Advantages And Disadvantages Of Environmental Scanning

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Environmental scanning or Analysis involves business managers to study the external environment variables for attaining good result as business operates in an environment. It is also termed as environment monitoring. It is the process of gathering or collecting the information regarding organization, analysing it and forecasting the impact of all predictable trends in environmental changes. Successful marketing strategies are always dependent on such environmental scanning and marketing programmes always depends on its environmental changes. At the same time, environment scanning points towards interaction among various environmental factors. Strategic management or business policy is treated as a means to achieve the organizational purpose. The process of strategic management involves determining the mission and objectives, identifying the opportunities and threats in an environment and evaluating…show more content…
Search and Scanning: If particular type of information is required regarding the business environment, a proper research is conducted to have right conclusion. 3. Spying: It is considered as an unethical in business, even though some organization often uses spying as a source to collect information. 4. Forecasting and Formal Studies: The information gathered by above three methods is used to predict business environment. Such forecast is basically done by corporate planners of consultants. 1.10 LIMITATIONS OF ENVIRONMENTAL SCANNING Following are the main limitation of business environment analysis: 1. Unexpected and Unanticipated Analysis: Sometime business has to face the unexpected events, so there will be no benefit of environmental analysis. 2. No sufficient Guarantee: Environmental analysis does not give any guarantee that the estimated events will happen. 3. Uncritical Faith: Sometime the data used for the decision may be incorrect so it can be risky. 4. Too Much Information: Too much information related to the analysis will create the doubt in
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