Meaning of Environmental Scanning and
Factors to be considered for Environmental
Scanning
Environmental Scanning relates to examining and
understanding the environment in which a business unit
exists, in order to facilitate strategic decision making. It
refers to studying both internal as well as external
environment and analysing its impact on the business
opportunities. It also includes making prior judgements
about the risks and uncertainties that the business may
have to encounter in near future.
Hunger pointed out that Environmental scanning is the
monitoring, evaluating and disseminating of information from
the external and internal environments to key people within the
corporation. It is a tool that a corporation uses to avoid
strategic surprise and to ensure long –term health.
Azhar Kazmi, quoted in his book–“Business Policy and
Strategic Management” that –“The process by which
organizations monitor their relevant environment to identify
opportunities and threats defecting their business is known as
environmental scanning.”
The businesses function in an environment which is ever
changing as the environment is known to be dynamic; therefore
the scanning of the environment has to be a fast and regular
process.
The environmental scanning cannot be a onetime action in
a business; in fact it is constantly watching the external
environment and micro-scoping of internal
environment.Environmental Scanning provides a broader
perspective to the management and planning department
to formulate plans and strategies. In other words, it is the
process which helps organisations to observe the
environment in which they function in order to identify the
opportunities and threats impacting their business.
