Environmental screening involves assessing all environmental factors that could impact an organization's functioning, growth, and profits. It is important as it allows organizations to understand opportunities and threats in the environment, define their business scope, and stay aware of competitors. Continuous monitoring keeps organizations aware of future challenges and helps them improve based on customer choices. Business environmental analysis involves scanning, monitoring, forecasting, and assessing the external environment to develop appropriate strategies.

1. Environmental Screening
Environmental screening is a process in which an
organisation makes assessment or analysis of all the
components of the environment and screens their
impact on its functioning, stability, growth and
profits.

2. Importance of effective environmental screening
It gives the clear picture of what kind of
environment the organisation is working in. Also, the
organisation becomes aware of the features of
different components of environment.
Organisation gets the idea of opportunities and
threats possible in the environment.
Organisation is able to define the scope of its
business, like how much the organisation can grow
and to what extent it can raise its targets and profits.
Organisation becomes aware of the existing and
possible competitors.

3. Continuous monitoring of environment makes an
organisation aware of the upcoming dangers and
updates for future challenges. This makes an
organisation aware of its customers’ choices, so that
the organisation could further improve the quality of
its products or services.

4. Business Environmental Analysis
Components of business environment analysis:
1) Scanning
2) Monitoring
3) Forecasting
4) Assessing

5. Scanning
The term ‘scanning’ means analysing all parts or
components of anything in order to develop some
features of that thing. Being the first component of
the environmental analysis process, this analyses the
environmental factors of an organisation.
The purpose of scanning is as:
Scanning helps in identifying the possibilities of
environmental changes which may affect the working
of an organisation.
Understanding the present changes in the
environment.

6. Monitoring
‘Monitoring’ means keeping a constant eye or check
on something. Thus, in environmental analysis,
monitoring keeps a check on environmental changes
from time to time.

7. Forecasting
Forecasting is a complex task which requires
brainstorming with which future predictions are
being made.
The scope of forecasting is more specific and clearer
than monitoring and scanning.
The results of monitoring and scanning are accurate
as study of something present is done. But results of
forecasting are contingent in future.

8. Assessing
Assessment will provide answer to the following
questions:
What strategy needs to be made for the smooth
functioning of the organisation?
What changes might an organisation want to bring
in your current strategy?
What alternatives does an organisation have in case
of negative changes in environment?
How will an organisation face the coming changes?

9. Requisite for an effective environmental screening
steps:
For an effective environmental screening, an organisation must
follow the following steps:
1) Defining the type of business
2) Defining the scope of project
3) Defining the type of environment
4) Preparing a report
5) Monitoring

10. Steps in Business Environmental Analysis
Following steps need to be followed in the process of
business environmental analysis:
1) Scanning all the required components
2) Grouping the scanned components
3) Observing the internal components
4) Monitoring the external components
5) Outlining variables for analysis
6) Usage of different techniques for analysis
7) Forecasting future outcomes
8) Formulating strategies
9) Execution of formulated strategies
10)Monitoring

11. Techniques of Environmental Scanning