08832323.2012.668392
Journal of Education for Business
ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20
Anatomy of a Scan: Digital Market Intelligence and
Economic Literacy in the MBA Curriculum
E. Vincent Carter
To cite this article: E. Vincent Carter (2013) Anatomy of a Scan: Digital Market Intelligence and
Economic Literacy in the MBA Curriculum, Journal of Education for Business, 88:4, 194-201,
DOI: 10.1080/08832323.2012.668392
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Date: 11 January 2016, At: 21:01
JOURNAL OF EDUCATION FOR BUSINESS, 88: 194–201, 2013
C Taylor & Francis Group, LLC
Copyright
ISSN: 0883-2323 print / 1940-3356 online
DOI: 10.1080/08832323.2012.668392
Anatomy of a Scan: Digital Market Intelligence
and Economic Literacy in the MBA Curriculum
E. Vincent Carter
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California State University, Bakersfield, Bakersfield, California, USA
This pilot study examined an innovative rubric designed to overcome the deficiencies of present
environmental scanning frameworks. The Anatomy of a Scan rubric resolves two problems
associated with environmental scanning instruction. First, the need for simpler rubric designs
with familiar formats arises because digital knowledge economy intelligence exceeds the capabilities of existing scanning rubrics, given business education course delivery constraints.
Second, the need for improved economic information literacy arises because knowledge economy dynamics expand the breadth and depth of digital market intelligence. By using economic
market intelligence to anchor environmental scanning, the anatomy rubric improves students’
strategic focus with conceptual advantages and raises economic literacy with empirical application.
Keywords: business education, cognitive rubric, digital intelligence, economic literacy,
environmental scanning, knowledge economy, market intelligence, strategic planning
Business education is adapting to the societal transition toward a knowledge economy. The knowledge economy is
more dynamic and uncertain than traditional markets (Eisenhardt, 1989), due to the span and speed of digital intelligence.
Environmental scanning reduces the uncertainty created by
uncontrollable market dynamics with strategic market intelligence (Albright, 2004; Choo, 2001; M. B. Wood, 2010).
This bridging of external and internal planning factors makes
environmental scanning a business education mainstay
(Stoeffels, 1994).
As a pedagogical technique, environmental scanning requires information literacy to interpret strategic market intelligence. In this study, economic information literacy is the
ability to access, analyze, and apply facts about the knowledge economy environment. The Association to Advance
Collegiate Schools of Business (AASCB) (2003) requires
business education curricula to deliver both information technology and information literacy skills to meet assurance of
learning standards. These information literacy skills for scanning economic intelligence parallel the knowledge types in
Bloom’s taxonomy of educational objectives (Bloom, 1956).
Correspondence should be addressed to E. Vincent Carter, California
State University, Bakersfield, Department of Management & Marketing, 9001 Stockdale Highway, Bakersfield, CA 93311, USA. E-mail:
[email protected]
Cognitive rubrics are indispensable for developing the
critical thinking skills required to perform environmental
scanning. Cognitive rubrics operationalize theoretical concepts into practical competencies that can be learned and
performed by business students. Typically, these cognitive
rubrics are found in learning objectives and instructional materials. This study examines the sufficiency of environmental
scanning rubrics presently used by business educators, and
advances a more suitable design for knowledge economy
intelligence.
LITERATURE REVIEW: LEVERAGING
ECONOMIC INFORMATION LITERACY
Complexity is rising in the knowledge economy because
of expanded digital connections and dynamic interaction among environmental stakeholders. The external environment now spans preknowledge economy boundaries
such as social–strategic planning, macro–micro market,
public–private sector, and financial–intellectual capital. Managing the network enterprise in complex and dynamic environments requires environmental scanning techniques that
are strategically focused and cognitively framed. Simplicity
in the design of scanning rubrics improves strategic focus
by guiding managers toward market intelligence with high
macro pattern relevance and high micro performance results.
ANATOMY OF A SCAN
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As a result, business educators and executives improve environmental scanning skills.
Concurrent with rising complexity, the knowledge economy environment is becoming digitally abstract. Hypertext
programming codes digital content with instructions for accessing deeper layers of data, documents, diagrams, and multimedia displays. Given these deep layers of digitally abstraction, scanning the knowledge economy environment requires
greater familiarity with the market intelligence format (scanning array) and management interpretation findings (strategic
action). Designing scanning rubrics based on familiar models can help business educators mitigate the lack of literacy
regarding market intelligence content.
Information Literacy in Business Education
Information literacy is an academic and practical skill anchored in library science. To be information literate, a person
must be able to recognize when information is needed and
has the ability to locate, evaluate, and use effectively the
needed information. (American Library Association, 1989,
p. 2)
Information literacy has gained greater attention with
the proliferation of digital technology applications in society. Students are required to access, analyze, and apply
electronic knowledge in a proficient manner (American Association of School Librarians, 2007; Dunn, 2002; Eisenberg, 2008). Ironically, information literacy is rarely addressed in the business education literature (Goel & Straight,
2005; Hawkes, 1994; Heinrichs & Lim, 2009; Sterngold &
Hurlbert, 1998). This information literacy neglect is contrary to AACSB (2003) standards for capacities developed
through knowledge and skills of a general master’s level program (Pringle & Michel, 2007).
Economic Literacy for Business Education
Economic literacy, as a specific type of information literacy, pertains to the awareness, access, assessment, and application of knowledge about the economy and its implications. As the foundation for free market enterprise and the
discipline specific academic programs, economic literacy is
vital to business education. But, economic literacy is not
compartmental. Improving economic literacy contributes to
students’ overall business acumen. Economic literacy becomes more strategically reliable and environmentally representative as the digital knowledge economy encompasses
societal dimensions. Strategic intelligence is more reliable
because economic data directly improves market predictions
and management performance. Economic information is also
more representative of environment trends, because knowledge economy market intelligence spans the boundaries of
traditional environment factors. Demographic and sociocultural tendencies are derived from production and purchase
data, while technology trends can be forecast from financial
195
investments in research and development. Bond ratings tell
the markets odds on political policy and legal regulations are
reflected in equity patterns. Even ecological factors can be
discerned from commodity price fluctuations.
Compelling evidence exists for the merits of economic
literacy in business education. Top academic journals and
research centers advance the merits of economic education.
Also, a credible set of economic indicators already exists
(Conference Board, 2012). Recently, the Council for Economic Education (CEE) launched a national campaign for
economic literacy and support for economic literacy reaches
the upper echelon of academia and commerce. The CEE
website and resources demonstrate the growing commitment to furthering economic literacy with interactive activities and educational content tailored to young adult learners (CEE, 2013). Projects have been initiated by leading
universities, businesses, and regional Federal Reserve Bank
presidents—including the national College Fed Challenge
(Dodge, 2011; Federal Reserve Bank of Minneapolis, 1999,
2002; Federal Reserve Bank of Richmond, 2011; National
Council for Economic Education, 2005). The common denominator among these economic literacy approaches is a
view that the economy provides reliable and representative
signals of the societal factors influencing business strategy.
By designing strategic scanning rubrics that access digital
market intelligence, students will be better prepared to analyze these vital economic signals.
PROBLEM: THE BOUNDED RATIONALITY
OF STRATEGIC SCANNING RUBRICS
Taken together, the knowledge economy environment issues
of intelligence complexity and abstraction pose serious challenges for business planning instruction and implementation.
The cognitive and course delivery constraints of business education render conventional environmental scanning methods less suitable for information intensive digital markets.
Appropriately designed cognitive rubrics can reduce knowledge economy complexity with simplified heuristics that focus strategic scanning skills. Similarly, course delivery is
aided by depicting cognitive scanning rubrics with familiar
models that filter abstract market intelligence into intuitive
economic literacy skills.
This problem of cognitive scanning rubrics designed with
insufficient decision support capability for environmental
intelligence conditions mirrors Simon’s (1991) theory of
bounded rationality. That theory shows how management
performance and market opportunity are constrained by
a misfit between cognitive approaches and knowledge
conditions—commonly described as analysis paralysis.
Business strategists describe this environmental scanning
dialectic between external market sensing and internal
management strategy as sense and respond (Bradley &
Nolan, 1998; Haeckel, 1999).
196
E. V. CARTER
For business students, the wider span of accessible external environment facts and the faster speed of digital applications create bounded rationality between conventional
scanning rubrics and the ample market intelligence. Less is
more, when business instruction increases analytical clarity with anatomical economic categories. Simon (1991)
described this type of analytical clarity as rational optimization that comes from realigning bounded rationality. Business educators will benefit from an environmental scanning
rubric that transforms passive situational descriptions into
actionable strategic analysis.
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Assessing Conventional Environmental
Scanning Rubrics
A preliminary assessment of conventional environmental
scanning rubrics helps to clarify the parameters required to
address the knowledge economy environment. An optimal
scanning rubric must mitigate the bounded rationality of business education arrangements to deliver actionable market intelligence. Three cognitive rubrics are typically used to teach
environmental scanning—situation analysis, product–market
matrix, and strengths, weaknesses, opportunities, and threats
(SWOT) analysis.
Situation analysis is a standard business strategy rubric
for scanning the entire set of external environment factors.
Modeled on the scientific method, strategic planning begins
by examining the conditions that influence strategic planning
problems. This first stage appraises the market situation by
scanning six environment factors—economic, demographic,
sociocultural, political-legal, technological, and ecologicalnatural (Kotler & Armstrong, 2011).
Another cognitive rubric for aligning the external market environment with internal management execution is the
Ansoff (1957) product–market matrix for strategic planning.
The matrix juxtaposes strategies for changing external markets with strategies for changing internal products, based
on the competitive environment situation. The resulting four
strategy choices are market penetration (no change), product development (new product), market development (new
market), and differentiation (new product and new market).
One of the most popular cognitive rubrics for environmental scanning is known as SWOT analysis. The goal of
business planning is to find a sustainable fit between internal strengths and weaknesses and external opportunities and
threats. In practice, SWOT analysis is often used to compile
an encyclopedic cache of market intelligence. Less emphasis is placed on critically analyzing SWOT category intelligence to impart strategic problem solving skills (Novicevic,
Harvey, Autry, & Bond, 2004).
Unfortunately, the academic and strategic utility of these
three established rubrics is constrained by a knowledge economy environment that exceeds the boundaries of their cognitive design. The wide scope of situation analysis reduces
strategic focus, resulting in analysis paralysis. Thus, situation analysis is too inclusive as a cognitive rubric to scan for
critical knowledge economy insights. By contrast, the narrowly aimed product/market matrix cannot capture knowledge economy insights that span environmental boundaries.
So, it is too inhibiting for scanning the digital breadth and
depth of the knowledge economy environment. Finally, the
mosaic of SWOT analysis category associations generates
excessive digital market intelligence and makes environmental scanning instruction too intricate for focused strategy
decisions.
HYPOTHESES: DESIGNING AN ECONOMIC
LITERACY SCANNING RUBRIC
A new strategic rubric named the Anatomy of a Scan is
designed to address the inadequate framing of market intelligence access (breadth) and analysis (depth) identified for
three conventional methods. Removing these limitations renders a scanning rubric that achieves strategic focus by cognitively framing economic market intelligence. Consequently,
a logical litmus test would be to evaluate whether the new
rubric improves economic information literacy. While exploratory, these empirical economic literacy findings can offer clues about the anatomy rubric’s suitability for scanning
the digital market intelligence. Accordingly, the empirical
data hypothesis is that the Anatomy of a Scan rubric improves economic literacy skills. A related conceptual design
hypothesis is that the Anatomy of a Scan rubric is a simpler
and more intuitively familiar instructional tool for accessing
and analyzing digital market intelligence.
Anatomy Rubric Scanning Parameters
The Anatomy of a Scan design can be described using the
parameters used to assess conventional rubrics (see Table 1).
The anatomy model resolves three deficiencies of conventional scanning rubrics by increasing the simplicity and familiarity of scanning intelligence for business course instruction. It is not too macro, too micro, or too mosaic.
A need for simplicity arises because digital knowledge
economy networks span the external environment factors,
creating a breadth of market intelligence that reduces the
efficacy of conventional rubrics. Simplicity is addressed at
the macro level by reducing the span of external environment factors to 10 straightforward economic indicators. Still,
economic trends reliably reflect macroenvironment patterns.
Simplicity is also built into micro level execution decisions by
focusing on reliable economic market intelligence that leads
to actionable strategic results. The anatomy rubric helps students analyze the connections between economic mapping
and strategic maneuvering on the business planning chessboard.
The requirement of familiarity stems from the ability to
probe digital content links and access deeper layers of market intelligence abstraction. Although these digital content
properties can be used to enhance strategic scanning acumen,
ANATOMY OF A SCAN
197
TABLE 1
Anatomy of a Scan Environmental Scanning Rubric
The market anatomy: Body of the economy
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Leading economic indicators basket (market organs and functions)
1. The U.S. Department of Labor’s monthly report on the
unemployment rate, average hourly earnings and the average
workweek hours from the Employment Situation report
(employment report).
2. The U.S. Department of Labor’s weekly report on first-time claims
for state unemployment insurance. Initial jobless claims.
3a. The Census Bureau’s monthly consumer goods and materials
report from the Preliminary Report on Manufacturers’ Shipments,
Inventories & Orders (from the factory orders report).
3b. The Quarterly Services Survey,
http://www.census.gov/services/index.html.
4. The Institute for Supply Management’s monthly ISM Index of
Manufacturing including: supplier deliveries, imports, production,
inventories, new orders, new export orders, order backlogs, prices
and employment (Purchasing Managers’ Index).
5. The Census Bureau’s monthly nondefense capital goods report from
the Preliminary Report on Manufacturers’ Shipments, Inventories,
and Orders (from the factory orders report).
6. The Census Bureau’s monthly report on building permits from the
Housing Starts and Building Permits report (from the housing starts
report).
7. The S&P 500 as a good measure of stock equity price accounting
for 500 largest companies in the U.S.
Investment (head)
Supply (side)
Demand (side)
Savings (feet)
x (Income)
x (Income)
x (Property/land)
x (B2C)
x (B2C)
x (B2B)
x (B2B)
x (B2B)
x (B2B)
x (B2B)
x (Equity)
∗∗ Supplemental∗∗
8. The Federal Reserve’s inflation-adjusted measure of the M2 money
supply.
9. The difference (spread) between interest rates of 10-year Treasury
notes and federal funds rate.
10. The University of Michigan Consumer Sentiment Index’s consumer
expectations.
business students may require a familiar rubric format for interpreting market intelligence findings. The anatomy rubric
is designed with a familiar format based on an intuitive understanding of the human body.
Assigning anatomy body parts to forces in the economy
is central to the rubric’s design. The four category anatomy
reduces the rubric’s bounded rationality by making it simpler
to accessed and analyze market intelligence. Market intelligence from ten economic indicators is filtered into four key
market drivers of strategic decisions. This familiar format
should also be more suitable for sifting through abundant
real-time digital market intelligence. Still, familiarity must
be backed up with fact for the anatomy rubric to gain credence among business educators. For that reason, explaining
the human body analogy is crucial.
To begin, the purpose of the economy is to allocate societal resources and raise individual prosperity. Investment,
in the form of capital or another asset, is required to produce, transport, or transform any resource, as well as to pay
individual salaries and financial returns. In that sense, invest-
Commodities
Precious metals
Currency
x (Time deposits).
x
x (Debt/bonds)
x (psychol.)
ment is the head of the economy because it starts resource
movement and steers market direction. All markets reflect
this capitalist principle of an investment led economy.
These investment funds differ from savings, the feet of the
economy. Savings is money, or another asset, put into reserve
and not allocated for financial return. Examples include bank
savings accounts, money market funds, and balance sheet
cash. A familiar quip is investment puts money to work and
savings does not. Similar to feet, savings support the body by
keeping pace while the head is pointing. For the economy,
savings is a foundation and safety net for market investments.
Without savings, economic activity is financed by debt as a
bond investment. When the head falls, flat-footed savings is
the only thing that holds the economy upright. So, savings
is capital retained for reliance, which keeps the economy
grounded, whereas investment is capital risked for return
which keeps the economy growing.
The sides of the anatomy follow the head’s direction to
propel the economy. The side to side motion propelling the
body is analogous to supply and demand exchanges moving
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198
E. V. CARTER
the economy. Continuous supply and demand transactions
funnel resource flows to expand the economy in the direction of investment, like a spiraling twister ambling forward,
backward, up and down. Economic indicators capture the
supply–demand axis of human labor–income, around which
the economy spins. In addition, economic production outputs
and economic psychology inputs signal the respective health
of companies and consumers. Economic growth from supply
and demand either flows to the feet as savings or flows to the
head for reinvestment.
Each body part performs the dual function of environment sensing and execution responding. Unlike economic
indicators, the categories of investment, supply, demand, and
savings are instinctive for business planning. As the head,
investment indicators provide macro vision of future market directions, as well as insight regarding the micro value
of present market performance. The supply side indicators
signal macro-output trends across industries and monitor the
micro supply chain resource flows. Demand side indicators
mirror supply side motions by charting macro shifts in aggregate customer employment, income, and perception. In
addition, demand side indicators shed light on the micro
spending and sentiment of individual customer segments. As
the feet, savings indicators survey the macro base of account
deposits and size up the micro share of capital that is not
actively deployed in the market. These dual macro–micro
properties improve the anatomy rubric’s utility across the
business education curriculum.
Using analogous human body forms and affiliated
macro/micro functions, the anatomy rubric analyzes economic market intelligence to support strategic management
decisions. Of course, the field of econometrics (Davidson
& MacKinnon, 2004) is replete with analytical models that
guide the decisions of policy makers and managers. Although far less robust than econometric models, the anatomy
rubric achieves Bloom’s (1956) pedagogical objective of
analysis using the types of prized data analysis skills touted
by top business curricula (Korn & Tibken, 2011). It avails
an intuitive interface between societal patterns and strategic
planning.
Anatomy Rubric Scanning Procedure
N: Navigate strategic marketing decisions by incorporating
economic intelligence from the market scan anatomy
analysis patterns.
METHODOLOGY: FRAMING ECONOMIC
LITERACY SCANNING INSTRUCTION
A pilot study of the Anatomy of a Scan rubric and procedure
was conducted in a master of business administration (MBA)
marketing strategy course at a regional university. The absence of prior iterations of this MBA course module makes
this a purely exploratory pilot study. Likewise, the absence
of environmental scanning studies for assessing economic
literacy in the business education literature makes standard
research benchmarking and statistical baseline comparisons
less feasible. However, these considerations are common for
pilot studies of innovative instructional modules, when formal research arrangements with large samples and a control
group structure cannot be done. Instead, based on cursory
class observations, a small convenience sample is queried regarding the conceptual advantages of the Anatomy of a Scan
design. In addition, data collected from an informal experiment with Anatomy of a Scan procedures offers a preliminary empirical analysis of economic literacy improvements
among the MBA students.
Administering the Anatomy of a Scan Module
The three-week Anatomy of a Scan module was administered
to 24 MBA students as an individual assignment preceding
a group marketing strategy project. The module followed
basic marketing strategy discussions in prior class sessions,
including breakout group activity for brief hands-on application of conventional scanning rubrics. The module started
with a topic discussion to establish an economic literacy baseline. After generating several comments about the economy
as an external environment factor, students were queried on
economic terminology. Next, students were briefed on the
Anatomy of a Scan rubric and asked to perform a series of
hands-on real-time economic environment scans.
The anatomy rubric is distilled into a simple heuristic to
guide students’ analysis of the economic environment using
the standard basket of leading indicators:
S: Separate indicators into four anatomy categories to identify their economic role (investment = head, supply =
side, demand = side, savings = feet).
C: Compare the increase/decrease in each indicator with previous period(s) and chart the resulting trend patterns for
each market anatomy category.
A: Analyze relationships among the four market anatomy
categories and assess the influences of individual economic indicators on the directional patterns.
FINDINGS: PILOT STUDY OF ANATOMY
RUBRIC AND ECONOMIC LITERACY
This pilot study of the Anatomy of a Scan rubric is aimed at
two research objectives:
Conceptual advantages: Improve awareness of economic
literacy facts:
a)
economic indicators
• types (leading, coincident, lagging),
• template (10 leading indicators),
ANATOMY OF A SCAN
b) economy categories (investment, supply, demand,
savings), and
c)
external environmental factors encoded in economic indicators (economic, demographic, sociocultural, technological, political, ecological).
Empirical application: Improve performance of economic
literacy functions:
d) macro environment scanning, and
e)
micro execution strategy.
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Conceptual Advantages of the Anatomy Rubric
The MBA class observations and informal student responses
confirmed the hypothesized conceptual advantages, regarding the anatomy rubric’s design simplicity and familiarity.
Compared to conventional scanning methods, the anatomy
rubric proved to be more suitably framed to distill the
complex breadth of knowledge economy information
into focused strategic intelligence. Students were more
adept at accessing and analyzing market intelligence using
the anatomy rubric. Economic indicators were better
understood and examined to for insight regarding external
environment factors. Using the hyperlink features of digital
market intelligence, students drew valid conclusions about
emerging demographic, sociocultural, and technology trends
from the economic indicators scanned. Although economic
intelligence is also capable of revealing political-legal and
ecological trends, insights about those two environment
factors were not reported by students.
Breakout group observations of students’ scanning activity verified the hypothesized deficiencies associated with
each conventional scanning rubric. Situation analysis was
used for compiling exhaustive data that prevented time and
attention from being focused on strategic implications. Narrowly calibrated product–market matrix information inhibited students’ knowledge of external environment trends.
The SWOT analysis was used to compose intricate associations across all four categories that complicated the students’
strategic focus.
In terms of imparting familiarity of scanned intelligence
content, the anatomy rubric was conceptually more beneficial that conventional frameworks. These benefits are largely
a result of the anatomy rubric’s use of leading economic
indicators to reduce market intelligence breadth, as well as
familiar human anatomy categories to reinforce the purpose
of each indicator.
Empirical Application of the Anatomy Rubric
The anatomy rubric also enhanced the application of scanning techniques. When using the rubric, MBA students
gleaned strategic insights from scanned data with greater
accuracy, precision, and timeliness. Scans performed using
the anatomy rubric also strengthened the connection between
199
macro and micro market intelligence. For instance, equity investment data was used to gauge macro economy directions,
and also probed to guide micro execution decisions within
targeted industries and markets. In a similar manner, demand
indicators such as employment and consumer sentiment show
collective demographic and sociological factors, as well as
shape strategic choices for individual customer segments.
Empirical analysis of pilot study data shows improved
economic literacy. Student responses during class discussions show low economic literacy prior to the Anatomy of
a Scan module and high response accuracy afterwards (see
Table 2). Pre–anatomy module findings record that although
a large majority of students regarded economic intelligence
as most pertinent to strategic planning and leading indicators to be the most relevant economy trends, only a third
of students knew the three categories of economic indicators
(leading, coincident, and lagging) and none could name more
than three leading economic indicators. Post–anatomy module findings show that approximately 80% of the students had
perfect recall of those two economic literacy questions, and
the other 20% missing one or two of 10 indicators. These
anatomy rubric learning improvements extend to students’
identification and interpretation of the ten leading economic
indicators. The preanatomy mean of less than two of 10
was increased to a nearly perfect postanatomy mean of 9.7.
Students were also able to explain the relationship between
specific indicators and the standard set external environment
factors.
Most essential, the empirical pilot study findings suggest
that the Anatomy of a Scan rubric strengthened students’
awareness of macro economic market intelligence trends using leading indicators, and structured their analysis of micro strategy decision implications using the four-category
anatomy format. Analysis of micro strategy decisions is operationalized by correct classification of data from leading
economic indicators into the four anatomy categories, including the explanation of strategic implications. These improvements are clearly shown in the pre- and postanatomy
descriptive statistics for those strategic anatomy categories
variables (C and D). Preanatomy results show that only one
student could accurately classify economic indicators into
the four anatomy format categories, and identify a strategic
insight based on data in each category. Yet, for postanatomy
findings, 21 of 24 students (88%) accurately accounted for all
four categories, and three students correctly addressed three
categories.
In the absence of a standard baseline for the statistical findings from this Anatomy of a Scan pilot study, the economics
literature can help to validate the preanatomy economic literacy levels reported for MBA students. Economics education scholars have established a generally accepted baseline for economic literacy among U.S. college students and
adults (Albritton, 2006; Walstad & Allgood, 1999; Walstad &
Rebeck, 2002; W. C. Wood & Doyle, 2002). Annual surveys of college students and college bound high school
200
E. V. CARTER
TABLE 2
Descriptive Statistics for Macro–Micro Anatomy of a Scan Literacy
Statistic
(A) Preanatomy:
# recall lead econ ind.
(B) Postanatomy:
# recall lead econ ind.
(C) Preanatomy:
# strategic categories
(D) Postanatomy:
# strategic categories
1.290
1
0
3
1.042
24
9.710
10
8
10
0.624
24
1.250
1
1
3
0.532
24
3.875
2
3
4
0.338
24
M
Mode
Minimum
Maximum
SD
n
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Note. (A & B) Number (#) of 10 leading economic indicators accurately identified and explained. (C & D) Strategic categorization of leading economic
indicators into anatomy categories: Number (#) of 4 accurate categories: investment, supply, demand, savings.
students consistently show that low economic literacy is
not an anomaly (CEE, 2011a, 2011b). Comparable data
from those surveys affirm this study’s preanatomy baseline statistics for questions on the economy, economic indicators, and applying economic intelligence. Consequently,
the postanatomy economic literacy improvements from the
Anatomy of a Scan module should be viewed by business
educators as a plausible course outcome.
CONCLUSION: ECONOMIC ENVIRONMENT
SCANNING LESSONS
Business education is only as good as the tools deployed
to improve learning. This pilot study examines an innovative instructional tool designed to overcome the deficiencies
of present environmental scanning frameworks, called the
Anatomy of a Scan rubric. The anatomy rubric was found to
resolve two interrelated problems associated with environmental scanning instruction in digital knowledge economy
conditions.
First, the need for simpler rubric design with familiar format categories arises because knowledge economy environments generate an abundance of digital market intelligence
that exceeds the capability of existing scanning rubrics, given
business education course delivery constraints. Second, the
need for improved economic information literacy arises because knowledge economy dynamics expand the breadth and
depth of digital market intelligence.
Digital economic data encompass broad latitudes of external environment intelligence and encodes deep layers of
strategic insight. So, by aiming environmental scanning instruction at economic market intelligence, the Anatomy of a
Scan rubric improves strategic focus and economic literacy.
These hypothesized dual benefits are supported by informal
observations and empirical findings from a convenience sample survey of MBA students.
Research Limitations
Notwithstanding the merits reported for the Anatomy of a
Scan rubric, this pilot study offers only initial exploratory
findings. Clear limitations exist regarding the anatomy
rubric’s premise and proof. The premise of emphasizing
economic data to perform strategic environmental scanning
techniques can be challenged as being overly myopic. Reducing macro societal trends to tracking the economy may
compromise other important scanning insights. For instance,
appreciation for sociocultural diversity, political-legal ethics,
and sustainable ecology might be glossed over without careful application of the anatomy rubric by business educators.
Likewise, this study has not provided conclusive proof
of the anatomy rubric’s amenable design for digital knowledge economy conditions, or its ability to improve economic
literacy. Empirical findings lack the formal structure, large
sample size, control group arrangement, and robust statistical analysis to establish the anatomy rubric’s reliability as
a universally valid business education tool. To that end, the
Anatomy of a Scan rubric is advanced as a timely and targeted business education innovation for teaching environmental scanning skills.
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ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20
Anatomy of a Scan: Digital Market Intelligence and
Economic Literacy in the MBA Curriculum
E. Vincent Carter
To cite this article: E. Vincent Carter (2013) Anatomy of a Scan: Digital Market Intelligence and
Economic Literacy in the MBA Curriculum, Journal of Education for Business, 88:4, 194-201,
DOI: 10.1080/08832323.2012.668392
To link to this article: http://dx.doi.org/10.1080/08832323.2012.668392
Published online: 20 Apr 2013.
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ISSN: 0883-2323 print / 1940-3356 online
DOI: 10.1080/08832323.2012.668392
Anatomy of a Scan: Digital Market Intelligence
and Economic Literacy in the MBA Curriculum
E. Vincent Carter
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California State University, Bakersfield, Bakersfield, California, USA
This pilot study examined an innovative rubric designed to overcome the deficiencies of present
environmental scanning frameworks. The Anatomy of a Scan rubric resolves two problems
associated with environmental scanning instruction. First, the need for simpler rubric designs
with familiar formats arises because digital knowledge economy intelligence exceeds the capabilities of existing scanning rubrics, given business education course delivery constraints.
Second, the need for improved economic information literacy arises because knowledge economy dynamics expand the breadth and depth of digital market intelligence. By using economic
market intelligence to anchor environmental scanning, the anatomy rubric improves students’
strategic focus with conceptual advantages and raises economic literacy with empirical application.
Keywords: business education, cognitive rubric, digital intelligence, economic literacy,
environmental scanning, knowledge economy, market intelligence, strategic planning
Business education is adapting to the societal transition toward a knowledge economy. The knowledge economy is
more dynamic and uncertain than traditional markets (Eisenhardt, 1989), due to the span and speed of digital intelligence.
Environmental scanning reduces the uncertainty created by
uncontrollable market dynamics with strategic market intelligence (Albright, 2004; Choo, 2001; M. B. Wood, 2010).
This bridging of external and internal planning factors makes
environmental scanning a business education mainstay
(Stoeffels, 1994).
As a pedagogical technique, environmental scanning requires information literacy to interpret strategic market intelligence. In this study, economic information literacy is the
ability to access, analyze, and apply facts about the knowledge economy environment. The Association to Advance
Collegiate Schools of Business (AASCB) (2003) requires
business education curricula to deliver both information technology and information literacy skills to meet assurance of
learning standards. These information literacy skills for scanning economic intelligence parallel the knowledge types in
Bloom’s taxonomy of educational objectives (Bloom, 1956).
Correspondence should be addressed to E. Vincent Carter, California
State University, Bakersfield, Department of Management & Marketing, 9001 Stockdale Highway, Bakersfield, CA 93311, USA. E-mail:
[email protected]
Cognitive rubrics are indispensable for developing the
critical thinking skills required to perform environmental
scanning. Cognitive rubrics operationalize theoretical concepts into practical competencies that can be learned and
performed by business students. Typically, these cognitive
rubrics are found in learning objectives and instructional materials. This study examines the sufficiency of environmental
scanning rubrics presently used by business educators, and
advances a more suitable design for knowledge economy
intelligence.
LITERATURE REVIEW: LEVERAGING
ECONOMIC INFORMATION LITERACY
Complexity is rising in the knowledge economy because
of expanded digital connections and dynamic interaction among environmental stakeholders. The external environment now spans preknowledge economy boundaries
such as social–strategic planning, macro–micro market,
public–private sector, and financial–intellectual capital. Managing the network enterprise in complex and dynamic environments requires environmental scanning techniques that
are strategically focused and cognitively framed. Simplicity
in the design of scanning rubrics improves strategic focus
by guiding managers toward market intelligence with high
macro pattern relevance and high micro performance results.
ANATOMY OF A SCAN
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As a result, business educators and executives improve environmental scanning skills.
Concurrent with rising complexity, the knowledge economy environment is becoming digitally abstract. Hypertext
programming codes digital content with instructions for accessing deeper layers of data, documents, diagrams, and multimedia displays. Given these deep layers of digitally abstraction, scanning the knowledge economy environment requires
greater familiarity with the market intelligence format (scanning array) and management interpretation findings (strategic
action). Designing scanning rubrics based on familiar models can help business educators mitigate the lack of literacy
regarding market intelligence content.
Information Literacy in Business Education
Information literacy is an academic and practical skill anchored in library science. To be information literate, a person
must be able to recognize when information is needed and
has the ability to locate, evaluate, and use effectively the
needed information. (American Library Association, 1989,
p. 2)
Information literacy has gained greater attention with
the proliferation of digital technology applications in society. Students are required to access, analyze, and apply
electronic knowledge in a proficient manner (American Association of School Librarians, 2007; Dunn, 2002; Eisenberg, 2008). Ironically, information literacy is rarely addressed in the business education literature (Goel & Straight,
2005; Hawkes, 1994; Heinrichs & Lim, 2009; Sterngold &
Hurlbert, 1998). This information literacy neglect is contrary to AACSB (2003) standards for capacities developed
through knowledge and skills of a general master’s level program (Pringle & Michel, 2007).
Economic Literacy for Business Education
Economic literacy, as a specific type of information literacy, pertains to the awareness, access, assessment, and application of knowledge about the economy and its implications. As the foundation for free market enterprise and the
discipline specific academic programs, economic literacy is
vital to business education. But, economic literacy is not
compartmental. Improving economic literacy contributes to
students’ overall business acumen. Economic literacy becomes more strategically reliable and environmentally representative as the digital knowledge economy encompasses
societal dimensions. Strategic intelligence is more reliable
because economic data directly improves market predictions
and management performance. Economic information is also
more representative of environment trends, because knowledge economy market intelligence spans the boundaries of
traditional environment factors. Demographic and sociocultural tendencies are derived from production and purchase
data, while technology trends can be forecast from financial
195
investments in research and development. Bond ratings tell
the markets odds on political policy and legal regulations are
reflected in equity patterns. Even ecological factors can be
discerned from commodity price fluctuations.
Compelling evidence exists for the merits of economic
literacy in business education. Top academic journals and
research centers advance the merits of economic education.
Also, a credible set of economic indicators already exists
(Conference Board, 2012). Recently, the Council for Economic Education (CEE) launched a national campaign for
economic literacy and support for economic literacy reaches
the upper echelon of academia and commerce. The CEE
website and resources demonstrate the growing commitment to furthering economic literacy with interactive activities and educational content tailored to young adult learners (CEE, 2013). Projects have been initiated by leading
universities, businesses, and regional Federal Reserve Bank
presidents—including the national College Fed Challenge
(Dodge, 2011; Federal Reserve Bank of Minneapolis, 1999,
2002; Federal Reserve Bank of Richmond, 2011; National
Council for Economic Education, 2005). The common denominator among these economic literacy approaches is a
view that the economy provides reliable and representative
signals of the societal factors influencing business strategy.
By designing strategic scanning rubrics that access digital
market intelligence, students will be better prepared to analyze these vital economic signals.
PROBLEM: THE BOUNDED RATIONALITY
OF STRATEGIC SCANNING RUBRICS
Taken together, the knowledge economy environment issues
of intelligence complexity and abstraction pose serious challenges for business planning instruction and implementation.
The cognitive and course delivery constraints of business education render conventional environmental scanning methods less suitable for information intensive digital markets.
Appropriately designed cognitive rubrics can reduce knowledge economy complexity with simplified heuristics that focus strategic scanning skills. Similarly, course delivery is
aided by depicting cognitive scanning rubrics with familiar
models that filter abstract market intelligence into intuitive
economic literacy skills.
This problem of cognitive scanning rubrics designed with
insufficient decision support capability for environmental
intelligence conditions mirrors Simon’s (1991) theory of
bounded rationality. That theory shows how management
performance and market opportunity are constrained by
a misfit between cognitive approaches and knowledge
conditions—commonly described as analysis paralysis.
Business strategists describe this environmental scanning
dialectic between external market sensing and internal
management strategy as sense and respond (Bradley &
Nolan, 1998; Haeckel, 1999).
196
E. V. CARTER
For business students, the wider span of accessible external environment facts and the faster speed of digital applications create bounded rationality between conventional
scanning rubrics and the ample market intelligence. Less is
more, when business instruction increases analytical clarity with anatomical economic categories. Simon (1991)
described this type of analytical clarity as rational optimization that comes from realigning bounded rationality. Business educators will benefit from an environmental scanning
rubric that transforms passive situational descriptions into
actionable strategic analysis.
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Assessing Conventional Environmental
Scanning Rubrics
A preliminary assessment of conventional environmental
scanning rubrics helps to clarify the parameters required to
address the knowledge economy environment. An optimal
scanning rubric must mitigate the bounded rationality of business education arrangements to deliver actionable market intelligence. Three cognitive rubrics are typically used to teach
environmental scanning—situation analysis, product–market
matrix, and strengths, weaknesses, opportunities, and threats
(SWOT) analysis.
Situation analysis is a standard business strategy rubric
for scanning the entire set of external environment factors.
Modeled on the scientific method, strategic planning begins
by examining the conditions that influence strategic planning
problems. This first stage appraises the market situation by
scanning six environment factors—economic, demographic,
sociocultural, political-legal, technological, and ecologicalnatural (Kotler & Armstrong, 2011).
Another cognitive rubric for aligning the external market environment with internal management execution is the
Ansoff (1957) product–market matrix for strategic planning.
The matrix juxtaposes strategies for changing external markets with strategies for changing internal products, based
on the competitive environment situation. The resulting four
strategy choices are market penetration (no change), product development (new product), market development (new
market), and differentiation (new product and new market).
One of the most popular cognitive rubrics for environmental scanning is known as SWOT analysis. The goal of
business planning is to find a sustainable fit between internal strengths and weaknesses and external opportunities and
threats. In practice, SWOT analysis is often used to compile
an encyclopedic cache of market intelligence. Less emphasis is placed on critically analyzing SWOT category intelligence to impart strategic problem solving skills (Novicevic,
Harvey, Autry, & Bond, 2004).
Unfortunately, the academic and strategic utility of these
three established rubrics is constrained by a knowledge economy environment that exceeds the boundaries of their cognitive design. The wide scope of situation analysis reduces
strategic focus, resulting in analysis paralysis. Thus, situation analysis is too inclusive as a cognitive rubric to scan for
critical knowledge economy insights. By contrast, the narrowly aimed product/market matrix cannot capture knowledge economy insights that span environmental boundaries.
So, it is too inhibiting for scanning the digital breadth and
depth of the knowledge economy environment. Finally, the
mosaic of SWOT analysis category associations generates
excessive digital market intelligence and makes environmental scanning instruction too intricate for focused strategy
decisions.
HYPOTHESES: DESIGNING AN ECONOMIC
LITERACY SCANNING RUBRIC
A new strategic rubric named the Anatomy of a Scan is
designed to address the inadequate framing of market intelligence access (breadth) and analysis (depth) identified for
three conventional methods. Removing these limitations renders a scanning rubric that achieves strategic focus by cognitively framing economic market intelligence. Consequently,
a logical litmus test would be to evaluate whether the new
rubric improves economic information literacy. While exploratory, these empirical economic literacy findings can offer clues about the anatomy rubric’s suitability for scanning
the digital market intelligence. Accordingly, the empirical
data hypothesis is that the Anatomy of a Scan rubric improves economic literacy skills. A related conceptual design
hypothesis is that the Anatomy of a Scan rubric is a simpler
and more intuitively familiar instructional tool for accessing
and analyzing digital market intelligence.
Anatomy Rubric Scanning Parameters
The Anatomy of a Scan design can be described using the
parameters used to assess conventional rubrics (see Table 1).
The anatomy model resolves three deficiencies of conventional scanning rubrics by increasing the simplicity and familiarity of scanning intelligence for business course instruction. It is not too macro, too micro, or too mosaic.
A need for simplicity arises because digital knowledge
economy networks span the external environment factors,
creating a breadth of market intelligence that reduces the
efficacy of conventional rubrics. Simplicity is addressed at
the macro level by reducing the span of external environment factors to 10 straightforward economic indicators. Still,
economic trends reliably reflect macroenvironment patterns.
Simplicity is also built into micro level execution decisions by
focusing on reliable economic market intelligence that leads
to actionable strategic results. The anatomy rubric helps students analyze the connections between economic mapping
and strategic maneuvering on the business planning chessboard.
The requirement of familiarity stems from the ability to
probe digital content links and access deeper layers of market intelligence abstraction. Although these digital content
properties can be used to enhance strategic scanning acumen,
ANATOMY OF A SCAN
197
TABLE 1
Anatomy of a Scan Environmental Scanning Rubric
The market anatomy: Body of the economy
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Leading economic indicators basket (market organs and functions)
1. The U.S. Department of Labor’s monthly report on the
unemployment rate, average hourly earnings and the average
workweek hours from the Employment Situation report
(employment report).
2. The U.S. Department of Labor’s weekly report on first-time claims
for state unemployment insurance. Initial jobless claims.
3a. The Census Bureau’s monthly consumer goods and materials
report from the Preliminary Report on Manufacturers’ Shipments,
Inventories & Orders (from the factory orders report).
3b. The Quarterly Services Survey,
http://www.census.gov/services/index.html.
4. The Institute for Supply Management’s monthly ISM Index of
Manufacturing including: supplier deliveries, imports, production,
inventories, new orders, new export orders, order backlogs, prices
and employment (Purchasing Managers’ Index).
5. The Census Bureau’s monthly nondefense capital goods report from
the Preliminary Report on Manufacturers’ Shipments, Inventories,
and Orders (from the factory orders report).
6. The Census Bureau’s monthly report on building permits from the
Housing Starts and Building Permits report (from the housing starts
report).
7. The S&P 500 as a good measure of stock equity price accounting
for 500 largest companies in the U.S.
Investment (head)
Supply (side)
Demand (side)
Savings (feet)
x (Income)
x (Income)
x (Property/land)
x (B2C)
x (B2C)
x (B2B)
x (B2B)
x (B2B)
x (B2B)
x (B2B)
x (Equity)
∗∗ Supplemental∗∗
8. The Federal Reserve’s inflation-adjusted measure of the M2 money
supply.
9. The difference (spread) between interest rates of 10-year Treasury
notes and federal funds rate.
10. The University of Michigan Consumer Sentiment Index’s consumer
expectations.
business students may require a familiar rubric format for interpreting market intelligence findings. The anatomy rubric
is designed with a familiar format based on an intuitive understanding of the human body.
Assigning anatomy body parts to forces in the economy
is central to the rubric’s design. The four category anatomy
reduces the rubric’s bounded rationality by making it simpler
to accessed and analyze market intelligence. Market intelligence from ten economic indicators is filtered into four key
market drivers of strategic decisions. This familiar format
should also be more suitable for sifting through abundant
real-time digital market intelligence. Still, familiarity must
be backed up with fact for the anatomy rubric to gain credence among business educators. For that reason, explaining
the human body analogy is crucial.
To begin, the purpose of the economy is to allocate societal resources and raise individual prosperity. Investment,
in the form of capital or another asset, is required to produce, transport, or transform any resource, as well as to pay
individual salaries and financial returns. In that sense, invest-
Commodities
Precious metals
Currency
x (Time deposits).
x
x (Debt/bonds)
x (psychol.)
ment is the head of the economy because it starts resource
movement and steers market direction. All markets reflect
this capitalist principle of an investment led economy.
These investment funds differ from savings, the feet of the
economy. Savings is money, or another asset, put into reserve
and not allocated for financial return. Examples include bank
savings accounts, money market funds, and balance sheet
cash. A familiar quip is investment puts money to work and
savings does not. Similar to feet, savings support the body by
keeping pace while the head is pointing. For the economy,
savings is a foundation and safety net for market investments.
Without savings, economic activity is financed by debt as a
bond investment. When the head falls, flat-footed savings is
the only thing that holds the economy upright. So, savings
is capital retained for reliance, which keeps the economy
grounded, whereas investment is capital risked for return
which keeps the economy growing.
The sides of the anatomy follow the head’s direction to
propel the economy. The side to side motion propelling the
body is analogous to supply and demand exchanges moving
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198
E. V. CARTER
the economy. Continuous supply and demand transactions
funnel resource flows to expand the economy in the direction of investment, like a spiraling twister ambling forward,
backward, up and down. Economic indicators capture the
supply–demand axis of human labor–income, around which
the economy spins. In addition, economic production outputs
and economic psychology inputs signal the respective health
of companies and consumers. Economic growth from supply
and demand either flows to the feet as savings or flows to the
head for reinvestment.
Each body part performs the dual function of environment sensing and execution responding. Unlike economic
indicators, the categories of investment, supply, demand, and
savings are instinctive for business planning. As the head,
investment indicators provide macro vision of future market directions, as well as insight regarding the micro value
of present market performance. The supply side indicators
signal macro-output trends across industries and monitor the
micro supply chain resource flows. Demand side indicators
mirror supply side motions by charting macro shifts in aggregate customer employment, income, and perception. In
addition, demand side indicators shed light on the micro
spending and sentiment of individual customer segments. As
the feet, savings indicators survey the macro base of account
deposits and size up the micro share of capital that is not
actively deployed in the market. These dual macro–micro
properties improve the anatomy rubric’s utility across the
business education curriculum.
Using analogous human body forms and affiliated
macro/micro functions, the anatomy rubric analyzes economic market intelligence to support strategic management
decisions. Of course, the field of econometrics (Davidson
& MacKinnon, 2004) is replete with analytical models that
guide the decisions of policy makers and managers. Although far less robust than econometric models, the anatomy
rubric achieves Bloom’s (1956) pedagogical objective of
analysis using the types of prized data analysis skills touted
by top business curricula (Korn & Tibken, 2011). It avails
an intuitive interface between societal patterns and strategic
planning.
Anatomy Rubric Scanning Procedure
N: Navigate strategic marketing decisions by incorporating
economic intelligence from the market scan anatomy
analysis patterns.
METHODOLOGY: FRAMING ECONOMIC
LITERACY SCANNING INSTRUCTION
A pilot study of the Anatomy of a Scan rubric and procedure
was conducted in a master of business administration (MBA)
marketing strategy course at a regional university. The absence of prior iterations of this MBA course module makes
this a purely exploratory pilot study. Likewise, the absence
of environmental scanning studies for assessing economic
literacy in the business education literature makes standard
research benchmarking and statistical baseline comparisons
less feasible. However, these considerations are common for
pilot studies of innovative instructional modules, when formal research arrangements with large samples and a control
group structure cannot be done. Instead, based on cursory
class observations, a small convenience sample is queried regarding the conceptual advantages of the Anatomy of a Scan
design. In addition, data collected from an informal experiment with Anatomy of a Scan procedures offers a preliminary empirical analysis of economic literacy improvements
among the MBA students.
Administering the Anatomy of a Scan Module
The three-week Anatomy of a Scan module was administered
to 24 MBA students as an individual assignment preceding
a group marketing strategy project. The module followed
basic marketing strategy discussions in prior class sessions,
including breakout group activity for brief hands-on application of conventional scanning rubrics. The module started
with a topic discussion to establish an economic literacy baseline. After generating several comments about the economy
as an external environment factor, students were queried on
economic terminology. Next, students were briefed on the
Anatomy of a Scan rubric and asked to perform a series of
hands-on real-time economic environment scans.
The anatomy rubric is distilled into a simple heuristic to
guide students’ analysis of the economic environment using
the standard basket of leading indicators:
S: Separate indicators into four anatomy categories to identify their economic role (investment = head, supply =
side, demand = side, savings = feet).
C: Compare the increase/decrease in each indicator with previous period(s) and chart the resulting trend patterns for
each market anatomy category.
A: Analyze relationships among the four market anatomy
categories and assess the influences of individual economic indicators on the directional patterns.
FINDINGS: PILOT STUDY OF ANATOMY
RUBRIC AND ECONOMIC LITERACY
This pilot study of the Anatomy of a Scan rubric is aimed at
two research objectives:
Conceptual advantages: Improve awareness of economic
literacy facts:
a)
economic indicators
• types (leading, coincident, lagging),
• template (10 leading indicators),
ANATOMY OF A SCAN
b) economy categories (investment, supply, demand,
savings), and
c)
external environmental factors encoded in economic indicators (economic, demographic, sociocultural, technological, political, ecological).
Empirical application: Improve performance of economic
literacy functions:
d) macro environment scanning, and
e)
micro execution strategy.
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Conceptual Advantages of the Anatomy Rubric
The MBA class observations and informal student responses
confirmed the hypothesized conceptual advantages, regarding the anatomy rubric’s design simplicity and familiarity.
Compared to conventional scanning methods, the anatomy
rubric proved to be more suitably framed to distill the
complex breadth of knowledge economy information
into focused strategic intelligence. Students were more
adept at accessing and analyzing market intelligence using
the anatomy rubric. Economic indicators were better
understood and examined to for insight regarding external
environment factors. Using the hyperlink features of digital
market intelligence, students drew valid conclusions about
emerging demographic, sociocultural, and technology trends
from the economic indicators scanned. Although economic
intelligence is also capable of revealing political-legal and
ecological trends, insights about those two environment
factors were not reported by students.
Breakout group observations of students’ scanning activity verified the hypothesized deficiencies associated with
each conventional scanning rubric. Situation analysis was
used for compiling exhaustive data that prevented time and
attention from being focused on strategic implications. Narrowly calibrated product–market matrix information inhibited students’ knowledge of external environment trends.
The SWOT analysis was used to compose intricate associations across all four categories that complicated the students’
strategic focus.
In terms of imparting familiarity of scanned intelligence
content, the anatomy rubric was conceptually more beneficial that conventional frameworks. These benefits are largely
a result of the anatomy rubric’s use of leading economic
indicators to reduce market intelligence breadth, as well as
familiar human anatomy categories to reinforce the purpose
of each indicator.
Empirical Application of the Anatomy Rubric
The anatomy rubric also enhanced the application of scanning techniques. When using the rubric, MBA students
gleaned strategic insights from scanned data with greater
accuracy, precision, and timeliness. Scans performed using
the anatomy rubric also strengthened the connection between
199
macro and micro market intelligence. For instance, equity investment data was used to gauge macro economy directions,
and also probed to guide micro execution decisions within
targeted industries and markets. In a similar manner, demand
indicators such as employment and consumer sentiment show
collective demographic and sociological factors, as well as
shape strategic choices for individual customer segments.
Empirical analysis of pilot study data shows improved
economic literacy. Student responses during class discussions show low economic literacy prior to the Anatomy of
a Scan module and high response accuracy afterwards (see
Table 2). Pre–anatomy module findings record that although
a large majority of students regarded economic intelligence
as most pertinent to strategic planning and leading indicators to be the most relevant economy trends, only a third
of students knew the three categories of economic indicators
(leading, coincident, and lagging) and none could name more
than three leading economic indicators. Post–anatomy module findings show that approximately 80% of the students had
perfect recall of those two economic literacy questions, and
the other 20% missing one or two of 10 indicators. These
anatomy rubric learning improvements extend to students’
identification and interpretation of the ten leading economic
indicators. The preanatomy mean of less than two of 10
was increased to a nearly perfect postanatomy mean of 9.7.
Students were also able to explain the relationship between
specific indicators and the standard set external environment
factors.
Most essential, the empirical pilot study findings suggest
that the Anatomy of a Scan rubric strengthened students’
awareness of macro economic market intelligence trends using leading indicators, and structured their analysis of micro strategy decision implications using the four-category
anatomy format. Analysis of micro strategy decisions is operationalized by correct classification of data from leading
economic indicators into the four anatomy categories, including the explanation of strategic implications. These improvements are clearly shown in the pre- and postanatomy
descriptive statistics for those strategic anatomy categories
variables (C and D). Preanatomy results show that only one
student could accurately classify economic indicators into
the four anatomy format categories, and identify a strategic
insight based on data in each category. Yet, for postanatomy
findings, 21 of 24 students (88%) accurately accounted for all
four categories, and three students correctly addressed three
categories.
In the absence of a standard baseline for the statistical findings from this Anatomy of a Scan pilot study, the economics
literature can help to validate the preanatomy economic literacy levels reported for MBA students. Economics education scholars have established a generally accepted baseline for economic literacy among U.S. college students and
adults (Albritton, 2006; Walstad & Allgood, 1999; Walstad &
Rebeck, 2002; W. C. Wood & Doyle, 2002). Annual surveys of college students and college bound high school
200
E. V. CARTER
TABLE 2
Descriptive Statistics for Macro–Micro Anatomy of a Scan Literacy
Statistic
(A) Preanatomy:
# recall lead econ ind.
(B) Postanatomy:
# recall lead econ ind.
(C) Preanatomy:
# strategic categories
(D) Postanatomy:
# strategic categories
1.290
1
0
3
1.042
24
9.710
10
8
10
0.624
24
1.250
1
1
3
0.532
24
3.875
2
3
4
0.338
24
M
Mode
Minimum
Maximum
SD
n
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Note. (A & B) Number (#) of 10 leading economic indicators accurately identified and explained. (C & D) Strategic categorization of leading economic
indicators into anatomy categories: Number (#) of 4 accurate categories: investment, supply, demand, savings.
students consistently show that low economic literacy is
not an anomaly (CEE, 2011a, 2011b). Comparable data
from those surveys affirm this study’s preanatomy baseline statistics for questions on the economy, economic indicators, and applying economic intelligence. Consequently,
the postanatomy economic literacy improvements from the
Anatomy of a Scan module should be viewed by business
educators as a plausible course outcome.
CONCLUSION: ECONOMIC ENVIRONMENT
SCANNING LESSONS
Business education is only as good as the tools deployed
to improve learning. This pilot study examines an innovative instructional tool designed to overcome the deficiencies
of present environmental scanning frameworks, called the
Anatomy of a Scan rubric. The anatomy rubric was found to
resolve two interrelated problems associated with environmental scanning instruction in digital knowledge economy
conditions.
First, the need for simpler rubric design with familiar format categories arises because knowledge economy environments generate an abundance of digital market intelligence
that exceeds the capability of existing scanning rubrics, given
business education course delivery constraints. Second, the
need for improved economic information literacy arises because knowledge economy dynamics expand the breadth and
depth of digital market intelligence.
Digital economic data encompass broad latitudes of external environment intelligence and encodes deep layers of
strategic insight. So, by aiming environmental scanning instruction at economic market intelligence, the Anatomy of a
Scan rubric improves strategic focus and economic literacy.
These hypothesized dual benefits are supported by informal
observations and empirical findings from a convenience sample survey of MBA students.
Research Limitations
Notwithstanding the merits reported for the Anatomy of a
Scan rubric, this pilot study offers only initial exploratory
findings. Clear limitations exist regarding the anatomy
rubric’s premise and proof. The premise of emphasizing
economic data to perform strategic environmental scanning
techniques can be challenged as being overly myopic. Reducing macro societal trends to tracking the economy may
compromise other important scanning insights. For instance,
appreciation for sociocultural diversity, political-legal ethics,
and sustainable ecology might be glossed over without careful application of the anatomy rubric by business educators.
Likewise, this study has not provided conclusive proof
of the anatomy rubric’s amenable design for digital knowledge economy conditions, or its ability to improve economic
literacy. Empirical findings lack the formal structure, large
sample size, control group arrangement, and robust statistical analysis to establish the anatomy rubric’s reliability as
a universally valid business education tool. To that end, the
Anatomy of a Scan rubric is advanced as a timely and targeted business education innovation for teaching environmental scanning skills.
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