3. INTRODUCTION
• BUSINESS
According to Professor Davis, The term Business is defined as, “The organized
efforts by the individuals to produce goods and services, to sell these goods and
services in the market place, and to reap some rewards from their efforts”.
• ENVIRONMENT
According to Webster's dictionary, Environment refers to the surrounding
conditions, influence or forces that modify as the aggregate of social and cultural
conditions that influence the life of an individual or a community
4. BUSINESS ENVIRONMENT
According to Keith Devis
Business Environment is the aggregate of all the
conditions, events, and influences that surround and
affect it.
It refers to those aspects of the surroundings of the Business
enterprise which affect or influence its operations and determine
its effectiveness.
5. ENVIRONMENTAL SCANNING
• Environmental Scanning is the data collection practice.
• It is aimed at collecting information about an environment
such as an office or institution that can be used in planning,
development, and ongoing monitoring by managers and
supervisors.
6. Need to SCAN the Business
Environment
1
• Identification of Strengths
2
• Identification of Weakness
3
• Identification of Opportunities
4
• Identification of Threats
5
• Optimum use of Resources
6
• Survival and Growth
7
• To plan long term Business Strategy
8
• Environmental Scanning aids Decision Making
8. SWOT Analysis
HELPFUL
To achieving the
objectives
INTERNAL
(attributes of the Organization)
EXTERNAL
(Attributes of the Environment)
HARMFUL
To achieving the
objectives
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
10. INDUSTRY ANALYSIS
It is a market assessment tool designed to provide a
business with an Idea of the Complexity of a particular
Industry.
It involves reviewing the economic, political and market
factors that influence the way the Industry develops.
11. QUEST
The Quick Environmental Scanning Technique, is a scanning
procedure design to assist, executers and planners to keep side
by side of change and its implications for the organizational
strategies and plans.
QUEST produces a broad and comparative analysis of the
external environment.
12. COMPETITOR ANALYSIS
According to the Michael. E. Porter
The state of Competition in an Industry depends on five
basic competitive forces, these are
• Rivalry among existing firms
• Threat of new entrants
• Threats of substitute
• Bargaining power of Suppliers
• Bargaining power of Buyers
13. CONCLUSION
In rapidly changing environment, one
rule of thumb applies: if you don’t adapt,
you don’t endure. That’s the core idea
behind Environmental Scanning.
