Sample Economics Paper on Environmental Scanning

Environmental Scanning

Environmental scanning is the process of monitoring the internal and external factors affecting a business organization. It is done with the intention of making conclusions, which would guide the management of the business in decision making. During this activity, the enterprise collects information about the external world and competitors. With such information, business is in a position to act on it when there is a need to do so (Grummon, 2013). Various steps followed in environmental scanning. The first step is to collect data on the world within which it operates. Some of the information required at this stage is the state of the economy, government, demographic factors, and the legal structures in place to govern businesses.

An organization performing an environmental scan then considers the competitors to determine the prevailing trends, threats, and opportunities. These are factors that are likely to have an impact on the performance and sustenance of the business. The third step is an internal scan of the company, whereby the strengths and weaknesses of the company are analyzed (Grummon, 2013). Considerations made regarding where the company is at present and what is projected to be achieved. This information is best derived from the leaders of the company.

Environmental scanning is essential in the crafting of the strategic plans of a company. It helps the management of corporations to determine the position of the company with regards to performance and also in comparison with the competition. Environmental scanning also provides insights that can be used to modify the plans of an organization that reis underway. Finally, it plays an essential role in keeping the business organization relevant in the face of modern challenges.

 

 

Reference

Grummon, P. T. H. (2013). A primer on environmental scanning in higher education.Planning for Higher Education, 41(2), 69-74.