3 Questions
What is the process used by organizations to monitor their external and internal environments?
Environmental scanning
Which of the following is NOT an element of the internal environment of an organization?
Suppliers, retailers, competitors, environmental factors
What is the purpose of environmental scanning?
To identify the opportunities and threats affecting the business
Study Notes
Environmental Scanning
- Environmental scanning is the process used by organizations to monitor their external and internal environments.
Internal Environment Elements
- The internal environment of an organization includes elements such as company culture, employee attitudes, and organizational structure.
- The internal environment also includes management practices, availability of resources, and the organization's mission and objectives.
External Environment Elements
- The external environment includes elements such as customers, competitors, suppliers, government policies, social trends, and technological advancements.
Purpose of Environmental Scanning
- The purpose of environmental scanning is to identify opportunities and threats in the external environment and strengths and weaknesses in the internal environment.
- Environmental scanning helps organizations to respond to changes in the environment, make informed decisions, and gain a competitive advantage.
Test your knowledge on Applied Economics with this summative quiz! From understanding the internal and external factors that affect a company's performance to the importance of studying the business environment regularly, this quiz covers all the essential topics. Challenge yourself and see how much you know about the economic principles that shape the world around us. Perfect for Grade 12 students studying GAS.
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