This article explains how environmental scanning is used to position the company in the market.There is a connection between environmental scanning and organizational culture. According to the article, various sources are used to provide information for scanning. In carrying out environmental scanning, issues such as political, economical, social, technological, legal competition are taken into consideration in scanning internal and external environment. In getting this information the article states that various sources of information are utilized to enable environmental scanning (Saxby, Parker, Nitse and Dishman, 2002, p. 28).
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Internal scanning considers efficiency and financial health of the organization; SWOT analysis and other activities of the organization that measure economic efficiency. Internal environment enables the company to set the goals, come up with a vision and prepare an internal plan. It analyses mostly consider the leadership styles that are practiced by the company, the organizational policies and procedures and how the operations of the company are managed. While external environment aims to position the company in the market by analyzing competition, products and market share. This ensures that there is an understanding of the competitiveness of the market on how to do product differentiation, how to improve production in order to improve competitiveness in the market (Saxby et al, 2002, p. 28-29).
In formulating strategies that are used by the organization various internal and external factors are taken into consideration which includes functional competitive and corporate factors. Functional factors consider business objectives of maximizing resource productivity. At this point the company’s competency is taken into consideration. Corporate factors give a direction which the organization will take. This consider and summarizes economic social cultural demographic environmental, political technological, governmental and competitiveness factors. And this enables the organization identify and evaluate organizational characteristics such as resources capabilities and competencies (Saxby et al, 2002, p. 31).
Saxby C. L., Parker K. R., Nitse P.S. Ampersand Dishman P.L. (2002). Environmental scanning and organizational culture. Marketing Intelligence and planning: MCB UP Limited. Web.