Definition of Environmental Scanning
The systematic process of collecting and analyzing external information to identify opportunities and threats affecting an organization.
Explanation of Environmental Scanning
Environmental scanning involves systematically collecting and analyzing information about external factors that can impact an organization. These factors include economic conditions, social and cultural trends, technological advancements, political and legal changes, and environmental issues. The purpose of environmental scanning is to identify opportunities and threats that could affect the organization’s strategic planning and decision-making. By understanding the external environment, businesses can adapt to changes, anticipate challenges, and seize new opportunities. Environmental scanning typically involves monitoring various sources of information, such as news articles, industry reports, market research, and expert opinions. It’s an ongoing process that requires regular updates to stay current with changing conditions. The insights gained from environmental scanning can help organizations develop strategies that are proactive and responsive to external influences. Effective environmental scanning can enhance an organization’s ability to navigate uncertainty, improve its competitive position, and achieve long-term success.