Business Envirnment Ans Pestle Analysis

Environmental scanning
Environmental scanning is one component of the global environmental analysis. Environmental monitoring, environmental forecasting and environmental assessment complete the global environmental analysis. Environmental scanning refers to the macro environment.The global environment refers to the macro environment which comprises industries, markets, companies, clients and competitors. Consequently, there exist corresponding analyses on the micro-level. Suppliers, customers and competitors representing the micro environment of a company are analyzed within the industry analysis.

Environmental scanning can be defined as ‘the study and interpretation of the political, economic, social and technological events and trends which influence a business, an industry or even a total market’. The factors which need to be considered for environmental scanning are events, trends, issues and expectations of the different interest groups. Issues are often forerunners of trend breaks. A trend break could be a value shift in society, a technological innovation that might be permanent or a paradigm change. Issues are less deep-seated and can be 'a temporary short-lived reaction to a social phenomenon. A trend can be defined as an ‘environmental phenomenon that has adopted a structural character’
Modes of scanning
There are three modes of scanning the business environment according to Kubr:
• Systematic scanning - Information related to markets and customers, changes in legislation, regulations having a direct impact on the organization's activities, government policy etc.are collected continuously by taking relevant factors into account
• Ad-hoc scanning - Conducting special surveys and studies to deal with environmental issues from time to time
• Processed-form scanning - Using information in a processed form available from different sources inside and outside the organization
Macro environment
There are a number of common approaches how...