L 2 environment scanning

1. Shifali garg
NCCE
MBA
Environmental scanning

2. Meaning
 It is the study of all the various components of
environment affecting the business like economic
factors , technological factors ,political factors and
global factors etc.
 It is the process by which organisations monitor
their relevant environment to identify their
opportunities and threats affecting their business.

3. objectives
 To understand current and probable changes in
environment
 To provide input for decision making
 To formulate appropriate strategy
 To ensure optimum utilization of resources
Thus, environmental scanning helps the organization
to identify , understand and adapt to external issues ,
to anticipate the consequences of the environmental
factors and to develop well thought out plans and
policies.

4. Environmental scanning and Strategy formulation
 Environmental
Scanning Decision making and strategy
formulation Strategy Implementation
Need for Further Scanning

5. Process of environment scanning
 1) Monitoring: It means to understand various
environmental factors which effect the business and
to identify published or unpublished sources of
information which affect our business.
Newspapers
Magazines and journals
Government publications
Institutional publications
International publications

6.  2) Searching the required information: clipping
service
 3) forecasting: Monitoring and searching provide a
picture of what has already taken place and what is
happening where as strategic decision making
requires a future orientation.
 4) Evaluation and Assessment: we identify and
evaluate as to how these environmental changes will
affect our business so that appropriate counter
strategies can be made well in time.

7. Limitations
1)unexpected events
2) Environmental scanning is not the only factor in
strategy formulation
3) Inaccurate data
4) Too much dependence on information collected
through environmental scanning

8. Technique of Environmental Scanning
 SWOT:
Internal environment:strength and weakness
 external environment:Opportunities and Threats