Business Environment Q. Explain the Concept
of Environmental Scanning.
Ans: Environmental scanning is a process by which organizations monitor
their relevant environment so that they can consider the impact of different
events, trends, issues, expectations on its strategic management process.
Environment scanning is one component of
the global environmental analysis. Environmental
monitoring, environmental forecasting and environmental assessment complete the global
environmental analysis.
Environmental scanning can also be defined as ‘the
study and interpretation of the political, economic, social and technological
events and trends which influence a business, an industry or even a total
market’. The factors which need to be considered for environmental scanning are
events, trends, issues and expectations of the different interest groups.
Importance of Environmental Scanning: Following are main importance of
environment scanning :
1. Effective Utilization of Resources: In environment scanning, we find
the company's strength and weakness. With these strength and weakness, company
can find future risk and opportunities. For reducing risk and getting the
opportunities, company can use its resources effectively.
2. Constant Monitoring of the Enviroment: For success in business, it is very
necessary to keep eye on its changing environment. With environment scanning,
we can scan important updates of environment. Now, by studying these
environment changes, it is very easy to find the challenging way.
Factors of Environmental Scanning: Following are main factors of
environment scanning.
a)
Events: In environment scanning, business organisation study past
events. Past events are the one of the important factors of environment
scanning. For example, gas leakage in Bhopal union carbide factory is
a past event which will helps for environment scanning.
b)
Trends: Trends also are the main factor of environment scanning. Business
Organisation must see what is the trend of past event or trend of action after
happening any event in past.
c)
Issues: Environment scanning also keep eye on important issue of
business environment. For example, pollution is one of important issue.
d) Expectations of People:
Business organisaion also check the expectations of peoples. For more
expectations, Organisations will have to enable their product according to
their expectations for surviving in business. That is the reason, why
organisations are interested to know the expectations of people in environment
scanning.
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