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What is Environmental Scanning?

Environmental scanning is the vigilant monitoring and analysis of external factors that impact an organization. It encompasses studying trends, tracking competitors, and understanding market dynamics to make informed decisions. By staying ahead of the curve, businesses can adapt and thrive. How does your company stay responsive to the ever-changing landscape? Continue reading to discover strategies for effective environmental scanning.
Mary McMahon
Mary McMahon
Mary McMahon
Mary McMahon

Environmental scanning is a data collection practice. It is aimed at collecting information about an environment such as an office or institution that can be used in planning, development, and ongoing monitoring by managers and supervisors. Once data has been collected with scanning it can be processed and analyzed to create a brief to be used in decision making.

Some environmental scanning is performed on an ad-hoc basis, as needed. This scanning is done in response to a specific issue or concern such as the need to plan for a new product launch. Regular scanning is conducted on a regular basis; an example might be an annual review of a working environment conducted with surveys, observation, and other study methods. In continuous scanning, an environment is constantly being scanned and analyzed. While a continuous process is time consuming and costly, it allows for rapid adaptations to changing situations.

Environmental scanning is a data collection practice used in planning, development, and ongoing monitoring by company managers and supervisors.
Environmental scanning is a data collection practice used in planning, development, and ongoing monitoring by company managers and supervisors.

One reason to use environmental scanning is in preparation for a major change such as a new facility, a big shift in policy, or a product launch. Scanning and gathering data before entering the planning stage is a useful tool to help identify weaknesses, opportunities, threats, and strengths. These can be built upon in the planning stage to create a strong and effective plan to address issues identified during environmental scanning. Failure to collect information before starting plans can result in costly mistakes and missed opportunities.

Companies that use environmental scanning can move quickly when they identify a problem or an opportunity. This includes everything from a product release by a competitor that might threaten a company's market share to a security issue in an office. The data gathered in environmental scanning can be processed to develop an organized report to provide information to managers and other officers of the company who may be interested. Dispensing the information effectively is an important part of this practice, as data is useless if it never gets into the right hands.

Numerous tools can be used for environmental scanning. These include surveying employees to get information about working conditions, considering a workplace within a larger social and economic context, and evaluating company communications to determine what kinds of messages the company sends to the public. A third party may be called in to objectively evaluate or a company may scan internally. Using insiders can sometimes result in getting more information because insiders know where to look, but their bias can also affect the outcome of the scanning.

Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Learn more...
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a SmartCapitalMind researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Learn more...

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Discussion Comments

dbuckley212

Employing a strategic analysis of environmental assets and problems in a work situation can enable operations to be effectively improved on every level of a business. Your workers may well love you for it.

Tufenkian925

In seeking to improve an environment for maximum effectiveness, environmental scanning can be an essential process. This gets to the big picture of structure and direction, and helps to mold the process into what it should be. Getting a democratic view of the entire system enables the members therein to be maximally effective.

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    • Environmental scanning is a data collection practice used in planning, development, and ongoing monitoring by company managers and supervisors.
      By: Arto
      Environmental scanning is a data collection practice used in planning, development, and ongoing monitoring by company managers and supervisors.