Business environment is the combination of internal and external factors that influence a company 's operating situation. The business environment can include factors such as clients and suppliers, its competition and owners, improvements in technology, laws and government activities and market, social and economic trends. Environmental forces of political, economic, social, and technological factors. These factors are outside the control of the business. The business can’t do much changes to the forces.
Continuous and methodical environmental scanning enables an organization to avoid surprises and gain competitive edge over its competitors through timely and effective decision-making.
Implications of Environmental Scanning
Environmental scanning is the acquisition and use of information about events, trends, and relationships in an organization 's external environment, the knowledge of which would assist management in planning the organization 's future course of action. Organizations scan the environment in order to understand the external forces of change so that they may develop effective responses which secure or improve their position in the future. They scan in order to avoid surprises, identify threats and opportunities, gain competitive advantage, and improve long-term and short-term planning. To the extent that an organization 's ability to adapt to its outside environment is dependent on knowing and interpreting the external changes that are taking place, environmental scanning constitutes a primary mode of organizational learning. Environmental scanning includes both looking at information and looking for information. It could range from a casual conversation at the lunch table or a chance observation of an angry customer, to a formal market research programme or a scenario planning exercise. It is important for an organization to scans and analyses the environment before starting any business. The internal environment forces
References: www.slideshare.net/.../macro-factors-affecting-business-environment www.valuebasedmanagement.net/methods_PEST_analysis.html Business Environment TR Jain, Mukesh Trehan, Ranju Trehanwww.oup.com/uk/orc/bin/9780199296378/01student/.../page_12.ht...www.oup.com/uk/orc/bin/9780199296378/01student/.../page_12.ht... www.oup.com/uk/orc/bin/9780199296378/01student/.../page_12.ht... www.oup.com/uk/orc/bin/9780199296378/01student/.../page_12.ht...