ENTREPRENEURSHIP

ENVIRONMENTAL
SCANNING
CATHERINE S. GUANZON
 Point of Discussion:
What is Environmental Scanning?
How to start Environmental Scanning?
What are the Components of Business
Environment?
What is the purpose of Environmental
Scanning?
What are the important Factors of
Environmental Scanning?
What is SWOT Analysis ?
 HOW TO START
ENVIRONMENTAL
SCANNING?
the organization
gathers/collects information
about events and their
relationships within an
organization's internal and
external environments.
 WHAT IS ENVIRONMENTAL
SCANNING?

Environmental scanning is
a process used by
organizations to monitor
their external and internal
environments.
 WHAT IS THE PURPOSE
OF ENVIRONMENTAL
SCANNING?

monitor internal and external environment

identify opportunities and threats affecting
the business
create a strategic business decision which
helps in maximizing the opportunities and
minimizing the threats.
Components of a Business
Environment
Environmental Factors:
THE SWOT ANALYSIS
 THE S.W.O.T. Analysis
• Strength – are the aspects of an organization
that make it better than its competitors.
Areas you do well or advantages of the
organization
Ex: having one of the best technological
tools in the market. A thorough analysis
can help the company use it to improve its
business.
• Weakness – areas where the
organization needs to improve to
remain competitive in the industry.
Areas to be improved
Ex: high debts, lack of capital,
inadequate supply chain, etc.
• Opportunity – are external factors that
can help an organization in gaining
competitive advantage.
External factors that may contribute to
your organization and can build up your
strengths
Ex: if a country changes its import laws,
then a car exporter can increase his sales
by taking advantage of this opportunity.
• Threat – Potential problems/risks caused
by external factors that your organization
may face.
Ex: a drought is a threat to a crop-
producing company as it can destroy the
crop. a drought is a threat to a crop-
producing company as it can destroy the
crop.
 What are the Important Factors
for Environmental Scanning?

1) Events – These are specific

occurrences which take place in different
environmental sectors of a business. These
are important for the functioning and/or
success of the business. Events can occur
either in the internal or the external
environment. Organizations can observe
and track them.
2) Trends – As the name suggests, trends
are general courses of action or tendencies
along which the events occur. They are
groups of similar or related events which
tend to move in a specific direction. Further,
trends can be positive or negative. By
observing trends, an organization can
identify any change in the strength or
frequency of the events suggesting a
change in the respective area.
3) Issues – In wake of the events and
trends, some concerns can arise. These are
Issues. Organizations try to identify
emerging issues so that they can take
corrective measures to nip them in the bud.
However, identifying emerging issues is a
difficult task. Usually, emerging issues start
with a shift in values or change in which the
concern is viewed.
4) Expectations – Some
interested groups have
demands based on their
concern for issues. These
demands are Expectations.
 References:
• https://www.toppr.com/guides/commercial-
knowledge/business-
environment/environmental-scanning/