The managers at Alpha Corp. are closely observing trends in the industry. They are trying to identify factors that might have a significant influence on Alpha's business operations. Which of the following concepts is illustrated in the scenario?

Question

Meadow Freeman

Business

16 May, 14:37

The managers at Alpha Corp. are closely observing trends in the industry. They are trying to identify factors that might have a significant influence on Alpha's business operations. Which of the following concepts is illustrated in the scenario?

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Answers (1)

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Leah Montgomery · Answer 1

Environmental scanning

Explanation:

Environmental scanning is when information is being gathered about external forces inorder to know the factors that have impacts on a business. It is also the gathering of information on situations which allows a business create and build good customer relationship.

Business environments are dynamic and could have impacts on the success of a firm hence requires business scanning inorder to align with the trend. One the purpose of environmental scanning is to provide future business directions to an organization and also assist in analyzing the strength, weakness, opportunities and threats to an organization.

Factors that might have significant influence on business operation includes but not limited to social and demographic factors, how competitors are reacting, technology, how well customers are reacting to the company's products, creditors, legal issues etc.