Scanning is acquiring information.It is gathering intelligence.Environmental scanning involves obtaining information from the environment to detect emerging trends and create scenarios.It monitors and interprets changes already underway.It forecasts identify opportunities that have potential impact.It is used to identify opportunities and threats to formulate strategy.
- According to Azhar Kazmi :The process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business is known as environmental scanning.
- Changes in Micro environment :They consisting of politicalegal,economic,social cultural,and technological process.
- Structure of the market :They can be competition,monopoly,monopolistic competition.
- Nature of competition :Strengths and weakness of competitors;leaders,followers,and nicher type competitors.
- Customers :The needs and behaviors of customers groups.
- Products mix :Differentiation,positioning,threat of invasion from imitation and substitute products.
The outcome of environmental scanning is creation of scenarios.They can be :
- Most probable scenarios
- Most favourable scenarios
- Least favourable scenarios
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