Research Project

Topics: Strategic management, Management, Strategic planning Pages: 25 (5309 words) Published: February 12, 2013
Economic Insights – Trends and Challenges

No. 1/2012

24 - 34


Strategic Environmental Scanning and Organization
Performance in a Competitive Business Environment
Bayode O. Babatunde*, Adebola O. Adebisi**
* Department of Business Administration, College of Management and Social Sciences, Osun State University, P.M.B 2008, Okuku Campus , Osun State, Nigeria
** Department of Business Administration, Federal Polytechnic Ado -Ekiti, Ekiti State, Nigeria e-mail:

This work justified “the impacts of Strategic Environmental Scanning on Organization performance in a competitive business environment” by studying Nestle Nigeria Plc and Cadbury Nigeria Plc. The opinions of the selected respondents were sought by the use of structured questionnaire; the collected data were analyzed and interpreted with regression and coefficient of correlation method of analysis. Hypothesis one revealed that there is significant relationship between strategic environmental scanning and organization performance, the coefficient of determination (R2) is 0.297. It shows that 30% of the variation or change in effective organization performance is caused by variation in strategic environmental scanning. Hypothesis two also shows that the coefficient of determination (R2) is 0.301. It means that 30% of the variation or change in organization productivity is caused by variation in external environmental factors, which connotes that the external environmental forces have positive impact on organization performance. And as such, the use of strategic environmental scanning in evaluating the external environmental forces (opportunities and threats) helps in seizing the opportunities and avoiding threats and it leads to organization profitability. Hence, since the findings shows positive signal, the researcher recommends that, organization should strategically, periodically, and continuously involve in strategic environmental scanning and pay strong attention to the threats (so as to avoid) and opportunities (so as to seize) in the environment.

Key words: environmental scanning, business environment and regression analysis JEL Classification: M10, M30, M39

In today’s business environment, competition is order of the day. The International or global environment consists of all those factor that operate at the transactional, cross-cultural and across the border level which have an impact on the business of an organization.Before the complexity of environmental analysis started, traced back to post-second world war period, then it was characterized as essential political in nature with little in common with the interests of business and industry (Kazmi, 2008). The classification of the general environment into sectors after this period brings more light and exposes most of the business owner into real business

Strategic Environmental Scanning and Organization Performance in a Competitive Business …


environment. These then help most of organization to cope with it complexity, to compete the various difference factor that influence the operation of business in a particular area. A company’s marketing system must operate within the framework of forces which constitute the system’s environment, the major environmental forces are external variables which are not easily control or manipulate by the executives in a firm. (Adebisi 2006). Proper planning must put in place to ensure that the business environment is conducive enough and ready to put the organization to the best position in the market place. Any business that is not aware of its environment is bound to run into some crises that will definitely arise from the increasing complexity of the environment in which such business operates. The major objective of this study is to critically examine the effects of strategic environmental scanning on organization performance and to establish clear...
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