What role does environmental scanning play in strategic planning?
Practice Questions
1 question
Q1
What role does environmental scanning play in strategic planning?
It focuses solely on internal company data
It identifies potential risks and opportunities in the external environment
It is used to set financial goals
It determines employee performance metrics
Environmental scanning helps organizations identify external risks and opportunities that can impact their strategy.
Questions & Step-by-step Solutions
1 item
Q
Q: What role does environmental scanning play in strategic planning?
Solution: Environmental scanning helps organizations identify external risks and opportunities that can impact their strategy.
Steps: 5
Step 1: Understand what environmental scanning means. It is the process of looking at the outside world to find important information.
Step 2: Recognize that organizations need to know about changes in the environment, like new laws, market trends, or competitor actions.
Step 3: Identify that environmental scanning helps organizations spot risks, which are things that could harm them, and opportunities, which are things that could help them grow.
Step 4: Realize that by knowing these risks and opportunities, organizations can make better decisions about their future plans.
Step 5: Conclude that environmental scanning is a key part of strategic planning because it informs the organization about what to focus on to succeed.
