Environmental Scanning

Environmental scanning is a process that systematically surveys and interprets relevant data to
identify external opportunities and threats. An organization gathers information about the external
world, its competitors and itself. The company should then respond to the information gathered by
changing its strategies and plans when the need arises.

Process of Environmental Scanning

The environmental scanning process encompasses several steps.
❖ Internal Scanning
The first step is to conduct an internal scan of the organization. Examine the company's strengths
and weaknesses. Consider where the company is now and where it plans to be in five or 10 years.
Interview or survey the leaders of the company.
❖ External Scanning
● External World
The next step for an employer is to gather information about the world in which it operates,
including information about the economy, government, laws and demographic factors such as
population size and distribution.
Sometimes an organization also might decide to gather information from community service and
religious groups and interview the leaders of the groups or use surveys. This might help a company
decide, for example, whether it should try to work with the other organizations and what activities to
pursue. The company then might decide to plan joint activities that will meet the needs of both groups or
to encourage employees to get involved in community activities, such as building a house for Habitat for
Humanity or serving food to the homeless at the local shelter.
● Competitors
Next, the organization should focus on its competitors. The company should examine the
research for trends, opportunities and threats that might impact its business.
❖ Collection and Assessment of Data
When conducting an environmental scan, a variety of methods should be used to collect data,
including publications, focus groups, leaders inside and outside the organization, media, civic
associations and the library.
❖ Decision
After the data is collected, the final step is to analyze the data and identify changes that can be
made.