Environmental Scanning

Internal environment
Environmental scanning

is the process of gathering information about

events and their relationships within an
organization's internal and external environments.
Important Factors for Environmental
Scanning

• Events – These are specific occurrences which

take place in different environmental sectors of a
business.
• Trends – As the name suggests, trends are
general courses of action or tendencies along
which the events occur.
Issues- In a wake of the events and
trends, some concerns can arise
theseare issues.
Expectations- Some interested
groups have demands based on their
concern for issues.
INTERNAL ENVIRONMENT
FACTORS
Refer to anything within the
company and under the control of
the company no matter whether
they are tangible or intangible.
The internal environment offers strengths
and weaknesses to business

1.Strength – an inherent capacity of an

organization which helps it gain a strategic
advantage over its competitors.
2. Weakness – an inherent constraint or
limitation which creates a strategic
disadvantage for a business.
Components of a Business Environment
Factors Influencing Internal Environment
Factors Influencing Internal Environment
1.Value System: consists of all those components that are a part of regulatory
frameworks, such as culture, climate, work processes, management practices and
norms of the organization.
2. Vision, Mission and Objectives:
• Vision - describes company’s future position.
• Mission - defines the company’s business and the reason for its existence.
• Objectives - implies the ultimate aim of the company and the ways to reach
those ends.
3. Organizational Structure: delegation of the task, coordination, the
composition of the board of directors, level of professionalization, and supervision.
Factors Influencing Internal Environment
4. Corporate Culture: refers to the values, beliefs and behavior of the
organization that ascertains the way in which employees and management communicate
and manage the external affairs.
5. Quality of Human Resources: is the most valuable asset of the
organization, as the success or failure of an organization highly depends on the human
resources of the organization.
6. Labor Unions: Unions collectively bargain with top managers regarding wages,
working conditions of different categories of employees.
7. Physical Resources and Technological Capabilities: refers to the
tangible assets of the organization that play an important role in ascertaining the
competitive capability of the company.
THANK YOU!