How can environmental scanning help the organization in survival?
Answers
Answer:
Environmental Scanning
- SWOT Analysis
- Best Use of Resources
- Survival and Growth of the Business
- Planning for Long Term
- Helps in Decision Making
Explanation:
Environmental Scanning
1] SWOT Analysis
As we saw previously in the environmental scanning meaning, it is a complex process. The close study of the internal and external environment of an organization will reveal some very valuable information, i.e. the strengths, weaknesses, opportunities, and threats of a company. Let us take a brief look.
Strength: After analysis of the internal environment of a company, we will be able to identify the strengths that give the company a competitive advantage. The entrepreneur can use this information to maximise these strengths and earn more profits.
Weakness: Study of the internal environment also point out the weaknesses of the company. For the growth and stability of the company, these identified weaknesses must be corrected without delay.
Opportunity: Analysis of the external environment helps with the identification of possible opportunities. The entrepreneur can prepare to capitalize on these.
Threats: Analysis of the external environment will also help in the identification of any business threats from competitors or any other factors. The company can come up with a strategy to diffuse such threats or minimize its impact.
2] Best Use of Resources
Environmental scanning helps us conduct a thorough analysis and hence leads to the optimum utilization of resources for the business.
Whether it is capital resources, human resources or other factors of production, their best use and utilization is very important for any business.
Environmental scanning will help us avoid any wastages and allow for the most effective and economical use of these resources.
3] Survival and Growth of the Business
It is a very competitive world and for any business to survive and thrive it is a difficult task. But if the business employs all the techniques of environmental scanning it can gain a significant advantage.
It will allow the firm to prepare for future threats and opportunities while at the same time eliminating their weaknesses and improving on their strengths.
4] Planning for Long Term
A business must have a plan for both short term and long term. The planning of long-term objectives can only occur after proper analysis and environmental scanning meaning. This will help the entrepreneur plan the necessary business strategy.
5] Helps in Decision Making
Decision making is the choice of the best alternative done by management. Environmental scanning allows the firm to make the best decision keeping in mind the success and growth of the business. They point out all the threats and weaknesses. And they also identify the strengths of the firm.