In this session, we will discuss environmental scanning and the definition of Environmental scanning, the meaning of Environmental scanning, features of Environmental scanning, components of environmental scanning, the importance of Environmental scanning, internal, external environmental, methods of environmental scanning, and examples of Environmental scanning.
Definition of environmental scanning
Environmental scanning is the most important for any kind of organization of the business. Why environmental scanning is important for any organization? Because any kind of business is affected by economic, technological, social, legal, and international factors. So, it is important. It directs the direction of the present and the future of the organization. Let’s discuss deeply on environmental scanning. (Definition of environmental scanning)
Environmental scanning is the most important character display in any kind of business organization. In any business organization, there is an internal or external environment. which affects the organization. Is it no matter the opportunities for the business to grow and threats that may harm the business?
Environmental scanning is the process of gathering, recording, monitoring, evaluating, and disseminating information from internal and external environments. It is the process of monitoring developments and changes in internal as well as external environments that may influence the activities of the organization. It is the act of anticipating and interpreting changes in environmental factors.
According to Richard Steers, “Environmental scanning involves monitoring changes and developments in the environment that have a potential impact on the organization.”
Azher Kazmi defines environmental scanning, “Environmental scanning is the process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business.”
According to William.F. Glueck, “Environmental Scanning consists of identifying and analyzing environmental influences individually and collectively to determine their potential effects on an organization and the consequent problems and threats.”
In the session on environmental scanning, we will also discuss the features of environmental scanning.
The features of environmental scanning can be dedicated by the following question.
- It is Holistic Exercise
- Environmental scanning is an Exploratory Process
- It is Continuous process
It is a continuous process
In any of the business organization, there are changes anything at any time, so that, it no matters, that one is opportunities or threats to all identify, there is environmental scanning. So that, it is a continuous process for any of the business organizations. Continuous scanning is most helpful for any business organization to identify new triggers or signals in the overall pattern of intertwined trends.
It is an exploratory process
Scanning is an exploratory process as some experts put it. That keeps monitoring the environment to bring out a large part of the process seeks to explore the unknown dimensions of possible future. “What could happen” is not that important. What is more important is “What will happen”.
It is Holistic Exercise
Environmental scanning is a holistic exercise in the sense that it must comprise a total view of the environment rather than viewing a trend piecemeal. The corporate must scan the circumference of its environment in order to minimize the chances of surprises and to maximize its utility. (Definition of environmental scanning).
In the session on the definition of environmental scanning, we will also discuss the components of environmental scanning.
The components of environmental scanning can be dedicated to the following points.
- Internal environmental components
- External environmental components
Internal environmental components
Internal environmental components are those types of character display in the organization that lies within the organization and changes in these components impact the overall performance of the organization. There are different internal environmental components like technological resources, capital resources, human resources, and a lot more like objectives, Organizational structure, Value system, corporate structure, and labor union, etc.
These types of components display an important role in building the future of an organization therefore, it is important to analyze these components as a part of environmental scanning.
External environmental components
And the second one is external environmental components. External environmental components are those types of components that are outside the walls of the business organization. Even although these types of components are not part of the organization, they still impact the activities of the organization. There are two types of categories like that, the first one is Microenvironmental, and the second one is Macroenvironmental. Both are dedicated to the external environmental components.
Microenvironment components
Microenvironment components are defined as components like industry, competitors, organizations, suppliers, consumers, and market, etc.
Macro environmental components
Macro environmental components are defined as components like technological environment, demographical environment, cultural environment, economic environment, political environment, etc. (Definition of environmental scanning).
In the session on the definition of environmental scanning, we will also discuss the importance of environmental scanning.
The importance of environmental scanning can be dedicated to the following points.
- It helps to identify the strengths of the organization
- Environmental scanninghelps to identify the organization’s weaknesses
- It helps to identify opportunities
- It helps to identify threats
- Environmental scanning helps organization to optimize resources
- It ensures survival and growth
- It helps to plan a long-term business strategy
- Environmental scanning helps in making productive decision-making
It helps to identify the strengths of the organization
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