Question

Explain the importance of conducting an environmental scan. Also include a discussion of the forces of an environmental scan.

Answer 1

The importance of conducting an environmental scan is to understand the relationship between the company's internal and external environments. The process of environmental scanning is to gather information about the environment and analyze it and forecast the changes that it can get to the environment. So, once the identifictaion is complete it can helps understand the opportunities and threats to an organization, thus develop the future path of an organization.

The forces of an environmental scan is :

• Internal forces
• External forces

Internal forces: is the study of the internal environment of the organization, like the employee interaction with the management, the employee to employye interaction , the manager to manager interaction.

The external forces : are the industry environment, macro econimic forces like the technological forces, international factors, the legal and social factors and the broader economic and social environment. This analysis reveals the threats and opportunities.