1. How will you define environmental scanning?

Explain why conducting environmental scanning is

important.

Environmental scanning can be defined as the collection of information regarding internal and
external factors affecting a company. It is important for a company to perform environmental scanning to
identify the opportunities, threats, and trends in the industry. By identifying these variables, the company
will be able to formulate new strategies or modify existing ones to be prepared in the volatile business
environment. As such, an organization must be agile in responding to environmental challenges while
making most of the available opportunities.

2. What is SWOT Matrix Analysis? Explain its relevance to organizations.

SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. Hence, SWOT
analysis is a strategic planning tool that organizations use to assess internal and external factors that
impact their businesses.

SWOT analysis can be of great help to organizations as it serves as a guide to decision-making.

Moreover, since it assesses the strengths, weaknesses, opportunities, and threats in a company, it helps the
organization to identify the strengths that need to be maximized, weaknesses that need to be improved,
opportunities that need to be taken advantage of, and threats that they need to avoid. Therefore, SWOT
analysis allows a company to not only determine how well it is operating at the moment, but also allows
them to plan and strategize against future market changes.

3. What is the external environment? What are the forces interplaying in the external environment?

The external environment are factors that exist outside of a company’s internal environment that
can affect a company’s operations. It changes constantly in ways beyond the company’s control but can
be tracked and minimized. These are variables that an organization may react or respond to in order to
sustain its organization flow. These forces include technological, economic, sociocultural, political and
legal, and global influences.