External Environment Scanning Techniques

Presented by
Group II
 Environment
Environment means the surroundings, external objects, influences
or circumstances under which someone or something exists.
The environment of any organization is “the aggregate of all
conditions, events, influences that surrounds and affect it.”

Business environment is the set of conditions- economic, social, political or

institutional in which business operations are conducted.
 Environment scanning
The process by which organizations monitor their relevant
environment to identify opportunities and threats affecting their
business for the purpose of taking strategic decisions.

Characteristics of environment
1. It is complex
2. It is dynamic
3. It is multi-faceted
4. It has a far reaching impact
 Types of environment

Internal External

Micro Macro
1.Value system
2.Mission & objectives
3.Company image & brand
equity
4.Human resources Suppliers Economic
5.Other factors – physical Customers Political
assets , R & D capabilities, Competitors Demographic
finance factors Intermediaries Social
Technological