The paper "Environmental Scanning and Corporate Strategies in the Company" is a great example of management coursework. Due to the myriads of exceptional challenges organizations are facing today in their effort at maintaining their business survival and success, organizations are increasingly finding it appropriate to have a strategic understanding of their external influences so that they can respond to such challenges in a way that ensures not just their survival but their success as well. It is also important to note that analyzing in strategic management, which is an extremely important factor of organization management, involves both self-appraisal, which is also known as strategic audit, and external appraisal, which also goes by the name environmental scanning (Papulova & Papulova 2006).
From this analysis, it is proper to look at environmental scanning as the monitoring, assessment and distribution of information from the internal and external environment to corporate strategists in the company. In today’ s business managers have to contend with changing and uncertain environments which mostly drives them to seek awareness of these changes in course of their strategy formulation. They also have to keep an eye on the changes in their competitive environment, not to mention the opportunities that they might use to exploit their abilities.
It is only from this knowledge that they can seek and adapt improvements in each area of the business together with building on their responsiveness and understanding of their present strategies and success (Albright 2004). Environmental scanning is one of the most effective tools at the disposal of an organization that it can use to gain an understanding of its external influences (Papulova & Papulova 2006).
In this regard, environmental scanning can be looked on as the acquirement and application of information on trends, relationships, events in the external environment, the knowledge of which helps the manager in planning the organization’ s future course of action. This information can also enable an organization in devising effective responses that enhance its position in future. To the extent that the ability of an organization to adjust to its outside environment depend solely on knowing and understanding the external changes that are taking place, environmental scanning comprises of a primary method of organizational learning (Carral & Kajanto 2008). A number of researches have been conducted to investigate the relationship between various environmental conditions and the usage of various forms of information sources by management in devising a competitive strategy all of which have suggested that environmental conditions have an effect on the forms of sources that the management uses in choosing a competitive strategy (Parker 2008).
These studies also suggested that the types of information that the management utilizes vary according to the organization’ s competitive strategies. This, therefore, implies that the strategy can not only determine the scanning behavior but can be affected by the scanning behavior as well. The scan normally describes how demographic, economic, political, legal, cultural, technological and economic trend affect the organization.
In this regard, environmental scanning is the first step in the process of connecting strategy and environment. It is therefore appropriate for managers to look at environmental scanning as a very important factor in the formulation of policy and its implementation, and specifically, in the effective alignment of environmental requirements with competitive strategies and the realization of exceptional performance in organizations (Karami 2008).