Chapter 1- Business Environments Flashcards
What is the definition of Environmental Scanning?
Process of gathering information about current and future events.
This process is essential for businesses to stay informed about their operating environment.
What is the primary purpose of Environmental Scanning?
To assess potential impacts on business performance.
Understanding these impacts aids in strategic planning.
How does Environmental Scanning help businesses?
Helps businesses adapt to changes in both internal and external environments.
Adaptation is crucial for long-term success.
What are the aims of Environmental Scanning?
To realign resources to capitalize on opportunities and mitigate threats.
This realignment is necessary for competitive advantage.
What does Environmental Scanning identify?
Challenges and opportunities in a constantly changing environment.
This identification is vital for proactive management.
Why is understanding external changes important in Environmental Scanning?
It helps understand both the nature and pace of external changes.
Knowledge of these changes informs strategic decision-making.
What are crises in the context of Environmental Scanning?
Quick, unexpected changes with no contingency plan in place.
Organizations must be prepared to respond rapidly to such crises.
What are trends in the context of Environmental Scanning?
Gradual changes that allow businesses to adapt strategies in advance.
Recognizing trends helps in long-term planning.
How does management use Environmental Scanning?
Uses scanning to develop flexible strategies to handle crises and opportunities.
Flexibility in strategy is key for resilience.
What does Environmental Scanning help assess?
The impact of decisions on competitive position and business sustainability.
This assessment is critical for maintaining market relevance.
