Question

Business environment of environment scanning helps in the identification of their threats and early warning signals explain

Answer 1

Environmental scanning helps an enterprise to recognise qualitative information in advance, which can be used to prepare it for facing likely challenges, e.g. if any new multinational company is entering the Indian market, the manager of an Indian firm dealing with same product, as that of the multinational company, should take it as a warning signal. He should take measures like improving the quality of his product, heavy advertisement etc to face the challenge.

Answer 2

Explanation of Business environment of environment scanning helps in the identification of their threats and early warning signals is as follows:

• Information about internal and external environments of an organisation, is gathered by environment scanning.
• To case of identification of future threats and opportunities, this also carefully monitors the environments.
• By identifying these threats, they can minimize the threats and maximize the opportunity.
• Environment scanning is very much helpful for making informed discussion.