Environmental Scanning. In any business organization, there is an internal and external environment. Environmental scanning meaning is the gathering of information from an organizations internal and external environments, and careful monitoring of these environments to identify future threats and opportunities.
Importance of business environment
First mover advantage: The study of Business environment enables us to know about the opportunities available. A company which is more conscious about the change taking place in the business environment is the first mover.
Warning signal: Along with the availability of opportunities provided by the study of business environment, we also come to know about the threats accompanying them.
Tapping useful resources: An organisation needs a number of resources to carry on its Business like raw material, machine, labour and money. With the help of this resources goods and services are produced. A business gets resources from the environment and provides goods and services to the same environment. A study of Business environment tells a business the requirements of the environment and what can it make available to get its need fulfilled.
Improvement in performance: In every business organisation the study of business environment has an important role as far as it's performance is concerned. Those organisation which keeps a constant eye on it and analyse it correctly definitely win the race and remain alive for a long time.
So the above points shows the importance of business environment there are lots of other benefits also which are not mentioned above which an organisation gets from environment scanning.