Summary and Extensions

Question 1

Define “(external) environmental scanning.”

Answer 1

Environmental scanning is the assessment of the macroenvironment in which an entity operates (or may operate) and the industry within that macroenvironment. Thus, environmental scanning includes consideration and analysis of the economic system, economic market, and industry in which an entity operates.

Question 2

What are the major characteristics appropriate for an entity’s goals?

Answer 2

An entity’s goals should be SMART:

1. Specific
2. Measurable
3. Attainable
4. Relevant
5. Time-bound

Question 3

What are appropriate components associated with the evaluation and control element in a strategic planning context?

Answer 3

• Determine what characteristics (attributes) to evaluate and measure.
• Decide acceptable values (standards) for measurable characteristics.
• Measure targeted characteristics.
• Compare measurements with established acceptable values.
• Implement changes needed to correct variances.