The paper "Environmental Scanning in Business" is a good example of management coursework. Environmental scanning is without a doubt one of the major factors to be considered when it comes to the analysis of the global environment (Davis, 2008). Some of the other elements that complete global analysis are environmental forecasting, assessment and monitoring. By way of definition, environmental scanning refers to a macro environment that comprises of companies, competitors, clients, and industries among others. The competitors, customers and suppliers are often analyzed and represented within an analysis of the industry.
Additionally, as explained by Kroon (1995), Environmental scanning can also be defined as the interpretation and study of social, economic, technological and political activities which influence an industry, market or business. Nevertheless, there are factors which need to be considered when it comes to the scanning of the environment. For instance, issues, events, trends and expectations of a variety of groups who are interested. Either way, this trend would break from technological know-how or a shift in a certain society to what might become permanent. Therefore, issues which are seen to be deep-seated are said to be short-lived by a social occurrence. There are three modes of scanning in an environment, one being systematic scanning where information that is concerned with customers and markets, changes in regulation, legislation which is said to have an impact on group activities as well as the concerned policy of the government.
Secondly, there is Ad-hoc scanning where unique studies and surveys are conducted to deal with issues of the environment from time to time. The third and last is the form of scanning that is processed whereby individuals use information that is retrieved from different outside and inside sources within an organization.
Environmental scanning is the use and acquisition of information about relationships and events, particularly in the external environment of an organization, Chien and Moutinho (2007) argue that this information or knowledge helps an institution in planning ahead of its next action line. Nonetheless, institutions scan the environment so that they can get to know the kind of external forces of transforms in order to improve or come up with an effective response to improve or secure their future position. Additionally, organizations scan the environment so that they can avoid unplanned for surprises, as well as to identify opportunities and threats so as to have an advantage in competition and improve short-term and long-term planning.
Since an organizations capability to adapt to the outside environment depends on interpreting and knowing the exterior changes which take place, environmental scanning is effectively the primary method that an organization uses to learn. It also includes viewing and searching for information which ranges from a simple conversation to a formal exercise of planning.
Some of the factors which influence the scanning behavior are external factors like resource dependency and environmental turmoil. In addition, other factors that weigh in include the kind of business an organization carries out; the strategy used by an organization; the quality and availability of knowledge as well as personal factors such as the cognitive and scanner’ s knowledge.