Environmental scanning is the process of gathering, analyzing, and sharing information about a company's external environment for strategic purposes. There are three types of environmental scanning: ad-hoc scanning for crises, regular scheduled scanning, and continuous scanning. Environmental scanning examines both the macro environment including political, economic, social, and technological factors (PEST analysis), as well as the micro environment including competitors, customers, and a company's internal environment. Environmental scanning helps managers predict future market conditions to make strategic decisions.

1. Environmental scanning Environmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering

2. Kinds of environmental scanning Ad-hoc scanning - Short term, infrequent examinations usually initiated by a crisis Regular scanning - Studies done on a regular schedule (e.g. once a year) Continuous scanning (also called continuous learning) - continuous structured data collection and processing on a broad range of environmental factors

3. Environmental scanning usually refers just to the macro environment, but it can also include industry, competitor analysis, marketing research (consumer analysis), new product development (product innovations) or the company's internal environment.

4. Environmental scanning External analysis Internal analysis Macro environment Micro environment PEST analysis Five force analysis

5. A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors: Political Economic Social Technological The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macro environmental factors.

7. employment laws

8. environmental regulations

9. trade restrictions and tariffs

11. interest rates

12. exchange rates

14. population growth rate

15. age distribution

17. Automation

18. technology incentives

20. Why ????????? Macro environmental and industry scanning are useful as they reveal current conditions of market.it help managers to predict the future characteristics of the organizational environment and hence make decisions today that will help the firm deal with the environment of tomorrow

21. Thank You Presented by: Rajesh Kumar