Factors of Environmental Scanning

Posts : 69 Join date : 2012-10-25

Following are the main factors of environment scanning.

1. Events

Past events of business environment is the main factor of environment scanning. For example, if Govt. has to control food prices, it has to scan every week prices of vegetables, fruits, milk and other food items. For more simplification of price rise, Govt. will calculate wholesale price index.

2. Trends

Not just to see the past events are effective but to establish the trends on the basis of events is also very important because this is important factor of business environment scanning. Suppose, you have to take decision relating to your vegetable prices, you have all the past market price data of same vegetable. Now, you will make a trend graph. If there is an increasing trend, you will fix your vegetable price according to this.

3. Issues

Issues are also important factor of business environment scanning. As a good businessman, you have to scan both cold and burning issues on daily basis. For example, I can tell you following business issue which I studied today newspaper.

a) European union wrote down a 50% of Greece's debts.

b) Sony Corp. buys Sony Erickson mobile phone joint venture for $ 1.45 billion.

c) Rajat Gupta is being charged for insider trading.

d) Bharti Airtel's urgent request failed.

4. PESTEL analysis

It means political , economical, social and technological analysis. We scan following updates in it.

Changes in Taxation Policy
Changes in Trade regulations
Changes in Governmental rules
Changes in Unemployment Policy etc.
Changes in Inflation rate
Changes in Growth in spending power
Changes in a pensionable age, suppose in Italy, pensionable age will be 67 years in 2026.
Technological changes
New or improved distribution channels
Improved communication and knowledge transfer etc.
moral factor
Laws on
Waste disposal
Energy consumption
Pollution monitoring etc.
Unemployment law
Health and safety
Product safety
Advertising regulations
Product labelling etc.