What is meant by 'Analysis of Environment'? State any four sources of collection of information for environmental scanning.

Question

Accepted Answer

Environment analysis is the process of monitoring the economic and non-economic environment to determine the opportunities and threats to an organisation. Such an analysis involves data collection, information processing and forecasting, which provide a rational basis for developing goals and strategies for business survival and growth. Four sources of collecting information for environmental scanning are: (i) verbal information from customers, wholesalers, retailers, distributors and consultants; (ii) records of companies; (iii) government publications; and (iv) publications by various financial institutions.