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CS3_Manasan.docx

  1. 1. Pamantasan ng Cabuyao Katapatan Subdivision, Banay-banay, Cabuyao, Laguna Graduate School and Continuing Professional Education NERICA BARRIENTOS-MANASAN GS_MBA-01 Dr. Niño J. Viñas Case Study #3 Case Study: “Scanning the Business Environment for Information: A Grounded Theory Approach” by Zita de Conceicao Cordeiro Pereira Correia, 1996 Reference: https://etheses.whiterose.ac.uk/14714/1/245587_Vol1.pdf DIGESTED CASE STUDY Facts of the Study: The study looks at how a sample of Portuguese chemical companies searches for information in their business environment. It was discussed that nineteen companies had been studied and forty senior executives had been interviewed. The multiple case study approach was combined with the grounded theory method of qualitative analysis in the methodology used. The categories, the principal relationships among them, and the contextual factors that shape the categories and relationships are the three main components of the grounded theory proposed in this thesis. A few key relationships between these categories explain variation among companies. The phenomenon under study is environmental scanning, which is the core category to which the other six categories that emerged from the qualitative data analysis were related: perceived environmental change and strategic change, information consciousness and information climate, organizational outwardness, and individual exposure to information. The relationships discovered among these categories aid in understanding how managerial perceptions of environmental change influence strategic change, as well as how internal organizational and individual factors
  2. 2. Pamantasan ng Cabuyao Katapatan Subdivision, Banay-banay, Cabuyao, Laguna Graduate School and Continuing Professional Education influence environmental scanning activity. Internal contextual factors include company history and culture; external contextual factors include the overall economic, social, cultural, and political conditions that characterize modern Portugal and shape those organizations to some extent. Issues: Information seeking is an activity that is undertaken with the goal of identifying and selecting information to satisfy a previously identified information need, the satisfaction of which would allow the individual to solve a problem or make a decision. Rouse and Rouse (1984) reviewed the contributions of disciplines such as psychology, library science, management, computer science, and systems engineering to the body of knowledge on human information seeking, and defined information seeking as "the process of identifying and selecting among alternative information sources." This study uncovered three major issues concerning the problematic of environmental scanning in Portuguese chemical companies: 1) The scanning focus and scanning mode used by managers are insufficient to deal with the significant discontinuities they perceive in their business environment; 2) The integration of environmental information with internally-generated information is only achieved at the top level, through senior managers' ability to relate and integrate disparate data; and 3) However, the fact that the three "best" companies have developed distinct information cultures suggests that there is no "best" culture: different cultures may be required for different contexts. Resolutions: External factors perceived to be causing environmental change were classified into two broad categories: the regulatory framework and the business structure. The regulatory changes were linked to joining the EC and government intervention, whereas the business changes were linked to the trend of concentration in the chemical industry, the entry of new competitors and products, and the client industry crisis. Changes in the regulatory framework include new rules and procedures to follow, such as regulations concerning the registration of drugs, the adoption of the patent regime
  3. 3. Pamantasan ng Cabuyao Katapatan Subdivision, Banay-banay, Cabuyao, Laguna Graduate School and Continuing Professional Education in force in Europe and the demand for higher standards regarding product quality; the progressive elimination of customs tariffs and its consequences upon the fragile competitiveness of the national companies were identified as major concerns, and fear was manifested that technical barriers would replace customs barriers. Government intervention in market regulation was deemed excessive, particularly in the health sector, where the production of new medicines, as well as the setting of drug prices, is subject to government approval; the banking system's policy of high interest rates was identified as another negative form of government intervention, as most banks were nationalized at the time the fieldwork was conducted and high interest rates were in effect. Changes in business structure included acquisitions and mergers, as well as the disappearance of smaller companies that succumbed to competition, as a result of the concentration trend that prevails in the chemical industries as a whole, with special emphasis on the pharmaceutical and cosmetics sub-sectors, as well as the resin derived products and synthetic fiber products segments. The crisis in some client industries, such as the shoe and textile industries, was a significant source of instability. Cultural factors were cited to explain the Portuguese entrepreneurs' reluctance to form strategic alliances. The assessment of environmental attributes revealed that the environment had become extremely hostile and complex, despite the fact that turbulence was thought to remain relatively low. The comparison of environmental change results obtained through the assessment of task environment attributes and the analysis of perceptions of change occurring in the general and task environments revealed compatible results.

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