Carry out an 'environmental scan' of an organization you know well. The following steps should help:

(a) Using the PEST framework, the results for one of the organizations chosen for Activity 1.8 and the suggestions in Figure 1.3, list those factors you consider could affect the future performance of the organization and/or the way it operates. Concentrate on those factors external to the organization.

(b) Indicate on your list where there are linkages between the various factors. Doing this with a mind map may help.

(c) Star those factors that are critically important to the organization. Consider where they fit in the PEST framework they are from. Are they also linked to the general movement of organizations into value-oriented time?

(d) Finally, list the starred factors and rank them according to the volatility of the external environment. Consider whether this volatility provides an opportunity or a threat to the organization and its future performance.

Through carrying out this process you may have realized how much you know about the organization's environment but also how much you do not know! The outcome of this activity may be, therefore, not only an increased understanding of the environmental forces facing the organization, but also a realization that environmental scanning requires continuous vigilance and collection of information that must then be used creatively to help predict necessary changes within the organization itself.

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. Government legislation . Government ideology International law Universal rights Wars Local regulations Taxation Trades union activities factors Political Socio-cultural Demographic trends (customers and employees) Lifestyle changes factors Skills availability Attitudes to work and employment Attitudes to minority groups Gender issues Willingness and ability to move Concern for the environment Business ethics Competitors Suppliers Currency exchange rates Employment rates . Wage rates . Government economic policies Other countries' economic policies . Figure 1.3 PEST factors and organizational change . . ORGANIZATION Lending policies of financial institutions Changes from public to private ownership . Economic factors Technological factors Information technology/the Internet New production processes . Computerization of processes Changes in transport technology