Question

When looking at it from a strategic management point of view, how should a small entrepreneurial company engage in environmental scanning? To what aspects of the environment should management pay the most attention?

Answer 1

For a small organization, it is important to continuously monitor its environment by following the a reasonable simple process, informal in nature and less of documentation. The small business tend to be local in nature and with respect to its orientation, it is important for the managers to continuously keep an eye on the local development to build competitive advantage. At the same time performing the SWOT analysis will help in getting to the know the potential opportunities and threats exists in the local markets and this will help in getting to know the product or business acceptance. Generally, top managers or founder should be performing the environmental scanning considering the internal and external factors. Therefore, it is important to choose a stability strategy so that more employment can be generated by the small company. For a new venture (especially for a small organization )the focus remains on the founder’s personal experience and expertise.