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Environmental Scanning & Porter's Five Forces in Business

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Environmental Scanning & Porter's Five Forces in Business

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Individual Assignment

Question 1
Word Limit : 1000 words
In about 1000 words, highlight importance of conducting environmental scanning for a business organization.

Question 2
Word Limit : 1000 words
Conduct a detailed SWOT and Five Forces analysis for a business organization that you are familiar with in about 1000 words.

Importance of Conducting Environmental Scanning for a Business Organization

The success of certain organizations depend on the environment in which it's operations are conducted in. The success of the organization then depends on the dependency of the environmental factors which affect the organization.

Environmental scanning also involves the acquisition of information of the external environment which affects the organization, enabling futuristic planning and strategies to be implemented or devised to secure the organization's success and stability of their position in the market.

For companies intending to expand operations, environmental scanning is also imperative as this process also analyzes the macro-environmental factors which include ;

• Political - tax policies, labor law, environmental law, trade regulations, tariffs and political stability, unemployment policy. It is the extent of how much a government intervenes with the company.

• Economic - customer liquidations, economic growth, interest rate, recession, exchange rates and inflation rates. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's operational costs and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy

• Social - educational levels, income levels, cultural aspects, health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect...

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