIES

ANDTHREATS

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IMPORTANCE OF ENVIRONMENTAL SCANNING The environment is dynamic in nature, therefore

scanning is necessary to keep abreast of change; It reveals the elements or factors that constitute

threats and opportunity to the overall objectives of the organization;

Competitor’s activities can be monitored and appropriate strategies put in place to check market incursion;

It gives necessary inputs to the formulation and implementation of potent marketing strategies.

Oladele (2006)

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CHAPTER 3.0METHODOLOGY

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3.1 HYPOTHESIS DEVELOPMENT A hypothesis can be defined as a logically conjectured

relationship between two or more variable expressed in the form of attestable statement.

Relationships are conjectured on the basis of the network of associates established in theoretical framework formulated for the research.

H1: The higher the frequency of environmental scanning, the higher of effectiveness of the strategic planning of the organization.

H2: The higher of the environmental scanning information, the greater will be the effectiveness of strategic planning will be had.

H3: The more frequent the use of environmental scanning, the more higher the effectiveness of strategic planning. (Sekaran ,2000)

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3.2 UNIT OF ANALYSIS The unit of analysis is individual from three

different levels of management. The levels of management that are included in

this research are from top management, middle management level.

This research covers the company located at Manjung Perak and the sample of research is selected from the marine related companies.

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3.3 DATA ANALYSIS SPSS (Statistical Package for the Social Science) SPSS is a computer program used for survey authoring

and deployment, data mining, text analytics, statistical analysis, and collaboration and deployment.

It is used by market researchers, health researchers, survey companies, government, education researchers, marketing organizations and others.

statistical analysis, data management and data documentation are features of the base software version 16.0

SPSS techniques: Descriptive statistics T tests ANOVA

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3.4 RESPONDENTS Respondents Specifically One who maintains a thesis in reply, and whose province it is to refute objections, or overthrow arguments .(Watts,1913)

Population sampling is the process of taking a subset of subjects that representative of the entire population. The sample must have sufficient size to warrant statistical analysis. (Castillo ,2009)

Sample The representatives selected for a study whose characteristics exemplify the larger group from which they were selected .(Richard M. Jacobs, 2012)

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RESPONDENTS OF COMPANIES

21 companies: Population Companies at marine related companies at

Manjung districts

13 companies: Sample Staff at top

management and middle

management at marine related companies at

Manjung district.

1. Ficantech2. ohor Shipyard And

Engineering 3. Bintang Manjung

Engineering 4. Nautical Engineering 5. Tanjung Serantau6. Ap Marine 7. Samudera Selatan

Engineering 8. SumberSamudra9. JurumanjungSdnBhd10.Ulfah Jaya Enterprise 11.Agenda

EklusifSdnBhd12.Inteltech Resources

SdnBhd13.Bme Logistic SdnBhd

61.9% Sample of population of companies

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RESPONDENT OF STAFFS

189 staffs Population staffs in top and

middle management at marine related

companies 89 staffs sample

Selected Staffs in top and

middle management at marine related

companies

47% Sample of population of staffs

1. Ficantech2. ohor Shipyard And

Engineering 3. Bintang Manjung

Engineering 4. Nautical Engineering 5. Tanjung Serantau6. Ap Marine 7. Samudera Selatan

Engineering 8. SumberSamudra9. JurumanjungSdnBhd10.Ulfah Jaya Enterprise 11.Agenda EklusifSdnBhd12.Inteltech Resources

SdnBhd13.Bme Logistic SdnBhd

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3.5 DESIGN OF QUESTIONNAIRE

• Consist of the general information about respondents.

Section A

• Designed to collect the general information about the company.

Section B

• This section is about independent variables • It includes Frequency scanned and Used

scanned information at the organization.Section C

• This last section is dependent variables• It designed to know the efficiency of the

method of scanning had be done which help their company improvement.

Section D

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DESIGN OF QUESTIONNAIRE Leading Questions Leading questions are questions that force your audience for

a particular type of answer.

Likert Questions Likert questions can help researcher ascertain how strongly

the respondent agrees with a particular statement.

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Dichotomous Questions Dichotomous questions are simple questions

that ask respondents to just answer yes or no.

SECTION A: GENERAL INFORMATION

SECTION B: COMPANY INFORMATION

1. What is your position in the company

a)M.D/G.M/Directorb)Middle Management ( Sales Manager, Marketing Manager, Human Resources Manager, Account Manager)c)Lower Management (Supervisor/Executive)

Leading Questions

6. Does your company have long- range plan (more than 2 years)?

a) Yesb) No

Dichotomous questions

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SECTION C: INFORMATION SCANNING

SECTION D :THE EFFECTIVENESS OF STRATEGIC PLANNING

1. Do you think that information environmental scanning is important in strategic planning?

a)Strongly disagreeb)Disagreec)Neutrald)Agreee)Strongly agree

Likert questions

8) How satisfied are you with the performance of your firm for the last 3 years ?

a) Not satisfied at all b) Not satisfiedc) Somewhat satisfied d) Satisfied e) Very satisfied

Leading questions

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3.6 THEORETICAL FRAMEWORK

The frequency of environmental scanning

1) bringing expectations of change

2) aiding in forecasting

The extent of information been used

1)analysis of the organization's vision

2)formulating strategic directions

The effectiveness of strategic planning

1)Change of organization

2) Systematic decision –making

Dependent variable

Independent variable

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3.7 FLOW CHART OF ACTIVITIES

start

Gather information on research standard and

procedures

Preparation research proposal

Data collection and analysis

Selection method

Result analysis

Conclusion

Completion

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3.8 FINANCIAL IMPLICATION

The amount allocation from the University Kuala Lumpur is allocated for RM250. 00. Thus the details breaks down are as follows: