ENVIRONMENTAL SCANNING PRACTICES DURING PERIODS OF HIGH UNCERTAINTY

Abstract

The research on environmental scanningpractices ofmedium sizedfinance companies in Thailand, during and after the 1997 economic crisis, shows that companies with well-organized and managed environmental scanningprocess have steered through the turbulent environment and have become highly competitive in their posture. As companiesfocus on short and long term horizons and look at a broader set offactors they are able to betterforesee changes in the environment and respond towards these movements more pragmatically. The multi tier environmental scanningprocess inside these organizations helps in identifying opportunitiesfor new products and services. However, companies who base their decisions on imitating competitors are vulnerable to the turbulent changes in the environment and are on the horns ofa dilemma. They have not only to recover their non-performing loans but also need big effort to improve theirproducts and services to face stiffer competition.