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Environmental Scan Essay

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IntroductionEnvironmental scanning can be defined as an approach of obtaining information regarding external events that can be beneficial to organizations in the identification of prospective trends and construing them. In other words, it encompasses the analysis of factors that are external and beyond the control of the organization. More often than not, these trends usually comprise of five dissimilar sources, including the economic, social, technological, legal and competitive forces (Jain and Haley, 2011). This paper lays emphasis on the economic environmental aspect, specifically laying emphasis on the manner in which the current state of the economy will impact the completion of an environmental scan.

One of the key objectives of an environmental scan is to gain knowledge and insight that would be beneficial to top-level management in its endeavor of mapping out and outlining the future course of action of the organization. The prevailing state of the economy can have an impact in the completion of such an environmental scan. This is owing to the fact that the external economic setting is a determining factor as to whether individuals and the market in its entirety has money flowing for spending and also...

Imperatively, consumer confidence regarding the state of economy is powerful in producing consumer spending, and the apprehension of economic instability impels them to stick to their money rather than spending it. As a result, it becomes significantly difficult to conduct an environmental scan in ascertaining the direction of the business (Havaldar, 2005).
It is imperative for any organization to determine whether its industry as a whole is sensitive to the economy and the manner in which it is measured in the dissimilar industry life cycles. The changes in the current state of the economy might impact not only the market share of the company but also for the industry. In numerous instances, the changes in the economy might be significant for the business as they can impact an industry linked to the business. This is in the sense that the prices of products and services offered in one particular industry can be in direct association with the prices of the products and services in a different industry. For instance, businesses in the transportation industry would have to be wary to the changes in the economy in terms of the oil industry for the reason that a rise…

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