Environment Scanning

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Environment scanning attempts to provide management with accurate forecasts of trends that relate to external changes in geographic areas where the firm is currently doing business or considering setting up operations. These changes relate to environmental factors that can affect the company and include the industry or market, technology, regulatory, economic, social, and political aspects. In this case, a Canadian manufacturing firm wants to do business in Poland and do the environment scanning. The environment scanning process:

Economic: Poland is the central location to other European countries provides MNCs with easy access to competitive markets nearby. Poland has low labor costs and almost 15% of the people are still unemployed. Poland has a vast modern transportation system. Industry or market: Poland is the central location to other European countries provides MNCs with easy access to competitive markets nearby. There likely will be little competition for the next couple of years. Political: Poland has an investment-friendly climate.

As the postcommunist countries continue to struggle in their transition to a market economy, they will have to increase their productivity if they hope to compete with Western European nations. Regulatory: In early 2002, the Poland government announced a new set of economic reforms designed in many ways to complete the process launched in 1990. The government also attempts to bring in new companies by offering grants or tax exemptions. Social: In Poland, the highly educated populous includes a great deal of individuals who are multilingual and are extremely hard working. Technology: R&D projects are already in process in Poland including institutions such as Siemens, Avio, IBM, Intel, Motorola, GlaxoSmithKline, and more.

From the environment scanning process, the firm can obtain the information and then go through an analysis in order to know and face the external environment that...
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